Are you required to check your Value For Money (VFM activities? Below is a ready-made set of VFM tasks that can be implemented. The VFM strategy is available for buy separately ( sample content includes: Background, Objectives, Responsibilities, Economy the right price, Efficiency, the right way, Effectiveness delivering a better result for the same cost time and effort, terms of reference, team charter, supplier scorecard.
Tasks |
Action |
Who |
Status |
Project RAG |
| Appraise the operational effectiveness of procurement policy | Review current policy and stakeholder understanding | |||
| Increase compliance | Identify further training requirements and run stakeholder workshops | |||
| Improve user satisfaction with P2P | Run regular P2P workshop/ surgery sessions | |||
| Benchmark procurement maturity | Attend X networking events with peer institutions | |||
| Increase efficiencies | Buy via existing frameworks or set up initial framework | |||
| VFM steering group | Set up VFM steering group or equivalent | |||
| Develop a suite of KPI’s to track VFM | Suite of KPI’s to be developed | |||
| VFM KPI’s | ||||
| Quotes & Tender in line with procurement policy thresholds | All quotes to be done via P2P system if not available procurement to act as a gateway for new supplier request & spot check | |||
| Tender Activity | Create forward plan and tender pipeline. Procurement to be notified of all projects/ tenders above £X | |||
| Commercial negotiations | All tenders above £X require formal procurement support | |||
| Aggregate Contracts | Initital exercise to aggregate contracts using category management approach, annual review | |||
| Develop effective relationship with suppliers | Strategic contract review meetings, supplier scorecards | |||
| Management Information | Monthly/ quarterly reports to be submitted from X suppliers | |||
| SLA Requirements | Audit contracts to check SLA is agreed and KPI’s submitted on a regular basis | |||
| Monitor ASL | Check that number of suppliers are healthy for size of spend and reduce where aggregation is possible | |||
| Contract management | Continuous improvement clause and and record actions undertaken | |||
| Business case | All spend above X requires a business case and appropriate gateway | |||
| Procurement support and involvement | All tenders above £X require formal procurement support | |||
| Track savings | Savings tracker created and savings both cashable and cost avoidance recorded |
Check out the strategic sourcing pages to ensure you get VFM for your sourcing activities
or need another take on what value for money means