Procurement as an institutional priority - Laura Watson

Procurement as an institutional priority

Workshop presentation by:

John Lakin, Procurement UKLaura Watson, Deputy Director of Procurement, Durham University

27th March 2014

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Procurement as a strategic asset

Research shows that strategic influence results from

• Raising the profile of procurement• Working at the top table• Delivering the vision of the institution

[See research and case studies from Durham University, University of Edinburgh, London South Bank University and University of East London at http://www.efficiencyexchange.ac.uk/2842/procurement-as-a-strategic-asset-report-for-efficiency-exchange-july-2013/ ]

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Raising the profile

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Working at the top table

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Delivering the vision

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Strategic procurement at Durham University – a case study• What is procurement?• What has worked well?• What remains to be done?• What has proved difficult?• Capability assessment• Training• Questions

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Procurement is….

… a cumbersome process… slow… lengthy… not necessary… bureaucratic… a policing function

… an enabler… necessary to ensure that fair treatment is provided to suppliers… necessary to ensure compliance with legislation… a supportive function … necessary to address environmental and social issues… there to award to the most economically advantageous tender… able to address whole life costing

OR

The customer view

Our customers need to be re-educated … this takes time

Procurement should be service orientated

Procurement’s view

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What has worked well?Strategic Sourcing StrategyTo ensure better planning of tenders, using a category management approach, to facilitate improved collaboration

CollaborationWith key customers and stakeholders – to understand their business needs and how procurement can support those needs to facilitate delivery of their requirements

• CIS with the New World Programme• Catering to improve the social and environmental aspects of food

procurement – won a combined Green Gown award in 2011

Working with other Universities – through NEUPC and through a regional group that meets to discuss collaborative opportunities

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What remains to be done?

eProcurement•Conclude the roll out of Purchase to Pay to all departments across the University (95% completed)

Category Management•Embed the category structure•Engage with key stakeholders to inform them of the purpose and benefits of category management

Marketing Plan•Need to market the procurement service to explain the benefits of what we can do and how this will help

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What proved difficult?

eProcurementImplementation of eProcurement has taken longer than expected due to:

• Ensuring the system was fully fit for purpose and would deliver what the departments and colleges required – as we have purchased an off the shelf system, there has been significant work to amend processes rather than system

• Engaging with Academics

Stakeholder EngagementTrying to remove the myth that procurement are blockers and will slow the process down, but instead provide strategic advice and guidance that will help

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Procurement Capability Assessment

Sections Status

1 Procurement leadership and governance Superior

2 Procurement strategy and objectives Improved

3 Defining the supply need Superior

4 Procurement Commodity / Project Strategies & Collaborative Procurement

Superior

5 Contract and Supplier Management Superior

6 Key Purchasing Processes and Systems Improved

7 People Superior

8 Performance Measurement Improved

Overall Procurement Status for the Organisation Superior

The first English University to attain a superior status on the first assessment

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Training

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Any questions?

Would this model work for your organisation?

What could your organisation do differently to facilitate strategic procurement?

What is the most difficult issue that you have to face?