market engagement for low carbon solutions · 2005 environmental innovations advisory group – fcp...
TRANSCRIPT
MARKET ENGAGEMENT FOR LOW CARBON
SOLUTIONS
Gaynor Whyles, JERA Consulting
Experience and learning from PPI Projects
GPP 2020 WEB SEMINARAPRIL 2014
Innovation procurement actions
� 2005 Environmental Innovations Advisory Group – FCP
concept
� 2006 Demonstration projects eg ‘zero waste mattress’
� 2008 FCP Innovation for Sustainability Programme - UK
� 2009 LCB-HEALTHCARE – PPI Projects UK, Poland,
Netherlands – Low CarbonNetherlands – Low Carbon
� 2011 Down to Zero Low Carbon Procurement Compacts
� 2012 EcoQUIP – PPI Projects ‘Efficiency Quality and
Sustainability’ + Hungary, Italy
� 2012 TRANSFORM – Low Carbon - Zero Emission
Transport in Cities
� 2013 INNOCAT – ICLEI led - Low Carbon Vending
project
Some Case
ERASMUS MC
Sustainable Bed Washing
Facility
ROTHERHAM NHS FOUNDATION TRUST
Future Ward Solution
Thermal Comfort for Hospital
Patients and Staff
Zero Waste Some Case Examples of PPI (FCP) in Action
NOTTINGHAM NHS TRUST
Low Carbon Energy -Fuel Cell CHP
ROTHERHAM NHS TRUST
People centered low carbon
catering
RAWICZ COUNTY HOSPITAL
Low Carbon UNIFORMS
Zero Waste Prison
Mattress
The status quo…….
This is what we
bought last
time…and it was
the cheapest….no
one
complained….well
not much
This is what they
bought last time
…they seemed
to like it…so best
not change it….not much
The buyer-supplier paradox
� Suppliers respond to customer demand
� Customers tend to buy what is available – rather than
asking for what they need……….this leads to ‘more of the
same’ and stifles innovation
� Successful market engagement needs customers to:
– know what outcomes they need,
– be open to new ideas and enable the supply chain, and
– be able to convince the supply chain that you are
seriousserious
“Successful market engagement needs you to know what you
want to achieve, be committed to achieving it, and to be able to
convince the market that you are serious, that you really want it.”
Successful innovation procurement needs suppliers to
have:
– an accurate understanding of your needs
– sufficient incentive to innovate
– advance notice of requirements
This is what we suppliers need; information on our customers
needs today, and even more helpfully their future needs.
We can then plan and manage our supply chain so we are ready
to respond”.
Peter Jones, Director of Design, Skanska
https://vimeo.com/80540480
Forward Commitment Procurement (FCP) A practical PPI methodology
Market Identification
Market Engagement
Procurement
� FCP thinking drawn from innovation policy, procurement professionals, UK Office of Government Commerce, and critically, suppliers
� FCP mirrors the active approach to supply chain management taken by the private sector
– Clearly identify and articulate future needs– Clearly identify and articulate future needs
– Search out and engage with potential suppliers
– Provide a credible ‘promise’ of future sales
– Provide demand side information and support delivery
– (while maintaining competition)
– (compliant with the legal framework)
Key features of innovation procurement
Early supply chain
Competitive dialogue
Routes to the wider market
Supply chain consultation
Pro-innovation procurement strategy
CRE
D
COM
M
Outcome based requirement
Demanding and committed leadership
Policy – ProcurementUnmet needs
Early supply chain engagement
Specific procurement
market
Professional project management
DIBILITY
MITMENT
Think ahead – allow time
Integration into a process
Early supply chain
Competitive dialogue
Routes to the wider market
Supply chain consultation
Pro-innovation procurement strategy
CRE
D
COM
M
FCP Method
Outcome based requirement
Demanding and committed leadership
Policy – ProcurementUnmet needs
Early supply chain engagement
Specific procurement
market
Professional project management
DIBILITY
MITMENT
Think ahead – allow time
The Forward Commitment Procurement Methodology
1. Identification
Recognise problems, unmet
needs & opportunities
Consult with stakeholders and
2. Market Engagement
Market Sounding
Market sounding review & analysis
3. Procurement
Develop a pro-innovation
procurement strategy
Feedback to the supply chain and
stakeholdersstakeholders and set up team
Define an outcome based requirement
Prepare a FCP project
outline/business case
Project approval/sign off
& analysis
Supply chain feedback
Market consultation
Market consultation report
stakeholders
Implement procurement strategy
Negotiate Procurement
Contract
Only once you are clear what you need, tell the
supply chain in a way they can understand and
that stimulates a response……
We need to deliver these outcomes. We need to buy a
solution within 3 years. We can make a forward commitment to
buy. What are our options?
Is it worth my
investments?
buy. What are our options?
2. Market Engagement
Market Sounding
Market sounding review & analysis
• Market sounding is a useful and
effective way to communicate yourunmet needs to the supply chain.
• Start early. Years not months in
advance.
• To assist communication with thesupply chain, it is helpful to put togethera Market Sounding Prospectussetting out the:
analysis
Supply chain feedback
Market consultation
Market consultation report
setting out the:
• unmet need (the problem or issueyou are addressing)
• requirement (in outcome terms)
• context (current situation, whyinnovation, drivers)
• procurement opportunity (scale andtimeframe)
• wider market (who else has thisunmet need)
What is the one thing
in common with all
these MSPs?these MSPs?
2. Market Engagement
Market Sounding
Market sounding review & analysis
• Prior Information Notices in the OJEU are an effective way to launch a market sounding.
• Be proactive in seeking out suppliers and communicating your needs
• (communication plans are helpful)
• A market sounding response form analysis
Supply chain feedback
Market consultation
Market consultation report
• A market sounding response formcan be helpful.
Definition: Market Sounding
“Market sounding is the process of
assessing the reaction of the market to a
proposed requirement. Market soundingshould begin at the earliest possible stagein the procurement process”.
2. Market Engagement
Market Sounding
Market sounding review & analysis
• A ‘Directory of Interested Companies’facilitates cross-fertilisation
• Analyse (but don’t ‘evaluate’) review & analysis
Supply chain feedback
Market consultation
Market consultation report
• Analyse (but don’t ‘evaluate’)
responses
• Keep communicating to the supplychain
2. Market Engagement
Market Sounding
Market sounding review & analysis
• Market consultation workshopsenable you to
• develop the dialogue with the supply & analysis
Supply chain feedback
Market consultation
Market consultation
report
• develop the dialogue with the supplychain and
• identify any perceived barriers
• Record the market consultation eventand publish a summary report
• helps demonstrate you aremaintaining a level playing field
Market meeting day at Erasmus MC, Rotterdam
“The market engagement not only gave potential suppliers advance notice and time to
innovate, it also stimulated a valuable exchange within and between supply chain. This has
resulted in more innovative and ‘out of the box’ solutions from consortia formed at the
market meeting.”
Marieke van Putten, Programme Manager Public Procurement of Innovation, Ministry of Economic Affairs, Agriculture and
Innovation
“Market sounding was new to us, but gave us the opportunity to test and influence the
market and highlight issues that the supply chain may not be aware of. For example, we
tried completely new industrial sector that have no track record in health care. They
responded enthusiastically to our challenge!”responded enthusiastically to our challenge!”
Joram Nauta, Pilot Project Manager, TNO for Erasmus MC
Market engagement
� Gives the supply chain � advance notice of the requirement and future procurement
� a framework to feedback on the requirement and how it can be met,
potential barriers etc.
– A response form helps to standardise responses
� Gives you a sense of the appetite of suppliers, capacity, capability,
options available, etc.
� How do you let the supply chain know? � How do you let the supply chain know?
– Need to be proactive
– Use intermediaries (e.g. trade organisations, innovation networks)
– PIN is a useful catch all
– Inform incumbents
“What is great about this process is that it gives us time to plan,
build consortia, and bring new solutions forward”•workshop participant
Key points
� Communicate your requirement to the supply chain proactively
� Use outcome based terms and keep carbon up-front
� Start early
� Need to convince the supply chain of your credibility and commitment as
a customer a customer
� A market sounding prospectus is a helpful tool
� A Prior Information Notice in the Official Journal of the EU adds credibility
� Demonstrate a wider demand
� Engage with the market in the context of a real procurement
� On-going improvement e.g. progressive reductions in operational and
embedded carbon over the life of the contract
More information……