International Business Collaboration:

Procurement

Prepared forThe International Housing Partnership

16th October 2012

What are the drivers for a strategic approach to

procurement in housing?

Long term business plans $ New build spend $

Housing management spend $ Planned capital spend $

Government capital spend $ Repairs & maintenance spend $

Billions of $ are being spent in our sector

Our cultureTransparency Fairness Value for MoneyCompliance Public Purse Commercial

Sector characteristicsGovernance Strong sector sponsorship Organisational similarities

Sector ResponseCoordinated solution for the sector -

consortia

Our Landscape

• Maintenance costs• Housing management costs• New build costs• Major capital building costs

Input

• People• Process• Technology

Operation • Savings / Value for Money• Efficiency• Wider Social & Economic

value• Organisational design

Outcomes

Consortia evolution

Phase Characteristics

Aggregation • Supplier courtship• Membership development• Revenue focus

Regulation • Policing• Internal focus• Policies• Compliance

Social Value • Wider VfM• Understanding the influence• Localism• Collaborations• Networks

Phase Characteristics

Insight • Action orientated• Improvement• Intelligence• Compliance • Supply chain relationship management• Contract management

Best in Class • Category management• Strategic influence• Leadership• Organisational design• Competitive advantage• 85% spend under management• 81% Compliance

The Role of Consortia

• Simple “Stack it high” solutions no longer enough

• Greater emphasis on wider organisational efficiency of our members

• Technology playing a greater part

– Demand v Visibility v Control

• Increasing use of hybrid solutions amongst the larger providers

• Must operate in a “continuous improvement” environment

• Guard against too many!

• How do your markets differ?

• Does the difference matter?

• Can you benefit from the experience of our “evolution”?

Some Questions

Thank You