Agenda item

To receive a presentation from Lisa Quinn, Director of Finance and Business Services. A summary sheet and a copy of the Cheshire East Procurement Strategy are enclosed.

Lisa Quinn supported by Samantha Clements, Wendy Clarke and Janet Ellison Jones gave a presentation on the Council’s procurement strategy.

Lisa explained that the Council’s existing strategy 2009-2012 was to be the subject of a substantial revision with a view to a new strategy being in place by 1 April 2012.

In March 2011, the procurement unit had been subject to a health check by the North West Improvement and Efficiency Partnership (NWIEP)Association of Greater Manchester Authorities (AGMA).

The health check had identified the following:

a)            That the role and structure of the Central Procurement function should be reviewed to develop a team that is adequately staffed and skilled to deliver the service required by service areas to ensure the Council’s significant buying power is used to maximise the social, economic and environmental benefits to your local communities.

b)      That a skills analysis of the Procurement staff be undertaken to identify any gaps where training is required to ensure the staff have the required commercial knowledge and procurement skills to fully support departments in delivering value for money in all procurement activities.

c)      That membership in AGMA be maximised to develop detailed spend analysis and increase engagement in collaborative procurement opportunities and the improvement and efficiency programme.

d)      That a comprehensive central contract register be produced covering the contracts in place within each individual Department.

e)      That a detailed Procurement Forward Plan be developed for the next 3 years.

f)       That a detailed savings sheet be implemented identifying the areas targeted to deliver savings in each financial year for the next three years.

The Chief Executive had been involved in high level discussions with AGMA representatives about an initiative to establish a ‘leading edge’ Procurement Service for AGMA, which may be either a Shared Service or a strategic collaboration. The initiative was in its early stages with 4/5 authorities expressing an interest, but Cheshire East had given a firm commitment to join this major project. The Council also had an existing commitment to the AGMA Improvement & Efficiency Programme as an Associate Member.

The Procurement process at Cheshire East was being transformed and reviewed through a number of mechanisms:

·          The P2P (Procure to Pay) process straddled the HR & Finance Shared Service and the CE corporate procurement process. This was being reviewed and improved through the Business Management Programme.

·          The HR & Finance Shared Service, including the shared element of the P2P process, was part of the major Shared Service improvement programme that was likely to culminate in the creation of a Separate Legal Entity (SLE). 

·          The Shared Service situation had been significantly rationalised further through the closure of CBS Supplies, the stocks and supplies service inherited from the County Council.

Wendy Clarke informed the Committee that the current arrangement with the Council’s employment agency expired at the end of March 2012 and the Council was working with colleagues in Cheshire West and Chester Council to jointly procure future agency services.

RESOLVED –

(a)               That the presentation be noted;

(b)               That an item be added to the Committees work programme to review the procurement of the Agency Staff Contract.