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Post Office procurement
          – best practice with SMEs
Brian Deveney, Head of Managed Service & Sourcing
Today’s Post Office
More than 11,500 branches
93% of people live within 1 mile of a Post Office
14p in every £1 through our cash network
20 million customers – and half of the UK’s SMEs - visit our branches every week.
Modernising to remain relevant to communities in the digital world
Modernising the branch network
Refreshing around 6000
branches over the next
three years
Brighter, more modern
branches
Increased automation and
                              Post Office main branch, Falmouth
longer opening hours
Significant investment into
SMEs the length and
breadth of the UK
Post Office network largely
a collection of SMEs
                              Post Office local branch, Aldershot
Seeing it from both sides
• Post Office is caught by full PCR Regulations for Procurement
• We are also expected to act and respond in the same manner as
  commercial organisations who do not have these restrictions
• Main challenges we face:
   – Understanding future requirements (you don’t know what you don’t
     know)
   – Engaging with, understanding and utilising innovation in the SME market
   – Speed of delivery against non-restricted organisations
Transforming the
Post Office network
  Small building works in 6000 Sub Post Offices
  over the next three years
  10 new-style branches going live each working
  day
  Carried out in the main by local independent
  businesses
  Engaging with SMEs through our supplier
  strategy
  This Investment is for the community, in the
  community, by the community
  Competitive and Controlled
  Major part of the spend (IT, Regulated Products,
  Security etc) is carried out by Post Office under
  existing frameworks
IT Transformation project
Establish competitive frameworks across products and services
Enables speed to market and flexible response to tenders
Establish run towers to provide Prime suppliers and Sub-Contractors
Incentivise and target Primes around the use of SMEs
Create an “Agile Innovations” framework with SMEs to look at the future
Challenges and Opportunities
The mindset around Risk Averse Public Procurement needs to change
Remove the fear within the process and understand how to manage risk
How do we positively reinforce procurements focus on SMEs
Removing the process constraints but keeping the good practices
How do we incentivise larger prime suppliers to use SMEs
Encourage SMEs to create bidding consortia to provide the required scale
The Government needs to continue to demonstrate clear leadership in this area

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Best Practice - Brian Deveney, Post Office

  • 1. Post Office procurement – best practice with SMEs Brian Deveney, Head of Managed Service & Sourcing
  • 2. Today’s Post Office More than 11,500 branches 93% of people live within 1 mile of a Post Office 14p in every £1 through our cash network 20 million customers – and half of the UK’s SMEs - visit our branches every week. Modernising to remain relevant to communities in the digital world
  • 3. Modernising the branch network Refreshing around 6000 branches over the next three years Brighter, more modern branches Increased automation and Post Office main branch, Falmouth longer opening hours Significant investment into SMEs the length and breadth of the UK Post Office network largely a collection of SMEs Post Office local branch, Aldershot
  • 4. Seeing it from both sides • Post Office is caught by full PCR Regulations for Procurement • We are also expected to act and respond in the same manner as commercial organisations who do not have these restrictions • Main challenges we face: – Understanding future requirements (you don’t know what you don’t know) – Engaging with, understanding and utilising innovation in the SME market – Speed of delivery against non-restricted organisations
  • 5. Transforming the Post Office network Small building works in 6000 Sub Post Offices over the next three years 10 new-style branches going live each working day Carried out in the main by local independent businesses Engaging with SMEs through our supplier strategy This Investment is for the community, in the community, by the community Competitive and Controlled Major part of the spend (IT, Regulated Products, Security etc) is carried out by Post Office under existing frameworks
  • 6. IT Transformation project Establish competitive frameworks across products and services Enables speed to market and flexible response to tenders Establish run towers to provide Prime suppliers and Sub-Contractors Incentivise and target Primes around the use of SMEs Create an “Agile Innovations” framework with SMEs to look at the future
  • 7. Challenges and Opportunities The mindset around Risk Averse Public Procurement needs to change Remove the fear within the process and understand how to manage risk How do we positively reinforce procurements focus on SMEs Removing the process constraints but keeping the good practices How do we incentivise larger prime suppliers to use SMEs Encourage SMEs to create bidding consortia to provide the required scale The Government needs to continue to demonstrate clear leadership in this area

Notas del editor

  1. Starting this summer and running until 2015, we ’ ll be refreshing around 6000 of our branches. Creating brighter, more modern branches Introducing more automation, including self-serve Extending opening hours to complement today ’ s customers ’ needs The majority of the branches that will benefit from this significant investment are in actual fact SMEs As within our network of 11,5000 the majority , They are Post Offices run on our behalf by around 8000 independent subpostmasters Post Office network is largely a collection of SMEs We work with them every day And we understand the SME marketplace So the Post Office, backed by the government, is investing in SMEs across the length and breadth of the country – and investing in their communities. And there is another way this modernisation is supporting SMEs . . . . ..