HSE Procurement. Hotel and Utilities Portfolio Presentation to CMAI Food and Bev Live Wednesday 1 st February 2012

Transcription

1 HSE Procurement Hotel and Utilities Portfolio Presentation to CMAI Food and Bev Live Wednesday 1 st February 2012

2 Strategic View Portfolio & Category Management 4.5bn Contractible Expenditure 4 Major Portfolios Hotel & Utilities Pharma & Medical Equipment / Lab & Diagnostics Professional / Office / ICT 31 Primary Categories and more then 390 sub categories Governed by EU Procurement rules and HSE Procurement Policy

3 HSE Procurement Portfolios Pharma & Medical Aids & appliances Surgical Orthopaedic Renal Dialysis Drugs & medicines Vaccines Hygiene Continence Opthalmic Cardiology Professional Services & Office Prof Services Insurance Train & Dev Trans & travel ICT Office Furniture Equipment, Lab & diagnostics Lab Imaging Diagnostics Medical Equipment Surgical Equip General Plant Physics & Bio Med Hotel & Utilities Foodservice Cleaning Consumables Utilities Restaurant & kitchen Clothing & textiles Facilities, Prop Maint Waste Management Continence

4 Portfolio & Category Management Traditionally known as Contracting Determines the level at which the HSE Should manage each category Enter the market Describes how specific categories will be contracted. Objective of the category strategy Determine opportunities in the supply market Level of aggregation Contracting approach Performance requirements, service level requirements and logistics approach Planned, proactive and continuous engagement with the customer and supplier community

5 Contract Award Award Process Award of Contracts Contracting authorities may award contracts based on either Most Economically Advantageous Tender (Meat) Lowest Price Only Examples of Meat: (Life Cycle Model) Quality and functional characteristics Technical merit & environmental characteristics Running costs & cost effectiveness & price After sales & technical assistance Delivery lead times or completion data

6 Typical Qualifying Process Selection / Qualification Process Technical Economic & Financial Standing Technical & Professional Ability Quality Standards References / Sites

7 Competitive Process EU Procurement Directives /18 EC Framework agreements Restricted Open Competitive dialogue eauctions

8 Goals and Objectives Exploit the opportunity for aggregation, leverage and value for money. Exploit the opportunity for specification development to include product service standardisation and rationalisation. Exploit opportunities to ensure competitiveness in the market. Exploit opportunities for transaction cost reduction, arising from standardisation streamlining automation. Exploit opportunities to deliver excellent value / quality products and services in excess of our customers expectations. Exploit opportunities to pool expertise and knowledge.

9 Development of Procurement Strategies Inputs from understanding our current situation and conducting industry analyses, drive the formulation of category strategy Inputs to Procurement Strategy Development Internal Profile Usage Data Specifications and Standards Current Pricing Requirements / Constraints External Profile Industry Trends Supply Market Segmentation Current / Projected Cost Structure. Competitive Forces Procurement Strategy

10 Critical Success Factors The establishment of appropriate procurement project governance The availability of key personnel to the projects The buy in of all HSE stakeholders The selection of the best service providers / providers for the HSE Post contract award contract management to achieve long term HSE customer buy in to the process. Fostering group commitment.

11 Working as a Foodservice Team Shaping the market influencing specification / product development. Training Internal / External ( ex Bord Bia Presentations). Good food recipes advance preparation / handy hints / healthy hints. Strategy setting goals / short term / long term Opportunity to develop a Public Sector Healthy Food Policy. Opportunity to support green procurement.

12 Category Specialist Groups Provide broad based functional / technical advice and category understanding. Develop specifications for products and Services. Recommend products for contract award. Be a point of contact for the proposed introduction of new products and services Cause and effect of new Foodservice Legislation.

13 Reward for the Patient and Category Specialist Teams Better value for money, improved service levels improved quality. Input into the decision on proposed introduction of new products and services. Promotion of the importance of contract specialist groups in supporting front line services. Input into a healthier and more socially responsible procurement within the public sector. Compliance to all legislative requirements. Market leader in creating a culture of trust and an environment of innovation and creativity.

14 Challenges Positive / Negative National procurement services. Moratorium. Lack of motivation High cost reduction targets Competing Priorities Market / Political Failure to deliver on contract compliance

15 Hotel and Utilities Portfolio Value of contracts managed 260m Contracts awarded 50 Contract saving m Contract Saving (2011) 5.078m Service Plan Target m