National eProcurement Project

1
National e-Procurement Project

• NePP Realising the Benefits
• Ian Makgill

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
Implementation Plan
4
What is procurement / e-procurement
5
What is procurement / e-procurement
6
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

7
Benefits Realisation

• 1.1billions plus 2,500 fte
• Better Procurement and Better e-Procurement gives
  you Better Benefits
• Purchasing Cards
• ePurchasing eMarketplaces
• eSourcing - Tenders Auctions

8
Quantifying the benefits some highlights

• The estimated benefits for local government
  overall are

9
Quantifying the benefits what can I save?

• Est. benefits individual authority are

10
Quantifying the benefits
11
Quantifying the benefits
12
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.

13
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

14
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.

15
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
16
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

17
More Information

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

18
The State of the Nation..IMPLEMENTATION

• e-Procurement implementation status of 388 LAs
• July 2002 30 Implementers
• January 2004 98 Implementers
• February 2005 125 Implementers
• And the remainderView the latest State of the
  Nation reporting on www.nepp.org.uk

19
NePP Project Office Non-District Council
e-Procurement Implementation Map January
2005 Local authorities that have advised us of
their e-procurement Implementation status are
highlighted on this list. It has been kept
up-to-date using survey information and
tele-questionnaires, and has been verified by
service providers. If you feel that your local
authority should be added to this list, or for
any amendments, please contact Charlie Brooksbank
at the NePP Project Office charles.brookbank_at_nepp.
org.uk tel [phone]
Implementing
Sourcing a Solution
www.nepp.org.uk
20

NePP Project Office District Council
e-Procurement Implementation Map January
2005 Local authorities that have advised us of
their e-procurement Implementation status are
highlighted on this list. It has been kept
up-to-date using survey information and
tele-questionnaires, and has been verified by
service providers. If you feel that your local
authority should be added to this list, or for
any amendments, please contact Charlie Brooksbank
at the NePP Project Office charles.brooksbank_at_nepp
.org.uk tel [phone]
Implementing
Sourcing a Solution
www.nepp.org.uk
21
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

22

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