smart procurement. how to ensure your ceo gets a good night's sleep - colin cram

• COLIN M CRAM FCIPS• Marc1 Ltd

• Tel: 01457 239894• Mob: 0752541 49611

• Colin.cram@marc1ltd.com

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 49611colin.cram@marc1ltd.comwww.marc1ltd.com