Review of Procurement Arrangements & Processes Supply Chain - - PowerPoint PPT Presentation

Review of Procurement Arrangements & Processes

Tuesday, 30 September 2014

Supply Chain Management - Achievements

• £400k savings delivered

13/14

• Identified savings 14/15

excess of £500k

• Improvement of missed

collections, spillages and

• Improvement of Hounslow

Highways Contract – Performance of street cleansing by 10% from 85% to 95% May 2014

• Leisure accreditation – BS

collections, spillages and complaints for SITA Contract (Waste & Recycling)

• 300 streets per week

(approx. 20%) checked

• Leisure accreditation – BS

ISO19001

• Working in conjunction with

WLA (Ealing and Brent)

Supply Chain Management – Next Steps

• Migration of further

contracts to Supplier Performance

• Updated Contract Procedure

Rules

• Launch of the Supply Chain
• Supplier Engagement Day

for local businesses

• Review of the scope for

Departmental Contracts Board

• Further recruitment to bring
• Launch of the Supply Chain

Manual

• Tackling Non-Contracted

Spend

• Further recruitment to bring

team up to full compliment

• Go Live of Personal Care

Framework

P2P - What has been achieved in the past 9 months

• All procurements carried out by SCM use e-

tendering (38 ITTs, equating to £43.4m)

• Public facing contract register has been
• Identified, by value, the highest value

ProContract (e-Tendering) Non-Contracted Spend Purchasing MOTs

• Improved the reputation of SCM
• Identified potential areas for savings (Client

storage and Domiciliary care within Mental Health)

Agresso

• From January 14 compliance checks carried
• ut at supplier set-up stage by SCD. This

ensures the Tenders and Contract Regulations are adhered to.

• Turnaround reduced to 2 days (from 5 days)
• Public facing contract register has been

populated for all in place contracts held by Legal and in Controcc, that are over £30,000 going back to 2010 (267 active contracts, 210 expired)

• Identified, by value, the highest value

suppliers without contracts

• Have plans in place for non-contracted

spend and expiring contracts

P-Cards

• Tripled the number of cards and transactions

(29 cards, 101 transactions in August 14)

• Doubled the number of cardholders

reviewing transactions correctly. (88% reviewed in August 14, 38% in December 13)

P2P – What is still to be done

• All Procurements over £5,000 will use the e-

tendering system from December 2014

• Top 50 non-contracted suppliers passed on

ProContract (e-Tendering) Non-Contracted Spend Purchasing MOTs

• Further promotion of the reviews and their

benefits (September 2014)

• Phase 2 to review groups of cost centres

and category areas and identify further actions (Q4 14/15)

Agresso

• Optical Character Recognition to enable e-

invoicing as part of the E-post room project

• Move to product based ordering for

improved MI

• Implementation of Punch Out catalogue for

Stationery tendering system from December 2014

• Use of e-auctions to drive better value
• Training users on use of Quick Quotes
• Top 50 non-contracted suppliers passed on

to Procurement to begin to determine procurement process where needed (by March 2015)

• Remaining above OJEU non-contracted

suppliers (350) to be analysed and action plan determined by SCD (by March 2015)

P-Cards

• Implementation of Embedded Cards in

stationery contract to reduce invoice volume (October 2014)

• Engagement with service areas to promote

the benefits of P-cards to expand the programme to 75 cards (by March 2015), and reduce one-off purchases through Agresso

“As Is” Process

Issues Identified & Recommendations

Issues Identified; during the consultation for the updated Contract Procedure Rules several suggestions have been made to improve the processes that are part of this review: Recommendations APP risk categorization is manual. There is currently a lack of guidance around what constitutes high, medium and low risk factors for a procurement. Scored risk ratings and defined parameters for the risk categories. Little challenge of the APP risk rating or identified savings in the APP. APP Commencement form to include identified savings. Departmental Contracts Boards to challenge APP risk ratings. No quality assurance of business case to procure or consideration

• f cross directorate spend.

DCB terms of Reference being to include review of procurement business cases and procurement pipelines. In instances where the APP Appendix is approved by Cabinet as a ‘C’ you are then in a situation where the next task is to seek Combine the APP Registration and the Authority to Commence

• forms. This will remove the issue described, and potentially save 4

‘C’ you are then in a situation where the next task is to seek Cabinet Approval to Commence.

• forms. This will remove the issue described, and potentially save 4

weeks from the tender process without reducing project visibility to Cabinet or Members. Lack of clarity over who constitutes “Procurement Officer” on the Authority to Commence form. (i) Change of wording from “Procurement Officer” to “Procurement Hub Category Manager” (ii) Transfer authority documentation to an e-form, which will automatically workflow documents to the correct officers for approval. Not every signatory on the AtA includes a declaration of interests Additional declarations added for each signatory to specifically declare interests. No request for supporting documentation when accessing framework agreements (usually a Customer Access Agreement)

• n the AtA. Due Diligence should also be carried out by

Procurement Hub prior to completion (i) Amend AtA to request Appendix of Customer Access Agreement (or equivalent) when framework is confirmed. (ii) Procurement Hub approval to include confirmation Due Diligence has taken place for the framework.

Suggested Process