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Procurement strategy for economic recovery

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Dr Gordon Murray
Dr Gordon Murray

Procurement strategy for accelerating an economic upturn. Delivered to PIANOo masterclass, Utrecht, 4 June 2009 Subsequently published in Supply Chain Management: An International Journal

TechnologieWirtschaft & Finanzen
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An English view on procurement during economic downturn: Is it enough? Dr Gordon Murray
 
The procurement strategic dilemma Reduce costs to pay for council services or Accelerate a viable economic recovery
English local government ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
English national procurement strategy
Procurement Policy initiatives ,[object Object],[object Object],[object Object],[object Object],[object Object]
National Procurement Strategy for local government 2003-2006 ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Gershon Review (2004) ,[object Object],[object Object],[object Object],[object Object],[object Object]
Small Business Friendly Concordat (2005) ,[object Object],[object Object],[object Object],[object Object]
Roots Review (2009) ,[object Object],[object Object],[object Object],[object Object]
Operational Efficiency Review (2009) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Perceived procurement best practice ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Cost reduction is necessary in the long-term, but does it make short-term sense?
Biggest problem currently facing SMEs is cash flow
Specific council procurement initiatives to beat the recession Ease of access Cash flow ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Essex ,[object Object],[object Object],[object Object],Derbyshire Pay with 20 days Castlepoint Pay with 10 days Birmingham Slough Pay within 7 days Tamworth
Politicians steer, procurement managers row, but procurement managers should also set out the strategic options
Strategic procurement options appraisal Pay faster than suppliers pay 2 nd tier suppliers Pay slower than you receive payments Supplier Cash flow E-procurement for cost reduction Achieving community benefits orientation Cost reduction orientation Social clauses Functional specification focus Local purchasing Consortium purchasing Multi-sourcing Single-sourcing Short-term contracts Long-term contracts
Critique of current strategy (1) ,[object Object],[object Object],[object Object],[object Object]
Critique of current strategy (2) ,[object Object],[object Object],[object Object],[object Object]
Critique of current strategy (3) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Critique of current strategy (4) ,[object Object],[object Object],[object Object],[object Object],[object Object]
Critique of current strategy ,[object Object],[object Object]
10 short-term steps to accelerate viable economic recovery ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Public procurement could be more help in accelerating the economic upturn Dr Gordon Murray

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Procurement strategy for economic recovery

  • 1. An English view on procurement during economic downturn: Is it enough? Dr Gordon Murray
  • 2.  
  • 3. The procurement strategic dilemma Reduce costs to pay for council services or Accelerate a viable economic recovery
  • 4.
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  • 7.
  • 8.
  • 9.
  • 10.
  • 11.
  • 12.
  • 13. Cost reduction is necessary in the long-term, but does it make short-term sense?
  • 14. Biggest problem currently facing SMEs is cash flow
  • 15.
  • 16. Politicians steer, procurement managers row, but procurement managers should also set out the strategic options
  • 17. Strategic procurement options appraisal Pay faster than suppliers pay 2 nd tier suppliers Pay slower than you receive payments Supplier Cash flow E-procurement for cost reduction Achieving community benefits orientation Cost reduction orientation Social clauses Functional specification focus Local purchasing Consortium purchasing Multi-sourcing Single-sourcing Short-term contracts Long-term contracts
  • 18.
  • 19.
  • 20.
  • 21.
  • 22.
  • 23.
  • 24. Public procurement could be more help in accelerating the economic upturn Dr Gordon Murray