DWP Procurement

Procurement within DWP

Having achieved a £400m reduction in third party spend last year (07/08) and delivered £2,300 million of procurement value-for-money gains over the last 7 years, the Commercial Directorate of the DWP is one of the largest procurement organisations in the UK.  With 600 staff based across the whole country, major centres of expertise can be found in London, Sheffield, Leeds, Newcastle upon Tyne, and Blackpool.

Commercial Directorate delivers estates and other commercial services, including consultancy, print and stationery, office services and ad hoc requirements as needed, to all parts of the Department. It sets and manages DWP commercial strategy, policy and best practice and provides commercial advice and guidance to not only ensure improving service quality and value for money from commercial deals, but also enables DWP procurement to maximise its contribution to the DWP Efficiency Challenge and leads and develops a professional procurement organisation in DWP.

The DWP came out well from the recent OGC Procurement Capability Review (PCR), who found the Department’s IT strategies “strategically ground-breaking and innovative”.  It has generated departmental savings of £1.5bn, between 2005 and 2010 enabling the department to meet its Gershon targets, making the biggest contribution to the OGC procurement value for money gain.

Future challenges?

Key to our success is to develop and mature the commercial relationships with the suppliers who deliver employment programmes.  The department also needs to be a strong and professional commercial function that can deliver real value to the taxpayer and can source and manage providers that deliver best in class services to our customers. It spends about half its £8 billion annual running costs with suppliers to help deliver this agenda and the capability and performance of procurement is therefore crucial to delivering the department’s agenda and meeting efficiency challenges over the next three years where the key challenges will be;

In order to achieve better value for money the department is developing its supplier relationship management strategies to deliver better contracts, more valuable partnerships and access innovation. We are also tackling consumption through demand management strategies; for example, by making sure we do not have more office space or computers than we actually need and working in a more sustainable way – using less paper, using vehicles less; recycling more; and cutting our energy consumption. This challenge represents about 28% of the total civil procurement spend across all Government.

DWP recognises its purchasing power but remains fully committed to working across the public sector to drive further improvements and financial benefit. We have taken a lead role in the professional and technical services category collaboration and have supported other OGC collaborations, for example, leading on fleet procurement. Consolidating the demand of nearly 50 organisations’, with a combined demand of nearly 90,000 vehicles, representing a value of nearly £1 billion, and delivering reduced CO2 emissions.  This deal, endorsed by Number 10, is one of the few truly cross public sector arrangements.

Sustainability

Sustainability is embedded in our business and commercial strategies.  All policy submissions having to be sustainability impact assessed. The Sustainable Development Commission have rated the DWP as “leading the pack”, and this year went on to say we were “so far advanced” in our current and future plans. The team delivered a carbon conference, which has staff awards to recognise achievements and have initiated the first department climate change adaptation assessment.

Other Notable Achievements

DWP has introduced the largest implementation of Oracle Financials in Europe.  In February 2006 purchase to pay compliance was less than 1%. In two years compliance has grown to 99%, generally considered ‘world-class’. This was achieved without impacting customer satisfaction which is rated over 90%.

Awarded "CIPS award" for the successful procurement of the Print and Associated Services Solutions
In collaboration with OGC buying solutions the DWP became the launch customer for the Government’s electronic marketplace, Zanzibar. What the Procurement Capability Review (PCR) called a potentially world-class ‘purchase to pay’ platform.

The Procurement Capability Review also found the department is perceived by both suppliers and peers to be “amongst the best-performing procurement and commercial organisations in the public sector”.
This year, a comprehensive energy campaign has resulted in an 11% reduction across in energy/ carbon consumption. Travel has also been reduced by 9.8m miles. On sustainability DWP is the highest performer amongst the top 5 departments.

How ambitious is DWP Commercial Directorate?

We are currently a good organisation and clearly one of the best in Central Government. Our aspiration is to be even better and be rated by our suppliers and peers as world class against all organisations whether public or private sector.

What type of people will fit into your team?

We need people who have the drive and ambition to push us to meet our goals and are prepared to find solutions to unique problems

What are the opportunities for personal growth and opportunity?

The Department has always stressed the importance of professional qualifications, basing training and development programmes upon Chartered Institute of Purchasing and Supply (CIPS) qualifications.  We have achieved our target of 75% of designated post holders being professionally qualified. In the last year, for the first time, we have also developed a number of complementary schemes that have engaged over 100 staff. We have devised and implemented a scheme to attract professionals from other disciplines, to increase diversity and augment the already high-performing team. 

We have developed and recruited for the Department’s first Procurement Management Development Scheme (40% 0f successful candidates were from ethnic minorities) and the department has launched a Commercial ‘Leadership Programme’ designed to augment professional skills with ‘softer’ and Leadership skills, and in so doing grow tomorrows commercial leaders

In conclusion we are creating a team of high achievers and this was exemplified when David Smith was awarded the Government Opportunities Lifetime achievement award.

Does DWP value its staff?

The Department's Values are for everyone across the DWP:

These Values are the guiding principles for how we deliver our service to customers in DWP. They underpin our commitment to putting customers first, whether internal or external, and focus not only on what we deliver but how we do it.

Everyone is responsible for making the Values a reality. That means delivering your role in a way that demonstrates the Values.

 

DWP is committed to providing services which embrace diversity and promote equality of opportunity in our working practices with all our customers, colleagues and partners.