Optimizing Procurement Strategies for Governance and Performance Management

SPP Podcast Handout

WS1: Strategy and Governance Performance management regime Discover Data access and quality review ROSMA Explore current regime Understand Lunch & Learn to understand University requirements Team requirements CWG inputs Build Build reports Publication & comms Automation Monitor Track Governance Track Strategy- alignment Manage exceptions Dependencies Stakeholder interactions and practicality of undertaking workshops Re-establishment of the CWGs A new Procurement Strategy Work to improve data quality STATUS

WS1: Strategy and Governance Procurement strategy Key focus areas Automation Improve technology Free up back office resources to deliver more value Reduce time through investment in areas such as digital Knowledge Availability of information to end users Getting to market quicker Scenario modelling to understand impact of external events Visibility Better integrated to the wider University Visibility of supply chain, supplier robustness and CSR elements Visibility of end user demands and feedback Control Standardisation Transparency of spend and ease of producing reports Compliance to University s financial regulations Dependencies Category manager capacity to devise and shape good practice guidance People strategy TOM design and implementation Impact of COVID-19 Changes to Financial regulations Required changes to data/ technology/reporting

WS1: Strategy and Governance Commodity working groups Procurement Strategy Group ( PSG ) Working Group: Business Administration Working Group: Science Purchasing Working Group: Genomics & Medicine Working Group: Facilities Working Group: IT Purchasing Kick off to be held with Chair Next steps agreed with Chair Kick off to be held with Chair Next steps agreed with Chair Next steps to be agreed Develop Rollout Principles Composition Existing scope Lessons learned (e.g. Genomics) Review Plans Finalise ToR Responsibilities Scope Design implications New ToR Brainstorm with CWG chairs Execute plan Revise and adjust Streamline reporting Agree Dependencies Procurement pipelines Contracts and Supplier Management (category management) Procurement strategy

WS2: Organisation structure and development People strategy and preparing for the new TOM Key activities feeding into the TOM Identify pilot departments New capabilities in PAS Category mgt. to better leverage spend. Advisory Services to shape good practice and drive harmonisation. Projects support, ranging from tactical assistance to specialist advice. Effective contract management Embedded across the University and managed depending on scope: local contracts with departments and schools and University- wide contracts with PAS Map out Pilot participation benefits Finalise people strategy Lead buying Undertake recruitment process Business Partnered Onboard new team members Lead Buying Between departments with common spend, coordinated by CWGs to leverage strategic and/or high-value supplier relationships for the benefit of the whole University. Business partnering Implemented between PAS and high-spend departments to strengthen working relation- ships, better manage internal demand, and capture local requirements more effectively. Draft ToR and responsibilities for the new TOM Review of existing training documents Develop skills and competencies framework Agree career and skills development plans Sustainability Driven centrally via PAS, which seeks to embed a mindset of sustainability throughout all activities associated with the buying and paying for goods, works and services. A wider influence Influencing broader stakeholders such as colleges, third-party orgs, suppliers and the local community improving their experiences whilst promoting our sustainability agenda. Develop new training materials and programmes Dependencies COVID-19 impact Procurement strategy People strategy/ recruitment Re-establishment of CWGs Effective communications plan Buy-in from pilot departments

WS3: Simplify Policies and Processes Standard procedures and ways of working INTEGRATEDAPPROACH Procurement Team Processes & Tools Observations BAU Insights Example outputs: comprehensive user guides cheat sheets & integrated process flow maps helpful FAQs & links to relevant documents Improvements Existing Documentation Dependencies Administrative process improvement Support sustainable purchasing activities People strategy Communications/website Buy-in to changes to process Colleague participation and adoption Relationship building, mentoring and coaching with team OBSERVE ANALYSE IMPROVE DOCUMENT REVIEW EMBED

WS3: Simplify Policies and Processes Administrative process improvement ADMIN PROCESSES eCatalogue admin Supplier admin Can benefit from improved documentation & recommendations for streamlined processes Can be streamlined through better working files/docs and the automation of manual processing and data retrieval Advanced payments Dispensation Invoice approvals Query management Can be better integrated with the new website and HEAT Dependencies Ease of integration to existing technologies and systems The support of colleagues in UIS Changes to the University Fin Regs Changes to dispensation processing Comms on process changes

WS3: Simplify Policies and Processes Support FTP and the revised Financial Regulations Activity areas Proposed competition thresholds Competition procedures (total value)* Scope and documentation review 2-100k + 100k < 2k Socialisation of Thresholds PAS Department Department PAS Department Marketplace, framework or written price confirmation Department/PAS Framework, Marketplace or 3 quotes/tenders. If HIGH RISK, consult PAS PAS Tender managed by PAS HE Benchmarking Pragmatic recommendations What is High-Risk? Any purchasing that has intellectual property, reputational/brand risk, sustainability, health and safety implications or involves leasing, overseas parties, FOREX or sealing/deed execution Implementation plans and user guidance Source: SPR, October 2019 Dependencies FTP planning and timelines Timelines relating to the revision of the Financial Regulations Communications to guide users on policy and process changes New Procurement website The proposed S2P solution * Apply in the absence of any restrictions on Research Grant funding Consider using P-Cards for spend below 25 (see Simplify Policies and Process opportunity)

WS3 (&4): Simplify Policies and Processes (& Technology) Purchasing Cards RFI, RFP, implementation planning ANALYSE DATA IDENTIFY, QUANTIFY & QUALIFY RFI & RFP NEGOTIATE & AWARD CONTROLS, POLICY & LIMITS APPROVALS PROCESS REPORTING PILOT PLAN Dependencies Procurement Strategy Finance and Fin Regs TOM and process improvement Improvements to data quality and related data analysis deep-dive, inc. spend analysis Ease of integration to processes and systems People strategy IMPLEMENT

WS4: Exploit technology and improve data Data, analysis and reporting Spend analysis: To answer questions about how the University spends its money: Who, what, where, how and how much? Supply Risk optimisation: Supply chain risk monitoring and value leakage identification Balance optimisation: Best possible prices with the lowest environmental impact Performance Demand Audit and monitoring: Year-end reporting, savings tracking, Tableau and technology utilisation, and data quality improvements Demand analysis: Drivers (why), needs vs wants, and alternative option opportunities (i.e. borrowing) Accuracy optimisation: Forecasting and purchasing/ consumption smoothing opportunities Dependencies Structural data quality issues Input and training on systems Process changes to support ROSMA reporting (where required) The new proposed S2P solution Finance transformation (inc. CoA)

WS4: Exploit technology and improve data Solution for sourcing, purchasing and invoicing Alignment to the Finance ERP strategy Key FTP dependencies Case for avoiding delay If the solution is implemented alongside the ERP, any changes to the Chart of Accounts ( CoA ) can be incorporated into the S2P system data structures. Service and automation Such a solution can be delivered either: However, if it is implemented immediately (as a standalone), what is the impact of reconfiguring the system later to account for changes to the CoA? Can this be done with modest effort? What key dependencies need to be taken into account? in the future, alongside the wider Finance ERP refresh Savings potential immediately, as a standalone application Compliance Market engagement Example market leaders We have engaged the market via a Request for Information ( RFI ) to understand the options available to the University. This will provide context for preparing the RFP, allowing us to understand the market landscape better, ask questions regarding technical and FTP programme-related dependencies (such as the CoA), and inform future requirement preparation work. Example market challengers Dependencies Alignment with Finance Improve and standardise policies and processes Improved data management Changes to financial policies (inc. Fin Regs) and the new Procurement strategy

WS4: Exploit technology and improve data InTend inTend inTend Understand system "As Is" Migrating Existing Contracts Mapping per Department Training Materials Identify opportunities Implementati on Roadmap Onboarding Dependencies Overcoming inertia to change Development of user friendly training materials and user support Documenting existing contracts in inTend

WS5: Communications and engagement Communication routes Website v1.0 Website v2.0 Email General announcements, new policies, procedures and process changes Website News/alerts, guidance, terms of reference, documentation, and templates Training Procurement Strategy Training New processes and policies, systems and ways-of-working and good practice Events New strategies and structure changes, sharing ways-of-working and good practice Sustainability Q3 20 Q4 20 Q1 21 Q2 21 Dependencies Category manager capacity to devise and shape good practice guidance UIS IT support and the support of comms colleagues in Finance Improvements to admin processes Procurement and sustainability strategies

WS6: Contracts and supplier management Strategic supplier management eCatalogue / Marketplace Category management Contract management framework Dependencies Commodity Working Groups Spend analysis S2P decisions related to catalogue mgt. Administrative process improvement Data analysis and reporting

Q&A