Lancashire Procurement Hub

1
Lancashire Procurement Hub One Year On
Nicola Hallsworth - Head of the Lancashire
Procurement Hub Neil Hind - NWIEP Procurement
2
Lancashire Procurement Hub

• Based in Pendle Borough Council.
• 4 members of staff in one central team Head of
  Hub, Procurement Officer (Contracts) Procurement
  Officer (Analyst) and Admin support.
• Stephen Barnes Chief Executive Sponsor
• Report to the Team Lancashire Shared Service
  Board and the Lancashire Procurement Board
• Each authority nominates one Senior Stakeholder
  (Senior member of staff in charge of
  disseminating information and acting as champion
  one Procurement Officer responsible for project
  and programme delivery within and on behalf of
  their authority)

3
Lancashire Procurement Hub

• Why does Lancashire need a procurement hub?
• Provide a clear sub regional procurement strategy
• Improve our understanding of sub-regional spend
• Remove existing barriers to collaborate
• Improve knowledge base and capacity
• Create a sustainable environment for ongoing
  savings
• Promote and develop professional procurement
  cultures
• Standardise and improve effective contract and
  supply chain management

4
Lancashire Procurement Hub

• The Objectives of the Hub
• Demonstrate measurable cash savings in order to
  demonstrate the sustainability of a shared
  resource
• Develop standard processes
• Share procurement training across the sub region
  to ensure consistent performance and delivery
• Address resource deficits by managing effective
  collaboration
• Research and share information across the sub
  region, region and nationally
• Aggregation of spend where it offers best VFM
• Work at a regional level to maximise
  opportunities and reach regional targets

5
Lancashire Procurement Hub

• Regional Context 3 year strategy to
• Deliver significant savings achieved through
  collaborative procurement, achieved by a fully
  mature management of local government third party
  spend.
• Increase understanding of the impact of
  procurement decisions on local economies
• Sustainable procurement achieved, realising
  benefits not only to local authorities and their
  partners, but also society and the economy, while
  minimising damage to the environment
• Increase engagement with the voluntary and
  community sector in the provision of services
• Creation of regional construction hub
• Creation of five sub-regional procurement hubs

6
Lancashire Procurement Hub

• Regional Context Progress to date
• Efficiency Savings Delivered
• Approx. 68m from procurement 08/09
• Support of Sub-Regional Procurement Hubs
• Guidance docs and consultancy support
• Sub regional hub now starting to deliver
• eProcurement Adoption
• The Chest Supplier Portal 13 Orgs, 100
  opportunities
• Promotion of Frameworks
• Sustainable Procurement
• Workshops, briefing notes, training courses
• Working with NHS, NWDA, GONW, Env Agency at
  regional level
• Partnering (NHS, Police, Schools, OGC)
• Meetings with DCSF, Social Care Groups

7
Lancashire Procurement Hub

• So what have we achieved so far?......
• Develop standard processes
• All authorities have implemented, or have signed
  up to, the regional standard Sustainability
  Policy
• Committed to implementing the e-tendering portal,
  supported by NWIEP
• Standardised spend reports for easier analysis of
  spend profiles across the sub region
• All authorities committed to implementing
  standard documents and Lancashire lead on
  regional groups

8
Lancashire Procurement Hub

• Share procurement training across the sub region
  to ensure consistent performance and delivery
• Organised Audit Commission Presentation to
  discuss UoR and disseminated guidance for best
  practice
• Facilitated events to showcase best practice in
  Agency Staff provision and influence on energy
  markets
• Provided a unique training opportunity with EL
  Chamber of Commerce to bring local authorities
  and local suppliers together in a shared learning
  environment over a number of workshops
• Delivered 4 local supplier adoption events to
  over 100 local suppliers from across the sub
  region
• Established best practice group to debate and
  disseminate good practice, innovation and
  learning across the sub region
• Lancashire has been appointed lead for the
  regional procurement training and development
  work stream.

9
Lancashire Procurement Hub

• Demonstrate measurable cash savings in order to
  demonstrate the sustainability of a shared
  resource
• The Hub has exceeded its target of 120k savings
  in the first 6 months. The Hub has directly
  achieved savings of 126,000 up to 31st March
  2009
• The Hub has collated and reported the sub
  regional procurement savings total and is working
  with authorities and the region to standardise
  this approach. Conservative figures suggest
  savings for the sub region of over 12 million
• Lancashire has achieved over 2.4 million in
  collaborative savings during the 08-09 financial
  year

10
Lancashire Procurement Hub

• Lessons Learned.
• Capacity is an issue especially in smaller
  authorities
• Savings are not always collected in a robust way
  so perhaps we are not reporting all our
  achievements!
• Not always realising the benefits from contracts
  and true savings potential
• More training and development is needed to help
  build skills and learn from each other
• Success.
• Procurement Officers are working well together
• Strategic Boards are engaged with the work plan
• Communication is starting to embed we have
  plans to develop this so we engage all relevant
  stakeholders and capture more opportunities

11
Lancashire Procurement Hub

• Commitment needed to help us achieve.
• Top level commitment required
• Commitment from the Board
• Commitment to medium and long term targets
• Commitment to resource
• Understanding of timescales
• Positive approach to succeed
• Identify collaborative opportunities
• Prioritising project plans
• Uphold the integrity of collaboration
• Willingness to take part
• Trust partners to deliver objectives
• Achieve the targets..

12
Lancashire Procurement Hub

• What next?...
• Support regional savings within Lancashire once
  agreed
• Report efficiency savings achieved though
  collaboration
• Produce no less than 6 codes of practice per
  annum
• Hold a minimum of 4 annual events to improve
  understanding and skills and share best practice
• Launch and on-line platform to share skills
• Produce 2 annual reports to log all best practice
  that has been shared throughout the sub region
• Collect savings data across the sub region and
  improve collaborative savings by influencing
  agendas
• Deliver a minimum of 750K of cashable savings
  throughout the sub region

13
Lancashire Procurement Hub
?