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National eProcurement Project

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National e-Procurement Project. NePP local e-gov Experience Sharing Workshops June/July 2005 ... Categorise Spend. Page 14. Quantifying the benefits - approach ... – PowerPoint PPT presentation

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Title: National eProcurement Project


1
National e-Procurement Project
  • NePP local e-gov Experience Sharing Workshops
    June/July 2005

2
Introduction to NePP
  • 1 of the 22 National Projects sponsored by the
    ODPM
  • Launched in October 2002
  • Run by Local Authorities for Local Authorities
  • NePPs focussed outputs
  • Implementation Plan
  • Best Practice Guidance
  • Interactive Tools
  • Experience Sharing
  • Case Studies
  • Practical Workshops
  • Consultancy Support

3
NePP Outputs 2004/2005
  • New entry-level guidance notes for implementing
    e-procurement 1 -9 How to Guides
  • Support for Local Authorities
  • 120 English LA approached
  • Onsite e-Procurement Consultancy Support
  • Events Programme
  • Experience Sharing Workshops Nov/Dec 04,
    Feb/March 05, EXPO, Third Party Events

4
How to Guidance
  • Overarching Guide to e-Procurement
  • What are Purchase Cards
  • What are e-Auctions and how to get started
  • What is e-Tendering
  • What is an e-Marketplace and how to get started
  • How to create a Business Case for e-Procurement
  • What is Spend Analysisand how to get started
  • Guide for selling to Councils
  • Guide for Suppliers
  • Available at
  • www.idea-knowledge.gov.uk also available
    through
  • www.nepp.org.uk

5
Implementation Plan
6
What is procurement / e-procurement
7
What is procurement / e-procurement
8
Take advantage of the NePP Outputs
  • Website for all best practice guidance, case
    studies, interactive tools
  • www.nepp.org.uk
  • NePP as dating agency
  • Experience Sharing Workshops
  • Contact us for any general enquiries
  • projectoffice_at_nepp.org.uk
  • National Projects Information line 0870 777 0011

9
Quantifying the benefits some highlights
  • The estimated benefits for local government
    overall are

10
Quantifying the benefits what can I save?
  • Est. benefits individual authority are

11
Quantifying the benefits
12
Quantifying the benefits
13
Quantifying the benefits - approach
  • Analysis of non-pay expenditure Identify
  • corporate contracts (including outsourced service
    delivery),
  • the number of suppliers and
  • number and value bands of invoices.
  • Determine spend categories - usually CIPFA
    categories although others may need to be added.
  • Analyse non-pay expenditure obtained from Step 1
    into the spend categories agreed in Step 2.

14
Quantifying the benefits - approach
  • The first part of the model can now be completed
    spend totals by spend category.
  • Potential benefits are assessed by
  • percentage of addressable spend by category
  • level of compliance by reference to the extent to
    which corporate contracts are in place,
  • the level of maverick spend and the number of
    suppliers by spend categories
  • agreeing the phasing of strategic procurement
  • applying benchmark savings percentages to
    addressable spend by category

15
Quantifying the benefits - approach
  • Process savings
  • Analyse the purchase-to-pay process in selected
    services and in Finance to provide substantiation
    of the potential process savings.
  • The detailed tasks are
  • map the purchase-to-pay process in the services
    and in Finance, to
  • identify how the process is undertaken,
    including the use of
  • technology
  • identify typical timings for each process step
  • identify the resources involved in each process
    step and their cost
  • calculate unit costs for order and invoice
    processing
  • contrast the current situation with best
    practices
  • determine the potential process savings in the
    selected services
  • extrapolate the potential savings across the
    Council.

16
Challenges
e-Procurement life cycle and change management
challenges
Gaining initial interest
Commit resources
Making the case
Deliver the benefits
Management and user buy-in Selling the benefits
Leadership and ownership of the project
Management and user buy-in Selling the
benefits
Organisation design Compliance with corporate
contracts and processes
17
e-Procurement the Gershon Review
  • Gershons Efficiency Review targeted government
    with achieving savings of over 20bn during the
    next three years.
  • Local government is targeted with achieving
    savings of 6.45bn, half of which must be cashable

18
More Information
  • Download the all of the benefits documents from
  • www.nepp.org.uk
  • www.localegovnp.org.uk/benefits

19
Regional Working
  • NePP is working alongside
  • Regional Centres of Excellence
  • e-Government Partnerships
  • Objectives
  • Sharing best practice
  • Efficient use of resources in attempt to stop
    reinventing the wheel
  • Supporting Promoting Regional Initiatives
  • Identifying and helping Local Authorities that
    need it most

20
  • www.nepp.org.ukProjectoffice_at_nepp.org.uk
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