Transcript DEVELOPING THE NORTH WEST ECONOMY: SERVICE CENTRES

Colin Cram
Marc1 Ltd
Tel: 01457 868107
Mobile: 075251 49611
[email protected]
www.marc1ltd.com
TOWARDS TESCO
1. Public Sector Procurement is Vast

A New Integrated Model could Deliver Huge Benefits
2. Outsourcing and Shared Services
 Is Chaotic and Costly
 Huge Potential Remains
 Propositions:
 A New Outsourcing Model?
 A Proposition for Delivery of Public Services
• £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
LOCAL GOVERNMENT PROCUREMENT- £42bn
Alone would put UK in top 25% 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
• Absence of Mandation
BUT
• Increasing Collaboration/Joint Procurement
•Indiscipline
•Different Procedures/Contract Ts and Cs
•Complexity – e.g. Tender Procedures/Ts and Cs
•Multiplicity of Tenders
•Multiplicity of ‘Duplicate’ Contracts and Contract Managers
•Specifications
•Inconsistency of Capability, Expertise, Processes
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 Industry
Departments/ Specific
Buying
Solutions
Major National
Contracts/Suppliers
*
*
Common Categories
*
*
Relationship Management
*
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Market Management
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Industry Specific
PPIs/Major Project Support
*
Regional
P Hubs/
Medium
Depts
*
*
*
*
Local/Med/
Small
Departments
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
BENEFITS
 Coherent Framework for the Strategic Management of
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
Public Sector Procurement spend - the whole spend, not
just 'common' categories
Delivery of the massive procurement savings that are
needed
Accountability for the delivery of savings, value for
money and public procurement policies
Clarity about the costs of doing public sector
procurement
Consistent and expert procurement for all contracts,
framework agreements, projects
Enable best supply management and market
management tools to be used effectively for all areas of
procurement for the whole of the public sector
BENEFITS Continued
 Consistent approaches to procedures, specifications etc.
 Consistent approach to interpreting EU procurement
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directives and government procurement policies
Eliminate Duplication
100% compliance with framework agreements
Procurement personnel with the authority to challenge
the need for procurements and query specifications
Career development path for Public Sector Procurement
Personnel.
HOW CAN OUTSOURCING AND SHARED
SERVICES BUSINESS BE BOOSTED?
 Eliminate obstacles
 High Costs
 Long Timescales
 Complex Procedures
 Varied Procedures
 Duplicate Specifications
• Create Model Approach
• Create Vision for Public Service Delivery
PUBLIC SPENDING £bn
Central
Pensions
Health/Social Care
Education
Defence
Welfare
Protection
Transport
General Government
Other Spending
Interest
TOTAL
110
117
28
38
60
16
13
13
71
30
496
Local
52
50
17
10
13
32
1
175
Total
110
117
80
38
110
33
23
26
103
31
671
ELIMINATE OBSTACLES: CREATE MODEL APPROACH
 Create Range of Model Specifications
 Create Matrix of Service Providers and Services
that the Public Sector can use without further EU
Tendering
 Provide those Services through building on
Existing Service Centres/Creating New Ones
SERVICES
SERVICE PROVIDERS
1.
Roads
2.
3.
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Call Centres √
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HR
√
√
Finance
√
√
Construction
Services
ICT
Legal
√
4.
5.
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6.
HOW?
 Create Range of Model Specifications
 Follow EU Procurement Directives to Create
Matrix
 Evaluation Criteria: Capability
 Obtain Indicative Prices?
 Grow Matrix Organically
 Consider Dynamic Purchasing System
WHAT SERVICES COULD BE COVERED?
ALMOST ANYTHING!
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Whitehall Policy
HR
Payroll
Print and Design
Finance
Internal ICT
Legal Services
Agile Working Solutions
Procurement
Construction
Asset Management
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Roads
Revs and Bens
Debt Collection
Managed CCTV
CRM
Out of Hours Services
ICT Hosting
Data Centre Operations
Environmental health
Elements of Children’s
Services and Adult Social
Care
PROPOSITION FOR PUBLIC SERVICE DELIVERY
• What should be Delivered by the Public Sector?
• What should be Delivered by the Private Sector?
• Benefits of Proposition
• Overall Model for Public Service Delivery
VISIONARY – Nothing Ruled Out
Colin M Cram
Marc1 Ltd
Tel: 01457 868107
Mobile: 075251 49611
[email protected]
www.marc1ltd.com
MAKING IT HAPPEN
• Outsourcing Industry to Take Lead?
• Create Steering Group with TORs - membership
private and public sectors
• Commission and Fund Initial Work – to investigate
feasibility/sources of funding etc
• Draft Programme of Work and Implementation Plan