Natural History Museum. Realising Cost Savings in the Cultural Sector

Transcription

1 Natural History Museum Procurement Team Realising Cost Savings in the Cultural Sector

2 Lucky Us? Varied and interesting procurement role Advisors, or hands-on? Two staff million spend Where do we use our resources to achieve best value? Systems and guidance Hands-on specialist procurement

3 A Couple of Case Studies from the NHM Where a Framework Works and Where it Doesn t: Agency Staff and Bespoke Cabinet Design and Build

4 The Natural History Museum and Temporary Staff In 2006, The Museum spent nearly 2 million on Temporary Staff via 35 different agencies The majority of these staff engaged in Front of House/Retail Posts Also a variety of Admin, Finance, ICT and other posts No central control or record of spend, margins or other management information

5 The Natural History Museum and Temporary Staff Around 50% of the NHM s temp procured via Hays, but not via LUPC Framework Consultation held with key departments Met with Hays obtained on-site contracts manager and improved (LUPC) rates Engaged with second-tiers suppliers Eliminated vast majority of maverick spend in year one cash savings of over 120,000

6 The Natural History Museum and Temporary Staff Spend on temps reduced Re-tendered 2010: Presentations held, Spring and Step Ahead engaged for trial period Both selected, plus Eurobase for ICT posts Currently majority spend with Spring (c 1.5m) Regular reviews. MI and customer feedback obtained. HR now manage contract

7 Bespoke Collections Cabinets Design, supply and install 11,000 specially designed Herbarium and Entomology cabinets for new DC2 Building Pest proof and designed to last 100 years 2.5 million budget Procurement elected to take this requirement out of the main build Full OJEU tender

8 Bespoke Collections Cabinets Innovative design - reduction in material costs Prototypes developed and tested by scientific staff Fixed cost for materials under bank guarantee Installation programme and production schedule agreed with supplier Delivered under budget and on time

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10 Make best use of Framework Agreements so that we can Concentrate on specialist goods and services..puppeteers & library book scanners Use framework agreements where appropriate and the right ones for your organisation e.g. GPS Office Supplies or LUPC Office Supplies! Framework or not? Low value spend, VERY SME, fantastic service cost of change?

11 I am a purchaser of very little brain and long words bother me.. and I agree with Eeyore... this purchasing business. Pencils and what-not. Over-rated, if you ask me. With apologies to Mr Milne

12 The NHM Approach to Frameworks Engage with end users

13 Make the agreements as easy to access and use as possible..

14 The Dreaded Suppliers Meet with as many framework suppliers as you can. Do you use the agreement that they are on and do they have a chance to supply to you? Broker meetings between your key end users or buyers and the suppliers. Organise supplier events for your key frameworks. Encourage end users to meet all the suppliers at an event and not just the suppliers they may already know!

15 Supplier Events NHM Top Tips Gauge Interest from your framework suppliers It shouldn t be seen as a selling event Set a far future date Notify your end users Invite the LUPC Marketing example Don t charge the suppliers for their stall Ask Suppliers equally contribute to a major prize Depending on framework size also ask for lower value spot prize(s) Customers collect stickers off every supplier placing them on a ticket to enter the prize draw. Suppliers only give out the stamp or sticker after obtaining key information from the customer. Keep it simple: exchange details/business cards, some freebies and leaflets..no equipment, no catalogues business can be done later. Heavily advertise the event to your organisation encourage end user attendance

16 Feedback from 2012 Laboratory Event Dear Bob, Thanks for organising the lab vendors day, making us speak with all of them was surprisingly useful as I found some alternative suppliers when I didn t expect too. Left to my own devices I would only have spoken with only 3 or 4 of them. Best wishes, Margaret Just to confirm that I though the event was very good! I usually find these sort of exhibitions to be a bit of a timewaster if I m honest, but today was very useful in getting to see some of the key people for lab equipment and a better understanding of how best to gain some business on site. The prize draw incentive worked very well in getting people to talk to us and represented good value for this type of event. It was also a quite refreshing approach not to have to worry about putting equipment on display which, after all, is only usually there to get people to come see you. Thanks again and well done!

17 Mini Tender whenever possible -Ranking stifles competition We don t want our frameworks ending up like this!

18 This might appear obvious.but Support the LUPC Help them to tender and review Feedback to LUPC about the agreements. Do they work for you? Suggestions for improvements? Supplier performance etc

19 It doesn t quite finish there Don t forget the suppliers who are not on a framework. If they really seem interested meet them if you can. Explain about public sector purchasing and framework agreements Provide appropriate links if they can t find them Encourage them to bid in the future

20 In Summary Remember what frameworks can offer: Compliance Leverage Degree of price certainty Fair Terms and Conditions Speed of contracting Commodity manager support Engage with: LUPC Framework suppliers End users Off framework suppliers It doesn t just happen!

21 Don t be responsible for the death of a framework agreement 28 th February 2013 In Loving memory of the framework that you never quite got round to using..