Peter Duschinsky, The Imaginist Company Project Manager, NePP Supplier Adoption Project National e-Procurement Supplier Adoption Project & UK online for business Collaborative Strategies to Support SME Inclusion South West Regional Workshop Welcome and introductions

Regional SME Inclusion Workshop – 5 th June 2003 Today is the first in a series of regional events to bridge the gap between:  Local Authority procurement managers  Local Authority economic development managers  Local business support agencies We are also pleased to welcome representatives from other public sector organisations – your collaboration is vital

Objectives for today Our objectives today are to find out how to:  Assess the impact on B2B companies in the South West of public sector e-Procurement  Help SW pubic sector organisations to recognise the issue and take account of their local business communities in their e- procurement plans  Help SW RDAs, Business Links etc to support local businesses through the changes  Create the links to enable this to happen in a coherent fashion

ODPM Localegov National e-Procurement Programme Strand 5 Supplier Adoption & Economic Development

Contents Background – SME Inclusion Project 2001/2 Localegov National e-Procurement Programme Feasibility Study results Project scope and objectives Workplan Where we are now

SME Inclusion Project – 2001/2 The issue  The economic development role of Local Authorities means promoting the interests of local small suppliers  But streamlining procurement means reducing the number of local small suppliers  Lack of coherence in policy or practice among Local Authorities Research was undertaken as part of the Newham-led London Marketplace Pathfinder project to understand the issues and explore opportunities to deal with this conflict

National e-Procurement Programme ODPM consultation events (Leeds) Programme launched October 2002  Strand 1: Getting the story right  Strand 2: Standards  Strand 3: Change management guidance and support (preparing for e-P)  Strand 4: Technical support  Strand 5: Supplier adoption and economic development  Strand 6: National and Regional solutions Strand 5 Feasibility Study carried out Oct – Dec 2002 Strand 5 Workplan started 14 February 2003

National e-Procurement Project: Strand 5 Objectives Provide information, guidance and support to Local Authorities on best practice for supplier adoption with particular attention to Small Medium Enterprise (SME) suppliers Give consideration to the impact on local suppliers if councils adopt a wholesale e-Procurement initiative Identify mechanisms which will lower the barriers for SMEs to trading electronically with Local Authorities and which will enable Local Authorities to access local e-enabled and accredited suppliers Identify and promote best practice in raising awareness among SME suppliers to Local Authorities of the demands and opportunities that e- Procurement will bring.

Project Scope Project scope SME e-enablement - raising the level of e-adoption in the business community Bridging the gap between e- procurement & economic development Supplier adoption best practice Primary Deliverables Project Management Contrib- utory Actions Guidelines & Toolkit Experience Sharing Advice & Support

Feasibility Study Report: Supplier Adoption The majority of Local Authorities have not yet addressed the issues of supplier adoption or carried out a supplier analysis Supplier development is key to adoption success but Local Authorities don’t have the skills & resources There are no tools available which allow consistent, objective and auditable assessment of suppliers

Feasibility Study Report: SME e-enablement Over 300,000 SMEs could be vulnerable if public sector spending patterns shift as a result of the 2005 target – but there is no data available to assess the impact e-Procurement solutions being implemented today do not meet needs of local SME suppliers, e.g. visibility with buyers Supporting e-enablement of SMEs means providing mechanisms based around the experiential way SMEs learn and change – these are not available Proactive collaboration is needed between Local Authorities and other major purchasers in the area and with local intermediaries

Feasibility Study Report: Bridging the Gap Councils lack a coherent policy that addresses how to resolve the potential conflict between their e-procurement and economic development responsibilities Buyers have no guidance on what they can do to support their local business community within the EC regulations

Strand 5 Workplan Primary Deliverables  1: Guidelines and Toolkits  2: Experience-sharing  3: Advice and Support Contributory Actions  Quantifying the Impact  Learn from non-LA sources  Supplier Assessment Toolkit  Legal and policy framework  Proactive Collaborative Initiatives  Supplier Development  Supplier e-Enablement Benchmarking  Track developments  Proactive Collaborative Initiatives

Contributing Actions: Proactive Collaborative Initiatives Objective:  Seek out best practice models for local proactive collaboration in support of SMEs Method:  Identify best practice models and bring them forward as exemplars  Encourage and contribute to their development where appropriate Deliverable:  By November 2003, publish in best practice guideline

Where are we now? Supplier Adoption Guideline in final draft – June publication on NePP website Includes supplier analysis best practice for public sector organisations to include assessment of impact on local suppliers Work going on to benchmark minimum standards for e-procurement systems – pilots in Bristol, Newham, Essex Bristol also leading work to develop guidelines on what Councils can do to encourage local suppliers within EC regulations Second Guideline dealing with SME inclusion issues in November