D-G4-L4-235 Supply Chain Analytics Deloitte LLP Service for G- Cloud IV

Transcription

1 D-G4-L4-235 Supply Chain Analytics Deloitte LLP Service for G- Cloud IV September 2013

2 Contents 1 Service Overview 1 2 Detailed Service Description 3 3 Commercials 7 4 Our G-Cloud Services 8 5 About Deloitte 9

3 1 Service Overview 1.1 Service Summary In a nutshell, what is it that Deloitte will do for you? The Deloitte Supply Chain Analytics group provide deep analytical experts, methodologies, tools, databases and benchmarks to analyse Spend and Supply Chain data in order to identify savings opportunities, control inventory, monitor supply chain resilience risk and identify performance issues and associated improvement opportunities. We provide Spend Analytics, Commissioning Analytics, Whole Life Cycle costing analytics, Commissioning Business Intelligence, Commissioning Pathway re-configuration analytics and developing Supplier Performance dashboards and automated Management Information reports. Deloitte have carried out similar exercises across the public and private sector and have a proven methodology that has resulted in > 1bn in savings for our clients in the past few years alone. The output is provision of clarity from multiple and diverse data sets; automated dashboards and pre-configured tools for re-use once the Deloitte work is completed. Most importantly we differentiate ourselves by: Carrying out the analysis in house not simply relying on an algorithm with no human input; Presenting the analysis in a graphical easy to interoperate manner; Working with you to validate and understand the nuances of your data before the results are presented; Most importantly, we don t just repackage your data and provide it back with no insight or direction. Rather the cleansed and processed data is thoroughly reviewed by our Public Sector Procurement group who validate results and then provide insight and recommendations in relation to opportunities identified in the data using our internal benchmarks where appropriate. Your team, in general, should be able to take the resultant final report and use it to build a business case for change without having to manipulate any data yourselves. The initial service takes 6 weeks but and is delivered by a team with deep, relevant experience. It should be noted that the quantity, and quality of the data provided will have an impact on the results that can be achieved in that time. 1.2 Business Context What situations is this service designed to be used in? Supply Chain Analytics can help address several major challenges facing Government today. If any of these questions relate to you, our analytics service is designed to provide you the answers: How can I reduce my 3rd party spend? How can I quickly understand true cost and value drivers throughout my complex supply chains? How can I better manage operational risk and plan for potential shocks to my supply chains, for example supplier failure or natural disasters that might place a huge strain on my suppliers? D-G4-L4-235 Supply Chain Analytics Deloitte LLP Service for G-Cloud IV 1

4 How can I improve forecasting accuracy to handle changing demands? How can I better control inventory levels to improve my working capital position and available cash? How can I effectively monitor my contracts and the relationships with suppliers to manage performance, compliance, and information flow? Which new opportunities can I unlock by sharing information between supply chain and other Departments, including product innovation, quality improvement, re-distribution of assets vs. buying new and collaborative buying to reduce cost? D-G4-L4-235 Supply Chain Analytics Deloitte LLP Service for G-Cloud IV 2

5 2 Detailed Service Description 2.1 Our Approach Analysing a Department's Supply Chain is a way to quickly and efficiently uncover cost reduction opportunities; rectify areas of underperformance which might either go unnoticed or have not root cause identified if not compared to working processes; and identify areas of risk and continually monitor them. Deloitte's approach is based on: Deloitte developed, established and proven methodologies for each of the sub aspects of Supply Chain analytics Visualising data using advanced but highly user friendly and intuitive software in order to best identify anomalies and opportunities Working hand in hand with clients and building in human intelligence into the analysis Leveraging the global pool of Deloitte experts to analyse the results of the data processing in order to identify opportunities and formulate recommendations - we don t just present back the data cold Deloitte's Supply Chain analytics team extract the maximum they can from client data by leveraging market leading Techniques, tools, data sets and Visualisation capabilities. The exact combination used will depend on the data provided and the type of analysis undertaken. D-G4-L4-235 Supply Chain Analytics Deloitte LLP Service for G-Cloud IV 3

6 Results are presented in a simple to read visual format D-G4-L4-235 Supply Chain Analytics Deloitte LLP Service for G-Cloud IV 4

7 Phase 1. Identify Top Client Issue Detail - Take brief from client and agree the key questions to be answered. For example, if cost reduction is the primary requirement, we conduct a Spend Analysis and build a 'Spend Cube' - Identify appropriate sources of data 2. Collect and Visualise data - Collect, cleanse and collate data - This step is iterative until all appropriate data is collected and validated - Present to client in visual format in order to validate data 3. Conduct iterative analysis with Client 4. Formulate recommendations - The Deloitte team work closely with client Stakeholders in order to understand the data and adjust the algorithms and research undertaken. For example categorising data at the 'item' level vs. the 'Supplier' level to improve the accuracy of the analytics. This requires us to understand where the client stores' Item' descriptions and where they have unique methods of categorising spend. - The results of the analytical tests and resultant reports are sent to Deloitte Supply Chain experts for review and further analysis. If required, the experts identify specific areas for further deeper analysis and if appropriate benchmarking. - Opportunities and issues are then drawn out by the Deloitte subject matter experts and presented in an easy to read report. 2.2 Inputs We have assumed that you will be in a position to provide certain inputs to the service, which we have listed here. If you are not in a position to provide all of these inputs then please get in touch to discuss options, as it is likely we can reach agreement to alter our approach to accommodate your situation. We will provide a template to populate electronically from the Client's accounting or Supply Chain systems. We would also require a copy of your internal Taxonomy/ categorisation nomenclature list. Where clients are only able to provide information via Excel, depending on the level of detail recorded, we can normally still deliver our report. Our team would plan to work with the Client's accounts, procurement, logistics and technology teams as appropriate in order to identify appropriate data and collate it. The main caveat is that the data capture should be complete within the first week of the engagement. The resulting report will only be as accurate as the data provided. 2.3 Your Contribution Our services are designed to be delivered with you rather than to you. We have assumed that you will be able to make the following contribution to the work. If you are not in a position to take on these responsibilities then please get in touch to discuss options, as it is likely we can reach agreement to alter our approach to accommodate your situation. We require access to the following Stakeholders: Finance: to identify appropriate sources of data and validate the files supplied Technology: to extract data from your ERP systems if Finance or Procurement cannot do this Procurement: to identify appropriate sources of supplier related data and validate Logistics: to identify appropriate sources of asset management data and validate Operational/ Business users: to validate the results of the data processing Due to the short nature of this process, access to these Stakeholders on a timely basis throughout the engagement will be critical. D-G4-L4-235 Supply Chain Analytics Deloitte LLP Service for G-Cloud IV 5

8 2.4 Outputs What will you get in terms of deliverables, outputs and outcomes from this service? A database of the data/ spend cube, cleansed, categorised* and presented in a format that further data queries can be run against if required** (Unless your data does not support it, this is usually a single database of all your data collated and aligned) A report prepared by our Supply Chain experts providing analysis of your data and identifying potential opportunities Analysis of specific data points if agreed upfront and possible based on the data provided and the time required. *Within the scope of this work Deloitte will aim to categorise the top 80% of data by spend only. ** The data is presented back in Excel, Access or as a Txt file for import into a SQL database as appropriate. It can also be loaded into a highly visual analytics andreporting tool such as Qlikview or Tableau, however the cost of the associated licence in not included in this quotation and would need to be purchased separately. 2.5 Scale and Complexity The effort involved in delivering our service is driven partly by what we will do (which we have described in section 2.1 above) and what you will do before we arrive and alongside us whilst we work (which we have described in sections 2.2 and 2.3 above respectively). It is also driven by the scale and complexity of your business situation. This section describes the scale and complexity that we have designed this service to address. If your business situation is bigger or smaller than this then please get in touch to discuss options, as it is likely we can reach agreement to alter our approach to accommodate your situation. We have priced this service for Departments with a tightly defined delivery focus and a single line of business. We have assumed the following indicative scale and complexity: There are a single set of Stakeholders (i.e. only one Finance function) The spend or value of transactional data being analysed is sub 300m There are no more than 500,000 data points to be analysed. A data point in this context represents one element of data. For example, a record that states 5,000 uniforms were purchased from supplier ABC on 1st January 2013 for 20 each would be 5 data points: 1) quantity 2) item description 3) Supplier name 4) date of purchase and 5) price D-G4-L4-235 Supply Chain Analytics Deloitte LLP Service for G-Cloud IV 6

9 3 Commercials 3.1 Cost This service is offered on a fixed price basis as described. The price is published in a separate pricing document available to download separately. The service is subject to the assumptions regarding scale and complexity or exclusions as listed in the service description. The level of detail of the reports and deliverables will be agreed with you at the start of the engagement so as to provide the maximum amount of value within the constraints of the fixed timescales, resources and price. 3.2 Location This service will be delivered predominantly in the customer's own premises. No expenses will be charged for travel to premises within the M25, but there may be additional charges for travel and accommodation expenses incurred for services delivered at premises outside the M25. These will be agreed in the Service Order. 3.3 Ordering and Invoicing Process There are two ordering routes available: 1. Visit our G-Cloud service homepage at which contains information about the service and also has an online form for ordering. 2. Send an to g-cloud@deloitte.co.uk with the following information: Your organisation s name The name of this service, which is D-G4-L4-235 Supply Chain Analytics Your name and contact details A brief description of your business situation Your preferred timescales for starting the work We will agree an invoice schedule in our Service Order. Our invoices will be payable within 30 days. 3.4 Exclusions Our service description in section 2 above defines the scope of what we will deliver. For the avoidance of doubt, we have listed below any activities that (in our experience) are sometimes expected to be in our scope but which are not included within this service. D-G4-L4-235 Supply Chain Analytics Deloitte LLP Service for G-Cloud IV 7

10 4 Our G-Cloud Services 4.1 Our G-Cloud Strategy Deloitte offers a range of services on the G-Cloud Store. Our strategy is to provide commoditised services for the public sector, which are suitable for public bodies addressing the changes required of them in a digital world. Our services cover the breadth of Specialist Cloud Services from business analysis to design and development; transition management to project specification and selection. We also offer some software-as-a-service options on the store, and intend to expand our service provision in response to customer demand in the future. 4.2 Further Information For more information about our G-Cloud strategy and services, please visit D-G4-L4-235 Supply Chain Analytics Deloitte LLP Service for G-Cloud IV 8

11 5 About Deloitte 5.1 Our Business Deloitte LLP ( Deloitte ) is a leading professional services firm, employing over 13,000 staff across 20 locations in the UK. Our Public Sector practice includes over 1,000 experienced specialists in central civil government, health, transport, defence and local and regional government, some of whom have previously worked at senior level. In addition, we have over 1,000 staff who can work in both the public and private sectors, enabling transfer of experience and methods. As a Big Four professional services firm, we are well positioned to draw upon skills across a wide range of service offerings to deliver Cloud-based services. We work across the public sector as a trusted advisor and as a supplier of leading edge technology services. This includes an extensive portfolio of Specialist Cloud Services available as commoditised services in the G-Cloud catalogue. Our public sector team plays an active role in the development of methodologies, value propositions and points of view to assist our public sector clients. We conduct research in areas that are of current and emerging interest to our clients, identifying best practice and new developments in the UK and internationally. In this section we outline some of the elements which differentiate us in the marketplace. 5.2 Professional Standards As a leading supplier, Deloitte operates to high standards of professionalism: We recruit highly capable staff and maintain effectiveness through training, performance management and continuous professional development Quality on every engagement is managed through a Quality Management Plan and partner sign off of deliverables on all engagements. Technology Consulting services are accredited to ISO9001, the international quality standard, which includes acting on customer feedback and continuous improvement plans As members of the Chartered Institute for IT (BCS), our Technology practice and individual members are bound to its Code of Practice and Code of Conduct which defines good practice for ICT and technology consultancy. We are also registered with the TickIT scheme We are a Green classified CESG approved company and have a number of CHECK Team Leaders Our project management methodology, which is aligned with PRINCE 2, provides mechanisms for managing all aspects of engagements, including project risks and issues. We have over 300 staff with PRINCE2 or similar PIM qualifications Our Focus on delivery includes regular contact with client management and frequent progress updates when issues can be identified at an early stage to enable easier risk mitigation and help avoid escalation Deloitte is reliable to work with and sets out to deliver the services needed. Our high reputation in the market is based on our commitment to deliver even in difficult circumstances, while building trusted relationships with our clients D-G4-L4-235 Supply Chain Analytics Deloitte LLP Service for G-Cloud IV 9

12 We actively promote sustainability within our supply chain and have a strong commitment to equality, diversity and corporate responsibility. Our firm is accredited to ISO14001, the international environmental management standard, and CAESAR (Corporate Assessment of Environmental, Social and Economic Responsibility). Deloitte is accredited to ISO27001, the international security management standard. We operate robust processes for safeguarding customer data and for confidentiality of information. We are registered under the Data Protection Act and have safeguards in place to protect the data of our own personnel or any personal data with which we are entrusted by clients We have processes in place to preserve the integrity and independence of the services we provide. For example, bids are subject to conflict checks to avoid conflicts of interest, all Deloitte staff are required to complete Anti-Bribery and Anti-Money Laundering training, partners and staff are subject to independence checks and there are frequent internal audits and compliance checks 5.3 Security The majority of our public sector team are vetted to Baseline Personnel Security Standard or cleared to National Security Vetting SC level. In total, this is over 1,000 people with some form of security vetting. Deloitte is a List X company. We employ a full time Security Controller and Security Team to manage security clearances, advise on development of Security Management Plans and manage compliance with security processes. We have comprehensive Business Continuity Plans in place in all locations. Staff are equipped to work remotely if client sites or Deloitte sites are inaccessible. 5.4 Responsible Business At Deloitte Responsible Business is not just a strap line. We appreciate that our everyday business activities affect wider society through our actions and through the actions of those with whom we do business. Our approach to Corporate Responsibility is fully integrated with our business strategy; as such we are fully committed to addressing requirements from the Social Value Act. In the last year we launched our inaugural Impact Report ( replacing our traditional annual report and providing the platform through which we will measure our impact and contribution to society into the longer term. 5.5 Geographical Coverage Deloitte has 20 office locations throughout the UK, plus offices in Guernsey, Jersey and the Isle of Man. We also have a National Solutions Centre which is based in Belfast and provides software engineering capabilities for our clients. 5.6 Innovation and Continuous Improvement Deloitte understands the importance of innovation to public sector clients in their endeavours to reduce costs and ensure better outcomes. Deloitte approaches public sector engagements from the standpoint of delivering tangible or measureable outcomes and effective use of resources. Cloud provides a major opportunity to challenge existing provision of IT in the organisation, and improve working practices, service levels and reduce operating costs. We are willing to challenge current ways of working in the public sector and to harness technology and lean thinking to produce satisfactory outcomes that deliver the client s objectives at lower cost. D-G4-L4-235 Supply Chain Analytics Deloitte LLP Service for G-Cloud IV 10

13 We seek to ensure that our people, methods, infrastructure and working practices deliver high quality services to our clients and an environment where our staff can work effectively. We recognise that this is only possible if our working procedures, methods and tools, staff skills and training continue to improve. We undertake a number of activities to set objectives for key processes, measure performance against these objectives and assess and adjust our operational and engagement procedures to sustain improvement. 5.7 Capability Transfer Deloitte prefers to provide capability, knowledge or skills transfer on most projects. We can also work in such a way that capability transfer is at the heart of the engagement. Examples include: Training client staff for team roles at the outset of an engagement to reduce costs and provide for continuity of skills after we exit from the client Providing only those services which a client cannot provide for themselves and avoid practices such as staff substitution as much as possible Delivering comprehensive capability transfer so that client staff are able to take over fully the operation or extension of a service or continue to manage a change programme from their own resources. We also have a programme of secondments both to and from the public sector, which enhances our industry insight while strengthening our relationship with public sector. 5.8 Our Business Structure Deloitte LLP comprises a number of business units. Our G-Cloud services are provided from across our business, bringing in the skills and experience we need. Because our business structure is set up as a group, some of our business units are constituted as wholly owned subsidiaries of Deloitte LLP. For the purposes of our G-Cloud services, the Deloitte MCS Limited (company registration number ) is a sub-contractor that we may rely upon to deliver service. D-G4-L4-235 Supply Chain Analytics Deloitte LLP Service for G-Cloud IV 11

14 Important notice This document is not an offer and cannot be accepted. Should you wish to obtain our services, please contact us using the Ordering Process described in section Error! Reference source not found. to discuss your requirements and how we may meet them. Following these discussions and our internal acceptance procedures, we would then enter into a direct order with you in accordance with these Framework terms to confirm our appointment. The information contained in this document has been compiled by Deloitte LLP and includes material which may have been obtained from information provided by various sources and discussions with management but has not been verified or audited. This document also contains confidential material proprietary to Deloitte LLP. Except in the general context of evaluating our capabilities, no reliance may be placed for any purposes whatsoever on the contents of this document or on its completeness. No representation or warranty, express or implied, is given and no responsibility or liability is or will be accepted by or on behalf of Deloitte LLP or by any of its partners, members, employees, agents or any other person as to the accuracy, completeness or correctness of the information contained in this document or any other oral information made available and any such liability is expressly disclaimed. In this document references to Deloitte are references to Deloitte LLP. Deloitte LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu Limited ( DTTL ), a UK private company limited by guarantee, whose member firms are legally separate and independent entities. Please see for a detailed description of the legal structure of DTTL and its member firms Deloitte LLP. All rights reserved. Deloitte LLP is a limited liability partnership registered in England and Wales with registered number OC and its registered office at 2 New Street Square, London EC4A 3BZ, United Kingdom