COUP 2015Case Study: Flexible Framework: The University of Manchester Approach.
Ian JarveyDeputy Head of Procurement
Jimmy BranniganNETpositive Futures
Overview• Context:
• Background on the University of Manchester• Manchester’s Vision
• Our approach to the Flexible Framework• A couple of quotes from a local boy Geoffrey Chaucer:
‘Time and tide wait for no man’ – GET ON WITH IT
‘People can die of mere imagination’ – IT ISN’T AS
SCARY AS YOU THINK
The University of Manchester
University Estate: Investing £1BN
2020 Vision
Goal 1 World Class Research: to be one of top 25 research universities in the world Goal 2
Outstanding learning and student experience
Goal 3Social Responsibility: Contribute to the social and economic success of the community
What does Social Responsibility look like?
ADDRESSING INEQUALITIES
ETHICAL GRAND CHALLENGES
SCHOOLS GOVERNORS INITIATIVE
CULTURAL ACCESS PROGRAMME
THE WORKS
STAFF STEPS TO SUSTAINABILITY
Strategic Priorities Signature Programmes
Key drivers for responsible procurement at the University of Manchester are:
• To take a meaningful lead as the largest UK university• To support our commitment to Social Responsibility and
Environmental Sustainability• To strive to have a positive impact through our spend – by
reducing negative impacts and enhancing positive impacts
Where did we start?
Refresher: Flexible FrameworkFoundationLevel 1
EmbedLevel 2
PracticeLevel 3
EnhanceLevel 4
LeadLevel 5
People • Champion• Basic training• Induction
• Purchasing Staff trained
• Key staff advanced training
• Refresher training• Performance
objectives• Incentives
• Competences and selection
• Embed in induction
• Publicity to attract staff
• Internal/external recognition
• Share practice
Policy, Strategy & Communication
• Objectives agreed• Simple policy• Endorsed by CEO &
communicated
• Review policy and supplier links
• Wider strategy• Communication
• Widen strategy to review risk etc.
• Endorsed by CEO
• Enhance strategy & new technologies
• Link to EMS etc.
• Regular review and linked EMS etc.
• Communication and publicity
Procurement Process • Spend analysis and impacts
• Key contracts reviewed and awarded VFM
• Detailed spend analysis and prioritisation
• Consideration early & WLC
• All contracts reviewed and full risk approach
• Key suppliers targeted
• Detailed high risk contract review
• Contract governance cycle & life cycle cost
• Life cycle commodity approach
• Targets agreed with supplier
• Best practice shared
Engaging Suppliers • Key supplier spend/impact known
• Key suppliers engaged
• Detailed spend analysis
• General programme supplier engagement with senior support
• Targeted improvement programme
• Two way communication
• Supply chain mapping
• Intensive development key suppliers
• Audits and improvement plans recorded
• CEO involved
• Suppliers key role in delivery
• CEO engages• Best practice shared• Suppliers recognise
need to follow best practice to remain
Measurement & Results
• Key impacts of procurement activity identified
• Detailed appraisal of impacts undertaken
• Measures implemented to manage high risks
• Sustainability measure refined from general measures and linked to objectives
• Integrated into balanced score card
• Comparison with peers
• Benefit statements
• Measures drive organisational strategy
• Benchmarking• Independent audits
Team development at the core, plus:
• Governance and Strategic Commitments• Materiality Analysis • Risk and impact analysis• Supplier Engagement• Staff Support and Guidance• Measurement and Reporting
Governance and Strategic Commitments
Materiality Analysis Environmental Priorities Social Priorities Economic Priorities- Reducing carbon
emissions- Reducing utilities
consumption- Sustainable management
of waste- Energy efficiency- Maximise resource
efficiency- Increasing biodiversity on
campus- Contributing to national
and international understanding of environmental issues
- Utilities management- Behaviour change
- Supporting local communities
- Supporting national and international communities
- Community engagement- Improving sustainable
travel practices- Staff wellbeing- Staff engagement
- Socially responsible investing
- Sustainable procurement- Investment in public
realm- Value for money- Whole-life costing- Exploiting in-house
expertise
Targets tracked against Strategy
Environmental Del
iver
ies
per
wee
k
Who
le li
fe c
ostin
g
Ener
gy u
se
Zero
was
te c
onst
ructi
on
Recy
cled
con
tent
End
of li
fe r
ecyc
labi
lity
Redu
ce p
acka
ging
Sust
aina
ble
trav
el o
ption
s
Vide
o co
nfer
enci
ng
Enga
ging
sup
plie
rs o
n su
stai
nabi
lity
Reducing carbon emissions
Reducing utilities consumption
Sustainable management of waste
Energy effi ciency
Maximise resource effi ciency
Increasing biodiversity on campus
Contributing to national and international understanding of environmental issues
Utilities management
Behaviour change
Targets tracked against Strategy
Social Jobs
crea
ted
appr
entic
esLo
cal w
orkf
orce
Loca
l sup
plier
sSt
aff sk
illsTr
ainin
g on
site
Supp
ly ch
ainM
eet t
he b
uyer
even
ts
Supporting local communities
Supporting national and international communities
Community engagement
Improving sustainable travel practices
Staff wellbeing
Staff engagement
Targets tracked against Strategy
Economic Cont
ract
s le
t to
loca
l con
trac
tors
SMEs
in s
ubco
ntra
cts
Livi
ng w
age
Socially responsible investing
Sustainable procurement
Investment in public realm
Value for money
Whole-l ife costing
Exploiting in-house expertise
Risk and impact analysis• Detailed spend review – level 2 Proc-HE codes• Marrakesh risk review• Prioritise spend categories – high risk & spend• 2014 – 72 • 2015 - 63
• NETpositive analysis to identify a range of issues that could be addressed through the procurement process
All Level 4 Activity!
Supplier Engagement• Taking a pro-active and innovative approach• Capturing impact and supporting supplier
development in this area simultaneously• Currently being rolled out to all suppliers
In the first 3 months:
• 126 businesses have started an Action Plan
• 634 individual actions ‘completed’ or ‘in progress’
• 297 pieces of evidence added to support these actions
AA Audio V
isual E
quipm
ent
BE Libra
ry su
bscrip
tions
CB Bakery
pro
ducts
CG Cate
ring equip
ment m
ainte
nance &
repair
CK Tableware
, cro
ckery
, cutle
ry, ta
ble coverin
gs etc
DA Capita
l equip
ment >
£10k
DH Diagnosti
c serv
ices
FZ Oth
er and genera
l furn
iture
, furn
ishin
gs and te
xtiles
HZ Oth
er and genera
l cleanin
g & ja
nitoria
l
KE Software
purc
hase, m
ainte
nance, d
evelopment &
royalti
es
KZ Oth
er and genera
l com
puter
LC Laborato
ry Sm
all Appara
tus a
nd Equip
ment P
urchase
& H
ire
LH Laborato
ry ch
emica
ls - o
rganic
& inorg
anic
LN Laborato
ry gase
s purc
hase and ass
ociate
d renta
ls
LY Laborato
ry w
aste d
isposa
l - cl
inica
l and ch
emica
l
MZ O
ther a
nd general w
orksh
op and main
tenance
supplie
s
QE Mail s
ervice
s overs
eas/in
tern
ational
RK Tem
porary
staff
& employm
ent agencie
s
SF Papers
(photo
copyin
g etc)
TO Stora
ge and ware
house se
rvice
s
UD Safety
and pers
onal pro
tecti
on equipm
ent
WC D
ecora
tion m
ateria
ls, w
orks a
nd serv
ices
WQ W
aste and re
fuse
disp
osal
XZ Oth
er/genera
l misc
ellaneous
0
2
4
6
8
10
12
Engagement by Commodity Code
We make work accessible to people from all backgrounds C Catering Supplies
& Services
L Laboratory/Animal House Supplies & Services
Others
Selection rate
29%
61%
63%
What are we finding out and what are we going to do with the information?
Measurement and Reporting
• Commitment to annual reporting• Sharing our own learning with the sector• Demonstrating progress against targets• Demonstrate our positive impact• Celebrating our success
Achieving some recognition for hard working procurement teams!
We think Responsible Procurement offers:
• A real opportunity to demonstrate social impact and social value
• An opportunity to utilise procurement to deliver the social commitments of the institution
• An opportunity for procurement to take the lead on delivering sustainability excellence for your institution
A final quote: ‘Start by doing what is necessary; then do what is possible; suddenly you are doing the impossible.’ St. Francis of Assisi.
Ian JarveyUniversity of Manchesterwww.procurement.manchester.ac.uk@UOMProcurement
Jimmy BranniganNETpositive Futureswww.netpositivefutures.co.uk@NPFutures