Leverage the public sector
pound to demand sustainable
and environmentally friendly
goods and services
Team working
More savings possible
“The public sector spends £220 billion a year on goods and services.
Given the potential to make significant savings, it is vital that there is
much better coordination of procurement activities to ensure value for
money is secured across the public sector.”
Amyas Morse
Head of the NAO (21 May 2010)
“With all public service costs under pressure, better procurement
provides an opportunity to make significant savings that don’t cut into
front line services. Most councils already collaborate but, even where
there is collaboration, it is not delivering all the possible benefits”
Eugene Sullivan
Chief Executive (21 May 2010)
Efficiency
Review by Sir
Philip Green
Key Findings and Recommendations
“The Government is failing to leverage both its credit
rating and its scale”
Oct 2010
Cashable savings
74 Health Trusts
Highest
£2.00
Lowest
£0.27
27 Health Trusts
Highest
£160.00
Lowest
£65.00
Mid
Mid
£1.01
£98.00
However…..
1999 - 'Review of civil procurement
in central government.‘
2004 - 'Releasing Resources for the
Frontline'
2007 - 'Transforming Government
Procurement'
48 Professional
Buying Organisations
(PBO)
Health;
South East Coast Collaborative Procurement Hub; East of
England NHS Collaborative Procurement Hub; East
Midlands Resource Procurement Hub; West Midlands
Healthcare Purchasing Consortium; North West
Collaborative Procurement Hub; Yorkshire and the
Humber Collaborative Procurement Hub; PRO-CURE
Collaborative Procurement Hub; PRO-NE (Procurement
North East); London Procurement Programme; Bristol and
Weston Purchasing Consortium; Dorset and Somerset
Procurement Confederation; Gloucestershire Shared
Procurement Service; Peninsula Purchasing and Supply
Alliance; Solent Supplies Team
Others ….
Education; Becta; Crescent Purchasing Consortium (CPC); Higher Education Funding
Council for England (HEFCE); The Energy Consortium (TEC); Universities UK
Strategic Procurement Group for HE; London Universities Purchasing Consortium
(LUPC); North Eastern Universities Purchasing Consortium (NEUPC Ltd); North West
Universities Purchasing Consortium (NWUPC); Southern Universities Purchasing
Consortium (SUPC) Eduserve
Local Government; Central Buying Consortium (CBC); Hampshire County Supplies; Kent
Buying Consortium (KBC); Kent County Supplies; Laser Local Authority Purchasing
Partnership (LAPP); South West Local Authority IT Procurement Consortium; Black
Country Purchasing Consortium (BCPC); Derbyshire District Purchasing Consortium
(DDPC); Devon Procurement Partnership (DPP); Yorkshire Purchasing Organisation
(YPO); North Eastern Purchasing Organisation (NEPO); Eastern Shires Purchasing
Organisation (ESPO); London Contracts & Supply Group (LCSG); West Mercia
Supplies (WMS)
Central Government; Buying Solutions; Central Office of Information (COI); Fire and
Rescue (FireBuy); Police National Policing Improvement Agency (NPIA);
Construction; Birmingham Construction Partnership
Devolved Administrations; Central Procurement Directorate (N Ireland); Procurement
Scotland; Value Wales
Framework contracts
Mortuary Services
Pay & Display Machines/ Parking Management
Information Systems
Mail Services
Document Solutions
Catering Services Frameworks
Print & Design Services
Estate Services
Market forces ..
?
Commodity Procurement
Recommendations
Government must leverage its name, its credit rating and its buying
power
Mandating centralised procurement for common categories to leverage this
buying power and achieve best practice.
Producing accurate spend and consumption data.
Pricing common items at the same level for all central Government
departments (and making contracts available to wider public sector).
Managing down demand and specifications.
When purchasing on behalf of Government, Civil Servants must focus on
cash, applying the same principles as if the money were their own.
There is no reason why the thinking in the public sector needs to be
different from the private sector.
Good advice
Grappling with implementing a sustainability project or
strategy? These four steps are what Sir Alex Ferguson might
suggest, based on his experience of the ruthless competition
that is the beautiful game.
1. Identify your key players
2. Agree on tactics
3. Keep the management on-side
4. Deliver, adapt and measure
http://insight.inbox-insight.net/c/1e1zKkwuAgpjgWim