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New report: Social value, supply chain ethics and procurement legislation

BiP Solutions is pleased to launch our latest market report, ‘Is Procurement Good Business? Social value, supply chain management, legislation and innovation in the current procurement landscape.’

This report examines three of the most pressing themes in contemporary procurement: social value, ethical supply chains, and the relationship between legislation and innovation. Aside from specific political events, these three themes are perhaps the major issues that have the potential to reshape how procurement is practised across the UK in the near future.

Following Procurex National 2019, the flagship event in the UK public procurement calendar, hosted by BiP Solutions, this report includes expert analysis and comment from procurement leaders from the day. The clear message from both attendees and the expert speakers at Procurex National is that legislation, like social value and ensuring an ethical supply chain, can prove to be a source of opportunity to procurement. Rather than stopping competition or innovation, or enforcing arbitrary boundaries, all three key themes can in fact make for better business.

  • Social value is not only a legal requirement, but is also increasingly weighed into procurement requirements in many different sectors. We discuss how organisations can shape their own ‘social value’ position.
  • Supply chain ethics are important in an ever-more transparent age. Learn how buyers can make sure ethical business is factored into every stage of the supply chain.
  • Legislation and innovation can seem like they are at odds in procurement, but we look at how procurement legislation can work to spur innovation and improve efficiency.

The report includes comment from figures including Malcolm Harrison, CEO of the Chartered Institute of Procurement & Supply; Simon Tse, CEO of the Crown Commercial Service; and Mark Roberts, Continuous Commercial Improvement Director at the Cabinet Office. The report also describes key ways in which BiP Solutions can help you get ahead in procurement by supporting you to stand out in terms of social value, ensuring a robust and ethical supply chain, and working in the best way within the legislation.

Download your full copy of the report here to find out how to maximise your opportunities by keeping abreast of the latest burning issues in procurement.

Building connections at the UK Infrastructure Show

Bigger and better than ever before, on 30th April the UK Infrastructure Show was back at the NEC, Birmingham for its third year.

The UK’s leading infrastructure and supply chain event was once again a roaring success, connecting buyers and suppliers on the main stage of the sector.

This year, the event combined with the UK Public Sector Expo and Procurex National, with UKIS2019 seeing 1,400 delegates enjoying over 30 free training sessions, five speakers in the Keynote Arena, six Public Sector Solutions Live speakers, four Networking & Collaboration Zones, a Product Showcase Exhibition and the wealth of knowledge demonstrated in the four skills development zones throughout the event.

With over £600bn and 700 projects on the National Infrastructure Pipeline, the show had a huge range of information and opportunities on offer from some of the biggest names and projects within the infrastructure arena.

Infrastructure has been one of the better performers for the construction industry throughout this unsettled political and economic period, as reflected in the attendance numbers and buoyancy amongst the infrastructure community.

The Keynote stage

The Keynote stage, hosting some of the major players in the infrastructure sector, was the focus of the event. A very popular area of the show, at times it was standing room only as people jostled to hear the latest from the National Infrastructure Commission, the Infrastructure and Projects Authority, HS2, the Department for Transport and Scape Procure.

Chaired by Stephen Kinnell of supply chain specialists CompeteFor, key themes coming through the informative keynote speeches were the need for collaboration, innovation and a long-term joined-up approach.

First up, Phil Graham, Chief Executive of the National Infrastructure Commission, addressed the audience. He discussed how important infrastructure is to the country, as a key driver of the economy and improver of change.

Phil Graham from National Infrastructure Commission

Matthew Vickerstaff, Interim Chief Executive of the Infrastructure and Projects Authority, followed, discussing how delivery of the National Infrastructure Pipeline will be achieved, looking at strategic investment, infrastructure priorities, and the challenges in improving infrastructure performance.

An informative session from Mark Howard, HS2 Chief Engineer, was up next. As Europe’s biggest infrastructure project currently underway, HS2 is a flagship for the infrastructure sector. Mr Howard told the packed room, that up to this point, the amount of track already built equals half the length of the UK – giving us some idea of the huge undertaking this project is.

Once again, the theme of collaboration and a joined up approach was key, with the support of organisations such as the Midlands Engine and Northern Powerhouse crucial to successful delivery.

The next session was held by Catherine de Marco, Deputy Director Infrastructure, Skills and Efficiency at Department for Transport. Ms de Marco focused on the issues of skilled labour and the requirement for new, technology-minded individuals to be enticed into the construction, transport and infrastructure sectors.

Last to the podium was Adrian Hill, Acting Director of Frameworks at Scape Procure. An appropriate close to the arena, the essence of Scape Procure and Mr Hill’s address was to remind the audience that with all infrastructure projects, we are not just investing in the projects, but communities.

Attendees heard again, how collaboration, fair payment, continual improvement and adoption of new technologies and innovations was vital for the sector to ensure economic benefits from the investments.

Subsector zones

The excitement didn’t end with the keynote arena – the floor was host to many exhibitors, showcasing new trends, technologies and innovations to a captive audience.

Two zones, specifically designed to highlight the growing subsectors within infrastructure, were also available to delegates.

In Zone 1, The Energy and Social Infrastructure zone, attendees heard from a range of specialists and suppliers working in the sector.

Over in Zone 2, Transport, sessions from some of the leading figures in infrastructure development in the West Midlands spoke to a lively audience.

Next steps

We would like to thank all delegates, visitors, partners, sponsors and exhibitors at UKIS for helping to make such a successful show and representing an industry with huge potential for growth and development.

To register your interest or to discuss booking your 2020 exhibition or sponsorship package, click here.

 

Scottish Budget 2018

Against the backdrop of uncertainty caused by the UK’s impending exit from the European Union, Finance Secretary Derek Mackay MSP has delivered the 2018 Scottish Budget (December 12th).

Describing it as a “fair and progressive budget” Derek Mackay presented a business-friendly package, while placing the protection of public services at the heart of this Budget Statement.

Below you can find a breakdown of key Scottish Budget 2018 figures in addition to which public sector opportunities await your industry.

SME

A £50 million ‘Town Centre Fund’ will provide much needed support for Scotland’s high streets. There will also be a cap put on business rates below inflation, providing a tax cut for small businesses, which Mackay described as “the most generous system anywhere in the UK”. The partnership between the private sector and the Scottish Government has played an important role in recent years, which was championed by the Cabinet Minister for Business, Fair Work and Skills Jamie Hepburn MSP at Procurex Scotland, in which he encouraged businesses to consider the welfare of local communities and the environment, calling on suppliers to “not be risk averse”.

Housing

An investment of £825 million -as part of an overall fund of £3 billion- will help deliver 50,000 affordable homes over the course of this parliament, which has been the cornerstone of Housing Minister Kevin Stewart’s construction agenda.

Education

Describing education as the Scottish Government’s “defining mission”, the Finance Secretary set out bold new proposals for Scottish schools. £180m will be used to close the attainment gap, including £120m, which will be directed towards headteacher budgets through ‘Pupil Equity Funding’. £600m will also be given to colleges and £1 billion has been secured for Scotland’s world-class universities. £214m has been set aside for apprenticeships and skills; providing a gateway in to employment for many of Scotland’s young people.

Healthcare

An increase of £730m will be provided to NHS Scotland, which is the equivalent to hiring 19,000 nurses, as Derek Mackay confirmed “health is a top priority for the government”, which accounts for almost half of the Scottish Government’s overall spending.

Local Government

The Scottish Government will provide “a real terms increase in the total local government settlement of over £210m” Mackay said, taking the local government budget to £11.1 billion. This will be welcome news for Fife Council executive director Keith Winter, who was a keynote speaker at Procurex Scotland, where he championed “social justice” as he encouraged councillors to adopt a global strategy moving forward.

Collaboration in Healthcare Supply Chains: P4H

Jim Miller NHSNHS National Services Scotland is a national NHS board which provides help and support to NHS Scotland. Jim Miller, NHS National Services Scotland’s Interim Director Procurement, Commissioning and Facilities, will be at the keynote arena at the P4H 2016 conference in Birmingham on 13 July to delivering an unmissable speech. Ahead of the event, BiP Solutions journalist Domhnall Macinnes caught up with Mr Miller to hear about collaborative procurement and the future of UK healthcare procurement.

Background

Jim Miller has a wide variety of procurement experience across both the public and private sectors. He worked in sectors ranging from aviation to construction to public administration prior to joining NHS Scotland in 2006 as Director of Strategic Sourcing. In September 2015 he became Interim Director of Procurement, Commissioning and Facilities at NHS National Services Scotland.

Mr Miller said: “I lead a strategic business unit which encompasses the national collaborative procurement organisation, which provides contract and supply chain solutions across all 22 Scottish health organisations. Additionally, the organisation provides specialist commissioning and population screening services, and is the centre of expertise for facilities, engineering and environmental management.”

A piece of collaborative advice

Mr Miller discussed collaborative procurement and its importance, and had some advice for buyers considering it. Collaborative procurement is aimed at aiding the Scottish public sector to form partnerships between buying organisations, the Centres of Expertise (CoE) and suppliers, creating real value for money.

He counselled: “Don’t be afraid! There are lots of examples where this has worked really well. Equally, the venture is only as good as the weakest link.

“We have recently developed a new type of collaborative arrangement in Scotland where the strength lies with the members, who effectively self-regulate the system. We will not achieve further productivity gains, embrace innovation or truly support the health service if we work in isolation.”

Work together

Mr Miller also had advice for suppliers thinking of selling to collaborative procurement ventures. It is his firm view that buyers and suppliers must work together.

He commented: “Work with them. Understand that they (the buyers) may be trying to gauge the benefit of collaboration as well. Identify how the collaboration can be of mutual benefit by, for example, reducing the ‘cost to serve’ and identify how this can translate to commercial advantage.

“Also be aware of the cost of change; it will be more complex to implement across multiple sites than a single site, for example, but it also provides opportunities to standardise and support single systems of care.”

A problem and a solution

Mr Miller says that increasing demand and decreasing budgets is the primary challenge facing UK healthcare today. He argues that a move to a preventative healthcare system is vital, and procurement needs to be taking this on board in order to be prepared.

Thankfully, however, as he notes, NHS National Services Scotland is already taking steps to prepare for these challenges.

He explained: “We are the largest shared service organisation in Scotland. We currently provide a range of services including procurement and supply chain but also, for example, central legal services, payment services to primary care, counter-fraud services and health information services, amongst others. The ability to provide a complete range of services allows Health Boards to concentrate on the delivery of patient care and preventative healthcare.”

The future

Concluding, Mr Miller looked to the near future of UK healthcare procurement and the changes that he foresees occurring. He discussed three primary areas he feels should most be focused on. He touched again on collaboration and preventative healthcare, but said he hopes to see collaborative relationships evolving into something more.

Mr Miller said: “I would concentrate on three areas. Firstly, collaboration maturing into true partnering, which includes the market and providers as well as the health service. The phrase is used a lot but there is a long way to go.

“Secondly, the move towards a preventative healthcare culture and increased patient decision-making will require very different commercial and delivery models.

“Thirdly, to reference Simon Syneck, start with the why. In other words, it’s very easy to concentrate on savings, delivery performance, product and service availability and so on. We are all here to serve the patient and improve the health of the population. Plugging this into the procurement DNA will, I believe, continue to motivate the healthcare procurement community.”

On P4H

The good news for delegates attending this year’s P4H conference at the NEC, Birmingham is that Mr Miller will be in attendance for the entire event and is offering one-on-one sessions on the day or with prior notice.

With regard to the event itself, Mr Miller touched on P4H’s value in promoting best procurement practice.

He said: “The health landscape is changing dramatically and procurement has a significant part to play in making the changes successful and sustainable. Sharing and learning from colleagues within health and, just as importantly, the market is key. P4H provides this opportunity in one place.

“The whole event looks very interesting. For me one of the primary benefits is to interact with colleagues working in other parts of the health system across the UK.”

How P4H can help you

This year’s P4H event is set to offer a prime occasion for collaboration, with the PH4 Collaboration Zones providing delegates the chance to learn about both buyer and supplier opportunities.

Delegates will be offered the chance to network with buyers in the Buyer Engagement Village, boosting your peer contact list.

Delegates will also have the unique opportunity to meet with representatives of the NHS and furthermore hear advice from industry experts in the same prime location.

Don’t miss your chance to attend.

Register for P4H today

Public Procurement after Brexit: BiP Business Analysis

Brexit Procurement

It’s Business As Usual for Public Sector Procurement

Many of our public and private sector clients have been asking how the EU referendum vote will impact public sector procurement. The short answer is “not a lot”. The slightly longer answer is contained in BiP Solutions’ latest business analysis – Public Procurement After Brexit.

BiP’s Principal Consultant Eddie Regan spends most of his waking hours either immersed in procurement regulations or running training workshops on how they impact buyers and suppliers.

Eddie has helped BiP clients understand countless regulatory changes over the years and in this Business Analysis, he gives us his expert opinion on the potential impact of Brexit.

How important is the public sector market?

In the financial year 2014/15, the public sector spent approximately £263 billion on goods, works and services, making it the largest marketplace for UK suppliers. It helps drive the UK economy, providing revenue and jobs for thousands of businesses.
The market is open to suppliers of all sizes, as Treasury figures from 2014/15 showed 27.1% of central government buying was with small businesses, either directly (10.9%) or through the supply chain (16.2%).

The Report

Written in layman’s terms, Public Procurement after Brexit: BiP Business Analysis examines current UK procurement procedures and the way in which they are likely or unlikely to change after Brexit.

Report author Eddie Regan said: “If the UK exits the European Union but joins the European Economic Area, there is likely to be little change if any – the one key difference is we won’t have a voice at the negotiating table for future Directives, but we will probably comply voluntarily, just like Norway, Iceland and Switzerland.”

What should Suppliers do?

Unsure of Post-Brexit procurement changes, some suppliers fear getting caught up in changing contract law.

However, with much EU procurement legislation heavily influenced by UK priorities, UK procurement is unlikely to change dramatically following Brexit.

If anything, the public sector should become more attractive to UK suppliers.

One of the main concerns for many firms, including those not currently active in the public sector will be the potential loss of revenue from their existing markets. Aside from the obvious threat to exports, nervousness over the economy might encourage UK customers – both consumers & businesses – to tighten their belts or look for better deals elsewhere.

That’s why now could in fact be the perfect time to start looking at the public sector!

And that’s an outcome that would be good for suppliers AND buyers.

To discover more about the market opportunities read Public Procurement after Brexit: BiP Business Analysis

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