Scotland Excel Continuing our journey 2012–15
Scotland Excel Continuing our journey 2012–15 About Scotland Excel About Scotland Excel About Scotland Excel Scotland Excel is the Centre of Procurement Expertise for the local government sector. We work collaboratively with members and suppliers to maximise the value and impact of local authority procurement. In March 2006, a review of public sector procurement in Scotland by John McClelland CBE recommended a new approach to increase the efficiency of c. £9bn spent by organisations across the public sector each year. In response to the report, the Scottish Government initiated the Public Procurement Reform Programme to support collaboration and improve procurement capability across the public sector. Scotland Excel was established in April 2008 as part of this programme to lead collaborative procurement on behalf of local authorities. Over the past four years, we have developed and managed a wide range of contracts which reflect the diversity of services provided by councils to their local communities. As of April 2012, our contract portfolio comprises 48 contracts with an estimated annual value of c. £300m and an average savings potential of c. 7%. Over the coming three years, we aim to grow the value of the portfolio to £750m, and will focus the development of new contracts within the strategic, high spend areas of social care and construction. Scotland Excel also helps local authorities meet the improvement targets set by the Public Procurement Reform Board. Since 2009, we have 2 worked in partnership with local authorities to develop and manage an annual programme of learning opportunities, projects and initiatives which have had a measurable impact on their procurement capability and efficiency. During the next three years, we will continue to work closely with councils as the pace of procurement reform accelerates. Public procurement is now widely recognised as a driver of social, economic and environmental benefits, and a Sustainable Procurement Bill which considers the wider impact of procurement choices is being developed by the Scottish Government. The following pages provide a flavour of the key projects and activities that Scotland Excel will undertake over the next three years to maximise our value to our customers and help them meet the challenges ahead. Further information can be found in our Business Plan 2012–15, which is available on our website at www.scotland–excel.org.uk. Scotland Excel is a non–profit making organisation funded by all 32 local authorities in Scotland. Our head office is located in Paisley, with regional teams based in Aberdeen, Edinburgh and Inverness. Scotland Excel Continuing our journey 2012–15 Scotland Excel has five strategic aims which inform our business plans, projects and activities: BEST VALUE Maximise the value of procurement to our sector by developing and implementing new collaborative contracts, actively managing supplier relationships, and providing high quality business information and reports which support decision making at a national and local level. PROCUREMENT CAPABILITY Deliver a range of best practice projects, initiatives and activities to raise procurement capability across our sector including training and development, advice and consultancy, and knowledge management. STAKEHOLDER ENGAGEMENT Engage with local authority stakeholders across all aspects of our business to ensure that our policies, plans and activities are aligned to the strategic priorities of our sector, and support their interests through partnerships with other stakeholder groups. CORPORATE SOCIAL RESPONSIBILITY Adopt a proactive approach to corporate social responsibility and sustainable practices by taking a holistic view of the social, economic and environmental implications of procurement choices. ORGANISATIONAL DEVELOPMENT Progress the development of Scotland Excel through the continuous improvement of staff skills, systems and internal processes, ensuring that we measure, monitor and report on our performance across a number of key measures. Scotland Excel Continuing our journey 2012–15 3 Best Value Best Value “Scotland Excel is an excellent example of how shared services can benefit local government. The value to local authorities is clearly demonstrated by the savings delivered from their collaborative contracts, and in their successful efforts to raise the profile of procurement throughout the sector. I am confident that the next three years will see Scotland Excel go from strength to strength.” David Martin, Chief Executive, Renfrewshire Council and Public Procurement Reform Board Member Best Value Scotland Excel develops and manages collaborative contracts for products and services where a common requirement is identified across our sector. Our contracts are used by a wide range of council departments including social care, buildings and maintenance, transport, environment, facilities management and corporate services, as well as schools, libraries and leisure venues. Collaborative procurement is helping local authorities to achieve best value at a time when budgets are under considerable pressure and demand from service users is increasing. During 2011–12, we estimate that our contracts saved local authorities more than £13m, which equates to £4 for every £1 we receive in funding. However, there are wider benefits to collaboration beyond these headline savings. As well as the efficiencies gained from placing a single national contract, a centralised approach to contract management creates a strong position for mitigating price increases. In 2011, Scotland Excel was able to negotiate fixed pricing across a number of food contracts to avoid market inflation, saving an estimated £1m for local authorities. Collaboration also provides a focus for innovation in product or service delivery. Last year, our security services contract included a requirement for bidders to be accredited by the Security 4 Industry Authority (SIA) following concerns about organised crime operating within this market. Other examples include our telecare contract which prompted suppliers to address long term interoperability issues which restricted choice for service users and led to additional costs for councils. Our priorities for contract development over the coming three years will be social care and construction services. As part of our 2012–13 contract delivery plan, we are currently looking at opportunities within these areas which have an estimated total spend of more than £200m per annum. Over the past year, we have started to build our social care portfolio by delivering contracts for secure care, prepared meals and telecare. Contracts for fostering and residential children’s care are already in the pipeline, and opportunities within adult residential care, adult supported living, and care at home services are being researched. All of our social care contracts focus on delivering the right outcomes for those using the services, and our strategies ensure that these are embedded within the contracts we place. Scotland Excel Continuing our journey 2012–15 The development process involves extensive consultation with stakeholders, providers and service users, and we have built strong partnerships with key policy organisations including the Association of Directors in Social Work (ADSW), the Convention of Scottish Local Authorities (COSLA) and the Scottish Government. The value of this can clearly be seen in recent projects which have included providing support for the renegotiation of COSLA’s National Care Home Contract, and assisting with contingency planning following recent market failures among care home providers. Our work with partners has also highlighted opportunities to support social care procurement capability, and a number of projects are being developed to achieve this. Our procurement teams are also investigating opportunities within construction services to complement existing contracts for a wide range of building materials. A contract strategy has been developed for construction consultancy, and opportunities within building services, facilities management, housing refurbishment, and roads and bridges maintenance are being examined. Scotland Excel Continuing our journey 2012–15 The next three years will also see a programme of contract renewals within our existing portfolio, and we will analyse the management information we have acquired to optimise the structure and delivery of these second and third generation contracts. A new contract for waste disposal services will be added to the portfolio during 2012–13 to complement our existing environmental contracts and help local authorities meet new legislative obligations. As part of the renewals programme, we are exploring further opportunities to work with other sectors to increase savings and improve the efficiency of contract delivery for shared requirements. Our current portfolio already features a number of contracts which are being used by the Scottish Government, NHS, housing associations and other public sector organisations. To ensure that all contracts continue to deliver best value to our members, a new contract and supplier management strategy is being rolled out across the organisation. The new processes and systems developed as part of this strategy will monitor contract performance across a number of key measures, and enable us to target our supplier development activity more effectively. 5 Procurement Capability Procurement Capability “With Post PCA support from Scotland Excel, we were able to comprehensively review procurement across the organisation and now have a refreshed strategy, a new set of goals for the next 2 years and further endorsement from the corporate management team and members. Inverclyde Council are now well placed to raise the bar on performance and make further efficiency savings.” Brendan Hurrell, Corporate Procurement Manager, Inverclyde Council Procurement Capability Scotland Excel supports procurement transformation at a local level through a range of learning and development opportunities, improvement projects and shared best practice. The changing face of public procurement is about more than national contracts. The Public Procurement Reform Programme provides a collaborative platform for sectors to work together to develop shared systems, processes, tools and guidance which help procurement practitioners improve performance within their organisations. Scotland Excel works closely with programme partners to ensure that the views of the local government sector are understood within the wider landscape of procurement reform. Representatives from local authorities are involved in many of the programme’s working groups to ensure that outputs meet the needs of practitioners within the sector. In 2009, the Scottish Government launched an annual programme of Procurement Capability Assessments (PCAs) across the public sector. These assessments form the basis of a maturity model which enables organisations to benchmark their performance and identify areas for development. The model has four quadrants — non–conformance, conformance, improved performance and superior performance — and organisations progress through the model as their capability increases. 6 The results from each round of assessments are used to inform national priorities for the Public Procurement Reform Programme. In addition, Scotland Excel analyses the outcomes from local authority assessments and works in partnership with local authority procurement teams to develop an annual programme of improvement projects that are tailored to the needs of the sector. Now well established, this Procurement Improvement Programme (PIP) is based on three phases each year – the assessment, analysis and action – with priorities for the next phase agreed with members at an annual workshop following each round of assessments. The workshops also provide local authorities with an opportunity to share best practice and hear from key players in the procurement world. Projects and activities are aligned with the targets set out in the Public Procurement Reform Programme delivery plan, and are designed to help local authorities reach improved performance within the PCA model by March 2013. With six local authorities already at this level, and further investment being made in procurement, this goal is within reach. The average PCA score of the sector has almost doubled since the programme began. Scotland Excel Continuing our journey 2012–15 Key projects for 2012–13 include further provision of intensive support to help local authorities develop a business case for transforming their procurement function, the rollout of national electronic procurement tools, the development of contract and supplier management processes, and plans for improving management information to underpin strategic procurement decisions. Scotland Excel also develops and manages a leading learning and development programme as part of our work to support procurement capability. Since this programme was established in 2009, it has expanded its reach across the public sector, with more than 2,000 delegates from almost 100 organisations taking part. Over the coming year, we will continue to expand the range of learning initiatives offered to meet a wide range of training needs across the sector, including the development of qualifications and resources aimed at those responsible for commissioning and managing social care contracts. We are currently working with stakeholders to develop an accredited Professional Development Award (PDA) in social care, and are partnering with the Scottish Government’s Joint Improvement Team (JIT) to develop a proposal for an online information Scotland Excel Continuing our journey 2012–15 platform to guide practitioners through the commissioning process. To attract new entrants to the procurement profession, we have implemented a second phase of our graduate trainee programme, the first national initiative of its kind within the Scottish public sector. We are also working with Skills Development Scotland to extend the Modern Apprentice Framework for Supply Chain Management to include levels that are appropriate for school leavers. Over the past three years, our work with local authorities to raise procurement capability across the sector has evolved beyond expectations. Our reform projects and activities are highly valued by our members, and we are now developing options for a business model to ensure that we can continue to deliver these services beyond their initial funding period. 7 Stakeholder Engagement Stakeholder Engagement “I am impressed by the level of enthusiasm and commitment, and the growing sense of community, that exists across the local government procurement sector.” Alastair Merrill, Director, Procurement & Commercial, The Scottish Government Stakeholder Engagement As a shared service organisation, building positive relationships with our local authority customers is essential for every aspect of our business. Our partnership focus ensures that we understand and respond to the changing needs of our members. Over the past four years, our regional teams have worked hard to develop their knowledge of the procurement priorities of each local authority and provide targeted support to help them adopt new contracts. As our contract portfolio has matured, we have been able to gather and analyse detailed management information to optimise the benefits council’s receive from contracts, and pinpoint further opportunities for savings. Our regional teams meet with local authorities on a quarterly basis to review reports and agree targets. Over the next three years, we will continue to develop the services provided by our regional teams, supported by ongoing improvements to our management information. The teams will also continue to encourage and facilitate regional collaboration by identifying opportunities for contracts that can be delivered by councils working together at a local level. However, we recognise that other teams across Scotland Excel are regularly in contact 8 with customers, through our contract and procurement reform activity and the work undertaken by our communications and helpdesk teams. Our goal over the coming year is to improve customer experience across all areas of our business by developing and implementing a stakeholder engagement model that takes a holistic view of customer needs. correspondence. Our work requires us to engage with many different stakeholders within local authorities, from elected members and senior officers to procurement teams and buyers, and we will look at ways to improve our systems and processes for managing interactions to ensure that we are reaching all of our customers effectively. programme, and national events such as the annual conference of the Society of Local Authority Chief Executives (SOLACE) and the National Public Procurement Conference. Engaging with suppliers will continue to be an important part of our work, and we will take part in a range of supplier events including Meet the Buyer and Procurex Scotland. A communications strategy is already in development as the first step in this project. This will establish a clear framework for a programme of publications aimed at a wide range of stakeholders, providing information about our services and keeping them updated on developments. Our communication plans will continue to focus on electronic and web–based delivery of information to improve efficiency and facilitate access. Our stakeholder engagement model will be built around a solid understanding of customer satisfaction. Towards the end of 2012, we will implement an annual survey to gather feedback from customers about all areas of our business, and the results will inform our improvement plans each year. This will enable us to monitor trends and act accordingly to ensure that our services are developed from a customer perspective. We will also implement enhancements to our web channels to capitalise on the success of the new website and online catalogue launched in December 2010. A social media module will provide a single, secure platform for collaboration that will enhance efficiency and improve the reach and immediacy of our communications. This will support the development of online stakeholder communities, and customers will have a single, secure platform for collaboration that will reduce the need for emails and calls. As the project progresses, we will look at all aspects of our contact with customers including meetings, events and day–to–day Scotland Excel Continuing our journey 2012–15 Communications projects that are already in the pipeline this year include regional roadshows for procurement reform, an extended newsletter Scotland Excel Continuing our journey 2012–15 9 Corporate Social Responsibility Organisational Development “As framework suppliers, we have worked very closely with Scotland Excel to ensure we deliver high quality timber products from legal and sustainable sources to local authorities. This has prompted us to review our company’s sourcing and supplying arrangements, resulting in a positive change for all customers and the environment.” “The staff engagement forum encourages everyone to get directly involved with improving organisational performance. It is good to know that our ideas and experiences from the ‘front line’ are recognised and valued by managers and colleagues!” Nicola Burleigh, Business Services Specialist, Scotland Excel Kevin Mitchell, Operations Manager, Keith Builders Merchants Corporate Social Responsibility Scotland Excel considers the wider social, economic and environmental impact of procurement when developing contracts, and promotes the benefits of sustainable procurement to our sector through a range of projects and initiatives. Over the coming year, the Scottish Government is planning to introduce a Sustainable Procurement Bill which recognises the role of public procurement as a driver of economic and social benefits, and the need to balance this against savings and efficiency. Scotland Excel is working closely with the government and other partners to help shape the content of the Bill, and will support the implementation of new policies within our sector. However, local authorities in Scotland are already making significant progress in sustainable procurement. In April 2011, Scotland Excel awarded the UK’s first national collaborative contract which ensures all timber products are certified as coming from a legal and sustainable source. This contract was recognised in a recent report by the World Wildlife Fund as a major step forward for local authority compliance with UK Timber Policy. In March 2012, we partnered with the Scottish Government to deliver the internationally– recognised Marrakech Task Force training sessions to more than 50 delegates from our sector. This training is based on a United 10 Nation’s global initiative to promote and support the implementation of public procurement programmes that encourage the uptake of sustainable products and services. This year, Scotland Excel also began working with the Scottish Government and the Ready for Business consortium to promote the benefits of involving the third sector in the design and delivery of public sector services. The programme also supports the use of community benefit clauses in local government contracts, and projects will look at ways in which procurement can encourage service innovations, jobs, training or regeneration within local areas. Over the next three years, Scotland Excel will continue to encourage companies of all sizes to bid for our contracts to widen the economic impact of procurement. As well as using lotting strategies which enable smaller companies to tender for specific product or geographic areas, we will provide information and advice at national and local supplier events. More than 70% of suppliers to our current contract portfolio are SMEs, and over half of these are based in Scotland. Scotland Excel Continuing our journey 2012–15 Organisational Development Scotland Excel is committed to continuous improvement in all aspects of our work. Developing the people, skills, processes and systems that underpin the delivery of our services has led to consistent enhancements to our business performance. In the four years since launch, Scotland Excel has been accredited by the Chartered Institute of Purchasing and Supply (CIPS) and Investors in People (IiP). As well as being a major achievement for a relatively young organisation, these awards have provided a framework for ongoing organisational development, and we will continue to implement improvements to ensure that we retain these accreditations following reviews this year. At Scotland Excel, we value our staff and recognise that their commitment is central to our success. A number of initiatives have been implemented to support the development and retention of a highly skilled, experienced and motivated workforce including a Staff Engagement Forum which enables employees at all levels to contribute feedback and ideas. Plans are also underway for a new intranet resource to improve staff communication, collaboration and knowledge. Following our restructure in 2011, there is now a clear career path of progression opportunities within our procurement teams, and a programme Scotland Excel Continuing our journey 2012–15 of tailored training to meet the development needs of each employee is being put in place. The new organisational structure also facilitates cooperation, bringing together different areas of expertise from across the organisation at each stage of the procurement process. Over the past year, we have implemented a national strategic sourcing methodology, known as the Procurement Journey, which has improved the efficiency of contract development and delivery. Plans to adopt the new range of national electronic procurement tools are underway, and we are also supporting their rollout to local authorities. Further development of our systems and business processes to increase capability and efficiency will take place as part of our ongoing improvement plans. Our solid approach to organisational development and flexible structure will ensure we are able to evolve to meet the changing needs of our members over the three years of our business plan. 11 Working together to deliver best value www.scotland–excel.org.uk Published May 2012 Scotland Excel, Unit 5, Anchor Mill, 7 Thread Street, Paisley PA1 1JR Telephone:0300 300 1200 Fax:0141 618 7423
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