Glasgow City Council: Spend & Opportunity Aim of this presentation is to give you some information on how GCC is currently structured, where procurement is controlled within that structure. What that means for suppliers looking to bid for GCC contracts. How those opportunities will be advertised and how a supplier can become ‘Glasgow Ready’ Presented by Gerry Quinn, Contract Manager, Corporate Procurement Unit

Council procurement landscape The spend per service and commodities The role of PCS Quick Quotes Contract and supplier management Glasgow ready Any questions Other assistance can be found at the Supplier Development Programme webpage: To date the SDP has: It has over 5000 registered businesses In 2012/13 delivered 68 (SDP) events with 879 attendees Annual ‘Meet the Buyer’ event attended by over 1200 business and 37 public sector exhibitors Increased the number of tenders by registered businesses threefold

The first thing we’d like to communicate is that Glasgow City Council is one organisation with many different parts. Today those parts comprises 7 core departments and 10 Arms Length Earning Organisations (or ALEO’s). GRA recently renamed Jobs & Business Glasgow. Separate from this there is also the G2014 Organising Committee who are advertising all work for the games through the Glasgow Business Portal. Also G2014.

Fiscal Year 12/13 - Commercial spend £698 million Of which 54% Glasgow-based suppliers Small and Medium Enterprise (SME) suppliers represent 50% of spend Small 23% Medium 27% Spend is categorised across 88 commodities and five procurement groups. Definition of commercial is influenceable spend’ (i.e. where we have gone to the market. The category of micro, small and medium-sized enterprises (SMEs) is made up of enterprises which employ fewer than 250 persons and which have an annual turnover not exceeding £50 million (European Legislative Definition).

Commercial Spend by Procurement Group FY 12/13 Corporate Procurement Unit, which Gerry and I are members of, represents the largest % of the commercial spend.

Facilities Management Services IT Services - Telecoms Mobile Phones - IT Equipment IT Software & Licenses Photocopiers & Facsimile Provision of in-house IT support through joint venture with Serco. Spend focused on goods to support service provision. 200 High Street Glasgow G4 0QW Telephone: +44 (0)141 287 8104 www.access.uk.com E-Mail: enquiries@access.uk.com

Building Materials & Products Furniture & Fittings Electrical Supplies Adaptations - Industrial Supplies Industrial Cleaning Removals & Storage Exterior Cleaning In house provision of services. Spend focused on goods to support those services although there is a high spend in trades as well. 350 Darnick Street Glasgow G21 4BA Telephone: +44 (0)141 287 2200 www.citybuildingglasgow.co.uk E-Mail: marketing@citybuildingglasgow.co.uk

Cleaning & Janitorial Kit Medical Catering Equipment Catering Services Food & Water Aids for Daily Living Cleaning & Janitorial Kit Medical Catering Equipment Catering Services In house provision of catering, cleaning and homecare services. Spend focused on goods to support those services. Blair Court 100 Borron Street Glasgow G4 9XE Telephone: +44 (0)141 353 9000 www.cordia.co.uk Web form for enquiries at www.cordia.co.uk/About-Us/Contact-Us

Social Work (Contract Management & Project Support) Care Homes - Other Social Care Supplementation Establishments Residential School Accommodation For Clients Contract Management & Project Support overseeing 7 commissioning teams (children & families, disabilities, 24 hour services, community services, mental health, criminal justice and homelessness) City Chambers East 40 John St Glasgow G2 1DU Telephone: +44 (0)141 287 2000 www.glasgow.gov.uk

Corporate Procurement Unit (CPU) 60 Commodities in total 14 Commodities utilising SXL or Scottish Procurement 46 Commodities contracted directly by CPU City Chambers Glasgow G2 1DU Telephone: +44 (0)141 287 2000 www.glasgow.gov.uk E-Mail: corporateprocurement@glasgow.gov.uk

Sports & Recreation Equipment Clothing Advertising Refuse & Waste Vehicle Hire Teaching Supplies Sports & Recreation Equipment Clothing Advertising Photographic & Audio Visual Equipment Street Road Lighting Signs Category B Renfrewshire House Cotton Street Paisley PA1 1AR Telephone: +44 (0)300 300 1200 www.scotland-excel.org.uk Web form for enquiries at www.scotland-excel.org.uk/home/Contactus

Scottish Procurement & Commercial Recruitment & HR Stationery & Computer Consumables Post & Courier Utilities & Fuel Management Consultancy Category A Telephone: +44 (0)845 774 1741 www.scotland.gov.uk/Topics/Government/Procurement E-Mail: ceu@scotland.gso.gov.uk

Corporate Procurement Unit (CPU) - £235m (34%) Construction & Trades Financial Services Vehicle Purchase Coach Hire Vehicle Services & Parts Learning & Development Security & Safety Services Road Materials Events Constructions Consultancy Taxis Traffic Control Plant Hire Professional Services Legal Consultancy Demolition Timber Books & Publications Marketing & Promotion Grounds Maintenance Print & Reprographics Security & Safety Equipment Playground Equipment Plant Equipment Tools Linens & Fabrics Livestock, Animals & Plants Scientific & Technical Domestic Appliances Parking Franking Machines Minerals, Earth & Stone Pest Control Special Waste Distribution & Mailing Farming, Fishing & Forestry Testing Instruments Grit & Aggregates Everything else. Descending order of spend.

www.publiccontractsscotland.gov.uk ALL Corporate Procurement contracts are advertised and tendered electronically through Public Contracts Scotland (PCS) To develop the supplier base, the threshold we utilise for Quick Quotes we has been raised from £20k to £50k for Goods & Services and £300k to £500k for works. Contracts for Goods/Services <£50k (<£500k works) will be tendered via Quick Quotes In FY 12/13 818 quick quotes were tendered. Contracts for Goods/Services >£50k (>£500k works) will be tendered via PCS-Tenders system. In FY 12/13 151 contracts were awarded. Glasgow played an active role in the development of the standard PQQ and continues to be one of the few Local Authorities represented at the PCS Working Group and as part of the E Contract Management system project.

Quick Quotes Quick Quote process used for low value/low risk procurement for registered suppliers Straightforward and less intensive tender process which can benefit SME suppliers GCC Buyers use the PCS Supplier Finder Quotes <£1,500 will be issued via e-mail. Quotes between £1,500 & £50,000 Goods/Services and £500k Works will use PCS website PCS Supplier finder allows them to search by commodity category, organisation name, region and post-code. See PCS system for additional notes on Company Highlights. Goods & Services No. of suppliers to Minimum no. of Value of quote to be invited responses required Less than £1,500 1 1 £1,500 - £20k 3 2 £20k - £50k 5 3 Works No. of suppliers to Minimum no. of Value of quote to be invited responses required £1,500 - £300k 3 2 £300k - £500k 4 3

How we manage the contract All contracts are risk assessed over 4 criteria: Value of contract The volatility of the market place Potential reputational risk to the council Complexity of the procurement process The level attributed determines the frequency and amount of actions (H, M, L): Insurance and accreditation checks Supplier performance reviews Spend reports Market analysis Lessons learned throughout the process and lifetime of the contract are used to improve our performance. The criteria for risk assessment is based on: Value of contract The volatility of the market place Potential reputational risk to the council Complexity of the procurement process Points are tallied up: <15 Low 15 – 29 Medium 30 – 40 High

Glasgow’s Supporting Businesses Are you Glasgow Ready? To modernise our accounts payable practices we are asking our suppliers to be Glasgow Ready. This is a mandatory set of requirements and best practices for suppliers to follow that will allow your transactions to be validated and ready for payment through our Supplier Portal.

Glasgow’s Supporting Businesses How will this benefit you? Efficient Credit Control Full visibility of the status of your transactions Reduced Administration Costs Improved Customer Service Submit Electronic Invoices and Credits Submit Proof of Deliveries 24/7 Access Efficient Credit Control See your account online. Know when your invoices will be paid. Download remittance advices. Manage disputes. Reduced Administration Costs No paper invoices or credits. No postage fees. Reduced administration and stationery costs Improved Customer Service Send queries about invoices and receive responses. All queries are tracked in Supplier Portal. Fully visibility of all orders. Submit Electronic Invoices and Credits Invoices/Credits will be submitted electronically against the Purchase Order following a few simple steps. Immediate delivery of invoices Submit Proof of Deliveries Upload scanned copies of Proof of Deliveries upon request. 24/7 Access 24/7 access to Supplier Portal Easy to use, secure, web based portal.

Glasgow’s Supporting Businesses If you use Purchasing Cards, there are other advantages: Payment within 4 Days Improved Cash Flow Eliminates Accounts “On Stop” Increased Business Opportunities Competitive Advantage Payment within 4 days Cleared funds are credited within 4 bank working days Improve cashflow You can use these funds immediately. Potential to reduce overdraft costs by 1% - 1.25% at current rates – based on payment terms of 30 days after invoice. Stock levels can be replenished more effectively. The financing costs of factoring or invoice Discounting (these services improve cashflow) can be reduced Increase Business Opportunities Many suppliers advertise that they can accept purchasing cards. You can significantly increase turnover by attracting other purchasing card Buyers . This list is distributed to all Buyers who have implemented or are planning implementation of their purchasing card programme. Competitive edge Details of your company will be included on the MasterCard list of all UK suppliers who can accept purchasing cards.

Glasgow’s Supporting Businesses What if my company is not Glasgow Ready? If you are not Glasgow Ready then you may not be taken on as a supplier Payments may be delayed We aim to have as many suppliers as possible Glasgow Ready and on the Supplier Portal by November 2013 Q&A 1. What do we need to do before I am able to enrol onto the Supplier Portal? You are required to set up a new email address which only you and the Customer and Business Services (CBS) Supplier On-boarding Team will know. The CBS Supplier Onboarding Team will advise you of the email address you need to set up. 2. Why do we need to set up this email address? This email address is required for security purposes, you will also use it to log onto the Portal once you have enrolled. The email address should only be known by your company and GCC 3. Do we need any specific software to use the Supplier Portal? As this is a web based application, it is preferable that you use one of the browsers detailed below: 􀂙 Internet Explorer Version 6 or above 􀂙 Firefox 􀂙 Safari 4. What paperwork needs to be completed before we enrol onto the Supplier Portal? The forms attached to this email need to be completed: 􀂙 Supplier Master Data and Confirmation Sheet 􀂙 Terms and Conditions Send the completed and signed forms to: cbsaccountspayable@glasgow.gov.uk Or return by post to: Glasgow City Council Customer and Business Services Supplier Onboarding Team 3rd Floor 220 High Street Glasgow G4 0QW 5. Is there a cost for using the Supplier Portal? The Terms and Conditions document refers to a fee in clause 2 which is at the discretion of Glasgow City Council. At the moment, Glasgow City Council is providing the Supplier Portal free of charge to its suppliers. Should this change at some point in the future, we will notify you by email or letter.

Glasgow’s Supporting Businesses Glasgow Business Portal Glasgow 2014 Commonwealth Games New South Glasgow Hospital Glasgow Royal Concert Hall Redevelopment Residual Waste Treatment Facility…and more GCC Dedicated Buyer Engagement Team bet@glasgow.gov.uk 0845 272 2014 www.glasgow.gov.uk/businessportal Q&A continued 6. How do we get access to the Supplier Portal? Once you have completed and returned the required paperwork, CBS will contact you to advise you about what happens next. When you are ready to enrol, you will receive an email with an enrolment guide to assist you. Enrolment is a quick and easy, 2 step process which is done online. 7. How many of our employees should have access to the Suppler Portal? We recommend you identify at least two employees’ to use the Supplier Portal. 8. Does each employee require their own login? No, you will have a single login which will be used by the employees you identify. 9. When will we get access to the Supplier Portal? You will receive an email to confirm the exact date that the Portal is available for you to use. 10. What benefits are there to using the Supplier Portal? Once you have successfully enrolled onto the Supplier Portal you will be able to: 􀂙 Submit electronic invoices and credit notes. 􀂙 Submit proof of deliveries which will be visible to order requisitioners and the CBS AP Team. 􀂙 Record notes against invoices which will be visible to order requisitioners and CBS AP Team. 􀂙 Send messages to CBS AP Team. 􀂙 View your account to check unpaid invoices, invoices due to be paid, view or download remittances. 11. Will we still be required to submit paper invoices, credits, Proof of Deliveries and statements of account? Once you have successfully enrolled to the Supplier Portal, you will: 􀂙 No longer need to send paper invoices or credits. Instead, you will use the Supplier Portal to submit these electronically. 􀂙 Upload scanned proof of deliveries against the invoice, where appropriate, to assist with dispute resolution. 􀂙 View all of your invoices and credits, for example, .for payment due, invoices blocked for payment and invoices paid. 12. What will happen if we do send in paper documents? All paper documents received by the CBS Accounts Payable Team will be destroyed. 13. What orders will we be able to see in the Supplier Portal? You will be able to see PECOS orders raised by GCC and its’ ALEO’s.

Glasgow Proud Host of the Commonwealth Games 2014 Any Questions? Any questions that you may have later can be sent to Gerry Quinn at corporateprocurement@glasgow.gov.uk For further information on how to procure with Glasgow, access our webpage on the Glasgow City Council internet by going to Working/Procurement If you have a freedom of information enquiry, please email it to foi@glasgow.gov.uk or phone 0845 270 1555. You can also use an online form at www.glasgow.gov.uk/foi Glasgow Proud Host of the Commonwealth Games 2014 Q&A Continued 14. What orders will I not be able to see in the Supplier Portal? You will not be able to see orders from Land and Environmental Services which, begin with an S or a D, or orders from City Building Glasgow. You will continue to receive them and submit invoices/credits in the same way you do just now. Later in 2013/14 you will be able to submit invoices for these types of orders through the Supplier Portal and we will confirm when you are able to do this. However, you will be able to view payments for these orders within the Supplier Portal. 15. What support is available when we begin to use the Supplier Portal? Once you have enrolled, a member of the CBS Supplier Onboarding Team will provide you with a brief overview of the Portal. A user guide, quick reference guide, handy hints and tips