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Procurement England Limited (PEL) Annual Review 2016

1615 PEL Annual Report 5.indd 1 21/03/2017 15:48

£93m (2014/15 £85m)Cashable savings

PEL in numbers 2015/16

£142m (2014/15 £133m)Total savings (non-cashable plus cashable)

£50m (2014/15 £48m)Non-cashable savings including process cost savings

115Total number of collaborative agreements managed by PEL members

PEL’s strategic aims 2014-16

1 Negotiate more collaborative supply agreements by extending the reach of collaborative procurement into all areas of spend.

2 Move from contract management to category management as our principal methodology.

3 Make our collaborative supply agreements easier to use.

4 Explore and formalise further opportunities to collaborate with procurement organisations in the wider public sector.

5 Establish a set of Key Performance Indicators that we will use to report our progress to Procurement UK.

6. Measure and report savings and other benefits from this programme.

£1,149m (2014/15 £968m)Spend through agreements


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Contents3

Chair’s Introduction 4

Case studies

NWUPC tenders new Global Mobility Services agreement 6

Queen Mary University of London and the LUPC-led National Desktop & Notebook Agreement (NDNA) 7

Achieving more with SUPC Laboratory eAuctions 9

NEUPC’s innovative regional Construction framework 10

Savings at University of Bolton through TEC’s energy frameworks 11

TUCO and University of Reading partnership improves catering 13

Shared projects

Spend analysis 14

HE Contracts database 15

Responsible Procurement 17

Procurement Maturity Assesments (PMAs) 18


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a new and intuitive HE contracts database, bringing key information on all consortia agreements to members in a clear and accessible way. Finally, we have collaborated on events including conferences, agreement launches and information sessions to maximise the value PEL consortia deliver to our member institutions. Our aim is to reduce duplication, offer quality agreements and report back to members on the impact these agreements are having in a transparent way.

The case studies highlighted in this report are but a few examples of the on-going collaboration taking place every day within the sector. While these highlight just a few individual cases of delivering increased efficiency and effectiveness through collaboration, there are many, many more out there. I hope you enjoy reading through the examples of good practice taking place in institutions throughout the country and on behalf of PEL, I look forward to continuing to support valuable collaborative activities in the year to come.

The higher education (HE) sector saw unprecedented change in 2015/16. Budget cuts, Brexit and an increased focus on the student experience have all demanded universities provide even greater bang for their procurement buck. While Procurement England Ltd (PEL) was established before these significant socio-political changes, the work PEL aims to achieve through its members is all the more important because of them.

Procurement England Ltd (PEL) was established in 2013 as a formal partnership between purchasing consortia, and our aim has always been to support HE procurement in England to maximise the value it provides to the sector (you can see a list of PEL members on our cover). Addressing the unique challenges of today means we have to approach delivering efficiency and effectiveness in new and collaborative ways. Again and again collaboration within procurement has been shown to save money and time while making the most of available resources. In 2015/16 members of PEL consortia spent £1.14 billion through collaborative procurement agreements, realising over £140 million in savings. Of these savings, £93 million was cashable, while £50 million could be put down to efficiency and process savings.

In 2015/16, the PEL partners have made significant steps towards our six strategic aims, which you can see on page 2. We have worked together to carry out in-depth data analysis and member consultation to develop new category strategies in the areas of ICT and Science, Technology, Engineering and Medicine (STEMed). New category strategies based on rigorous member engagement and data analysis in the areas of Professional Services and Estates are soon to come.

We have established new national category advisory groups across the above four category areas to help deliver an informed and strategic category management approach across all consortia. We have also worked together to deliver

Chair’s introduction

Rex KnightVice-Provost (Operations) at University College London and PEL Board Chair

PEL adopted its initial strategic objectives in 2014 (see page 2), designed to help consortia meet the operational challenges of the future. All of these objectives were achieved or are now embedded in the ongoing operations of the consortia. PEL’s strategic aims have therefore developed and were revised for 2016. Overall, PEL’s ongoing work today aims to negotiate collaborative supply agreements that add real, lasting value to the higher education sector.

The current PEL strategic objectives are:

1 Continuously improve performance in terms of both efficiency and effectiveness, by maximising opportunities for consortium members to add value through the implementation of a wide range of collaborative contracts and services.

2 Work with higher education institutions collectively and individually to support their collaborative procurement activities.

3 Promote the activities and successes of PEL through channels such as an annual review, consortium reports, case studies, surveys and events.

4 Lead and/or support sector initiatives relating to procurement, including sustainable and socially responsible procurement, technology strategies, procurement capability development and the Higher Education Procurement Association (HEPA).

The new strategic aims are embodied in the individual consortium’s corporate strategies and operational plans. They govern the way consortia work both individually and collectively.

Our strategic aims – 2016 onwards

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The Global Mobility Support Services framework - led by the North Western Universities Purchasing Consortium (NWUPC) but available to universities across the UK - is the first agreement of its kind and will see a number of suppliers providing legal, taxation and accountancy, payroll, domiciliation and relocation advice and services to support the international reach of higher education institutions.The framework began in October 2016 and will run until 30 September 2019, with a one-year extension option. It was developed on behalf of the higher education sector to obtain sustainable value for money and legislative compliance in the procurement of services relating to global mobility.

The UK higher education offering is world-renowned, with a solid presence on global rankings. International collaboration is therefore crucial to these universities as it allows them to expand their reach and respond to demand - opening subsidiaries overseas or even arranging to have their programmes taught in institutions around the world, giving students the chance to receive some of the finest education and support in their home countries.

It’s clear that the market for higher education is becoming increasingly competitive globally. As a result, many institutions will be managing staff who spend time working overseas. This can prove challenging for institutions, as they try to make sense of the complex international tax and regulatory obligations. Quite often responsibility will be split between HR, Payroll and Finance, and guidance may be required as to the issues that need to be addressed.Given that most, if not all, higher education institutions

case study

NWUPC tenders new Global Mobility Services agreement

will require global mobility services, it made sense to develop a new framework for the sector. The framework was developed by a collaborative tender working party made up of representatives from NWUPC, as well as professionals from within member institutions. NWUPC also collaborated with the British Universities Finance Directors Group (BUFDG), Universities Human Resources (UHR), Payroll Employment Group (PEG) and Universities & Colleges Employers Association (UCEA) on the creation of the framework.

The agreement was awarded to multiple suppliers, providing members with flexibility and choice, and offers additional support that helps free resources, promote compliance and reduce costs.

“This is the first agreement of its kind and offers access to services that support the international reach of higher education institutions”

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The challengeTo develop a new framework in a growing, and notoriously difficult area of spend.

How has collaboration helped?NWUPC collaborated with a number of sector bodies to develop a fit-for-purpose framework that promotes buy-in.

The benefitsA brand new framework for the sector Range of suppliers to offer choice and flexibilityFree up institutional resource and reduces costs

and time burdens with a professional agreement.


case study

The institutionx

The challengex

How has collaboration helped?x

The benefitsx xx

Queen Mary University of London (QMUL) is undergoing a fundamental transformation, at a time of rapid change in the UK higher education sector. Students paying higher fees have greater expectations of what their university should provide, with IT being a key component.

QMUL decided on an IT transformation across all its campuses, and was able to tap into the consortia National Desktop & Notebook Agreement (NDNA), a national deal worth £400m to the sector annually and tendered by London Universities Purchasing Consortium (LUPC). A significant part of this transformation was a refresh of the PCs in shared student work areas such as libraries and computer labs. Around 1,500 PCs in these areas had come to the end of their lifecycles and were cluttering up work areas with towers in large anti-theft cages, separate monitors and peripherals.

QMUL asked a handful of approved suppliers on the NDNA to suggest a solution, from which Dell successfully proposed substituting the PCs with Dell OptiPlex 9020 All-in-One devices with touch screens running Windows 8.

For Johnathan O’Regan, Assistant Director, IT Infrastructure at QMUL, the benefits are clear. “We’ve gone from a cluttered to a clean environment,” he says. “Plus the devices are flexible and easy to use. Students can stand them up, lay them down flat to do shared work, or use them like a traditional PC.”

By using All-in-One devices with intelligent power supplies, QMUL also estimates the power consumption of the estate

case study

LUPC-led national ICT agreement helps Queen Mary University of London enhance student experience

has fallen by 50 per cent, helping towards the university’s sustainability goals included in its five-year strategy.A key part of the Dell proposal included leasing the devices. By choosing to lease with Dell Financial Services, the university swapped a large upfront cost for manageable, predictable monthly payments over three years.

“We had the budget to refresh a third of the estate, but through leasing, we managed to refresh the whole lot,” says Johnathan O’Regan. This gave QMUL the freedom to deploy the right technology solution immediately. “So we’ve avoided the problem of some students having to use old machines while others get new devices. Given that each student pays £9,000 a year towards their education, that’s only fair.”

Over a three-year lease, the total cost of ownership is lower than buying the devices outright. Moreover, the university is able to refresh again in three years without worrying about disposal, ensuring the client estate remains up to date for new students.

“The power consumption of the estate has fallen by 50 per cent, helping towards the university’s sustainability goals included in its five-year strategy”

The institutionQueen Mary University of London.

The challenge Meeting student expectation and enhancing student experience through improved IT equipment.

How has collaboration helped?The institution was able to access competitive pricing and additional benefits through the National Desktop & Notebook Agreement (NDNA).

The benefitsEnhanced student learning environments

and equipmentReduced energy billsInnovative finance options allow for full refreshA competitive and compliant route to market.

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“We are delighted with the outcome and are now considering a similar strategic approach to other product areas”

In 2016, Southern Universities Purchasing Consortium (SUPC) facilitated its first eAuction for members. The eAuction, which was conducted under the consortia Inter-Regional Laboratory Agreement for Consumables (IRLA), was an opportunity for consortia members to achieve further savings and greater standardisation of purchased products for their institutions.

King’s College London (Faculty of Life Sciences & Medicine) and the University of Bristol both participated in the eAuction, which was for a basket of 35 types of hazardous waste bins. The list was created by the institutions’ Health and Safety Departments in agreement with users. It was made up of seven different types of single-use bins in a range of sizes. Previously, the institutions ordered hundreds of different products from dozens of suppliers.

Achieving a streamlined range of products which were fit for purpose and delivered value for money, were key goals for both institutions and the winning supplier, Fischer Scientific, was able to deliver. The University of Bristol achieved a saving of 21% through the eAuction, with King’s achieving a saving of 7% above and beyond a previously negotiated 14% saving from the basic agreement price. For both institutions, the benefits went beyond price. Prior to the eAuction, end users could purchase a wide range of waste bins that varied in size, operation and colour – this could create confusion because the bins were not standardised across lab spaces. The new limited selection available through the eAuction will improve the standardisation of products across laboratories and support lab safety as well. In addition,

for the procurement teams this means that less time is spent contract managing several suppliers and managing the invoice/payment process.

“Feedback from end users on this collaborative procurement exercise between institutions and between procurement and sustainability functions, has been very positive” says University of Bristol’s Head of Procurement Anj Cooke.

“We certainly don’t feel that the rationalisation of the range and supplier base has compromised our offering. Indeed, we are delighted with the outcome and are now considering a similar strategic approach to other product areas.”

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case study

Achieving more with SUPC Laboratory eAuctions

The institutionKing’s College London and University of Bristol.

The challengeReduce the cost of single-use sharps bins and support improved lab safety by standardising products.

How has collaboration helped?Participating institutions achieved additional savings over the already competitive agreement pricing, and streamlined the suppliers and products they used.

The benefitsIncreased savings above and beyond the

already competitive agreement pricingReduced the number of suppliers providing

the products from dozens to one, improving efficiency

Reduced the range of products being purchased to increase standardisation

Improved lab safety by regulating the available products presented to institutional buyers.


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The institutionsNewcastle University, Durham University, Northumbria University, Teesside University and University of Sunderland

The challengeDelivering a new collaborative framework in the Construction category, previously difficult to influence by Procurement

How has collaboration helped?Five institutions with similar requirements have developed a new regional framework, supported by guidance, expertise and ongoing resource from their local consortium

The benefitsNew framework area for the sectorGreater influence for Procurement into

construction spendSupport from NEUPC to deliver a quicker,

broader and compliant solutionOffers tender opportunity to local SMEs in

the North East.

“The consortium has provided additional help with the tender process, as well as added value with ongoing contract management”

NEUPC leads innovative framework for Construction

Supporting the physical infrastructure of universities’ estates and facilities is the sector’s largest category of spend, delivering on institutions’ academic aspirations and enhancing the student experience. However, this category has traditionally been one where Procurement has difficulty wielding influence, often attributed to a lack of skills and professional approach to construction management from within the purchasing function.

There is a renewed ambition within PEL, the Joint Contracting Group for Estates, and the North Eastern Universities Purchasing Consortium (NEUPC) to expand beyond the provision of furniture, audio-visual equipment and other estates fittings and equipment into the area of construction and ‘hard’ facilities management.

To this end, NEUPC are working with five universities in the North East for whom there is enough commonality of ideas and geographical supply chain to facilitate a single agreement for construction services.

This new agreement is being managed by NEUPC with University of Newcastle acting as a lead institution, providing technical expertise. Durham University, Northumbria University, Teesside University and University of Sunderland are all participating as they have a solid, identified programme of work in the future to realise. This means that they are in a position to establish forward demand and structure an agreement to service them.

The likely level of spend for the forthcoming agreement is in excess of £700m construction costs and will represent a paradigm shift in a consolidated approach to the construction market. While there are a number of existing framework agreements in the public sector covering construction services, this will be the first time that an agreement has been tendered specifically for higher education.

Neil Addison, Head of Procurement at Newcastle University says “Working with NEUPC has given a proven process and methodology to undertake the collaborative procurement, which all of the participants know and are comfortable with. This has allowed us to progress the framework much quicker, with the result that more of our capital projects can be included.

“The consortium has provided additional help with the tender process, as well as added value with ongoing contract management. NEUPC’s involvement will provide a degree of consistency with approach and documentation which will also be of benefit to the contractors.”

NEUPC now intends to further this agenda by working closely and developing closer ties with the sector’s Directors of Estates.

case study

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Proposed new sports centre, Newcastle University.


“We were surprised to receive credits for a backdated contract. TEC’s contacts clearly helped us resolve the situation quickly and effectively”

At The Energy Consortium (TEC), we often say that a member’s experience of an energy supplier via our frameworks is quite different to what they may have experienced in the past. Examples of these ‘special relationships’ come to light all the time, but a notable example has resulted in a significant saving for the University of Bolton.

By working collaboratively together, TEC and the University of Bolton have secured a solid contract with E.ON for gas after the University recently took on new sites. In the transition period, a supply contract had not been agreed between the University and supplier, resulting in the University being billed at contract rates much higher than those secured through the TEC framework.

Once TEC was made aware of the lack of a contract, it contacted E.ON and asked if it could arrange one for the remainder of the main contract period. This was all tied up and resolved within 48 hours, resulting in significant savings for the institution of more than £9,000.

E.ON also agreed to TEC’s request to backdate the contract to the beginning of the year and, as a result, a credit was issued to the University.

Paul Lindley, the University’s Purchasing Officer, said: “We had been trying to track down the supply arrangements for energy for some time, and gave TEC details of the gas supplies.”

“We were surprised to receive credits for a backdated contract, but also to find that the electricity supplies were in a similar situation. TEC’s contacts at E.ON clearly helped us resolve the situation quickly and effectively.”

The work TEC carried out with E.ON was to free up all supplies for migration to our flexible frameworks. On the University of Bolton’s Benefits Statement, an annual statement of the cost reductions secured by using TEC, the saving through a flexible framework will see the University saving an additional £18,000 per annum and a total saving of over 7% including the backdate. Not surprisingly, the University has now switched to TEC’s flexible frameworks.

Collectively, TEC staff have over 100 years of energy expertise and, combined with the shared services from other PEL consortia, are successful in delivering complaint and collaborative procurement solutions.

The institutionUniversity of Bolton

The challengeNo supply contract between the University and its energy supplier led to overcharging

How has collaboration helped?TEC was able to use its greater buying influence to secure a more competitive deal with framework supplier E.ON, and backdate this so that the University also received a credit

The benefitsSavings of £9,000 for the University, plus

backdated creditsCollaborative partnership gives institutions

greater power over suppliersA compliant, sustainable contract in place

to safeguard the University’s immediate energy future.

TEC frameworks save University of Bolton over £9k

case study

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The institutionUniversity of Reading

The challengeDrive catering surpluses and offer a sustainable catering partner for purchasing, training and more

How has collaboration helped?TUCO agreements have helped reduce the University’s deficit, and start delivering surplus on bar and catering income. The ‘TUCO family’ has helped drive quality, training, innovation and recruitment to the sector.

The benefitsBetween 2012-15, bar income grew by 600%

and retail sales by 67%Overhaul of the University’s approach to

catering procurementA sustainable, catering partner offering advice,

skills opportunities and networking.

“I need a one-stop-shop and TUCO provides that. It’s the organisation I go to for help to run and maintain an effective business”

Just a decade ago the University of Reading’s in-house catering service was “haemorrhaging cash” and wracking up a hefty deficit. But since those dark days it’s undergone a complete transformation to a point where healthy surpluses have become the norm.

Matthew White, Director of Catering, Hotel and Conference Services, has overseen this turnaround in fortunes – bringing a competitive drive and spirit of innovation to a service that had been stifled by an institutionalised culture.

The figures speak for themselves; between 2012-15, bar income grew by 600% and retail sales by 67%. From seeing a £600,000 deficit in 2006, in 2015 the University recorded a £50,000 surplus.

One of the keys to Reading’s success story has been a radical overhaul of its approach to procurement. With help from The University Caterers Organisation (TUCO) it started by streamlining its processes to eradicate waste and inefficiency.

It also began using TUCO’s wide range of framework agreements. TUCO procures goods and services for 340 universities and colleges, 28 local authorities and four NHS trusts, meaning it can use its purchasing power to secure lower prices and demand high quality. In 2014-15 those agreements enabled Reading to save £270,000.

But the relationship with TUCO goes far beyond using its frameworks; it has a more fundamental role in influencing the way Matthew and his team strive for excellence.

They are part of the ‘TUCO family’– encapsulated by the #tucofamily hashtag on Twitter and the spirit of sharing that it embodies. TUCO members go on international study tours together, attend training courses, share ideas and celebrate excellence at TUCO’s annual awards. The TUCO Academy enables staff to develop their skills and knowledge and provides a place to train the next generation of university caterers.

Matthew White, who became chair of TUCO in September 2016, believes the organisation is not only driving up the standards of catering in higher education but also transforming it as a career destination for those entering the industry.

“As universities, we are competing in a sense – as catering services we all have to have unique selling points because what we deliver is a key part of the university experience” he explains.

“But it’s also about sharing ideas and best practice. I need a one stop shop and TUCO provides that. It’s the organisation I can go to for help to run and maintain an effective business.’

case study

TUCO and University of Reading partnership improves catering


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Spend analysis: a key instrument in the collaborative procurement toolkit

The higher education consortia continue to utilise essential spend analysis tools for two key areas: national visibility around contracting and delivery, along with local spend awareness for members to help shape their collaborative priorities. The information that can be gained through the use of spend analysis tools is invaluable from a strategic planning context and often feeds the development of framework opportunities.

Admittedly, a few challenges need to be overcome to make the best use of the tools utilised. One area is the data collection from institutions. Accurate data, provided by member institutions, increases the ability of the consortia to confidently determine the needs and potential collaborative opportunities to make savings for their members. The collection of this data is now built into the processes and timescales for all consortia, and member institutions overall are responsive and happy to provide the required data for consortia to work with. The same data can also be used by individual members should they wish to develop their own spend analysis at a local level.

Another challenge is accuracy of data. While the data analysed can be very valuable in the development of framework strategies, and the identification of suppliers for market engagement, there remains a certain amount of manual analysis that must be done. Without the benefit of line item detail, analysis tools rely on the categorisation of suppliers to identify the relevant supply market they are engaged in, and so manual categorisation is still often required to make the data analysis meaningful for consortia and members alike

Consortia have employed data analysts and administration staff to focus on spend analysis activities, acknowledging the importance of data manipulation in today’s procurement toolkit. Working collectively, these staff share and develop their reporting techniques, whilst allowing more time for procurement contracting staff to deliver priority services and frameworks across the wider group.

Overall, the data collated by the consortia’s spend analysis tools provides consortia with a data set showing spend trends on a year by year basis, and an accurate depiction of the supply base to the membership. It also provides a basis to fact check management information provided by suppliers, to improve benefit reporting and potential spend values for category managers to analyse and expand into, increasing the value for money offered through agreements.

Through PEL, and with the help of the consortia’s Joint Contracting Group, data analysis continues to be shared and helps depict an ever changing picture around category activities within the sector. It is therefore essential that we continue to invest in data management and systems whilst employing and training our staff to get the very best information available when we need it.

“Consortia have employed analysts and administration staff to focus on spend analysis activities”


Launching our Shared Contracts Database

The new HE Contracts database was tested during spring 2016 to identify any bugs in the system. Consortia staff received training on how to use it, and the process of reviewing and migrating data began, to ensure the system incorporated the most up-to-date and useful resources, documents and buyer’s guides for members looking to use the consortia frameworks.

HE Contracts was finally delivered in August 2016 alongside a number of webinars, user guides and ‘how to’ YouTube videos provided for end users to access and familiarise themselves with the new system. Following the launch, the consortia had very few members contact them with any issues around logging in or access to information, and indeed many members have reported that HE Contracts is very easy to use, intuitive and a significant improvement on the older systems. The consortia are now working collaboratively to identify and fund Phase 2 enhancements, to further improve the database based on user feedback.

Prior to the launch of the new HE Contracts database, the sector had shared other databases to store, manage and present framework information, including GeM and, more recently, the uniBuy system.

The contract for uniBuy was expiring in August 2016 and both HEFCE and JISC were not able to provide either further funding or contract management for the database. The English regional purchasing consortia therefore took up the task of specifying, purchasing and delivering a replacement contracts database for the sector in England and Wales (Scotland has alternative arrangements). PEL designated the project lead to North Eastern Universities Purchasing Consortium (NEUPC), and NEUPC, NWUPC, SUPC and LUPC provided the majority of the funding for the project, with contributions from TUCO and TEC.

NEUPC convened a project team including representatives from all the English university purchasing consortia, along with colleagues from member institutions who worked on the specification for the new system. Their initial brief was to deliver a robust, easy to use web-based system to allow members to access the wide selection of contracts available to them.

The team selected a developer with expertise in the university purchasing sector, H2O, the company that developed and manages the websites for the majority of the regional purchasing consortia. They were appointed and commissioned in January 2016 to deliver a new database before August – this was a very tight timescale, but NEUPC planned carefully to ensure the new system would be delivered and tested before the existing uniBuy database contract expired.

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“Many members report that HE Contracts is very easy to use, intuitive and a significant improvement on the older systems.”


Working to protect human rights through responsible purchasing

This is evidenced through the inclusion of contract clauses within recent frameworks to encourage openness and action from suppliers to mitigate the risks and act when rights abuses are uncovered – the Apple products agreement, re-tendered in Spring 2016, includes clauses drafted by Electronics Watch, an independent organisation that monitors global electronics supply chains, and of which LUPC is a founding member. The consortia expect to include similar clauses in future agreement tenders, particularly the £400m National Desktop and Notebook Agreement (NDNA) in 2017.

New agreements are also coming online that reflect our member institutions’ commitment to responsible procurement, including the recent national agreement for ethically-sourced smartphones.

The consortia have also published Modern Slavery & Human Trafficking Statements. These are published in response to the Modern Slavery Act 2015, which requires commercial organisations to set out actions they are taking to tackle modern slavery and human trafficking within their business activities. LUPC is regarded as a leader in the public sector for promoting human rights in the supply chain.

PEL will continue to deliver and develop its Sustainable Procurement Policy, and go further still to give institutions the confidence that purchasing through the joint consortia frameworks is, more and more, the ethical and sustainable choice.

For several years now, procurement within the sector has paid careful attention to the impact its goods, services, and their corresponding supply chains have on the physical environment, with some key checks and considerations now well-embedded within the procurement process.

But the purchasing consortia, through PEL, have also begun shining a light on the risks of human rights abuses, including human trafficking, bonded and forced labour, conflict minerals and other labour rights abuses within the sector’s global supply chains. With a £1.14 billion spend collectively passing through joint consortia agreements, and with institutions regularly telling us they need support in mapping and understanding their supply chains, PEL is collaboratively making changes that have a big impact on the sector’s ethical credentials, protecting its reputation and reflecting its values.

All of the consortia are actively working to improve their score within the Sustainable Procurement Flexible Framework, a self-assessment mechanism that allows organisations to measure and monitor their progress on sustainable procurement over time. Many of the consortia are already at Level 4, with ambitions to aim for Level 5 (the highest level) by 2018.

The consortia have also deployed specialist software to embed ethics and sustainability into procurement activity using the Flexible Framework approach. Such software allows our suppliers to investigate and identify the risks within their supply chains, and then produce an action plan to help address these.

Indeed, far from placing the burden to change on suppliers alone, PEL is working to encourage greater transparency from suppliers and to work with them to identify and address human rights abuses within their own supply chains.

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“The consortia have published Slavery & Human Trafficking Statements.”


The nationally recognised Procurement Maturity Assessment (PMA) programme, operated by PEL member Southern Universities Purchasing Consortium (SUPC), is a cornerstone of recent higher education progress and success.

Borne out of the recommendations from the 2011 Diamond Report on ‘Efficiency and Effectiveness in Higher Education’, the PMA programme was established to help evaluate and improve procurement in universities across England. Providing a comprehensive ‘health check’, PMAs offer an independent detailed assessment of an institution’s procurement capability and a bespoke action plan for improvement. Participants also receive a baseline to measure improvements, as well as a benchmark score against similar universities.

Improving procurement maturity is important for several reasons. Universities that are more advanced in their procurement maturity have systems and processes in place that help them deliver increased efficiencies and savings. Mature procurement functions fully understand their organisation’s procurement spend, know the areas in which their efforts will make more impact and understand both their supply markets and internal customers. This all enables them to develop procurement approaches that are beneficial to their organisation and their suppliers.

The PMA programme uses established performance measurement tools which help both the institution and the sector evaluate progress. Since the programme began in 2010, 96 universities have undergone an initial PMA in the programme, with over 70 returning for a follow-up PMA to measure their progress. Compared to the first round of PMAs, there has been a continuous improvement in sector-wide scores in each of the nine assessment categories, and there are now examples of superior procurement performance

Supporting procurement Improvement across the sector

in each category. Within the programme, five universities have now achieved the overall ‘superior’ rating and they can act as beacons of excellence for others.

Universities in England spend almost £10 billion per year on goods and services, so even small procurement efficiencies will deliver significant savings and benefits to the sector. The average increase in procurement maturity between the first and second assessment is 13% and between the first and third, the figure is 23%. This systematic and objective measurement of procurement capability helps institutions develop the best procurement practices and processes that enables them to secure maximum financial and business benefits from their non-pay spend.

Claire Gray, Head of Procurement at University of Cumbria, and PMA participant says, “There is real value in consistently evaluating our procurement. We not only see real improvements that add to the effectiveness and credibility of our function, but we also receive detailed action plans each time to help us further improve.”

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“The average increase in procurement maturity between the first and second assessment is 13% and between the first and third, the figure is 23%”


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