ANNUAL REVIEW 2014-2015 Summary of Results
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LUPC ANNUAL REVIEW 2014-2015 Summary of Results £204 million Average return on investment per Member £186 million Comparing every £1 of membership fee against every £1 of savings made £171 million 100:1 96:1 77:1 2014-15 2013-14 2012-13 2014-15 2013-14 2012-13 £33 million “It is always reassuring to have the support and guidance £30.5 million of LUPC’s professional team behind us. They continue to £28 million demonstrate a high level of knowledge in the complex area of procurement legislation and guide us through the maze with good humour and common sense.” Helen Ward, Collections Manager, Kingston University 2014-15 2013-14 2012-13 Consortium expenditure RESULTS OF SUMMARY Total Member spend through our agreements £204 million £186 million £171 million 100:1 96:1 77:1 2014-15 2013-14 2012-13 2014-15 2013-14 2012-13 Member savings Collaborative savings figures £33 million £30.5 million £28 million 2014-15 2013-14 2012-13 I have very much enjoyed my Chair’s first full year as Chair of LUPC. It is a source of great personal Report satisfaction for me to see our genuinely Member-owned and led organisation progress as a direct result of the hard work and dedication of our Members, staff, suppliers and partners. LUPC’s achievements this year have seen: • Success in our programme of activities designed to encourage greater take-up of our collaborative supply agreements, with benefits for Members both in quality and savings; Through our programme of Member activities, I am pleased Director’s to report that we were able to sustain and build upon our Report very rapid rate of growth in the take-up of our collaborative supply agreements during the year. Our Members spent £204m (13/14 £186m) through LUPC agreements, an increase of 10% year-on-year, saving £33m (13/14 £30.5m) in the process. Members have access to over 100 competitive supply agreements and with membership subscriptions substantially reduced once again for 2015-16, our Members’ average return on investment is now well in excess of 100:1 (13/14 96:1). CHAIR’S & DIRECTOR’S REPORTS & DIRECTOR’S CHAIR’S • New supply agreements in Estates with the aim of becoming our Members’ most Maintenance and Office, Computer & Library valued commercial partner by 2018. We will work Supplies, both developed with the active even more closely with our sister purchasing involvement of our Members. consortia under the Procurement England Ltd • Our emerging leadership in corporate social (PEL) umbrella. We will provide more support for responsibility, including publication of the first our Members through our growing procurement Slavery and Human Trafficking Statement by a consultancy business and we will become a leader purchasing consortium in UK public service; in ethical trading and sustainability. • Verification of our attainment of Level 4 of the Sustainable Procurement Flexible Framework; and As Chair, I relish these challenges in improving • Four new full Members joining LUPC (London further our value proposition for every Member Academy of Music & Dramatic Art; the Royal College through collaborative procurement and our of Anaesthetists; the Royal College of General other activities. Practitioners; and the Institute of Ismaili Studies). Dr Andrew Young This year our Board has devised and implemented a Chief Operating Officer brand new corporate strategy, Reaching New Heights, London School of Economics & Political Science The year also saw LUPC take a leading role in the We now look forward to delivering our sector for corporate social responsibility. Not only ambitious new corporate strategy, Reaching New is LUPC now a very active member of Electronics Heights, and to seeking new ways of delivering Watch, the monitoring organisation for the global even better value for our Members in future years. electronics industry, but we also entered into a partnership with the Business, Human Rights & the Andy Davies Environment Research Group at the University of Director, LUPC Greenwich. In response to the Modern Slavery Act 2015, we also became the first UK public service consortium to publish a statement on how we plan to tackle slavery and human trafficking in our supply chains. Each year LUPC Members expect a busy programme “We became the first UK of LUPC events. This year we staged another successful Conference and Exhibition in the spring, public service consortium to a launch of our new framework agreement in Estates publish a Slavery and Human Maintenance and further workshops and seminars in the professional services category. Trafficking Statement ” New Agreements “Our new Estates Maintenance agreement incorporates provision for minor works up to £500k, in direct response to requests from Members” NEW AGREEMENTS The year saw the award of the Works agreement, contact Suzanne consortium’s latest framework Stokes at [email protected]. agreement for Estates Maintenance Services, following LUPC’s first We also awarded the latest incarnation ground-breaking deal in 2011. For of our ever-popular, multi-million the first time, this mammoth regional pound national framework agreement agreement, open to LUPC Members and for office supplies and computer other universities and colleges based consumables this year, this time with in London and south-east England, extra provision for library supplies. incorporates the provision of minor Once again, the project was overseen works up to £500,000 in value, in by colleagues in the National Working direct response to requests from Party for Computer & Stationery our Members. Supplies (NWPCSS). The new five-year framework Suppliers are arranged in three lots, agreement is split into six lots covering allowing Members more freedom to estates maintenance and minor choose, and we have continued our works (large and small); mechanical cost-plus pricing policy in this spend and electrical maintenance; water category, a practice we introduced management services; and minor works with great success in 2011. (large and small). It was developed by a Member-led project team with Under this arrangement, our expert input from both procurement suppliers have priced every item in and estates professionals at Goldsmiths, their catalogue, offering competitive Royal Holloway, the Museum of pricing in every product group and not London, Royal College of Art, Courtauld just those in a basket, or core list of Institute of Art, Royal Botanic Gardens, products. This involved a monumental Kew, Institute of Cancer Research and data management task during the Barnet & Southgate College. competitive process, a challenge that tested the LUPC team’s skills LUPC ran a free launch event for and technology, but one which Members in October at the Museum they met with great efficiency of London, giving Members an and professionalism. opportunity to meet the approved suppliers and attend presentations on To find out more about the Office how to use the framework. Supplies, Computer Consumables and Library Supplies agreement, For more information about the contact Darran Whatley at Estates Maintenance & Minor [email protected]. Reaching New Heights: LUPC’s Corporate Strategy 2015-18 “We’ll develop relationships with influencers in Member institutions to deliver agreements that best meet a wide range of requirements” Royal Botanic Gardens, Kew NEW CORPORATE STRATEGY CORPORATE NEW Our greatest success story has been Increase our support for Members’ getting better value from Members’ procurement activities. procurement spend. In the last five We’ll develop our procurement years alone, we’ve helped Members save consultancy beyond running £135m through our agreements. In our ‘mini-competitions’ to other short-term new strategy, we’ve set out six objectives assignments. We’ll support Members’ to deliver leadership for effective, “make-or-buy” decision-making by sustainable procurement over the bringing together those currently next three years: undertaking and considering outsourcing, to share outcomes and expertise. And we’ll Help Members get better value from establish a new shared service for Members their procurement by channelling more without in-house procurement teams. expenditure through our agreements. We’ll continue to support Members in Enhance our Members’ appeal to delivering their procurement strategies their students, service-users and visitors through effective collaborative through procurement. arrangements. This includes making In the HE sector, this will involve the drivers for agreement take-up more engaging with students to improve our attractive, increasing their breadth and sustainable procurement policy and the value for money they represent. strategy; helping spot and fill vacancies with our key suppliers for graduates; Find new ways to broaden take-up and recruiting new graduates to train as of our agreements. future commercial professionals . In partnership with procurement teams, we’ll develop relationships with Make ethical trading and sustainability influencers in Member institutions to available to our Members. deliver agreements that best meet Reflecting the values of our Members, a wide range of requirements. we will demonstrate leadership in ethical trading and sustainability by reaching Collaborate ever more closely with our Level Five of the sustainable procurement sister consortia. Flexible Framework; actively supporting As a member of Procurement England responsible outsourcing; partnering Ltd (PEL), LUPC is working towards with the Ethical Trading Initiative and a set of joint strategic aims across Electronics Watch; and enabling small England’s HE purchasing consortia. and medium-sized businesses to compete These include negotiating more for our agreements. collaborative agreements; making them easier to use; and moving from For more information about our contract to category management. corporate strategy, visit www.lupc.ac.uk Shared Procurement Service Ensemble Purchasing The Royal Academy of Music is one of the first Members to sign up for LUPC’s Shared Procurement Service. “LUPC’s proposals for the Shared Procurement Service struck a chord with us right from the outset. Our spend may be modest compared to larger higher education institutions, but in fact our needs are really quite complex.