CORPORATE PROCUREMENT STRATEGY

Transcription

1 CORPORATE PROCUREMENT STRATEGY Version: 2014/2 Last Update: 27 Oct Contents Corporate Procurement Strategy Page 1

2 Section Page 1 Introduction 3 Procurement defined 3 Why is Procurement important 4 Assessment of existing Procurement activities 4 Existing Corporate Procurement Team resources 4 Procurement Capability Exercise 4 2 Supporting National and Local Agendas 6 Chief Executive Department Business Plan 6 Strategic Commissioning and Delivery Framework 7 3 Procurement Reform (Scotland) Act Corporate Procurement Strategy 9 Vision 9 A Structured Approach to Improvement 9 Aims and Objectives 10 National Procurement Reform 11 Procurement Reform (Scotland) Act Equality Impact Assessment 11 5 Procurement Leadership and Governance 12 6 Procurement Strategies and Objectives 13 7 Defining the Supply Need 14 8 Procurement Commodity Strategies and Collaborative 15 Procurement 9 Contract and Supplier Management Key Purchasing Systems and Processes People Performance Measurement Year Improvement Plan Summary Measurement Departmental Procurement Strategies Procurement Improvement Plan Corporate Procurement Strategy Page 2

3 1. INTRODUCTION Procurement defined. Procurement can be defined as; The acquisition of supplies, works and services which meet the needs of customers and services users, whilst at the same time, ensuring value for money throughout the life of the product or service including, where appropriate, disposal. While previously, procurement activities have principally focussed on the specification and tendering stage of the contract process, it is now more widely acknowledged that the benefits of optimising the experience and expertise or procurement professionals has a much wider reach and should be an influencing factor throughout the entire procurement process from service (re)design through to effective contract management. Procurement should be considered as being the full range of activities relating to the supply of goods, works and services, from cradle to grave, including the definition of requirements through the acquisition process and payment to the ultimate disposal of the asset, where appropriate (see Fig.1 below). Procurement can also be referred to as buying, purchasing, contracting or commissioning and all Councils will engage in procurement, which can range from the most basic requirements to multi-million pound services and works. Fig. 1 Procurement Cycle. Disposal Define the requirements Market research Exit Strategy Make or buy Procurement Cycle Contract Management Develop Contract Strategy Receipt, inspection and payment Contract Award Tendering and Evaluation Corporate Procurement Strategy Page 3

4 Why is Procurement important? Public Sector procurement in Scotland is now valued in excess of 9 billion per annum with Dumfries and Galloway Council alone spending approximately 129 million of which around 101 million is considered to be influencable spend. Goods, works and services are purchased from approximately 7,000 suppliers, many of which are based locally and the majority of which are classed as small, medium enterprises. It is evident from the statistics below, that Council spend is a significant support to the local economy. Spend with SME companies: Spend with Local companies: Spend with local SME companies: 78.8 million 38.1 million (29.56% of total spend) million (97.38% of local spend). The Corporate Procurement Strategy acknowledges that, as a public sector body, the Council is bound by statutory and mandatory public procurement regulations and supporting legislation. It is further acknowledged that all procurement activity must also conform to the processes and governance detailed in the Council s Financial Regulations and Contract Standing Orders. Procurement best practice ensures that the Council has in place, arrangements that respond to the risks of possible legal action. Any Council failings in terms of its procurement practices, could result in increased costs and reputational damage. An effective Corporate Procurement Strategy will ensure that the Council makes its procurement decisions in a professional manner, taking into account not only the need to realise savings but also to consider the core values such as equal opportunities, health and safety, corporate responsibility and risk. Assessment of existing Procurement activities within the Council. It would be unrealistic to describe the procurement regime within Dumfries and Galloway Council as mature with the Corporate Procurement Team being only recently supplemented with additional staff (September 2013) and who are still undergoing a training programme. The activities of the team are still reactive and there is a clear requirement for the Corporate Procurement Team to develop a greater influence in the procurement activities across the Council. Procurement Capability Exercise (PCA). Each year, the Council is assessed in terms of its overall procurement practices and procedures by a team from Scotland Excel working on behalf of the Scottish Government. In the previous assessment (PCA2012), the Council was assessed as being at 38% or overall compliance. Through a significant and commendable effort, the overall assessment improved to 50% or overall improved performance in the PCA2013 exercise. However, this still places the Council in the lower quartile of Local Authorities but it is emphasised that this reflects the procurement procedures and practices across the Council as a whole and not just the Corporate Procurement Team. Corporate Procurement Strategy Page 4

5 The assessment considers a total of 8 sections which are individually scored and the table below (Figure 2), provides the detail of the most recent PCA2013 assessment along with the comparative scores for the previous PCA2012. Fig. 2 PCA Scores (by category). Title PCA2012 PCA2013 Score Category Score Category % % Procurement Leadership and 40 Compliance 60 Improved Governance Procurement Strategies and 53 Improved 73 Improved Policies Defining the Supply Need 28 Compliance 50 Improved Commodity/Project Strategies and 44 Compliance 56 Improved Collaborative Procurement Contract and Supplier 28 Compliance 33 Compliance Management Key Purchasing Processes and 33 Compliance 33 Compliance Systems People 50 Improved 56 Improved Performance Measurement 28 Compliance 39 Compliance Overall 38 Compliance 50 Improved Note: 0 to 24% - Non-compliance 25 49% - Compliance 50 74% - Improved Performance 75% - 100% - Superior Performance The overall score of 50% (average of the 8 sections), compares with a Scottish Local Government average score of 56%. The PCA exercise not only provides an independent view of the procurement activities of the Council but also is useful in highlighting areas for future improvement. It also highlights the need for the Corporate Procurement Team to develop from a reactive clerical function to a proactive strategic function which is reflected in the following 3-year Corporate Procurement Strategy. It is clear that while the Corporate Procurement Team will play a critical role in the delivery of the outcomes of the Corporate Procurement Strategy. However, there must also be a clear understanding, that while the Corporate Procurement Team will lead on delivering the aims and objectives of the CPS, there is also a requirement for the Council to take corporate responsibility for delivering the required outcomes of the strategy, which can only be achieved by the clear and continuing support of the Council s Corporate Procurement Team. Corporate Procurement Strategy Page 5

6 2. Supporting National and Local Agendas. In developing a Corporate Procurement Strategy, it is necessary to consider the developing National Procurement Agenda (see next Section Procurement Reform (Scotland) Act 2014) and to ensure that the aims and objectives of such a Strategy also reflect national and local polices and priorities as well as the current financial climate. The strategy recognises that potentially, there could be changes to the political landscape through the Independence Referendum and scheduled local and national Government elections all of which are scheduled to take place during the time period covered by the strategy. It is intended that the Council s Corporate Procurement Strategy supports the Council s ambitions by raising the profile of strategic procurement across the organisation in an effort to support the delivery of the Council s Six Priorities: 1. We will provide a good start in life for our children. 2. We will prepare our young people for adulthood and employment. 3. We will care for our older and vulnerable people. 4. We will support and stimulate our local economy. 5. We will maintain the safety and security of our region. 6. We will protect and sustain our environment. An effective Corporate Procurement Strategy will, in particular; Contribute to the delivery of Priorities 4 and 6 above; Support the Council s aim to deliver best value public services; Offer opportunities to stimulate and regenerate the local economy; Minimise costs; and Reduce the Council s impact on the environment. The Corporate Procurement Strategy also supports the Chief Executive Service Business Plan ( , refreshed 2013) and in particular, Objectives 2, 3 and 5. Chief Executive Business Plan Objective 2 - Drive results, efficiency and innovation by supporting improvements and delivering business solutions. Measure 2.1 Productivity of our staff. Measure 2.2 Achieve value for money. Measure 2.3 Make best use of our resources. Objective 3 Provide advice and ensure compliance in order to achieve high standards of governance, accountability and meeting our statutory duties. Corporate Procurement Strategy Page 6

7 Measure 3.1 Measure 3.2 Compliance with legislation. Satisfaction with our services. Objective 5 Co-ordinate our Council business management in order to deliver effective and transparent processes. Measure 5.1 Management of our finances. Measure 5.2 Measure 5.3 Openness and transparency of our processes. Access and quality of our information. Strategic Commissioning and Delivery Framework. The Council s Corporate Procurement Strategy should not be confused with its Strategic Commissioning and Delivery Framework which is a policy document dealing with the commissioning and delivery of essential services at a high level planning stage. However, the Corporate Procurement Strategy is complementary to the Strategic Commissioning and Delivery Framework. Corporate Procurement Strategy Page 7

8 3. Procurement Reform (Scotland) Act 2014 The Procurement Reform (Scotland) Act was introduced in October 2013 with the aim to establish a national legislative framework for sustainable public procurement that supports Scotland s economic growth by delivering social and environmental benefits including community benefits, supporting innovation and promoting public procurement processes and systems which are transparent, fair and businessfriendly. In particular the Bill seeks to recognise; That there is a need for behaviour and cultural change; The importance of guidance material and training; The importance of monitoring, reporting and evaluation; The need to improve accessibility to contract opportunities and support for SMEs and the Third Sector; The need to recognise the influence of effective procurement on workforce matters; To differentiate between buying things and buying services ; The role of procurement in addressing social and environmental issues. The main duties of the Act are to; Treat relevant economic operators equally and without discrimination and act in a transparent and proportionate manner; and to Comply with the sustainable procurement duty. Proposed measures expected of a local authority and included in the Act are; To publish a Corporate Procurement Strategy (including prompt payment measures) and report against the strategy annually; Publish a Contracts Register; Consider Community Benefits for all major contracts; Develop a strategy for using Reserved Contracts (Supported Businesses); Embed regulations relating to the use of technical specifications; Prohibit charging for participation in procurement process; Embed the use of standard and proportionate pre-qualification questionnaires; Publish advert and award notices; Embed procedures relating to the non-exclusion of bidders; Consider measures to support the Climate Change (Scotland) Act 2009 (amendment regarding recycled and recyclable products; Develop a strategy for debriefing unsuccessful bidders. It is confirmed that the Council s Corporate Procurement Strategy for has been intentionally developed to take cognisance of the measures contained within the Procurement Reform (Scotland) Act 2014 Corporate Procurement Strategy Page 8

9 4. Corporate Procurement Strategy Vision. Observing a professional, strategic and collaborative approach to procurement, it is intended to deliver an effective, efficient and innovative procurement service, stimulating the local economy and providing best value for the benefit of the Council and its stakeholders. A Structured Approach to Improvement. In developing a 3-year Corporate Procurement Strategy, it must be recognised that, as previously stated, the Council is still currently assessed as being in the lower quartile in terms of performance (PCA2013 review) and consequently, any approach to developing a Strategy must recognise the starting point for the exercise. While a significant degree of improvement has been evidenced year-on-year, from 38% to 50%, there is still a substantial amount of foundation building to be undertaken before the function can be developed from a clerical to a strategic function. The strategy therefore has been developed to move the current Procurement function from a clerical function to a strategic function actively influencing procurement decisions and policy across the Council; Influencing Procurement Adding Value Consolidation Consolidation where the emphasis is placed on Compliance, Control and Communication and building resources, expertise and knowledge Adding Value to the Supply Chain through the development of contract strategies (Contract and Supplier Management) Influencing procurement across the Council through close working with Service Teams and investing in change. Corporate Procurement Strategy Page 9

10 Aims and Objectives. In accordance with Dumfries and Galloway Council s Business Planning Guidance, the Corporate Procurement Strategy seeks to demonstrate a clear and wellstructured approach to the Council s procurement activities outlining what will be done, how and when it will be achieved and how success will be measured. The principle aims of the Strategy are to; Build on the overall Improved Performance status achieved in the Procurement Capability Assessment 2013 exercise (PCA), through the development of an annual Procurement Improvement Plan (PiP), which will complement the longer term aspirations of the 3-year Corporate Procurement Strategy. Ensure that procurement activities are fully aligned with the Council s corporate priorities and objectives and to support the Council in achieving its set targets. Ensure that the Council s procurement activity is carried out as efficiently as possible to achieve optimum best value for money. Underpinning these principle objectives, the Corporate Procurement Strategy also seeks; o To ensure that the procurement process is undertaken in a clear and structured manner so as to achieve best value for money for every pound spent by the Council on behalf of its Council Tax Payers; o To ensure that full and comprehensive research is undertaken for each procurement exercise to consider alternatives and market forces which may impact on the exercise; o To ensure that existing specifications and supply arrangements are challenged and to investigate and consider emerging sources of supply and methods of delivery; o To ensure that contracts are appropriately managed during the life-cycle of the procurement; o To ensure that the Council recognises and delivers on its responsibility to fulfil its contractual obligations to pay its creditors on time; o To ensure that procurement across the Council is carried out in a fair, transparent and cost-effective manner; o To ensure that procurement is carried out by appropriately trained officers and that all procurement professionals are bound by the Chartered Institute of Purchasing and Supply, Code of Ethics (or equivalent). o To support and stimulate the local economy through the use of the Council s considerable buying power. Corporate Procurement Strategy Page 10

11 National Procurement Reform. In addition to its support of the Council s overall objectives and priorities (Single Outcome Agreement and Outcome Delivery Plan) and the Chief Executive Business Plan, this Corporate Procurement Strategy is aligned to the eight work-streams which comprise the fundamental elements of the national reform programme. This facilitates the setting of targets for improvement and independent assessment of these targets through the PCA process annually so that progress can be monitored. The Corporate Procurement Strategy seeks to identify the high level actions taken to enable improvements in procurement procedures and practices (outcomes) and the Strategy will be complemented by an annual Procurement Improvement Plan (outputs). Both outcomes and outputs have measureable targets attributed to them. Progress will be reported to the Corporate Business Support Group at regular intervals. The 8 work-streams are as follows; Procurement Leadership and Governance; Procurement Strategy and Objectives; Defining the Supply Need; Sourcing Strategies and Collaborative Procurement; Contract and Supplier Management; Key Purchasing Processes and Systems; People; Performance Management. It should be noted that some of the actions described within the Corporate Procurement Strategy will be reflected in more than one of the work-streams e.g. actions concerning Contract and Supplier Management or Contract Strategy processes. Procurement Reform (Scotland) Act As previously stated, this Corporate Procurement Strategy is intended to be complementary to the provisions of the Procurement Reform (Scotland) Act Where actions stated on the following pages directly respond to the requirements of the Act, they have been identified in italics/bold type. Equality Impact Assessment. It is confirmed that an Equality Impact Assessment has been completed in relation to this Corporate Procurement Strategy. Corporate Procurement Strategy Page 11

12 5. Procurement Leadership and Governance Summary The Corporate Procurement Team will provide clear leadership of the procurement procedures and practices throughout the Council including the management of effective sourcing activity and relationships with internal stakeholders. This will be achieved through the following actions. Actions: To assume accountability for the procurement function and provide regular procurement management information reports as required. To develop and communicate procurement guidance. To increase the influence and role of the Corporate Procurement Team on key steering groups, project boards and play a full role in wider procurement and collaborative issues. To increase the level of spend influenced by professional Procurement staff. To manage risks associated with procurement and to develop a comprehensive contract register. Review and refresh procurement guidance through the Council intranet and user group meetings and training. To develop an action plan to resolve any significant gaps or issues highlighted by Internal/External Audit and respond to Internal Audit reports within timescale. Review and rewrite Contract Standing Orders to take into account recent developments in systems (e-procurement techniques). Review and develop Contract Strategy Documentation. Review and develop roles and responsibilities of staff engaged in the procurement function. Develop and deliver training for staff involved in the procurement function. Measurement. Action Target Date To maintain improvement in performance in the annual 65% 2014 Procurement Capability Assessment (currently 60%) 65% % 2016 Corporate Procurement Strategy Page 12

13 6. Procurement Strategy and Objectives Summary: The Corporate Procurement Team will be responsible for the development of sound strategies and objectives that will provide for continuous improvement of the Council s procurement activities. Actions: To annually review the Corporate Procurement Strategy to ensure that it is fully aligned with current national and sectorial strategies and policies including Scottish Procurement Policy Notes (SPPN s). To annually develop a Procurement Improvement Plan (PiP) reflecting the outcome of the annual PCA exercise. The PiP will support and complement the Corporate Procurement Strategy. To identify and develop team objectives reflecting the Corporate Procurement Strategy (individual procurement officer capability assessments/personal Development Reviews (PDR) and development plans/service plans/departmental business plans. To meet with Service Teams on a regular (quarterly) basis, providing a full suite of procurement performance reports for discussion/reporting to senior management through the Corporate Business Support Group (CBSG). To cascade strategy objectives to senior management to ensure buy-in. To collaborate on best practice with Centres of Excellence and Scottish Procurement and other Public Bodies, where appropriate. To maximise opportunities to contribute to networking policy groups where possible. To review and update the Council s Procurement Guidance Manual. To review and rewrite Standing Orders relating to Contracts. Measurement. Action Target Date To achieve superior performance in the annual 75% 2014 Procurement Capability Assessment (currently 73%) 77% % 2016 Corporate Procurement Strategy Page 13

14 7. Defining the Supply Need Summary: The Corporate Procurement Team will develop a prudent and well-researched approach to defining the Council s supply needs. Actions: To ensure that key contracts are based on robust specifications and output specifications where appropriate. To ensure that effective contract strategies are in place when developing tender documentation. To engage with client departments to discuss future requirements and to identify opportunities for tendering and to rationalise works, goods and services. To increase opportunities for local/sme companies and their participation in procurement exercises. To host supplier awareness days/open meetings for appropriate contracts (as required). To promote the use of Quick Quote throughout the Council and increase spend through the system volume of transactions/value of business to increase by 10% annually. To engage with interest groups such as the Chamber of Commerce and maximise attendance at Chamber events. To provide training and guidance to local companies in the development of electronic procurement systems and processes adopted by the Council such as e-tendering. To continually review and update the procurement page of the Council s website to ensure that guidance for prospective suppliers is up to date. Measurement. Action Target Date To maintain improved performance in the annual 52% 2014 Procurement Capability Assessment (currently 50%) 55% % 2016 Corporate Procurement Strategy Page 14

15 8. Procurement Commodity Strategies and Collaborative Procurement Summary: The Corporate Procurement Team will develop processes which can best satisfy the supply needs of the Council. Actions: To develop and implement a Contract Strategy which supports an organisation-wide approach to sourcing. Develop cross-functional teams when demand crosses departmental boundaries. Ensure that influencable spend is covered by a signed-off Contract Strategy. Consider all economic, social and environmental aspects during the development stage of a contract. Ensure that Community Benefits clauses are considered for inclusion in appropriate contracts. Develop a strategy for promoting the use of supported businesses. To continue to support the Supplier Development Programme. To mitigate risk by undertaking financial stability tests including risk in Contract Strategies. To continually review Contract Standing Orders and Terms and Conditions of Contract to protect the Council and its officers from risk and legal challenge. To review supplier selection processes to ensure that the process is fair, transparent and minimises the impact on suppliers. To monitor local business success rate at winning contracts and to offer debrief opportunities for unsuccessful bidders. To implement post-procurement reviews for high/medium risk contracts and circulate lessons learned. To undertake a review of spend (segmentation) to identify risk and opportunities for collaboration. To review C1 spend on a regular basis to identify opportunities for local collaboration. To support collaborative contracts created by Centres of Excellence and Scottish Procurement. To promote the use of whole life/total acquisition costs for all appropriate contracts and include sustainability criteria in tender evaluation process. Measurement. Action Target Date To maintain improved performance in the annual 62% 2014 Procurement Capability Assessment (currently 56%) 62% % 2016 Corporate Procurement Strategy Page 15

16 9. Contract and Supplier Management Summary: The Corporate Procurement Team will develop and implement a sound strategy for the effective management of the Council s suppliers and contracts. Actions: To ensure that contracts are implemented effectively and embedded across the organisation. To ensure that appropriate Contract Strategy documentation is used effectively in the development of contracts. To develop and maintain a contract register covering over 50% of the Council s total spend. To embed sound risk management procedures for each contract. To embed Contract and Supplier management procedures based on the SPCD Procurement Journeys across the Council. To undertake regular supplier surveys and to use feedback to drive improvements in the Council s procurement procedures. Measurement: Action Target Date To achieve improved performance in the annual Procurement 40% 2014 Capability Assessment (currently 33%) 45% % 2016 Corporate Procurement Strategy Page 16

17 10. Key Purchasing Processes and Systems Summary: The Corporate Procurement Team will develop and support efficient and robust processes and systems to support advanced procurement activity. Actions: To maximise the use of the corporate purchasing system across the council. To evaluate and improve 1 st time match rate for order/invoice. To improve the performance of invoices paid on time, including payments to all sub-contractors.. To maximise the use of alternative methods of payment including the use of e-invoicing. To maximise the use of the PCS e-tendering facility and to eliminate all paper-based tenders by March To maximise the use of the PCS Quick Quote process. To maximise the use of a Content Management System to support compliance. To undertake an annual review of the Procurement ICT Strategy. Measurement: Action Target Date To achieve improved performance in the annual Procurement % Capability Assessment (currently 33%) % % Corporate Procurement Strategy Page 17

18 11. People Summary: The Corporate Procurement Team will ensure that the procurement activities of the Council are adequately resourced by skilled and experienced professional procurement staff through the following actions. Actions: To annually review available resources to ensure that there are no skills and resource gaps and to report thereon to the Senior Manager, Legal and Regulatory Services and the Corporate Business Support Group. To ensure that all professional procurement staff use the SPCD Procurement Competency Framework to assess their competency levels at minimum three year intervals. To review roles and responsibilities of all staff engaged in the supply chain process and to ensure that all staff have received an appropriate level of training with ongoing support from the Corporate Procurement Team. To ensure that all staff fully engage with the Personal Development Review process which will include the setting of individual objectives linked to the overall service plan for the Section. To provide mentoring opportunities for staff as appropriate. To ensure that professional procurement staff have access to regular and appropriate training including EU Legislation updates. Measurement: Action Target Date To achieve Superior Performance in the annual Procurement 68% 2014 Capability Assessment (currently 56%) 70% % 2016 Corporate Procurement Strategy Page 18

19 12. Performance Measurement Summary: The Corporate Procurement Team will develop a sound approach to assessing and demonstrating procurement performance. Actions: To engage fully with client departments through Service Teams, Departmental Management Teams and the Corporate Business Support group. To ensure that all relevant data is uploaded regularly into the Scottish Government s Information Hub (Spikes) and output is regularly monitored. To engage fully with stakeholders in undertaking regular customer feedback exercises and to review responses and develop action plans therefrom. To report progress, on a quarterly basis to the Corporate Business Support Group, on the annual Procurement Improvement Plan. To report progress, on an annual basis, to the Corporate Business Support Group on the 3-year Corporate Procurement Strategy. Measurement: Action Target Date To achieve improved performance in the annual 40% 2014 Procurement Capability Assessment (currently 39%) 44% % 2016 Corporate Procurement Strategy Page 19

20 13. 3-year Improvement Plan Summary Measurement: The table below provides details of individual targets for each of the 8 elements which constitute the Procurement Capability Assessment over the 3-year period of the strategy. Title PCA2013 PCA2014 PCA2015 PCA2016 Score % Category Score % Category Score % Category Score % Category Procurement Leadership 60 Improved 65 Improved 65 Improved 67 Improved and Governance Procurement Strategies 73 Improved 75 Superior 77 Superior 80 Superior and Policies Defining the Supply Need 50 Improved 52 Improved 55 Improved 57 Improved Commodity/Project 56 Improved 62 Improved 62 Improved 65 Improved Strategies and Collaborative Procurement Contract and Supplier 33 Compliance 40 Compliance 45 Compliance 50 Improved Management Key Purchasing 33 Compliance 38 Compliance 44 Compliance 50 Improved Processes and Systems People 56 Improved 68 Improved 70 Improved 75 Superior Performance 39 Compliance 40 Compliance 44 Compliance 50 Improved Measurement Overall 50 Improved 55 Improved 58 Improved 62 Improved Corporate Procurement Strategy Page 20

21 Subject to the above improvements being achieved, the table below provides overall target figures for the PCA as a complete exercise and also indicates those sections which should improve in terms of classification i.e. from Compliance to Improved to Superior. Action Target Date Section Classifications Compliance Improved Superior To demonstrate incremental (50%) (2013) (3) (5) (0) improvements in overall performance in 55% the annual Procurement Capability 58% Assessment (currently 50%) 62% Corporate Procurement Strategy Page 21

22 14. Departmental Procurement Strategies While the content of this document has been developed as an overarching procurement strategy for the Council, it is appropriate to consider the different requirements of each department. Actions: Note 1. The Corporate Procurement Team will appoint a dedicated Procurement Officer to liaise specifically with the department and act as a first point of contact. The Procurement Officer will review annual spend and identify appropriate areas where no contract arrangements are in place. The Procurement Officer will meet regularly with the departmental representative or departmental business team to review procurement activity, including tenders in progress and assist in improving compliance. The Procurement Officer will assist in extending the use of the Council s PECOS system (See note 1 below). The Procurement Officer will assist with the development and implementation of Contract and Supplier Management procedures. The Corporate Procurement Team will provide such procurement related training as is considered necessary. The Corporate Procurement Team will promote the use of Quick Quote for sub-tender threshold procurement and provide such training as is necessary. The Procurement Officer will provide such reports as may be required by departmental management. The Corporate Procurement Team will assist the Economic Development Unit in the promotion of business opportunities for local enterprise and will work with the Dumfries and Galloway Chamber of Commerce in participation of relevant Chamber events. During the financial year 2013/2014, the Council processed approximately 150,000 invoice/payment transactions valued at 128,872, The Council s corporate purchasing system (PECOS) accounted for only 28,125 transactions (18.75%) of the volume and 22,666, (17.59%) of the value. A key element of the Council s Corporate Procurement Strategy would be to achieve a 15% increase on these figures annually. Corporate Procurement Strategy Page 22

23 15. Procurement Improvement Plan The following section provides details of the Procurement Improvement Plan (PiP) actions for year 1 ( ) of the Corporate Procurement Strategy. Progress against these actions will be the subject of regular quarterly reports to the Corporate Business Support Group. The PiP will be reviewed and refreshed annually and subject to a separate report to the Corporate Business Support Group. Action Plan Abbreviations have been used to populate the action plan and the list is detailed below; PM Procurement and Commissioning Manager PO Procurement Officers FM Finance Manager CD Client Department representative. ED Economic Development Officer Action Owner Timescale Progress. Procurement Leadership and Governance To review/rewrite Standing Orders relating to Contracts. PM March 14 Review/rewrite Contract Strategy documentation PM March 14 and guidance. Review/develop roles and responsibilities for staff PM April 14 engaged in the procurement chain. Develop and deliver appropriate procurement PM/PO Ongoing related training. Review/rewrite procurement guidance manuals PM July 14 Attend/report to Corporate Business Support PM Ongoing Group quarterly (minimum). To provide annual report on PiP progress. PM March 15 Review Contract Register (including Risk PM July 14 management). To increase the level of spend influenced by the PM/PO March 15 Corporate Procurement Team. Increase the influence and role of the Corporate Procurement Team on key steering groups. PM/PO March 15 Procurement Strategy and Objectives To annually review the Corporate Procurement Strategy to ensure alignment with national and sectorial strategies. PM March 15 Corporate Procurement Strategy Page 23

24 Distribute/publish SPPNs as required. PM/PO Ongoing Develop/review the PiP reflecting the outcome of the annual PCA exercise. PM March 15 Embed team objectives into PDRs based on PM March 15 current business plans and strategies. Meet with Service Teams (quarterly). PM/PO Ongoing Review and segment spend annually to identify PM/PO May 14 collaborative opportunities. /CD Defining the Supply Need Use Contract Strategy Documentation for all above-tender threshold procurement exercises. Engage with Client Departments to evaluate future tender plans. Maximise opportunities for local/smes to participate in tender exercises. Co-ordinate actions with ED to deliver appropriate training sessions to local/smes. Promote the use of Quick Quote with a target increase of volume/value of 10% annually. Review and update the procurement page of the Council s website. PM/PO /CD PM/PO /CD PM/PO /CD PM/ED PM/ED /PO/ED PM/PO Ongoing Ongoing Ongoing Quarterly March 15 Quarterly Procurement Commodity Strategies and Collaborative Procurement. Develop cross-functional teams where PM/PO Ongoing appropriate. /CD Consider all economic, social and environmental PM/PO Ongoing aspects during the contract development stage. /CD Ensure that Community Benefit clauses are considered for inclusion in appropriate contracts. PM/PO /CD Ongoing Develop and publish a Supported Businesses PM July 14 strategy. Provide support to the Supplier Development programme. PM/ED Ongoing Review supplier selection process to minimise PM Sept 14 impact on suppliers. Promote the use of whole life costs/tco for all PM/PO Ongoing appropriate tenders. Contract and Supplier Management Develop a Contract and Supplier Management PM Sept 14 Strategy. Develop and deliver training on Contract and PM March 15 Supplier Management across Client Departments. Develop and embed Service Level Agreements PM/PO Sept 15 where appropriate. /CD Develop and maintain a Contract Register with a PM March 15 coverage target of 50% of influenced spend. Undertake regular supplier surveys. PM Ongoing Corporate Procurement Strategy Page 24

25 Develop balanced scorecard approach to monitoring of Supplier Performance. Key Purchasing Processes and Systems Increase the use of the Council s Corporate Purchasing System (PECOS) by 15% annually. Evaluate the level of 1 st time Match Rate for order/invoice. Improve the performance of invoices paid on time from 88% to 90% + Maximise the use of alternative methods of invoicing including e-invoicing. Maximise the use of the PCS e-tendering facility and to eliminate all paper-based tenders. To maximise the use of the Quick Quote system (volume/value) by 25% Undertake an annual review of the Procurement ICT Strategy with report to Corporate Business Support Group. People Undertake an annual review of resources and identify any resource/skills gaps and report thereon to the Corporate Business Support Group. Ensure that all relevant staff use the SPCD Procurement Competency Framework at minimum 3-yearly intervals. Annually review roles and responsibilities of all staff engaged in procurement duties to ensure that appropriate training has been provided. Complete PDR reviews for all members of the Corporate Procurement Team and provide training and mentoring opportunities where appropriate. Provide access to annual training for EU legislation to CMT and other staff as appropriate. PM Sept 14 PM/PO March 15 FM/CD PM/FM Nov 14 PM/FM Nov 14 PM/FM Ongoing PM/PO March 15 PM/PO March 15 /CD PM March 15 PM March 15 PM/PO /CD PM/PO /CD March 15 March 15 PM/CD March 15 PM March 15 Performance Measurement Ensure that all relevant data is loaded onto the PM Quarterly Scottish Government s Information Hub (Spikes). Engage with stakeholders in undertaking regular PM/PO Ongoing feedback exercises. Report progress quarterly to Corporate Business PM Quarterly Support Group on PiP. Report progress annually on Corporate PM Annually Procurement Strategy. Fully engage with Service Teams PM/PO Ongoing Corporate Procurement Strategy Page 25