Case Study

Procurement Transformation

Context

Our client spends more than £600m a year through third party contracts, from services that keep the city’s streets clean to providing care for some of London’s most vulnerable residents.  Add to this one of the most ambitious regeneration programmes the city has ever seen, with a capital investment programme of £2bn over 5 years, getting value from every pound it spends is vital for the council’s sustainability and future ambitions.

 

The council had a mixed model for the management of procurement activity, with a central team providing support for corporate procurement activity as well as policy development, advice and guidance. The majority of the organisation’s contracts were procured locally by individual departments, missing opportunities for consolidation of expenditure and rationalisation of contracts to simplify the supply base and achieve better value for money.

Human Engine worked with the council over a 12-month period to transform the way it manages its procurement and contract management activity.  Leading the development of a new Target Operating Model and transformation programme across 5 workstreams, we worked closely with the council’s staff and Elected Members to deliver:

Strategy and Operating Model
  • A new operating model with a clearer service offer between the central Procurement service and the organisation

 

  • The introduction of a business partner and matrix team model to make most effective use of resources while creating close-knit teams around customers

Governance, Policies and Performance
  • Simplified and more flexible policies and processes to offer more discretion to commissioners and procurers and reduce number of procurement waivers

  • Introduction of a new framework for contract management to better secure ongoing value from contracts not just through the procurement process but throughout the full commercial lifecycle

Systems and Data
  • Significantly improved completeness and quality of data to drive better informed decision making

  • New dashboards to simplify complex datasets and turn information into insight

Structure
  • Creation of a new, single central Procurement Services team for management of all procurement activity over £100k across frontline and corporate services

  • A structure that provides better progression opportunities and clearer career pathways for staff

Skills and Culture
  • Move to a more customer-focused culture, striking the right balance between ensuring compliance and enabling the organisation to act quickly and take calculated risks

  • Reintroduction of an Apprenticeship model as an entry point to the procurement profession, with a structured, blended learning programme to secure and develop the future talent pipeline

Contact

Jonathon Noble

Managing Director

Philippa Still

Lead Consultant – Contracts and Supplier Management

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