Archived decisions

Procurement Efficiencies and Savings Monitoring

Corporate Procurement and County Supplies

Cashable Efficiency Savings 2007/08

 

 

 

 

 

Description

Contracted Value (£ p.a.)

Total Annual Cashable Saving £

Corporate Share (excl. schools)

Cashable Corporate Savings (£)

Cashable Schools Savings (£)

2007/08

2007/08

 

 

 

 

 

 

Savings Already Expected for 2007/08

 

 

 

 

 

Food: average savings from new contract, comprising reductions in price compared to previous contract of £269,000 p.a., £7,000 additional discount on ad-hoc purchases and £18,000 from an increase in nominated lines. Quality cross-check: no change to type or products or level of service, with potential increase in quality of service through one order point and reduction in food miles.

4,700,000

294,000

100%

294,000

0

Lease Finance: change of supplier with 14% reduction in rates compared to existing provider. Quality cross-check: quality of service delivered will be improved for all new acquisitions.

548,000

76,700

10%

7,700

69,000

Agency Staff: (Manpower) extension to existing contract for 1 year, discount based on 2.5% savings achieved per annum to date. Quality cross-check: no annual increase in rates and continuity of service delivery.

6,000,000

150,000

100%

150,000

0

Child Care Vouchers: - extension to existing contract for 1 year discount based on NI savings to HCC savings in 06/07 were £41k however due to the increase in take up this has increased to £50k for 07/08. Additional saving only included in 07/08.

797,695

9,000

100%

9,000

0

Wood Products & Misc Building Products: savings from new contract. Quality cross-check: All wood products supplied by supplier are FSC accredited.

60,000

3,000

60%

1,800

1,200

School Cleaning Contracts: (Oak Farm) savings achieved through new contracts. Quality cross-check: seamless transition to new contract and improvement in quality of service delivered.

58,000

10,000

0%

0

10,000

Filing Cabinets: savings from a re-costing exercise from current two providers giving an overall saving of 20%. Quality cross-check: quality of service unchanged, saving in road miles and fuel emissions as units are now delivered to local distributor based within HCC who then deliver to HCC sites whereas previously all deliveries were despatched from Methyr Tydfil.

132,000

26,400

20%

5,300

21,100

Total Savings Already Expected for 2007/08

 

 

 

467,800

101,300

 

 

 

 

 

 

Estimated Potential Savings for 2007/08

 

 

 

 

 

Library Management System: Galaxy replacement) savings over a 5 year term estimated to be £150k, however this saving will be re-invested into replacement hardware from year 6 savings will be in the region of £120k per annum therefore giving a saving of £60k per annum over a 10 year period. Item yet to be confirmed. Quality cross-check: price reduction against previous contract, following implementation system processes will be improved.

80,000

60,000

100%

60,000

0

Supply Teachers & Ancilliary School Staff: savings form new contract due to commence May 07, savings to be realised approximately six months from contract start date based on 2.5% of contract value (£2 million pa) based on last 4 months of this financial year. Contract yet to be awarded. Quality cross-check: improved service delivery to end users and rationalisation of current vendors.

2,000,000

50,000

0%

0

12,500

Print Framework Contract: savings from new contract based on £300,000 outsourced works. Item yet to be confirmed. Quality cross-check: improved service delivery to end users following centralisation of print sourcing (Print Management Service), seamless transition to new contract.

300,000

15,000

60%

9,000

6,000

School Uniforms & Corporate Clothing: savings from new contract, no previous contract in place. Contract yet to be awarded. Quality cross-check: improved service delivery to end users & seamless transition to new contract, rationalisation of current clothing vendors.

800,000

20,000

40%

8,000

12,000

Disaster Recovery and Business Continuity: item yet to be finalised

To be confirmed

Total Potential and Achieved Cashable Savings

 

 

 

544,800

131,800

Non-Cashable Efficiency Savings 2007/08

 

 

 

 

 

Description

Contracted Value (£ p.a.)

Total Annual Non-Cashable Saving £

Corporate Share (excl. schools)

Annual Non- Cashable Corporate Savings (£)

Annual Non-Cashable Schools Savings (£)

2007/08

2007/08

 

 

 

 

 

 

 

 

 

 

 

 

Extension of GPC/TDM Invoicing and Payment System (catering supplies and possibly domicilairy care) - target of 20,000 invoices converted to GPC at £28 per invoice - yet to be agreed and implemented

n/a

560,000

100%

560,000

0

 

 

 

 

 

 

Total Non-Cashable Efficiency Savings

 

 

 

560,000

0