Post on 13-May-2015
Collaborative Procurement 1
Procurement Scotland
‘Sectors’
APUC (Education)
Scotland Excel (Local Government)
National Procurement (Health)
Central Government
20 December 2012 – Iain Wicking
Collaborative Procurement 2
• Over 100 separate public sector organisations on a single supporting information
service with many more seeking to access the Procurement Scotland service;
• Over US7.5billion transacted at the end of 2010/11;
• Participants:
• 100,000+ regular users across the Scottish Public sector;
• 100,000+ active suppliers;
• 145,000 live catalogues;
• 1,500 cXML punch-out connections and integration into over 60 ERP systems;
• No of PO's transacted per annum - 700,000 orders with 2,900,000 order lines;
• A 40% reduction in procurement administrative costs across the Scottish Public
Sector and payment days reduced to ten for suppliers trading electronically;
• Elimination of over 360,000 paper invoices via the integration of procurement
cards and eInvoice services, and;
• Fully audited savings as at 2008/2009 of $1.18Billion - made up of better
purchasing across the government, reduced ICT costs and process efficiencies.
Procurement Scotland
Collaborative Procurement 3
Procurement Hub
Portal Access for Buyers and Suppliers
Mobile and Tablet
Access
Collaborative Procurement 4
Buyers Suppliers
P-Card/AP
1
4 2
3
5
8
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12
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5
9
Bill
Payment
eInvoice match &
settlement
Billing data file
Settlement
Payment
Good & services delivered
Purchase Order
Purchase Order
Accepted
Receipted
Goods
eInvoice
Payment
authorisation
eInvoice
Approval
Search
Requisition
Receipted goods
HUB Buyer & Community Activities
1. Add/update users
2. Add/update org. structure
3. Supplier upload
4. View and track documents –
PO’s, Invoices, etc
5. Community announcements
Supplier & Community Activities
1. Add/update users
2. View and track documents –
PO’s, Invoice, etc
3. Edit/update facility
4. Management announcements
Receiver
Buyer
Approver
Procurement/
Finance Dept.
Issuing Bank
Supplier
Acquiring
Bank
Procurement Hub - Information Flows
Collaborative Procurement 5
P2P Individual User View
Collaborative Procurement 6
Approval Summary and Actions
Collaborative Procurement 7
Reporting
Collaborative Procurement 8
• Rule and Decision Engine drives the Approval Process is a powerful and
versatile feature in the system. Administrators are able to define the Approval
Roles to be used in the Approval Plans. These define workflow processes,
assign approval plans to users and determine which users are to fill the approval
roles in those plans uniquely in each organisation.
• Requisition and Order Request approval can be combined to enable the
creation of powerful and detailed approval rules tailored for each organisation.
Rule and Decision Engine
Collaborative Procurement 9
• Promote localised
collaboration;
• Supplier and Buyer adoption;
• Shared learning;
• Centres of Excellence;
• Consistent programme
resource, and;
• Link with ‘e-City’ Initiative,
associations, Enterprise
initiatives, etc.
9
Regional ‘Hubs’ Support Community Management
Highlands
Grampian
Tayside
Lothian and Borders
West of Scotland
Collaborative Procurement 10
...collective implementation ensures an affordable least cost service
All Government Departments participate:
• Although there is clearly a benefits case for eProcurement in
most organisations many of the Agencies and NGO’s would
not have business case because they are so small.
• By banding them together in Procurement Scotland has been
able to reduce the cost and create a business case.
All Government Departments
Collaborative Procurement 11
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25
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39 ...the programme
was initiated to
drive the
efficient use of
Government
Funding across
the University
sector.
• ALL 62 Universities and
Colleges use APUC
and nearly all use
PECOS P2P
• Centre of Expertise
created
• Strategy and Policy
sharing
• Sharing contracting
strategies
All of Education is on the Procurement Scotland System
Collaborative Procurement 12
APUC is a ‘Sector’ of Procurement Scotland
Advanced Procurement in Scotland's Universities
and Colleges (
Advanced Procurement for Universities and Colleges
(APUC) is the procurement Centre of Expertise for
Scotland's 60 (formerly 62, reduction due to merger)
Universities and Colleges.
Membership comprises the participating institutions who
are stakeholders in the organisation. Established in
response to the Review of Public Procurement in Scotland
(by John F McClelland CBE) of 2006, APUC was formed in
January 2007 to lead the Public Procurement Reform
Programme in the sector, to act as its representative body
(in matters related to procurement), provide best practice
guidance and support, and operationally lead and
facilitate collaborative contracting for client institutions.
APUC was also tasked with implementing the
eProcurement Service (Procurement Scotland - PECOS)
across this sector.
Collaborative Procurement 13
APUC Overview
• Purchasing from those 25,000 suppliers either through
catalogues on the system or through Punch Out.
• Total net potential cashable and non-cashable benefits
of over £10m per year;
• 110 contracts available via APUC to client institutions by
end of Q1 2011 (either led, jointly-managed or
facilitated), with Buyers Guides in place. It is estimated
by steady state, due in the 2011/12 academic year,
around 130 agreements will be available, and;
• This is in addition to the tenders/contracts put in place
via the APUC College Support team which usually has
over 40 tenders in hand at any one time.
However, this has entailed/entails a degree of pump-
priming (in this case from Scottish Government and then
from the SFC) and there will be a development curve in
terms of skills and awareness (particularly among smaller
institutions) aided by design and introduction of improved
tools and performance management solutions.
Governance Model
APUC is a private company limited by guarantee, wholly
owned by all of its member institutions across Scotland, it
is grant funded by the Scottish Funding Council. The Chief
Executive Officer, on behalf of the Board, provides
progress reports to the Scottish Funding Council (SFC) and
member stakeholders.
APUC is a core member of the Scottish Government Procurement Reform Delivery Group and as such also reports progress on behalf of itself and its client institutions in relation to the Public Procurement Delivery Plan.
Key Statistics
• From the standing start in January 2007 to the end of
June 2012, Scotland’s Universities and colleges have
placed 715,000 Purchase Orders covering 1,650,000
line items over the past twelve months.
• There are 12,000 registered PECOS users in Institutions
and 25,000 suppliers to the sector registered in PECOS.
Collaborative Procurement 14
APUC Overview
team with client institutions, is key to delivering
sustainable value and success .
Operational Objectives:
• To operate as a representative body for the University
and College sectors in Scotland in matters related to
procurement;
• To operate as a Centre of Expertise to support client
institutions in delivering advanced procurement
performance in line with the McClelland Review
recommendations;
• The development of strengthened collaborative
procurement, Comprehensive implementation and
support for utilisation of the PECOS eProcurement
solution, and;
It is anticipated that this structure will realise sustained
benefits into the long term as well as in the early years,
the build up-phase as such, is something that will take
years rather than months to fully embed.
APUC aims to work jointly, as one team with client
institutions, to support the embedding and consistent
application of good procurement practice within
Scotland's universities and colleges, and to increase the
sustainable value for money from institutions'
procurement expenditure through the implementation of
advanced procurement practice. This will maximise the
contribution that advanced procurement makes to
Scotland's investment in teaching, research and
knowledge transfer such that institutions can deliver more
with the funds available in a risk managed and compliant
environment.
APUC has found that after initially taking a more
independent approach, working in partnership, as one
Collaborative Procurement 15
APUC Overview
49 projects for 20 colleges were completed, with an
annual value of £ £5.8M.
A further 50 projects are in progress with an annual value
of £7.5M. Additionally, a further 51 projects are planned
for, with an annual value of £13.3M. These numbers
demonstrate the extensive use of the CS team across
colleges. It is estimated that by the end of July 2011, CS
will have assisted in tendering 84 completed procurement
projects. These are managed to wherever possible provide
knowledge transfer to client institutions throughout the
support process.
• Increase the level of procurement expertise and
capacity to universities and colleges and assist in
further development of the skills already in place.
Achievements and Benefits
By the end of March 2011 PECOS had been implemented
in 47 institutions and 3 other institutions are being
supported with alternative eProcurement systems.
The Centre of Expertise has been working on collaborative
procurement contracts and this is done using a further
collaboration model so that many are jointly put in place
with other Centres of Expertise or regional purchasing
consortia across the UK, thus avoiding as far as possible
needless duplication of resources, while maximising
leverage. As mentioned above, the current total of 110
should rise to a steady state of circa 130.
In addition to collaborative procurements, APUC, Colleges
Support (CS) team has also been working on higher
value/capital projects. Since January 2010,
Collaborative Procurement 16
Scotland Excel
collaborative
content is
available to ALL
32 Local
Authorities and
the school
system through
Procurement
Scotland....
All 32 Local Authorities
and Schools participate
• ABC – Authorities Buying
Consortium in the West of
Scotland
• Tayside and Forth Valley
Purchasing Consortia
• Aberdeen Shared Service
Procurement
• Centre of Expertise
• Collaborative
Procurement
• Four regional hubs –
Paisley, Edinburgh,
Aberdeen and Inverness
All of Local Government is on the Procurement Scotland System
Collaborative Procurement 17
Excel is a ‘Sector’ of Procurement Scotland
Scotland Excel
Scotland Excel is the Centre of Procurement Expertise for
the local government sector. Launched on 01 April 2008,
its remit is to work collaboratively with members and
suppliers to raise procurement standards, secure best
value, and to improve the efficiency and effectiveness of
public sector procurement in Scotland.
Scotland Excel is a non-profit making organisation funded
by participating local authority members, and hosted by
Renfrewshire Council as the lead authority.
Profile: Public Sector, Local Authority
Why: Improve efficiency and reduce costs by encouraging
collaborative procurement initiatives.
What: Development of a scalable procurement solution
which can be used collaboratively by all local authorities in
Scotland.
Collaborative Procurement 18
Excel Overview
• Deliver and mobilise best value contracts which achieve
measurable benefits for our members.
• Practise responsible sustainable purchasing by taking a
holistic view of the social, economic and environmental
implications of product and service choices.
• Foster effective partnerships by engaging with
customers, suppliers and other stakeholders.
• Champion a professional approach to public sector
procurement by providing relevant learning and
development opportunities to staff and stakeholders.
• Promote and share best practice among local
authorities through effective communications and the
work of the Procurement Improvement Programme.
• Develop Scotland Excel as a Centre of Procurement
Expertise through a programme of continuous
improvement which maintains industry-recognised
standards.
How: Scotland Excel was launched on 01 April 2008; All
32 Councils in Scotland are now members.
Where: Head office in Paisley and regional teams in
Edinburgh, Aberdeen and Inverness.
Governance Model
Joint Committee of one or more members from each Local
Authority responsible for strategic direction and approves
annual budget and business plan. Executive Sub-
Committee meets regularly to approve contract awards
and other business decisions.
The Chief Executive Officers' Management Group (6 local
authority CEO's) responsible for monitoring performance
against business plan and objectives, approving Associate
Member applications and the range of products and
services that appear on contracts.
Key Objectives
Collaborative Procurement 19
Excel Overview
• As of February 2010, 43 delegates had achieved
Chartered Institute of Purchasing and Supply (CIPS)
professional qualifications through courses offered by
Scotland Excel in partnership with Glasgow Central
College.
• First public sector body in Scotland to achieve CIPS
accreditation for Excellence in Purchasing Policies and
Procedures.
• Responsible Sustainable Procurement strategy launched
in February 2010.
• As of February 2010, Scotland Excel had attended more
than 34 supplier events to educate and inform suppliers
about the public sector contract opportunities open to
them.
Achievements and Benefits
• By the end of 2010, 37 new collaborative contracts had
been delivered with an estimated value of more than
£170m per annum. Savings forecasts vary by contract
and local authority, (mean average c. 6.5% across all
new contracts).
• Savings model developed to monitor and report actual
contract savings for each local authority.
• In December 2009, Scotland Excel initiated a
Procurement Improvement Programme in partnership
with local authorities to develop and implement
strategies for improving procurement performance.
• Since January 2009, over 700 delegates from more than
60 organisations have attended Enhancing Procurement
Capabilities courses.
Collaborative Procurement 20
Excel Overview
• Recipients of the first Government Opportunities
Awards Scotland (GO) John F McClelland Collaborative
Procurement Award in October 2008.
• Scotland Excel was also Highly Commended at the 2010
Awards for the Graduate Trainee Programme and the
work of its Catering and Cleaning Commodity Team.
• In recent months, Scotland Excel has developed a
number of contract opportunities within construction
and social care and are exploring include financial
services and facilities management in 2011-12.
Collaborative Procurement 21
...the business case
across Health
recognised the need
for a sector –wide
implementation of
Procurement
Scotland services
to deliver benefits...
All 14 Health Boards
participate along with:
• Scottish Ambulance
Service
• National Services
Scotland
• Other smaller health
organisations
• Supported by:
• Procurement Strategy
• Category Management and
National Contracts
• First line Procurement
Scotland Support
• National Logistics
All of Health is on the Procurement Scotland System
Collaborative Procurement 22
National Procurement is a ‘Sector’ of Procurement Scotland
NHS National Procurement
NHS Scotland's Procurement Centre of
Expertise established in 2005 to provide
goods, services technology solutions and
procurement advice to NHS Scotland's 14
Regional Health Boards and 8 Special Health
Boards.
Profile: Public Sector, NHS Scotland,
Centre of Procurement Expertise
Why: provide more efficient procurement tools
for health service in Scotland in face of
challenging economic climate.
What: delivery of collaborative procurement
tools to the various NHS Boards in Scotland to
ensure significant financial and service
efficiencies.
Collaborative Procurement 23
National Procurement Overview
Objectives
National Procurement 2009-2010 objectives:-
• £8m of savings delivered from National Contracts,
• £9.7m benefits released from our logistics service,
• OTIF (On Time In Full) performance of 98%,
• Achieve PCA (Procurement Capability Assessments)
Superior Performance for 75% of NHS Scotland in scope
spend,
• 50% of invoices to be received electronically,
• 2% efficiency savings against agreed budgets.
Achievements and Benefits
The success of the Capability Assessment Process
developed by National Procurement in their role as a
centre of excellence is now being used as a model for the
rest of the public sector following successful deployment
in NHS Scotland.
How: application of eProcurement to achieve best
practice strategic sourcing; working more effectively with
stakeholders to ensure robust demand management and
obtaining best value products from key suppliers.
Governance Model
Seven working groups in operation during year 2009-2010
to identify, review and embed best practice across NHS
Scotland under the aegis of the NHS Procurement Reform
Steering Group.
Key Statistics
• NHS Scotland cumulative spend of over £1.5 billion a
year on procurement of goods and services. Cumulative
savings of over £100 million since inception.
• National procurement contracts saved an estimated
£24m in 2009-10.
• National Logistics service saved c. £11m in 2009-10.
Collaborative Procurement 24
National Procurement Overview
National Procurement are working with Audit Scotland
and Scottish Procurement Directorate to evolve and
support this process and to meet the target of getting 75%
of spend being managed by Superior Performing Boards in
practice and behaviour terms of the 12 attributes
articulated in the McClelland Report 2006 (Governance,
Organisational Structure, Resources and Skills, Practices
and Processes, Information Systems, Collaboration,
Corporate and Social Responsibility, Reporting,
Benchmarking, EU guidelines, Supplier Policy/Strategy and
Overall Value of Results).
Health Advertising Portal http://www.publiccontractsscotland.gov.uk/ designed to:-
• Stimulate economic growth in Scotland;
• Enable the Scottish Public Sector to achieve Best Value
for money, and;
• Standardise procurement documentation, for Pre-
qualification questionnaires and to aid completion by
suppliers and evaluation by purchasers.