PROCUREMENT TRANSFORMATION

Procurement transformation delivers significant cost savings, as well as supporting service improvement

Public-sector organisations are increasingly under pressure to deliver efficiencies and reduce their cost base, as well as providing high-quality services to citizens. The recent Gershon efficiency review and the need to implement e-procurement by 2005 are driving the case for change.

Procurement improvement presents a sizeable challenge as one of the many priorities facing the public sector today. Departments typically operate in 'silos' and purchasing demand is not aggregated across the organisation. Weak IT systems lead to poor transparency of spend and inefficient process. Large supplier bases are often prevalent, which are difficult to manage and practise limited contract management. There is also often a lack of procurement expertise and professionalism with limited central support.

These challenges present enormous value potential. Hedra's experience has proven that significant efficiencies and 'cashable' cost-savings can be achieved through the adoption of structured holistic procurement improvement programmes that include people, process and procurement technologies.

Typical cashable savings are achieved through the adoption of best-practice components of procurement and include people capability development, strategic sourcing, technology enablers - such as e-sourcing, e-tendering, e-evaluation - Purchase-to-Pay and Contract/Supplier management.

A Transformation Approach which is Focused on Efficiency Savings

Procurement is a complex activity, particularly in the public sector where government procurement directives and EU policy dictate elements of the process. Hedra supports clients on procurement improvement projects, bringing expertise and experience to allow efficiencies to be delivered with confidence. Our capability and expertise encompasses all aspects across the lifecycle of procurement, from implementing and delivering e-auctions that are OGCbuying.solutions framework compliant to undertaking strategic sourcing programmes that deliver committed cashable savings.

Our proven procurement transformation approach is focused on delivering results and is transformational in that:

.  It is an integrated programme comprising a number of components
.  It delivers best-practice changes in strategy, people, processes and technology
.  It focuses on ensuring continuous sustainable improvement and delivers a step change improvement in performance.

We have a large client base and are working with both central and local government clients to deliver procurement improvement programmes. Hedra is experienced in working with in-house contracts, purchasing employees and internal or external lawyers in a multi-disciplined team. Our current work includes:

.  Northamptonshire County Council: We are undertaking a large strategic sourcing and capability development programme with Northamptonshire County Council. The programme is over three years, delivering a minimum of ?8.7mn cost-savings as part of a CPA-improvement programme. It also includes the set-up of a strategic procurement unit at the council.

"Hedra carried out a thorough review of all Northamptonshire County Council's telecommunications. They applied their skills and knowledge of procurement and the marketplace to deliver a successful outcome through the e-auction which will provide ongoing benefits to the Council." - Ian McPherson, Head of Procurement, Northamptonshire County Council

.  London Borough of Hackney: We delivered an e-procurement system solution and supported a procurement improvement delivery programme that is identifying and delivering cost-savings across the London Borough of Hackney.

. London Borough of Southwark: We are undertaking a procurement improvement programme that is focused on delivering cost-savings in capital spend at the London Borough of Southwark. It includes the IT systems change as well as the business change required to deliver the targeted efficiencies.

.  Probation Service: We provided overall procurement advice and contract negotiation support in the provision of systems with an expected value of ?100m to support all the activities of the probation service.

.  Ministry of Defence: We advised the army on the service level management of a major outsourced contract for application development and systems integration services.

.  Immigration and Nationality Department: We acted as bid evaluation manager and provided contract negotiation support for a ?70m PFI procurement for the Immigration and Nationality Department.

To find out more visit www.hedra.com or contact Mark Payne on 0207 389 8080.