Seminar:e-Procurement and Economic

Development- Meeting the New Targets

9th November 2004IEE, London

Programme13.15 Background: the new targets

Peter Duschinsky, The Imaginist Company

14.00 Analysing suppliers & assessing impact on local businesses

14.30 Coffee

14.45 Kick StartTM – Driving Economic Development through Accessible Supplier e-Enablement

Chris Hoar, @UKPLC& Graham Pilkington, Newham Kick Start Project Manager

15.45 Sustainability and diversity - reaching out to minority-owned businesses - Peter Duschinsky

16.15 Round table discussion

16.30 Close

Background:The Imaginist Consortium

• The Imaginist Consortium is an informal alliance of ‘best of breed’ independent specialist companies that co-operate to deliver Joined up e-Procurement

• We created and managed the National e-Procurement Supplier Adoption Project 2003-4 for the Office of Deputy Prime Minister

• We are providing independent advice and services to Local Authorities and other public sector organisations across the UK

e-Procurement is great for purchasers…

• Aggregation of low value, high volume spend• Improved control and management information• Process efficiencies

But what about the suppliers - especially S(M)Es?• e-procurement is not sustainable unless it takes cost out across

the supply chain

e-Procurement increases the threshold level of sophistication required to trade with the

public sector

• Its not just e-technology… • More pressure on margins – need to optimise cost-effectiveness • Need to change systems and processes = new skills • New ways of finding out about work, bidding & winning it (fewer,

larger contracts means OJEU tenders)• More emphasis on pre-qualification compliance• Pressure to improve delivery and to reach out further (to

accommodate consortia buying)

But the world has changed in favour of the SME supplier over the past year

• The Treasury Better Regulation Task Force Report – May 2003

• The National Procurement Strategy for Local Government – October 2003

• The Priority Services Outcomes targets– May 2004

The National Procurement Strategy for Local Government

By 2004• Publish a Selling to the Council guide (website)• Ensure corporate procurement strategy is addressing

sustainability and equality issues, helps to achieve the community plan and involves the voluntary sector

• Conclude a compact with the local voluntary and community sectors

The National Procurement Strategy, cont… By 2005

• Relationship of procurement to community plan addressed• Workforce diversity, equality and sustainability issues

addressed• Diverse and competitive supply market encouraged• Sustainability built into procurement strategy, processes and

contracts• Concordat for SMEs and voluntary sector compact concluded• Invitation to bidders to demonstrate effective use of supply

chain included• Give bidders option to specify benefits under community plan

Priority Services Outcomes- Priority Area 5: e-Procurement

• To support business improvement through cost effective and efficient purchasing of goods and services through corporate implementation of e-procurement

• Working with local suppliers to equip them to take advantage of e-procurement activities

Shared Service / National Priority:• promoting the economic vitality of localities

“Excellent” e-government outcome:• Inclusion of Small and Medium Enterprises (SMEs) in e-procurement

programme, in order to promote the advantages of e-procurement to local suppliers and retain economic development benefits within local community

What does this mean for you?

“An important part of the National Procurement Strategy concerns achieving economic and community benefit

To ensure your local authority’s own procurement strategy achieves these benefits, it is vital that Economic Development Officers are fully engaged in its design and implementation”Daniel Dobson-Mouawad, ChairmanCEDOS (Chief Economic Development Officers Society)

Supplier analysisand

impact assessment