Improved procurement through

Supplier Spend Analysis

Introduction
Overview of Spend Analysis Project
Benefits of Spend Analysis
FE Procurement Development Team Carl
Johnson, AOC
Bournville College Karen Stanwell, Procurement
Manager
Costs & Options
Other Procurement Services

Overview of Spend Analysis Project

70 Colleges/13 Collaborative Groups

Savings identified
Cashable over 3m
Non Cashable - over 5m
Spend Analysis Lite & Spend Analysis Advanced
Online Tool
Report (optional)
Onsite Visit (optional)

Benefits of Spend Analysis

Obtain effective management information and insight into

spend
Identify potential cashable & non cashable savings
Aggregate spend to highlight major suppliers and categories
of spend
Compare, benchmark and highlight opportunities for
collaboration with other colleges
Help compliance with EU Directive

FE Procurement Development Team

Why are we support spend analysis?
Starting point for procurement
Operational Efficiency Programme (OEP)
Has the spend analysis project been a success?
Commissioned a review of the project

FE Procurement Development Team

Findings (based on 52 of the 74 colleges)
6 million pounds of potential cashable and non cashable
savings highlighted.
Over 2.5 million of these savings have been realised one
year on.
Key spend areas highlighted were Examinations, Energy, IT
Hardware, Insurance and Advertising.
Lessons learnt

FE Procurement Development Team

Highlights
FE Sussex work on Exams (400k)
Wigan & Leigh college purchasing energy via YPO (95k)
and Insurance via CPC (40k)
Solihull college OGC e-Auction for IT (25%)
Cirencester college using Buying Solutions MFD contract
(5k per year plus added value products)
Bournville College

Bournville College

My College

Cashable and Non Cashable savings

The Collaborative Group

Costs & Options

Spend Analysis Lite

Online Tool - 1750
Action Plan (optional) 195
Onsite Visit (optional) 240
Spend Analysis Advanced
Online Tool - 3500
Action Plan (optional) 300
Site Visit (optional) 240

Risk Reward Model

Online Tool - 5000
Action Plan (optional) 400
Site Visit (optional)
300

Other Procurement Services

PQQ Services
Supplier Accreditation
Procurement Services
E-auctions
Cost Reduction - Utilities

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