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• COLIN M CRAM FCIPS• Marc1 Ltd
• Tel: 01457 239894• Mob: 0752541 49611
SMART PROCUREMENTHOW TO ENSURE YOUR CEO GETS A
GOOD NIGHT’S SLEEP
eProcurement?Social Media?Superb IT system?Contract Ts and CsSmart Procedures?
WHAT IS SMART PROCUREMENT?
SavingQuality serviceSocial valueConsolidation, supplierManaging riskLocal employmentPartneringComplianceEngaging with stakeholders
WHAT ARE YOUR PROCUREMENT OBJECTIVES?
Provide social housingWell managed Surplus or profitSustainable communityImprove life skills and opportunities EfficiencyLocal offerPartnershipManage and control of income
WHAT ARE YOUR BUSINESSES’ CORPORATE OBJECTIVES?
1. Settle at Home2. Provide Customers with Live Well Services23. Active Asset Management4. Growth: Development of High Quality Homes5. Sustainable Business, providing vfm to customers6. Maximising profitability to free up resources for investment in Strategic Objectives
CORPORATE OBJECTIVES OFSOUTH YORKSHIRE HOUSING ASSOCIATION
Budget savingsSpecificationsServicesIdentify opportunitiesFinancial risksDowngraded- compliance breachPolicy changesQuality of work Delivering projects on timeLoss of independence – takeoverWinning bids against competitionProfitabilitySatisfied customers
WHAT KEEPS YOUR CHIEF EXECUTIVE AWAKE?
POSSIBLY AS FOLLOWS, BUT HAVE YOU ASKED?1. Loss of Independence/Takeover2. Major Projects – Time3. Major Projects within Budget4. Winning Bids against Competition from other Housing Associations5. Profitability6. Satisfied Customers
© C M Cram FCIPS
WHAT KEEPS YOUR CHIEF EXECUTIVE AWAKE?
Ensurin
g you
r CX Sleeps Well
Procurement Objectives
Enablers
Underpins
© C M Cram FCIPS
SMART PROCUREMENT
Your Procurement Objectives?
Support Delivery of Major Programmes of Work
Support Competition Beating VFM
Market Management
Consistent and Quality Specs
Quality Contracts that Deliver what is Required
Reputation for Fairness to Suppliers
Responsive and Quality Service to Internal and External Customers, with Products when Needed
Probity and Transparency
Social Objectives
Reputation
Legal
© C M Cram FCIPS
Procurement Enablers?
Clear specsSpendStrategyProcedures & processesContract register to plan aheadStakeholdersAdvanced procurement techniquesNegotiation, leverage – savingsMarket intelligenceGood supplier base
© C M Cram FCIPS
Procurement Enablers?
Advanced Procurement Techniques
Negotiation, Leverage - Savings
Specialist ExpertiseProduct StandardisationMarket IntelligenceMarket Management High Quality ContractingHigh Quality Contracts ManagementGood Supplier BaseGood and Consistent Supplier ManagementFirst Class Category ManagementGood and Practical SystemsFirst Class and Consistent Common Procedures/ProcessesComprehensive Understanding of Procurement SpendFirst Class Performance IndicatorsConsistent Legal Interpretations
© C M Cram FCIPS
Capable Procurement OrganisationSustainable Procurement OrganisationTrusted Procurement OrganisationGood Quality SystemsManagement Information
© C M Cram FCIPS
UNDERPINNED BY
SMART PROCUREMENT ORGANISATION CHARACTERISTICS
• Authority• Capable• Independent • Reputation and respect• High morale • Objectives in-line with those of the company
© C M Cram FCIPS
SMART PROCUREMENT ORGANISATION CHARACTERISTICS
• Authority• Capable• Independent• Reputation and Respect: Within the company and with markets and suppliers• High Morale – Self Belief, Mutually Supportive, High Expectations• Objectives in Line with those of the Company• Performance Management• Quality, Practical Systems• Comprehensive Understanding of Procurement Spend• Market Intelligence• Involvement in Key Commercial Decisions
© C M Cram FCIPS
SMART PROCUREMENT ORGANISATION: CAPABILITY
• Critical mass• Sufficiently resourced• Sustainable• Knowledge transfer
© C M Cram FCIPS
SMART PROCUREMENT ORGANISATION: CAPABILITY• Critical Mass
– Sufficiently Resourced– Sustainable– Knowledge transfer– Learning Environment
• Expertise– Category– Markets and Competitors– Contracting– Contract Management– Procurement– Projects and Project Management– First Class Procurement Techniques:
• Taking Cost out of Supply Chain• Value Analysis • Market Management• E-auctions• Other up to date techniques e.g. ‘twitter’ © C M Cram FCIPS
• 1700 Registered Housing Associations• Combined Purchase Spend of £13billion• Collaboration/Maximising Joint Purchasing Power is Weak
– e.g. Procurement for Housing, just over 1% of market• Cost to build: £150,000• Cost to build for private sector, £90,000• Underperforming? 46,000 affordable homes in 2014/15
© C M Cram FCIPS
HOW DOES THE HOUSING ASSOCIATION BUSINESS SHAPE UP?
Procurement Objectives Devolved Limited Category
Collab
Comprehensive Category Collaboration
Integrated Regional
Joint Proc/ Contracting
Integrated NationalJoint Procurement and
Contracting
Support Delivery of Major Programmes of Work
Support Competition Beating VFM
Market Management
Consistent and Quality Specs
Quality Contracts that Deliver what is Required
Reputation for Fairness to Suppliers
Responsive and Quality Service to Internal and External Customers, with Products when NeededProbity and Transparency
Social Objectives
Reputation
Legal
TOTAL
© C M Cram FCIPS
Procurement Enablers Devolved Limited Category
Collab
Comprehensive Category Collab
Integrated Regional Joint Proc/Contract
Integrated NationalJoint Procurement and
Contracting
Advanced Procurement Techniques
Negotiation/Leverage Savings
Specialist Expertise
Product Standardisation
Market Intelligence
Market Management
High Quality Contracting
High Quality Contracts Management
Good Supplier Base
Good and Consistent Supplier Management
First Class Category Management
Good and Practical Systems
First Class and Consistent Common Procedures/Processes
Comprehensive Understanding of Procurement Spend
First Class Performance Indicators
Consistent Legal Interpretations
TOTAL © C M Cram FCIPS
MANY THANKSGREAT TO MEET YOU
VERY BEST WISHES FOR THE FUTURE
Colin M Cram FCIPSTel: +44(0)1457 239894Mob: +44(0)075251 [email protected]
