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Public Performance Reports

Procurement

The Council Plan Connect, outlines our objectives for 2017-22.  Connect ambitions and objectives should not be seen in isolation, they interact with each other and as we achieve success in one, we move closer to success in others.  In delivering our vision to ‘improve the quality of life of everyone in South Lanarkshire’ our ambitions show how our work links with our partners including our Community Planning Partners. 

Each year we produce an Annual Performance Report which details how we have performed in achieving our Connect objectives. To complement the Annual Performance Report we have created a suite of individual Public Performance Reports.  This report outlines the performance in relation to our procurement service and how this links to the outcomes of our ambition to ‘Achieve results through leadership, good governance and organisational effectiveness'.

Procurement

Procurement is the process of buying supplies or services. The council conducts its business with suppliers of goods, services and works to a value in excess of £420m and has an obligation to achieve best value in spending its money.  Compliant procurement is essential to achieving this aim.

With a commitment to ensure that the council has 'fit for purpose' contracts in place, the Procurement Service will actively work with suppliers, particularly local suppliers, and continue to ensure Best Value is achieved, reduce waste and contribute to improving the environment for our local communities.

The following indicators are a selection of nationally recognised best practice procurement indicators which apply to all councils in Scotland.

South Lanarkshire Council's Procurement and Commercial Improvement Programme (PCIP) Assessment Score is band F1 71.4%, the current Scottish average for local authorities is currently 64%.

What this means The Procurement and Commercial Improvement Programme (PCIP) is an external assessment of the resources used in key areas of the business against common criteria and standards.  The assessment helps to identify existing best practice, and identify process gaps, potential improvements and savings.
Why this matters The PCIP was introduced in 2016 to replace the Procurement Capability (PCA).
Our performance and how we compare Comparator 2014-15 2015-16 2016-17 Are we improving?
SLC N/A  71.4% N/A N/A
Scotland N/A  64.0% N/A
How we have performed in improving this public service

In 2015-16 South Lanarkshire Council scored 71.4% which equates to a band F1 and is the highest band available. This score demonstrates that the council is achieving better value for money in our procurement activities and increased compliance. The council previously held the status level of “superior” performance in the external Procurement Capability Assessment (PCA) which was a score of 75%. The council exceeded the Scottish average of 64% within the current Procurement and Commercial Improvement Programme (PCIP). A further assessment is to be conducted by Scotland Excel in 2018-19.

Procurement Spend with Contracted Suppliers - No target set

What this means This indicator examines the extent of the council’s spending through formally contracted agreements with its suppliers. The indicator details the extent of compliance within council procurement activities and demonstrates good procurement practice across the council in using approved contracts to obtain the required goods, services and works.
Why this matters This indicator is reported to the council's Corporate Management Team.
Our performance and how we compare Comparator 2014-15 2015-16 2016-17 Are we improving?
SLC 96% 97% 96%  No
Scotland 61% 57% 51%
How we have performed in improving this public service We are maintaining a high level of achievement, which is comparable with previous year's results.  This is 45% above the Scottish average of 51% in 2016-17. Compliance is also improving significantly through greater use of procurement IT systems and process development.

Procurement Transactions Processed Electronically - No target set

What this means This indicator examines the use of technology to support efficiency in the ordering of goods, services and works. It is key to reducing processing times and transaction costs and making the best use of resources to support frontline services.
Why this matters Following the recent assessment conducted by the Scottish Government Procurement and Commercial Improvement Programme, the council were asked about electronic procurement transactions and how it is increasing the number of electronic transactions compared to paper transactions.
Our performance and how we compare Comparator 2014-15 2015-16 2016-17 Are we improving?
SLC 76% 74% 77%

Yes

Scotland 60% 52% 38%
How we have performed in improving this public service The number of transactions we process electronically compares well against the Scottish average.  The council has introduced e-invoicing in 2016 which should make the processes more efficient and through time increase electronic processing.  

Partnerships

The council operates in partnership with other public sector bodies to achieve savings from economies of scale and more efficient procurement outcomes. All tenders/contracts are evaluated for collaborative partnerships. Examples of collaborative partnerships are: First Aid Supplies, e-Learning platform, Professional Services.

Weather Forecasting: South Lanarkshire is in partnership with 12 other councils across the west of Scotland to monitor the weather and ensure that the council acts promptly to changes to weather, in particular, severe or damaging weather. The system monitors weather across South Lanarkshire every four hours and offers alerts of bad weather to enable timely preparation for activities like gritting.

Equipu: This partnership with several councils allows us to recycle and refurbish care equipment which is no longer needed. Equipment is made available to partner councils when a future need arises. All equipment is professionally overhauled, serviced, stored and made available as the need arises. During 2016-17 we made use of approximately 13,816 items of care equipment from this scheme.

Consultation

The council makes every effort to consult interested parties in both its internal and external procurement activities. These consultations enable council requirements and services to be tailored to users’ needs, incorporate the latest innovation, measure performance and learn lessons for future improvement. Consultations take a number of forms, examples are given below:

Benchmarking: The council makes every effort to consult and benchmark a selection of its procurement categories areas such as Multi Functional Devices, Office Supplies, Personal Protective Equipment and Education supplies.  These benchmarking exercises include measuring performance and sharing good practice.

Stakeholder surveys: These are annual surveys of suppliers, customers and local businesses that have shown interest in working with the council. The surveys offer the opportunity to comment on the council procurement service, offer criticism, suggest improvement and identify efficiencies and savings. An action plan is created from the survey results and monitored to ensure problems and improvements are addressed.

Supplier Feedback: All suppliers who win council contracts are offered opportunities to make comments during the life of the contract. The feedback is addressed at regular performance meetings to identify problems, opportunities for improvement, innovation, and proactive solutions. The council takes these comments forward, as appropriate, to ensure that best value for money is being obtained.

For example:

Area for Improvement Action
Increase sustainability implementation and reporting The council includes sustainable requirements in every tender. The requirements will address economic, social, environmental and community benefit requirements. Requirements will be monitored throughout the contract life and regularly reported to ensure they are achieved.
To increase our level of engagement with small and medium sized businesses (SMEs) The council has implemented a number of proactive actions to increase engagement with SMEs. This has resulted in 31% of council spend in 2016-17 on 1,649 SMEs, totalling £172 million. See more information about our actions to improve engagement.

Further information

• Procurement Strategy 2017-2020 Selling to the Council

Resource Plans are prepared each year by all council Resources to outline the key developments they intend to take forward in the year.  Performance and actions relating to Procurement can be found in the following Resource Plans:

Twice a year, performance reports are presented to council committees on progress against the Resource Plans. In addition, reports detailing progress against the Council Plan Connect objectives are prepared – see Quarter 4 Progress Report. For more up to date performance information, the Quarter 2 Progress Report is also available.

More information on our objectives can be found in the Council Plan Connect and also the Annual Performance Report.

The information contained within this report reflects the position based on the data available at the time of publication (March 2018).