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CONTENTS
o Coverage
o Approach
o Structure
o Deliverables
o Benefits
o Findings
o Features of Good Procurement
PMA COVERAGE
o There are currently 96
English HEIs that have
undertaken a
procurement maturity
assessment.
o Also two Non HEIs
o HEI Clients per
Consortium
o LUPC 17
o NEUPC 16
o SUPC 48
o NWUPC 15
PMA APPROACH
PMAs are a structured approach to understanding
the effectiveness of procurement within an
institution and across the sector
PMA programme is a key recommendation of the 2011 and 2015 Diamond Reports
SUPC received funding from Innovation and
Transformation Fund to accelerate the programme
across England
PMA question set based on questionnaire used in
Scotland: developed following McLelland efficiency study.
Undertaken by independent, experienced procurement
professionals
Process is action oriented with institutions receiving
assessment report, action plan and access to live benchmark
data
Results are collated to provide sector trends and work with
HEPA to support the sector as a whole
PMA STRUCTURE
o Evidence based assessment: 53 Questions (October 2013)
o 9 procurement attributes addressed: Governance, Reporting and KPIs Organisational, Resources and Skills, CSR, Collaboration IS/P2P, Supplier Strategy and Policy and Category Management
o Assessed against 4 levels of maturity
o Developing
o Tactical
o Planned
o Superior
o Benchmark scores for how your institution compares overall with others and in specific aspects of Procurement
o Establishes a baseline for your institution allowing you to visibly demonstrate procurement improvements
PMA DELIVERABLES
o Detailed report outlining your current procurement maturity over 9 the different attributes that can be used as a blueprint to develop procurement across your institution
o A comprehensive action plan outlining the steps that should be taken to move towards a higher level of procurement maturity
o A sector benchmark comparing your level of maturity with other HEIs
o Sector performance measures included with commentary
o On-line access to dynamically updating benchmark
WHAT DO INSTITUTIONS SAY?
o Raised procurement profile with SMT and procurement committees
o A structure to demonstrate capability
o Independent objective confirmation of capability
o Clear targets and measurements for improvement
o Informed decision making on staff training and work priorities
o Confirmed support for additional investment and quantified scope for improvement
o Identified areas to improve
o Enabler for change
o Clear action plan, especially helpful for a new HoP
MATURITY STAGE BY NUMBERS AND NON-
PAY SPEND
76% of institutions are in the lower maturity levels - accounting for 61% of spend
SCORES ACROSS THE MATURITY SCALE
ONE HEI DEMONSTRATES SUPERIOR PERFORMANCE
MANY LARGER INSTITUTIONS STILL AT LOWER MATURITY LEVELSRED LINE – SECTOR AVERAGE SCORE: 36.7%
SCORES ACROSS THE MATURITY SCALE
WITH NON-PAY SPEND
S L VL
Smaller institutions are predictably less mature on average
than larger institutions. Average VL just progressing into
Planned
Average
24%
Average
36%
Average
48%
S= Small HEIs: <£100m Income
L= Large HEIs: > £100m and < £400m Income
VL= Very Large HEIs: >£400m Income
2015: 96 INSTITUTIONS
Key
Sector minimum and maximum score for the attribute
Sector average score
Institution achieved score
2nd and 3rd Quartiles
EXAMPLES OF SUPERIOR PERFORMANCE
o Governance: Fully documented and communicated procurement strategy -strong link to institution’s strategy.
o Reporting/KPIs: Clear performance measures in place. Comprehensive metrics
o Organisational: Complete coverage across whole institution, visible impact, senior ‘peer group’
o Skills: Strong skills and fully trained staff within the central procurement team covering all spend including estates
o CSR: Embedded CSR factors in the core procurement processes. Widest view on sustainability
EXAMPLES OF SUPERIOR PERFORMANCE
o Collaboration: Active in sharing and leading collaboration efforts.
o IS/P2P: Strong process automation and e-procurement coverage.
o Supplier Strategy: Good supplier relationship mgt and senior mgt buy-in.
o Category Management: MI available to inform category management. Good supply market research
PROGRESS OF EARLY ADOPTERS
16 early adopters have made an average improvement of 13 percentage
points
FOLLOW UP PMAS BY ATTRIBUTE
Demonstrable improvement across all attributes- on
average 22% points since 2010/11. Organisational most
improved.
SUMMARY OF KEY FINDINGS
o Institutions who have been re-assessed have made demonstrable improvements. There has been an average increase in maturity of 22 percentage points from the start of the Programme.
o 76% of institutions are in the lower half of procurement maturity and hence there is opportunity for improvement and efficiency gains
o Beacons of superior performance now exist for all attributes
o Skills, Collaboration and Organisation are now strongest areas
o Category Management, Reporting/KPIs and CSR are now the weakest
o Many procurement teams do not cover Estates Procurement
o There is a weak correlation between savings and maturity level - possibly not all institutions are reporting all their savings
FEATURES OF GOOD PROCUREMENT
o Clear procurement strategy aligned
to Institution’s overall strategy with
visible senior management support
o Regular reporting against strategy
implementation with metrics
o Agreed category strategies inc.
market analysis, make vs. buy
evaluations and supplier strategy
o Procurement seen as strategic
function and engaged early in key
projects
o Procurement is a regular topic in
senior mgt discussions with Audit
Committee taking an active interest
in procurement effectiveness
Strategic Positioning Operational Performance
o Well resourced and capable
procurement team
o Good understanding of what is
being bought across institution
o Full coverage across all spend
types including projects & estates
o Effective policies, processes and
systems ensuring spend is
controlled and directed towards
the best deals available
o Strong collaboration with common
specifications and demand pooling
©Southern Universities Management Services 2015
Copyright in this report is held by Southern Universities Management Services. Procurement UK shall seek the consent of Southern Universities Management Services to copy or reproduce material in whole or in part, the source shall be acknowledged and the material shall not be used for commercial gain.
This report has been produced for and reviewed by Procurement UK. The statements and views expressed represent the understanding of the author arising through the approach described at the time of writing.
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