Jul
12
Is the National Procurement Strategy delivering savings?
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I was fascinated by the recent article on ukauthority.com regarding perceived failings in National Procurement strategy.
The piece states:
Most local authorities are failing to identify any savings from following the National Procurement Strategy, of which e-procurement and e-tendering is one of the key features, according to newly published research.
Through a freedom of information request blur group found that out of 246 councils 186 have failed to identify procurement savings from reviews/improvements relating to the strategy.
In business we’ve all seen projects fail (even if we’re passionate about them) but given that Government procurement spending is circa £38 Billion it begs the question why the strategy isn’t delivering benefits to voters.
Plaudits have to be paid for implementing regulars like category management and performance management to drive savings but given that Government is under such scrutiny to reduce public expenditure this is one project we wouldn’t want to see perish on the vine.
More needs to be done to empower local councils with training and awareness, to ensure new tools are providing value. We need to build on the strong commitment especially with larger “top tier” councils to drive improvements and better value for money.
Jul
12
What the heck are Supply Chain KPI’s?
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Here’s a great video on Supply Chain KPI’s which acts as an excellent introduction to the subject. As a reminder, KPI’s are a crucial part of a continuous improvement journey. Measuring a comapany’s performance can be achieved by various routes. Many organizations choose a route that is suitable for them, I.e. Specific measures pertaining to their business or niche. When developing KPI’s businesses will usually focus on those numbers that are important to them (typically they drive key activities or behaviours that are central to the organizations success).
KPI’s are typically used to set a target or objective and then provide a way of measuring the gap between the target and then achievement. The KPI results should then drive a series of actions to close that gap. KPI’s then get reviewed periodically (weekly/monthly) to drive improvement.
When it comes to Supply Chain there are hudreds to choose from, the Supply Chain Council has identified over 200 KPI’s that could be used (indeed deemed critical) there are certain core KPI’s that are more important than others and as ever it’s important to choose ones that help drive your business forward (I always remember the old adage less charts more parts I.e. Don’t drown in data – make sure they work for you.
Anyway – here’s the video. My personal favourite line in it is KPI’s help bridge the gap where everyone in the room is right unless the boss is in there. We’ve all been there, right?