Improved procurement through Supplier Spend Analysis

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Introduction

• Overview of Spend Analysis Project• Benefits of Spend Analysis• FE Procurement Development Team – Carl

Johnson, AOC• Bournville College – Karen Stanwell, Procurement

Manager• Costs & Options• Other Procurement Services

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Overview of Spend Analysis Project

• 70 Colleges/13 Collaborative Groups• Savings identified

• Cashable – over £3m• Non Cashable - over £5m

• Spend Analysis Lite & Spend Analysis Advanced• Online Tool• Report (optional)• Onsite Visit (optional)

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Benefits of Spend Analysis

• Obtain effective management information and insight into spend

• Identify potential cashable & non cashable savings• Aggregate spend to highlight major suppliers and categories

of spend • Compare, benchmark and highlight opportunities for

collaboration with other colleges• Help compliance with EU Directive

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FE Procurement Development Team

Why are we support spend analysis?

• Starting point for procurement• Operational Efficiency Programme (OEP)

Has the spend analysis project been a success?

• Commissioned a review of the project

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FE Procurement Development Team

Findings (based on 52 of the 74 colleges)

• 6 million pounds of potential cashable and non cashable savings highlighted.

• Over 2.5 million of these savings have been realised one year on.

• Key spend area’s highlighted were Examinations, Energy, IT Hardware, Insurance and Advertising.

• Lessons learnt

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FE Procurement Development Team

Highlights

• FE Sussex work on Exams (400k)• Wigan & Leigh college purchasing energy via YPO (95k)

and Insurance via CPC (40k)• Solihull college OGC e-Auction for IT (25%)• Cirencester college using Buying Solutions MFD contract

(5k per year plus added value products)• Bournville College

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Bournville College

• My College

• Cashable and Non Cashable savings

• The Collaborative Group

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Costs & Options

• Spend Analysis Lite• Online Tool - £1750• Action Plan (optional) -

£195• Onsite Visit (optional) -

£240

• Spend Analysis Advanced• Online Tool - £3500• Action Plan (optional) -

£300• Site Visit (optional) -

£240

• Risk Reward Model• Online Tool - £5000• Action Plan (optional) - £400• Site Visit (optional) – £300

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Other Procurement Services

• PQQ Services

• Supplier Accreditation

• Procurement Services

• E-auctions

• Cost Reduction - Utilities