Collaboration?

Is it a crime or a worthy ambition?

• Let’s look at public sector catering• Government estimate £2.1 billion spend annually• Combining relevant areas must help improve:– buying power– Standardise terms– Measurement of service

What does collaboration mean?

Well in our case working together to encourage best practice in food procurement to achieve the best service and price for all in the public

sector

Let’s give you an example, an extreme example but still a good one.

Two well known catering procurement organisations have recently merged to form one organisation to consolidate contracts, increase buying power and present a unified and uniform approach to public sector catering procurement.

TUCO and SNUPI Ltd on the 21st April 2010 agreed to merge. The new structure is two ‘not for profit’ companies

TUCO Organisation Ltd

The parent company overseeing:• Training • Conferences• Catering development issues

TUCO Purchasing Ltd

The subsidiary company managing the framework agreements

HOW?

• Sharing resource and technology• Removing duplication of effort• Research markets• Effective dialogue with suppliers• Understanding needs• Category management• Management information / data

Collaboration at this level has:• Created a single Membership of 150 HE

institutions• Associate members of 100 FE Colleges • Associate members of 12 Local Authorities• Gradually combining 18 Frameworks agreements• Overseeing £90 million pound of catering spend

Why is collaboration vital?

• Saving taxpayer’s money• Public sector are expected to work together• Operational Efficiency Programme (OEP) to

make significant savings• 2010/11 – 80% of all procurement channelled

through collaborative strategies currently• Aggregation of demand and expertise

Businesses spend more than necessary!

• Lack of visibility of what is being bought• Employees buying inappropriate items – often

for personal use• Suppliers charging different prices at different locations for the same product

Doesn’t some of that apply to us?

Collaborative Food Procurement Programme

Identified Public Sector Organisations to work together in their commercial activity:

• Buying Food

• Catering Services

• Kitchen Equipment

Collaborative Food Procurement Programme

AIMS• Achieve better value for money

• Improved sustainability

• Enhance quality

Did you know?

• Over 30,000 public sector organisations’ place orders for food every day, including schools and hospitals

• One billion meals are served in the public sector each year

Collaboration means we can better see

• What is being spent on what• Review and benchmark across sites• Enforce supply contracts• Identify wasteful purchasing and consumption• Control users spending• Prevent theft• Make transaction processing more efficient

How do I collaborate?

CONTACT US

TUCO Purchasing Ltd or

Crescent Purchasing Consortium