Procurement Development in Anchor Trust; Its journey, development & future (May 2015)
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Transcript of Procurement Development in Anchor Trust; Its journey, development & future (May 2015)
Value Adding Procurement at Anchor
Supporting the 2015 to 2020 Business Plan
Anchor Business Plan – 2015 to 2020
Business Objectives
•Best Customer Service•Best Place to Work•Best Run Company•Offer Anchor Services to More Older People
“Improve customer satisfaction across all services…….”“Ensuring value for money in all procurement decisions” “A culture of continuous improvement and innovation”
Anchor Business Plan – 2015 to 2020
Financials
•Growth Plans•Acquisitions•Increasing EBITDA•Cost Management
• Operating costs as proportion of t/o reducing (5%)• Support costs as proportion of t/o reducing (24%)
Procurement supporting cost management deliveryProcurement supporting M&A activity
Annual Expenditure
Category Sub Cat I&E Capital SC Total
Property 37 £32m £36m £4m £72.0m
Corporate Services 37 £19m £20.7m £0.3m £40.0m
IT / Telecoms 4 £14.5m £0m £2.5m £17.0m
Facilities Management 35 £9.3m £1.1m £3.9m £14.3m
Catering and Cleaning 29 £4.3m £0m £5.9m £10.2m
Utilities 6 £8m £1m £12.5 £21.5m
Total £87.1m £58.8m £29.1m £175m
The Challenges Were Clear
Tender not Procurement
Expertise
Business and Customer Alignment
Limited
Demonstration of Value for Money
Required
In isolation of the Organisational
Challenges
Access to required Goods and Services
Difficult
Blocking not Enabling
The Procurement Cornerstones
Resource Management
Leadership, Strategy and Policy
PerformanceMeasurement
& Management
OrganisationSpecific
Procurement Processes
Stakeholder Engagement
Organisation Specific
OrganisationSpecific
Charitable Organisation
Public Sector
Competitive Market
Customer Led
Property Asset BaseProcurement will respond
to the organisation’s specific requirements
Enabling our Customers
StakeholderEngagement
Business Partnering
Aligned Objectives
Category Groups
Easier Buying
Procurement will meet the needs of our
customersCommunication
A Tangible Improvement in Service
Performance Measurement
& Management
Signed Off Cost Savings
Supplier Performance
Benchmarking
Customer Satisfaction
Operational Standards
Procurement will deliver measurable
improvements in cost and quality
Supporting Delivery of Business Priorities
Leadership, Strategy and Policy
Across all of Anchor
Vision, Culture, Values
National, Regional, Local
Legal, Risk, Continuity
Innovation, Environment,Diversity
Procurement will provide commercial leadership
Consistent and Focused on Delivery
ProcurementProcesses
Category Management
Purchase to Pay
Information Sources
Simple Procedures
ConsistencyProcurement will be
efficient and consistent
The Right People…………
Resource Management
Culture and Values
Technical Development
Business Competencies
Coaching, Mentoring
Succession PlanningProcurement will have the right people on the
bus
Organisation Specific
Category Management in Brief (1)
Mobilisation SourcingBaselining
• Stakeholder Identification & Analysis
• Stakeholder Mapping• Communications and
Engagement Plan • Initial Risk Assessment
Undertaken• Stage Gate Approval
• Spend & Historical Analysis
• Current Procurement Practices
• Category Segmentation• Supplier Preferencing• Existing Contracts• Baseline Calculation,
Prices and Volume• Stage Gate Approval
• Competitor Analysis• Best Practice Analysis• Whole Life Costing
(TCO)• Business Needs
Analysis • Cost Benefit Analysis• Specification Challenge
and Confirmation• Stage Gate Approval
Category Management in Brief (2)
Supplier Selection ContinuousImprovement
Implementation
• Supply Market Analysis and Definition
• Market Conditioning• Value and Type of
Contract• Negotiation Plan, • Actual Savings
Calculation• Supplier Management• Stage Gate Approval
• Supplier Relationship Management Approach
• Performance Monitoring and Reporting
• Supplier performance Reviews
• Cost Improvement/• Benchmarking • Learning’s & Feedback
• Implementation Team• Risk Assessment &
Contingency Plan• Core Implementation
Accountabilities with KPI’s
• Implementation Plan / Targets
• Stage Gate Approval
E Procurement – Purchase to Pay
Ordering
Catalogue
PO Flipping
Invoice Scanning
Amazon experienceSingle ordering processReduced support costs
Maverick expenditure reducedImproved data qualityImproved control (PO)
Electronic invoicing and PO matchingReduced manual input / errors
Electronic invoicing and order matchingReduced support costs
Improving financial accruals
Procurement Value 2014/15
Procurement Target - £3m
•In Year Delivery £4.04m• I&E £1.65m• Service Charge £1.64m• Capital £0.75m
Customer Satisfaction
Rented Performance
Leasehold Performance
Procurement Value 2015 onwards
2015/16 2016/17 2017/18
I&E £4m £3m £1.5m
Service Charge £1m £1m £0.5m
Capital £6m £5m £3m
Total £11m £9m £5m
Cumulative £11m £20m £25m
The Structure - April 2015
Category Mgr Corporate Serv / IT
Pam Booth
Category Mgr Property
Charlotte Baker
Category Mgr Catering & Cleaning
Sean Wheatley
Category Mgr Facilities ManVictoria Wells
Category Mgr Property
Drew Robertson
Procurement Services Mgr
Grace Pearson
Category Mgr Utilities
Mike Williams
Head of Procurement and Purchasing
John Wallace
Category AssistantsAlex Holdsworth, Paul Stanford, Lendy Ho,
Kristina Fielding, Laura Stell
Energy Mgr TeamRobert Bradley, Richard Enyori
Commercial TeamDan Mountain, Jane Stephenson, Nick
Patton, Simon Rowe
Procurement ServicesAmber O’Sullivan, Sam Harrison, Debs Berry,
Carole McCarten, Leanne Ridley, Jo
Tolley
In Summary
Recruit ProcurementLeaders withRight Values
Get Influence at Board Level
Create MeaningfulRelationships with
Suppliers
OrganisationSpecific
Embrace ProcurementTechnology
Go Beyond a “Policing” Role
Value Adding Procurement at Anchor
Supporting the 2015 to 2020 Business Plan