Title: Improving local outcomes in the public sector
1Improving local outcomesin the public sector
2Post Document Efficiency Review
- Background
- De-regulation of Postal market 1st January 2006.
- Opportunity for Local Gov. to make cashable
- savings with little or no people and process
change - Significant area of spend and savings immediately
- available following review
- Key deliverables
- Framework report on scope for postal savings in
- local government scaleable, district and
county. - Visibility of existing spending
- Assessment of options for efficiency savings
- Recommended procurement route
3Post the mail rooms problem
- Post is part of a communication value chain
- Links in with communication strategy, IT,
customer service, printing, stationery
procurement, business processes
Outbound Communications
Inbound Communications
Need for communications
Printing and mail production
Delivery to local delivery office
Customer communications
Choose communications method
Sorting by post code
Mail product choice
Generate electronic correspondence
Pick-up of mail from customer
Delivery to addressee
Undeliverable
Supplier passes mail through their sorting offices
Apply address data rules
Receipt and process
Choose mail or courier product
4Discovery
- Discovery Phase
- Complete questionnaire
- 4 weekly/12 months data
- Process review
- Data Analysis/clarification process
- Produce discovery report with calculation of
savings - Implementation Phase (Procurement)
- Conduct an extended tender through the OGC
framework
5Key Findings
- Management of 1st class post will be a high
priority for most Councils - Machine reading of post will be a big issue for a
number of Councils, over 25 will be a challenge
and 5 Councils are above 25 - Collectively your spend on post 5m per annum
- By changing supplier potentially save 978,398
per annum
6Recommendations for the North West
- Test the open market for alternative supplier to
Royal Mail - Offer either all of the Councils Mail or Phased
approach - The main service requirement is for Consolidated
downstream access - Use the OGC Buying Solutions Framework and
conduct an extended tender process
7Implementation Phase
- Following Competition
- Send final report and discuss through with
Council Officers - Conduct feedback session with councils, RCE North
West (As a group session) - Following Council Decision
- Introduce New Supplier
- Coordinate Implementation
- Issue OGC Buying Solutions Framework Agreement
Contracts to Councils with guidance notes - Organise sample testing of mail and site visit
- Organise post room staff training
- Following contract commencement
- Monitor Supplier
- Support post staff as required
8Procurement Process
- Tender dispatched
- DHL
- Lynx
- Mailing House
- Royal Mail
- TNT
- UK Mail
- Evaluation process Scoring Matrix
- Price
- Quality of service including site visits
- Identify preferred supplier
- Provide supplier recommendation reports
5/10/07 - Change supplier 15/10/07 30/03/2008
9Who returned tenders?
- 9 Companies are interested in working with the
public sector - 6 of which stated that they could provide
Consolidated Down Stream Access - Lynx Declined to tender, as this is not the
service they offer - Mail House Declined to return tender by the
deadline - DHL Declined to tender during the process due to
the current logistical problems with their depot
in Hounslow - Royal Mail Submitted a formal tender the first
in the UK to us - TNT Returned a Tender
- UK Mail Returned a tender
10The assessment team
- The Quality Assessment and site visits were
conducted by - J Goodwin Civica plc
- Terry Harrison Salford City Council
- The calculations were prepared by
- Phil Barker Civica plc
11Tender Evaluation
- Tender evaluated on price and quality of service
60 and 40 respectively - Site visits conducted on 18th September 2007
- TNT Post sortation Centre Ashton in Makerfield
- UK Mail sortation Centre Runcorn
- Royal Mail As incumbent supplier we did not
feel there was a requirement to conduct a site
visit - Both sites have modern efficient sortation
machines with capacity and resources to handle
the North West councils mail
12Tender Evaluation
- 19 areas for quality evaluation
- Service availability for letters and packets
- Ability to accept p-cards
- Ability to offer composite billing
- Prompt payment incentives
- Collection time window 15min /-
- Management support structure
- After sales support
- Risk reduction
- Etc
13Tender Evaluation
- Tender responses
- P-cards
- Royal Mail No do not accept
- UK Mail May accept in future
- TNT May accept in future
- Consolidated billing
- TNT are the only supplier who can offer this
invoicing service - Pricing update
- Prices will be held until the 31/03/08.
- Any price increases will reflect the Royal Mail
price increases usually made on the 1st April
each year - Early payment incentive
- UK Mail and TNT do offer 0.5 discount for
payment within 14days
14Post Document Initial Findings
15Service Offering
- Royal Mail
- 1st Class
- 2nd Class
- Recorded and Special Delivery etc
- UK Mail
- 2 day delivery - Merseyside area and Cheshire CC
only. Mail must be letters below 100g and machine
readable - 3 day delivery - All councils. Includes mail
above or below 100g and machine or non machine
readable
16Service Offering
- TNT Post
- 2 day delivery -All councils letters and large
letters below 100g and machine readable - 3 day delivery - All councils. Includes mail
above or below 100g and machine or non machine
readable - TNT UK Mail both offer department billing
- Each location must provide a minimum of 250 items
per day to qualify
17Supplier Pricing
- Royal Mail
- Have not reduced their prices from current
standard rates - UK Mail
- Have offered fixed prices for each of the 5
county areas with only Merseyside county area and
Cheshire CC receiving a 2 day service - TNT Post
- Have offered a 2 day delivery for all councils
irrespective of County area - Have offered prices for individual county areas
- Have offered a combined discounted rate should 12
or more councils switch to them by 1st April
2008. Councils will pay standard rate until the
12 council limit is reached then new prices will
take effect and rebates will be paid back to
councils from the contract start dates
18Post Document Initial Findings
19(No Transcript)
20The Next Steps
- Send final reports by 5th October 2007
- Council to make decision
- Councils Inform Civica of decision
- Civica will organise
- TNT meeting
- Send a draft post policy and implementation
information - Issue OGC Buying Solutions Framework Agreement
Contracts to Councils with guidance notes - Organise sample testing of mail as required
- Site visit for group (Please email Neil)
- Organise post room staff training
21Questions and Feedback
22Our expertise is Public Knowledgepbarker_at_civica.
co.ukPhil Barker 07800 610447www.civica.co.u
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