1. Managed by ProClass Supporting the Drive for Cashable Savings Local Government’s Procurement Classification

2. Managed by 2 The Business Challenges Need for local authorities year-on-year cashable savings (CSR 2007/financial settlements) Recognition that collaborative planning, working, sourcing and contracting is a significant source of new savings Giving people accurate, meaningful and reliable information to build business cases and make informed decisions….quickly Being able to compare information on a like-for- like basis

3. Managed by 3 The Problems Difficulty in getting access to reliable and accurate information quickly and being able to compare it with others Current information is coded/classified to different standards Financial coding not designed or readily accessible for market analysis and collaborative working Potential cost to change existing financial and operational systems

4. Managed by 4 The Vision Ability to use one common standard, owned by local government and reflecting its third-party expenditure profile Free of charge and easy to use, with training and advice on hand No change to existing coding and classification structures, including financial codes – simply cross-referenced to the common standard Easier access to good quality information which can be shared on a like-for-like basis with any local authority No changes to existing IT systems or need for expensive consultants to advise on implementation

5. Managed by Procurement Classification

6. Managed by 6 Definition “A classification structure logically groups similar things together into classes or families for the purpose of analysis. Hierarchical classifications allow analysis to be done at macro or micro levels, depending on business need.” New Standards for Procurement Classification – Towards a Pan-London Strategy (May 2006)

7. Managed by 7 Classification is different from Coding “Coding” means a reference that unambiguously identifies a specific thing. Examples of such structures include UNSPSC, NSV, Thompson and CPV. “Classification” means a reference that groups related things together for analysis

8. Managed by 8 Business Importance “To be effective, collaboration and joint procurement needs full and reliable information about who is buying what, from whom, and through what means. This will entail using a common classification system” Efficiency in Civil Government Procurement (1998) Report (ISBN 0947819592)

9. Managed by 9 Business Role Supports the standardisation of information recognising that everyone has different ways of coding and saving data Allows the like-for-like comparison of meaningful information, to identify new areas for collaborative working and business case development Supports the planning process including the analysis of high-value/high-risk expenditure Can provide an overarching framework for linking information derived disparate IT systems and/or coded using various schema

10. Managed by ProClass - The Answer

11. Managed by 11 Background Owned and developed by local government and adopted by eight of the nine Regional Centres of Excellence in 2006, following two years of extensive research and testing Free to use and easy to understand Designed to support collaborative working through the use of Expenditure Analysis, Contracts Registers and some supplier portals Complements existing coding structures Mapped to UNSPSC, Thompson and NSV Dedicated website Training and advice available Managed by Coding International Ltd since October 2007 on behalf of the new Regional Improvement and Efficiency Partnerships (RIEPs)

12. Managed by 12 Management Arrangements CIL’s responsibilities include: –Maintaining integrity/approving changes –Maintaining and publishing mappings with existing coding structures (e.g. UNSPSC) –Recommending national commissioning to RIEPs –Marketing ProClass to local authorities and relevant IT suppliers –Providing training, guidance, case studies and information to local government –Encouraging the adoption and embedding of ProClass in local authorities –Managing and updating the ProClass website

13. Managed by Introducing ProClass

14. Managed by 14 Design Attributes Granularity Appropriate hierarchy –Tiered or single level to suit the complexity or value of the purchase Balance – how many levels? –No more than three Extendable and easily maintained by the public sector Cross-referenceable to other coding structures –Including GL Chart of Accounts User-friendly –See immediately what it means. ProClass can be used by non procurement specialists Descriptions not numbers –No more than 300 categories to pick from Search facility

15. Managed by 15 Reflects Our Expenditure Profile ProClass supports the targeting of high value expenditure –High value services and products are sub-divided into lower levels (for example, construction, consultancy, social care and ICT) to provide detailed analysis –Low value commodity items are classified to one level (e.g. stationery) – limited savings available Hierarchy is also based around service departments (e.g. Housing, Leisure and Social Care)

16. Managed by 16 Structure 30 classifications at level one 174 classifications at level two 23 of the level two classifications are taken to a third level 80 at level three Current Version is C8.2 – available in Microsoft Excel

17. Managed by 17 Hierarchy Example Environmental Services Asbestos Removal Land Protection Forensic & Laboratory Technical Equipment Funerals Pest Control Graffiti Removal Street Cleansing LaboratoryTestingMeasuring

18. Managed by 18 ProClass Does Not Classify supplier types, but what you buy from them Provide information on SMEs, BMEs and/or local suppliers Support Catalogue content and/or trade with the private sector Replace the need for financial coding (subjectives and objectives)