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Title: PowerPoint Presentation Best Practices in Procurement Education


1
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2
WELCOME
3
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4
CHAIRMANS OPENING ADDRESS
5
Strong Prosperous Procurement
24 May 2007
6
A Big Agenda!
  • Strong Prosperous Communities
  • Developing the Local Government Services Market
  • The Lyons Enquiry
  • Procuring the Future
  • A Better Service for Citizens
  • Transforming Government Procurement
  • CPA / CAA
  • CSR 07
  • Collaboration / Shared Services / LCE

7
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8
JOHN HAYES Director of Services, South, IDeA
9
Smarter commissioning - getting better outcomes
  • John Hayes
  • Director, Direct Sevices South
  • 24 May 2007

www.idea.gov.uk
10
Overview
  • Strategic commissioning model
  • Realising the benefits of third sector
    solutions

11
Commissioning
  • The cycle of assessing the needs of people in an
    area, designing and then securing an appropriate
    service.
  • Source Partnership in Public Services An
    action plan for third sector involvement, Cabinet
    Office-Office of the Third Sector

12
Strategic commissioning model
Demand
Local Strategic Partnership Thematic
Partnerships


Supply
13
Strategic commissioning cycle
Needs
Resources
Review
Monitoring
Priorities
Users Communities
Implement
Options
Strategy
14
Third sector characteristics
  • Non-governmental
  • Value-driven primarily motivated by the desire
    to further social, environmental or cultural
    objectives
  • Principally reinvest surpluses to further their
    social, environmental or cultural objectives

15
Third sector solutions
  • Closeness to communities and individuals
  • Values
  • Trust
  • Responsiveness
  • Empowerment
  • Innovation
  • Commitment
  • Energy

16
Third sector solutions - examples
  • NCH Intensive Family Support Services
  • ECT Group
  • Greenwich Leisure
  • Sandwell Community Caring Trust
  • Hackney Community Transport

17
Smarter commissioning principles 1
  • Develop an understanding of the needs of users
    and other communities by ensuring that, alongside
    other consultees, they engage with third sector
    organisations as advocates to access their
    specialist knowledge.
  • Consult potential provider organisations,
    including those from the third sector and local
    experts, well in advance of commissioning new
    services, working with them to set priority
    outcomes for that service.
  • Put outcomes for users at the heart of the
    strategic planning process.

18
Smarter commissioning principles 2
  • Map the fullest practicable range of providers
    with a view to understanding the contribution
    they could make to delivering those outcomes.
  • Consider investing in the capacity of the
    provider base, particularly those working with
    hard-to-reach groups.
  • Ensure contracting processes are transparent and
    fair, facilitating the involvement of the
    broadest range of suppliers, including
    considering sub-contracting and
    consortia-building where appropriate.

19
Smarter commissioning principles 3
  • Seek to ensure long-term contracts and risk
    sharing wherever appropriate as ways of achieving
    efficiency and effectiveness.
  • Seek feedback from service users, communities and
    providers in order to review the effectiveness of
    the commissioning process in meeting local needs.
  • Source Partnership in Public Services An
    action plan for third sector involvement, Cabinet
    Office Office of the Third Sector

20
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21
DAVID SMITH Department for Work and Pensions
22
David SmithCommercial DirectorDepartment for
Work and Pensions
23
  • Large department 125,000 staff (WTE 113,000) in
    UK, over 1500 locations
  • Programme expenditure over 115 billion running
    costs of up to 9 billion
  • What we do and how we do it affects everyone at
    some point in their lives

24
Is Procurement important?
25
Why are we here?
Delivery of best value for money
26
Procurement in DWP
Procurement in
  • 4.2 billion per annum procurement expenditure
  • Largest spending civil department
  • 29 of total civil procurement
  • Large Department with complex procurements
  • Demanding customers
  • High profile, highly visible

27
Our Achievements
  • 470.9 m (11) vfm savings in 2005-2006
  • 35 of total reported savings in Central
    Government
  • 5 years continuous improvement
  • Favourable Audit Report
  • Exemplars of best practice
  • Numerous successful commercial projects
  • Reduction in Third Party Expenditure in 2005-2006

28
Whats Got Better over the last 20 Years?
  • Supplier Sourcing Appraisal
  • Supplier Management
  • Specifications
  • Performance/Output based
  • Supplier Innovation
  • Market Awareness
  • Evaluation based on Whole Life Costs
  • Our Reputation!

29
The Challenge
However good weve been MORE OF THE SAME IS NOT
GOOD ENOUGH
30
we have one of the toughest efficiency
challenges
Spending Review 2004
  • reduce our net headcount by 30,000 full time
    posts (over 25 of our workforce)
  • re-deploy a further 10,000 posts to customer
    facing roles
  • move 4,000 posts from London and the South East
    to elsewhere in the UK
  • save 960m from the Departments operating costs

And all without any diminution of performance or
customer service.
31
and even tougher to come beyond 2007-08
1.2bn
800m
400m
DWPs resources for the three years between 08/09
10/11 will fall by 5 per annum in real terms.
Pressure of at least 2.4bn over the period
32
Targets and Challenges
  • Demanding spend reduction and efficiency targets
  • Increase of vfm from 6 to 15
  • Save a further 1 billion by 2010-2011
  • Specific targets set by Prime Minister and
    Chancellor
  • improve vfm in procurement
  • improve procurement skills
  • improve strategic management of key markets
  • conduct all procurement under the advice of
    professionals
  • improve vfm of procurement of consultants and
    externals

33
The Challenge
  • Demanding Efficiency Spend Targets
  • Significant role for the
  • procurement function in the delivering this
    Challenge

More of the same will NOT be enough
34
Where did we start
  • Root and Branch review of our total 3rd Party
    Expenditure

35
The Solution?
  • Smarter Procurement
  • Demand Management
  • Getting more from our Suppliers

36
Procurement Modernisation Workstreams
  • Smarter Procurement Processes
  • Developing the Commercial Intelligence Unit
  • Customising the Category Management process to
    DWP needs
  • Support the deployment of Demand Management
    principles across the DWP to reduce spend at
    source
  • Improving Commercial Awareness

37
New Operating Model
  • some issues that we are tackling!
  • Incentivised Contracts
  • Investment in People
  • Simplified but improved processes
  • Real Market Management
  • Deriving real value from our e-investment

38
Demand Management
  • optimise commercial arrangements and develop
    strategy for reduced demand
  • challenge role for procurement function
  • commercial awareness and education
  • financial regimes that promote good commercial
    behaviours
  • Reduce demand for bespoke requirements

39
Get more from our suppliers!
  • 60 of expenditure with 10 suppliers
  • ensure that get the right suppliers
  • ensure that we are intelligent customers
  • ensure that supply market and supply chain is
    managed
  • Reduce our costs by reducing supplier costs
  • Target is to reduce our spend with suppliers by
    more than 5 without compromising service or
    profit Capability Review Target

40

41
Key improvements we are making
  • E-Commerce making best use of our Financial and
    Procurement Systems
  • Further increase commercial professionalism and
    awareness
  • Commercial and Contestability Strategy
  • Simplifying processes
  • Supply Chain Management Vertical and Horizontal
  • Guidance and a Commercial Strategy which stresses
    the value of a diverse supplier portfolio
  • Even better understanding our suppliers and our
    internal customers

42
Procurement Modernisation Workstreams
  • Contestability

43
Some Major Outsourced Services in DWP
  • IS/IT
  • Property and Estate
  • Record Storage and Retrieval
  • Office Services
  • Print and Distribution
  • Shared Services?
  • Core Activity?

44
Why did we outsource IT?
  • Rapid access to modern information systems and
    information technology skills, tools and
    technologies
  • Improve cost efficiency
  • Speed up delivery of developments and
    enhancements
  • Optimise career prospects for IT staff

45
Why did we outsource Estate?
  • Get us out of the property business
  • Give us increased flexibility in our
    accommodation
  • Get rid of costly surplus accommodation
  • Transfer risk
  • Shared benefits

46
COLLABORATION
47
COLLABORATION
OF COURSE, BUT..
48
Using Public Sector Procurement
Corporate Social Responsibility
  • To deliver Social Racial Equality
  • To deliver Urban Regeneration
  • To further Sustainable Development
  • To deliver core DWP business
  • Competitive Neutrality

49
DWP Supplier Website
  • www.dwp.gov.uk/supplyingdwp

50
Thank you for listening and enjoy
51
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52
WORKSHOP SESSION 1
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54
DANIEL LIEGHIO 4C Associates
55
Delivering Savingsto the Bottom Line4C
AssociatesBrook House229-243 Shepherds Bush
RoadLondon W6 7ANwww.4cassociates.com
  • 24th May 2007

56
Agenda
  • Introduction
  • About 4C, and about savings
  • Some approaches to fast and effective savings
  • in areas youve just reviewed?
  • in all the other areas?
  • Identifying, verifying and prioritising
    opportunities
  • Locking in the savings
  • Change management
  • Delivering ongoing value

57
Introduction About 4C
  • 4C are one of the UKs leading providers of
    specialist procurement consultancy and
    outsourcing
  • We work with large organisations to improve their
    procurement abilities and results
  • We often need to help them to obtain large
    sustainable savings as quickly as possible
  • We look to maximise competitive leverage whilst
    avoiding bureaucracy and delay

58
Introduction About 4C
  • Some recent accolades
  • 3 CIPS awards in 3 years
  • Top 3 in the Sunday Times 2006 Fast Track 100

Why are we successful?
59
Introduction What are savings?
  • Savings must avoid unsustainably affecting
    quality
  • Improving value not just Reducing costs
  • Butreal savings, which can be taken out of
    budgets
  • How you define value in procurement?
  • The minimum I can pay for the service I require
  • Getting more than you need wont be good value
  • Is it sustainable? 1 year, 3 years, 10
    years?
  • Ways of saving that we wont talk about today
    (much)
  • Effective tendering
  • Shared services

60
Introduction Why do savings opportunities exist?
  • OJEU does not guarantee value
  • We may get value by accepting the best bid but
  • What if we havent asked all the right questions?
  • What if no supplier is offering value for money?
  • What if you like part of one suppliers bid and
    part of anothers?
  • What if the reality turns out to be worse than
    the proposal?
  • Tenders dont typically minimise the risks of
    these things happening a discussion for another
    day

61
Agenda
  • Introduction
  • About 4C, and about savings
  • Some approaches to fast and effective savings
  • in areas youve just reviewed?
  • in all the other areas?
  • Identifying, verifying and prioritising
    opportunities
  • Locking in the savings
  • Change management
  • Delivering on-going value

62
More savings in areas youve just reviewed?
  • Easy savings have already been done by many
  • Or have they..?
  • How close is the value to what could be achieved?
  • How would we know?
  • Are the savings locked in for the future?

Supplier management
63
Supplier management
  • Supplier management means staying on top of
  • Is the supplier doing what they should be doing?
  • Are they charging what they should be charging?
  • Are they giving you the info. you need to find
    this out?
  • Organisations often dont get the value they
    think they do

64
Supplier management
  • What are some things that suppliers do to
    increase their margins?

65
Supplier management
  • If you can find out, you can start to maximise
    value
  • Some categories are notorious for this, e.g.
    agency staff

66
Cost Component Analysis
  • Supplier management depends on Cost Component
    Analysis
  • Break the total cost of ownership into individual
    cost drivers
  • Understand competitiveness of each vs.
    alternatives
  • CCA is very difficult to carry out effectively
    without a procurement category expert

67
Cost Component Analysis Obtaining information
  • Buthow do you find out about activity and
    pricing?
  • If you have good contracts, you will already have
    what you need
  • But we often spend a lot of time working with
    suppliers too
  • Difficult if suppliers cant or wont give you
    the info you need
  • Effective strategies to beat this can include
    working with
  • The best value suppliers, or
  • Suppliers with good systems
  • Depends on the situation

68
Agenda
  • Introduction
  • About 4C, and about savings
  • Some approaches to fast and effective savings
  • in areas youve just reviewed?
  • in all the other areas?
  • Identifying, verifying and prioritising
    opportunities
  • Locking in the savings
  • Change management
  • Delivering ongoing value

69
Savings in all the other areas?
Fast and effective approaches to sustainable
savings
  • What other opportunities are there?
  • Ways to achieve savings can (always?) be found
    with sufficient innovation and expertise

Supplier management
  • Other approaches
  • Using the right supplier for the job
  • Negotiation
  • Volume migration
  • Demand management

70
Using the right supplier Preferred suppliers
  • To optimise value, you need to be able to
    accurately define requirements and anticipate who
    is best able to meet them
  • Some suppliers can provide better value than
    others
  • In complex areas, e.g. professional services,
    buyers dont always know
  • What am I looking for?
  • Who is best able to provide it?
  • How much will I need to pay to get it?

A combination of price, performance and strategy
determines supplier status
Not yet approved
Approved
Preferred
Disallowed
Segment strategy
Comparable performance info
Comparable pricing info
71
Using the right supplier Growing suppliers
  • To optimise value, you need to be able to
    accurately define requirements and anticipate who
    is best able to meet them
  • Some suppliers can provide better value than
    others
  • In complex areas, e.g. professional services,
    buyers dont always know
  • What am I looking for?
  • Who is best able to provide it?
  • How much will I need to pay to get it?

A combination of price, performance and strategy
determines supplier progression
Reduce
Maintain
Grow
Remove
Segment strategy
Comparable performance info
Comparable pricing info
72
Using the right supplier Category procurement
tools
  • Specialist category tools can compare pricing and
    performance between approved category suppliers

73
Negotiation
Fear of negotiation exists across the
public-sector, and is driven largely by EU
regulation But well-prepared negotiations can be
fast and effective
  • Explore win-wins to reduce waste but remember
    youre not getting value
  • Why would a supplier want to reduce prices?
  • Can always do better or worse from a relationship
  • Identify how, and build your strategy upon it

High
Value to Supplier
Current position
Low
High
Low
Product / service price
74
Negotiation
Fear of negotiation exists across the
public-sector, and is driven largely by EU
regulation But well-prepared negotiations can be
fast and effective
  • Explore win-wins to reduce waste but remember
    youre not getting value
  • Why would a supplier want to reduce prices?
  • Can always do better or worse from a relationship
  • Identify how, and build your strategy upon it

High
OPPORTUNITY
Value to Supplier
Current position
THREAT
Low
High
Low
Product / service price
75
Negotiation
Fear of negotiation exists across the
public-sector, and is driven largely by EU
regulation But well-prepared negotiations can be
fast and effective
  • Explore win-wins to reduce waste but remember
    youre not getting value
  • Why would a supplier want to reduce prices?
  • Can always do better or worse from a relationship
  • Identify how, and build your strategy upon it

High
Current position
THREAT
Value to Supplier
Low
High
Low
Product / service price
76
Negotiation
  • What if you dont like the suppliers response?
  • Understand the alternatives, plus any legal
    constraints and timelines required, e.g.
  • Volume migration?
  • Switching technologies?
  • Creativity and experience of other organisations
    and best practices will be invaluable
  • Ideally you keep your current suppliers but a
    credible threat to change is vital

77
Volume migration
High
  • Move volume away from worse-value suppliers, and
    towards better-value suppliers
  • You may have other contracts for similar services
  • There are also OGC, LCSG and other existing
    OJEU-compliant alternatives
  • There may also be alternative technologies

Spend
Low
Value
High
78
Demand management Is there an opportunity?
  • Ask, for each category
  • Who is managing demand in this category, and how?
  • Do they have the expertise and information they
    need to do a good job?
  • Are you confident that its being done well?
  • There are many ways of managing demand to reduce
    spend

79
Demand management Information required
  • Ask, for each category
  • Who is managing demand in this category, and how?
  • Do they have the expertise and information they
    need to do a good job?
  • Are you confident that its being done well?
  • There are many ways of managing demand to reduce
    spend
  • Products / services
  • Whats in each category?
  • Who is buying them?
  • What specifications are being used, and why?
  • What prices are being paid?
  • Processes for
  • Supplier selection
  • Specification and ordering
  • Supplier and contract management
  • Who is responsible for what?

80
Demand management Some approaches
  • There are many ways of managing demand to reduce
    spend

However, its typically easier to change to
contract than to change category users behaviour
81
Demand management Mobile telecoms example
No of Users
1. There are 1450 users making an average of 109
minutes of calls each per month 315 02 mobile
users make less than 10 minutes of calls per
month Can we remove 50 of these phones? 2. The
top 10 users make 15,000 minutes of calls per
month at an average of 1,560 minutes each Can we
reduce the call volumes and associated costs?
Call Minutes per Month
82
Agenda
  • Introduction
  • About 4C, and about savings
  • Some approaches to fast and effective savings
  • in areas youve just reviewed?
  • in all the other areas?
  • Identifying, verifying and prioritising
    opportunities
  • Locking in the savings
  • Change management
  • Delivering ongoing value

83
Identifying further opportunities
  • Map internal stakeholders
  • Who uses which services?
  • Who makes decisions?
  • Who set up and manages the relationship?
  • What can they tell you about supplier
    performance, pricing, value for money, contracts,
    category strategies and plans, etc.?
  • What do they want to achieve?
  • Build buy-in to change from internal stakeholders

84
Identifying further opportunities
What are the characteristics of a good savings
opportunity?
  • Substantial supplier or category spend
  • Limited category-specific procurement expertise
    available
  • Low organisational resistance to change can help
  • Perceived organisational barriers to change
  • Some categories are known for ultra-high savings
    opportunities
  • 1m ?
  • Depends on your organisation

85
Identifying further opportunities
What are the characteristics of a good savings
opportunity?
  • Substantial supplier or category spend
  • Limited category-specific procurement expertise
    available
  • Low organisational resistance to change can help
  • Perceived organisational barriers to change
  • Some categories are known for ultra-high savings
    opportunities
  • What are the components of total cost?
  • What are good benchmark levels for each?
  • Which suppliers are providing good value for
    money?
  • What can we do about it?
  • What have others done about it?

86
Identifying further opportunities
What are the characteristics of a good savings
opportunity?
  • Substantial supplier or category spend
  • Limited category-specific procurement expertise
    available
  • Low organisational resistance to change can help
  • Perceived organisational barriers to change
  • Some categories are known for ultra-high savings
    opportunities
  • Dis-satisfaction with current suppliers
  • Ongoing initiatives which have stalled
  • Constructive stakeholders
  • High-level buy-in

87
Identifying further opportunities
What are the characteristics of a good savings
opportunity?
  • Substantial supplier or category spend
  • Limited category-specific procurement expertise
    available
  • Low organisational resistance to change can help
  • Perceived organisational barriers to change
  • Some categories are known for ultra-high savings
    opportunities
  • Unclear there is any alternative to the current
    situation
  • Unclear who is ultimately paying for the services
  • Etc.

88
Identifying further opportunities
What are the characteristics of a good savings
opportunity?
  • Substantial supplier or category spend
  • Limited category-specific procurement expertise
    available
  • Low organisational resistance to change can help
  • Perceived organisational barriers to change
  • Some categories are known for ultra-high savings
    opportunities
  • 40 savings, for example in
  • Office supplies
  • Document management
  • Uniforms
  • Parts of ICT
  • Etc.

89
Identifying further opportunities
Characteristics of a good savings opportunity
  • Substantial supplier or category spend
  • Limited category-specific procurement expertise
    available
  • Low organisational resistance to change can help
  • Perceived organisational barriers to change
  • Some categories are known for ultra-high savings
    opportunities

Use initial findings to set priorities for
further investigation
90
Verifying further opportunities
  • Gather available information on each supplier,
    including contracts, quality, spend,
    disaggregated pricing, and TCO
  • Obtaining information from suppliers is often
    faster and is sometimes the only realistic option
  • Compare cost components with external benchmarks

91
Setting priorities
  • Construct a simple (at first) cost model, built
    on a number of category-specific variables
  • What would be the effect if we could change each
    variable?
  • Analyse a range of scenarios based on making
    realistic changes to each savings lever

92
Setting priorities
  • Assign priorities to each savings lever based on
    the organisations priorities
  • Savings targets
  • Timeframes
  • Political / buy-in from within the organisation
  • Scale of the project
  • Etc.

93
Example opportunity summary
Opportunities in the bottom left are simplest and
fastest
94
Agenda
  • Introduction
  • About 4C, and about savings
  • Some approaches to fast and effective savings
  • in areas youve just reviewed?
  • in all the other areas?
  • Identifying, verifying and prioritising
    opportunities
  • Locking in the savings
  • Change management
  • Delivering ongoing value

95
Change management in a programme environment
Change management
  • Poorly-managed change leads to a high risk of
    failure
  • Following a few basic steps will maximise your
    chances of success

Programme timetable
96
Delivering ongoing value Sustaining the savings
  • How are the savings going to be maintained?
  • Who is responsible for making sure that they are?
  • Sustain savings via best-practice agreements and
    internal change
  • On the supplier side
  • Ensure pricing will move in line with industry
    benchmarks
  • Give suppliers a clear incentive to continually
    improve value
  • Ensure quality MI is provided by suppliers, to
    help manage value
  • Others, e.g. supplier code of conduct

97
Delivering ongoing value Sustaining the savings
  • Internally
  • Upgrade management tools and reporting to
    effectively manage best value in each category,
    and across the board
  • Ensure key internal officers understand how to
    deliver maximum value after the project concludes
  • Make sure new responsibilities are clear and
    embedded in routine
  • Effective communication and training are key

98
Delivering ongoing value Management reporting
Cost savings reporting
Knowledge transfer
  • Category Value Delivery Plan

Category management
Impact on behaviour
99
Delivering ongoing value Control Dashboard
100
Summary and something about people
  • There are very big opportunities out there, which
    can be captured quickly and effectively
  • To maximise value, organisations need to
    understand much better what they are buying
  • This will require expert staff to have
  • Significant procurement expertise,
  • Deep category expertise and
  • The gravitas to influence very senior
    stakeholders
  • There are not enough of these to go around and
    many are at specialist consulting firms like 4C
  • The Public Sector must do more to develop
    expertise in depth, and to explore outsourced and
    shared-service models

101
Thank youvery muchFor furtherinformationpleas
e contactDan LieghioDirector4C
AssociatesBrook House229-243 Shepherds Bush
RoadLondon W6 7ANdaniel.lieghio_at_4cassociates.co
m www.4cassociates.com020 8741 4441
  • 24th May 2007

102
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103
ALEX SCOTT Wyse Solutions
104
LCSG ConferencePresentation byAlex Scott
Senior ConsultantWyse Solutions
105
Supply Positioning
  • STRATEGIC SECURITY
  • Low value / high risk
  • STRATEGIC CRITICAL
  • High value / high risk
  • Prospectus
  • TACTICAL ACQUISITION
  • Low value / low risk
  • Bus. Cards / Forms
  • TACTICAL PROFIT
  • High value / low risk

106
The Print Contracting Cycle
Identify an opportunity
Identify potential suppliers
Ongoing relationship
Obtain prices terms
Invoice payments
Make contract
Delivery of goods / services
107
Print Management Tool Process
108
Tender Evaluation
  • Basic Principles
  • Price Evaluation Models
  • Getting Best Value From Suppliers
  • Managing Prices
  • Terms of Contract
  • Relationships with Suppliers
  • Issues for Consideration
  • Trust Based Partnerships
  • Balanced Purchasing
  • Darwinian Rivalry

Core Business Process
Competency of the Business Process
Source Gartner Inc. 2001
109
Contract Management
  • Performance Measures
  • Delivery
  • Pricing
  • Customer Service
  • Product
  • Benchmarking

110
The Preferred Supplier
CORE BUSINESS High value / high attraction
DEVELOPMENT OPPORTUNITY Low value / high
attraction
Attraction
EXPLOITATION High value / low attraction
NUISANCE Low value / low attraction
Expenditure
111
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112
KIERAN McGREGOR London Centre of Excellence,
Procurement Training Programme
113
Best Practices in Procurement Education
  • Kieran McGregor
  • Associate Consultant LondonMet Enterprises

114
Structure of Session
  • What delegates like
  • Challenges
  • Suggested best practices
  • Questions / Discussion

115
What delegates like
  • Interaction
  • Cross fertilisation (opportunity to learn from
    other organisations)
  • Relevance / applicability of materials
  • Flexible learning approach

116
Challenges
  • Too many demands on precious time
  • Empowering delegates to apply learnings in the
    workplace
  • Location and physical environment of training
  • Appropriate facilitators

117
What can Providers improve?
  • Understand the client
  • How ?
  • -
  • -
  • -
  • -

118
What Providers can do better
  • Training needs assessments
  • Individual study programmes
  • Understand the company/industry
  • Understand all stakeholders

119
Other lessons
  • Dont focus on cost
  • Build relationships
  • Accept that your organisation may not be unique
  • Dont reinvent the wheel
  • Ensure selection of appropriate delegates
  • Empower delegates to apply new skills/knowledge

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Discussion
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DARREN BLACK RORY GRUMLEY London Borough of
Camden
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Agenda
Procure2PayThe Good, The Bad and The
Ugly Darren Black Rory Grumley
Presentation 30 minutes Open questions 25
minutes Wrap up 5 minute
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e-Procurement and P2P process
Goods and services requested
A receipt is made
An invoice is received
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What are the benefits
More efficient P2P process Remove use of
maverick suppliers Management
Information Greater control of budgets
Less resource
Cash
Drives future savings
Controls spend
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London Borough of Camden Monthly Metrics
7,000 POs per month through e-Procurement
1,200 agency staff managed through on-line VMS
800 requisitioners 350 approvers
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Ely, Clint and Lee
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The Bad
Goods and services requested
A receipt is made
An invoice is received
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The Good
A PO is raised
A receipt is made
An invoice is received
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London Borough of Camden - Benefits
Efficient P2P process
900,000 pa resource savings
Availability of maverick suppliers removed
660,000 delivered in 1st full FY 1.1m planned
for current FY
Substantial increase in the use of core list
itemsest 50,000 pa in 1st FY
Pre approved items
Costs taken out of budgets18 month payback
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Making it happen
  • Removal of maverick suppliers
  • Audit trail of communications
  • Returning invoices
  • Local resistance
  • Nominal mapping rationalisation
  • Rationalisation of codes
  • Mapping all relevant codes to UNSPSC
  • Complaints
  • Centralisation of invoices
  • Removal of manual signature
  • Change of control from local to central
  • How to get suppliers to send invoices to a
    central address resource investment
  • Local resistance

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Making it happen
  • Im out of scope syndrome
  • What is it?
  • Board support and escalation
  • Supplier adoption
  • Rationalisation exercise
  • Move to electronic PO
  • Receipt
  • Why?
  • Timely ?
  • Supported by automated MI
  • 76 1st time invoice match
  • Helpdesk / training
  • Handholding policy Resource investment
  • Trained 900 requisitioners and 600 approvers
  • Difficulty of getting correct people to train

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Questions
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What makes Camden so different
  • P2P design built around Policies and Procedures
  • We mandate that PO Nos are quoted on all
    invoices
  • All invoices are received and matched centrally
  • We remove all paper order pads
  • We actively manage out maverick suppliers
  • The budget holder must approve all requisitions
    requiring approval
  • We remove the ability to mis-code
  • Software purchase built around P2P design
  • Board sponsorship
  • Go live with all products and services (80 of
    spend)
  • Focus upon training and hand holding

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RICHARD DENNY The Richard Denny Group
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  • How Sellers
  • Add Value to Business

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  • A presentation by
  • Richard Denny

139
  • The Changing Market Place

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Darwin Quote
  • Its not the strongest of the species that
    survive nor the most intelligent but the ones
    most responsive to change

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  • The Circle of Success

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Product Knowledge
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Product Knowledge
Skills
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Product Knowledge
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Product Knowledge
Skills
?
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Product Knowledge
Skills
?
149
Product Knowledge
Skills
Attitude
150
  • What are Sellers Taught?

151
  • The Only 4 Ways to Grow a Business
  • Increase your number of customers
  • Increase your average transaction value
  • Increase the frequency of repurchase
  • Acquisition

152
  • What Can Good Sellers Do For You?
  • Increase product knowledge
  • Help to make the right decision

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  • What Can You Do?
  • Challenge
  • Get case histories
  • Price and profit
  • Check on guarantees
  • State exactly what you want
  • No games
  • Dont put up with weak salesmanship

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  • Get the Balance

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  • What sort of manager would you like to be
    managed by?
  • Are you that sort of Manager?

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WORKSHOP SESSION 2
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A few last thoughts
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The Future is in your hands
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Everyone has a unique beauty
162
Never stop learning
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If you want it Go for it!
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Kindness is the same in every language
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The easy ride is a short journey
166
Dare to be brave
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Never lose your sense of humour
168
Be different! Stand out in the crowd
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Look after the little guy
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Perception is everything
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Never be frightened of decisions
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Always own up when youre in the wrong
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Release your inner child
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Reach higher than you think you can
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Sometimes its good to just chill
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THANK YOU FOR ATTENDING
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