epractice: eprocurement workshop 25 may 2011 - richard baker
DESCRIPTION
Presentation by Richard Baker, SequenceTRANSCRIPT
© Sequence 2011
Sell2WalesUsing procurement to stimulate economic development
Richard Baker
Managing Director
© Sequence 2005 © Sequence 2011
Introduction / about us
• We’re a digital Agency
• Extensive private & public track record
•We’re passionate about e-Government
• We focus on great web user experiences
• We’re not a vendor
• We’re a solution provider of:
• Portals & web applications
• Intranets & extranets
• Mobile solutions• Context:
• Pre-award phase
• eNotification / eNoticing
• (eSubmission/ eAwarding)
© Sequence 2005 © Sequence 2011
•25.1% economically inactive (21% UK)
• Decline of primary and secondary industry
• >99% of businesses SMEs
• GVA of £44,333m (2007)
• 10th out of 12 UK regions (2007)
• Output 90% of EU25 average (2002)
• Desire to grow Tertiary ‘service’ sectors
• Reliance on public sector employment
Introduction / Wales
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Introduction / small country big change
• Devolution in Wales:
• Powers with the Economy, Health, Education and Local Government
• Policy, legislation (regulation/ guidance) or Assembly Measures (Welsh laws)
• £6Bn public sector spend
• 300,000 businesses = win/ win?
© Sequence 2005 © Sequence 2011
Background / savings to frontline
Buyers
£5Bn
Save £100
M• Standardisation of practices
• Up-skilling of the buyer community
• Improved techniques (consolidation, frameworks, consortia etc)
• Adoption of E-Procurement tools
© Sequence 2005 © Sequence 2011
Background / e-Procurement
• Three ‘steps’ to E-Procurement
• Easy wins first
• Quantity/ big hits
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• For buyers:
• Provide buyers with free tools and make them good
• It must interoperate
• Make it easier to advertise/ find suppliers
• How can suppliers be up-skilled to engage with the public sector?
• Make it flexible
• For suppliers:
• It must be free
• It must be easy to use
• It must be relevant
• How can we make it more efficient (self service)
• Low value is what matters
Background / the e-information brief
• Surprisingly liberal UK approach:
• No legislation for digital signatures
• No mandate for use of national portal
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Barriers / different agendas
Value WalesDepartment for
Enterprise & Transport
BuyersSuppliers
© Sequence 2005 © Sequence 2011
Barriers / first agenda item
Buyers SuppliersGoods & services
> X for < £
< X for > £
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LegislationD
E&T
Valu
eW
ale
sBuyers Suppliers
• Best practice:
• I’m local!
• Hand written quotes are OK?
• I know the buyer...
• Best value:
• Not always cheapest
• Not always local/ de-risk
• Sustainability
Barriers / second agenda item
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• Consultation, consultation and consultation...
• Focus on the mandatory – OJEU 1st low value 2nd
• Make it ‘frictionless’ - key once...
• Do not legislate (very British...)
• Make it one for all (irrelevant of region/ size/ sector)
• Accommodate differing procurement practices
• Offer supplier list/ closed RFQs (avoid the fear of overload)
• Make it free
• Need to develop ability:
• Develop the supply chain
• Provide support for buyers
Barriers/ removing them…
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• Private sector portal – definitive ‘touch point’
• Notice searching:
• View OJEU, non OJEU , RFQ notices and Tier 1 (e.g. Sub contracts)
• Welsh notices and wider EU notices
• Subscribe to automated E-mail notification of new opportunities
• Procurer searching:
• Locate buyers who buy your service/ product
• Maintain a detailed visible profile for procurers
• Supplier development:
• Education/ training/ support
• Partnerships/ collaboration
Solution / suppliers
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• Public sector portal – first step in ‘e’
• Notice creation:
• OJEU notices
• Non OJEU notices (Bilingual)
• RFQs
• Tier 1 (e.g. sub contract)
• Supplier Searching:
• Supplier database
• Approved supplier lists
• Flexible solution:
• Scales to different procurement organisations/ structures
• Process driven – to help with compliance
• 3rd sector, schools etc.
Solution / buyers
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Metrics / key milestones
2001 2002 2003 2004 2005 2006 2007 2008
Better Value Wales
report published
Sell2Wales strategy
commissioned
Sequence commissione
d
Sell2Wales strategy
publishedNPW site launched
50,000
suppliersRFQ
functionality included
£2Bn notices published
10,000 suppliers 200
procurement organisation
s
1500 procurers
2009 2010
2011 2012
£10 Billionadvertised
5,000notices
V2.0
1st OJEU notice sent
Squid
© Sequence 2005 © Sequence 2011
Metrics / How is it being used?
• Buyers:
• 364 Welsh procurement ‘entities’
• >3,000 procurement users across these organisations
• ~ 160 notices published monthly
• 10,000 notices published to date
• Suppliers:
• 52,000 registered suppliers
• 12,000 matched alerts sent daily
• £15Bn notices advertised to date
• Achievements:
• 20% of the Welsh supplier & 80% of buyer communities registered
• Contracts awarded to Welsh suppliers increased from 35% (2004) to 50% (2010)
• Platform used to advertise >60% of Welsh purchasing
• 71% of suppliers would recommend Sell2Wales to other businesses
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• Single site for suppliers, buyers and tier 1 contractors
• Move away from procurement jargon
• Improved performance and security
• Focus on improved user experience:
• Google type keyword searches
• Location searches (including radius)
• Faceted search
• Saved searches not profile based
• Vastly improved CPV search
• Improved matching
• Planned construction projects
• Configurable email frequency
• ‘Complex’ suppliers (branches)
• Improved supplier search (partners?)
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Conclusion / the need for a ‘hub’
Hub
(Supplier Questionnaire Unified Information Database)
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Conclusion / some parting thoughts
• Key lessons learned:
• Recognise the economic development benefits of public procurement (it’s an opportunity not an overhead)
• Don’t focus exclusively on the transactional savings/ benefits - think long term
• Suppliers expect Facebook/ Amazon/ eBay – not an ‘exposed’ software solution
• Interoperability is key – it’s an open market!
• It’s not just about the buyer...:
• Don’t let the buyers drive this, it needs to be in partnership with Economic development teams
• Think from the supplier perspective as well as the buyer
• Be wary of procurement platform extensions – you need user experience to be core
© Sequence 2005 © Sequence 2011
Conclusion / some parting thoughts
• A model others are following…
• A model others are following....
• Why re-invent?
© Sequence 2011Richard Baker
Managing Director
+44 (0)29 20935222
@Richlybaked
Sell2WalesUsing procurement to stimulate economic development