Improving local outcomes in the public sector

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Improving local outcomes in the public sector

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... Post sortation Centre Ashton in Makerfield. UK Mail sortation Centre ... Both sites have modern efficient sortation machines with capacity and resources ... – PowerPoint PPT presentation

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Title: Improving local outcomes in the public sector


1
Improving local outcomesin the public sector
2
Post 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

3
Post 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
4
Discovery
  • 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

5
Key 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

6
Recommendations 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

7
Implementation 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

8
Procurement 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

9
Who 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

10
The 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

11
Tender 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

12
Tender 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

13
Tender 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

14
Post Document Initial Findings
15
Service 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

16
Service 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


17
Supplier 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

18
Post Document Initial Findings

19
(No Transcript)
20
The 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

21
Questions and Feedback
  • Questions ?

22
Our expertise is Public Knowledgepbarker_at_civica.
co.ukPhil Barker 07800 610447www.civica.co.u
k
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