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Download Towards Tesco, Public Sector Procurement
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Colin Cram Marc1 Ltd [email protected] Tel: 01457 868107 Mob: 075251 49611 www.Marc1ltd.com • £220 Billion pa • £3,500 per Adult and Child pa • One Third of Total UK Public Spending • One Sixth of UK Gross Domestic Product (GDP) • 0.75% of Global GDP • Size makes it Critical to Delivery of Public Services • Effective Management is Essential to Reduce Public Spending Deficit and Deliver Government Procurement Policies EDUCATION PROCUREMENT - £30+bn Alone would put UK in top 30% of national GDPs • £220 Billion pa • £3,500 per Adult and Child pa • One Third of Total UK Public Spending • One Sixth of UK Gross Domestic Product (GDP) • 0.75% of Global GDP • Size makes it Critical to Delivery of Public Services • Effective Management is Essential to Reduce Public Spending Deficit and Deliver Government Procurement Policies EDUCATION PROCUREMENT - £30+bn Alone would put UK in top 30% of national GDPs • 65% Non-Central Government • 50% Common Categories, Goods, Services • Professional Services £35bn • Construction £21bn • ICT £10bn • Facilities Management £10bn • Energy £4bn • Reprographics £3bn • Travel £3bn • Fleet £3bn • Food £2bn • Some Major Central Government Department Organisations • Some Large Specialist Organisations • NHS Outsourcing • Buying Agencies: 40+ • OGC and Category Teams • Several Thousand Small to Medium Procurement Units • 40,000+ Procurement Points BUT • Increasing Collaboration/Joint Procurement •Indiscipline •Different Procedures/Contract Ts and Cs •Complexity – e.g. Tender Procedures •Multiplicity of Tenders •Multiplicity of ‘Duplicate’ Contracts and Contract Managers •Inconsistency of Expertise/Capability/Processes/Procedures •Specifications Varied Specifications/Reinventing the Wheel Indiscipline/Disaggregation Duplication Inconsistency of Expertise, Processes and Procedures AND cannot use industry best practice supply management Furniture 30% FM/Outsourcing/Major Contracts Up to 35% Laboratory Consumables Up to 90% IT 5 – 80% Construction 5 – 25% Excellent Construction Management 5 – 15% Social Care 10% Legal Services 10% Good Contracts Management 5 – 35% © C M Cram •Right Procurement Structures/Joint Procurement •Common and Complete Databases •Common Information/IT Systems •Common Procedures •Common Specifications •Commodity, Markets, Procurement Expertise •Specialist Management •Best Practice Procurement Techniques PUBLIC SECTOR PROCUREMENT IN 5 YEARS TIME? Central/ Major Departments/ Buying Solutions Industry Specific Major National Contracts/Suppliers * * Common Categories * * Relationship Management * * Market Management * * Industry Specific PPIs/Major Project Support * Regional P Local/Med/ Hubs/ Small Medium Departments Depts * * * * Regional/Large Local Contracts/Suppliers * Small Local Contracts * * Discipline/Implementation/ Compliance * * © C M Cram PUBLIC SECTOR PROCUREMENT: THE FUTURE? INTEGRATION COLLABORATION INDEPENDENCE © C M Cram REPOSITIONING PROCUREMENT REGENERATION MARKET ENGAGEMENT CONSTRUCTION ROADS MAINTENANCE SCHOOLS TRAINING LOCAL X PROCUREMENT LABOUR WHERE IS MARKET ENGAGEMENT MOST EFFECTIVE? MAINTENANCE © C M Cram Thankyou Colin Cram Marc1 Ltd Tel: 01457 868107 Mobile: 075251 49611 [email protected] www.marc1ltd.com © C M Cram
