Improved procurement through Supplier Spend Analysis
Feb 10, 2016
Improved procurement through Supplier Spend Analysis
2
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
3
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)
4
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
5
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
6
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
7
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
8
Bournville College
• My College
• Cashable and Non Cashable savings
• The Collaborative Group
9
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
10
Other Procurement Services
• PQQ Services
• Supplier Accreditation
• Procurement Services
• E-auctions
• Cost Reduction - Utilities