TfL Strategic Sourcing Programme

The Challenge

TfL initiated a Strategic Sourcing Programme to deliver multi-£m savings through improved sourcing arrangements for: information services (including data centres, data transfer, telephony, end user computing and ERP, together “IM”); and certain back-office functions (HR, finance and commercial including procurement, together “Back Office”).

Our Approach

ASE’s responsibilities included:

  • Programme initiation and shaping including the identification and engagement of stakeholders.
  • Analysis of the IM portfolio of 400 contracts valued at >£480m and the identification of opportunities to enhance sourcing.
  • ERP solution strategic sourcing options papers plus recommendations for enabling short and medium term tactical sourcing actions.
  • Production of the approach, materials and delivery of a Back Office market testing exercise by splitting the scope into market recognisable packages, publication of a PIN in the OJEU, followed by the planning and delivery of a supplier briefing event and the production of a structured questionnaire (including pricing information), assessment of supplier responses (>2,000 pages), combination with outputs from a benchmarking exercise and production of the findings and final recommendations (14 pages) on the outsourcing/internal transformation approach including savings target ranges.

The Results

  • The approach of publishing a PIN in the OJEU and delivering a well planned, structured and focussed supplier briefing event was successful in engaging the market, securing a good coverage of supplier responses and operating a fair and transparent process, potentially in advance of conducting regulated procurements.
  • The savings target ranges from outsourcing/internal transformation were accepted by the Strategic Sourcing Programme Board who decided to establish a Commercial Transformation Programme as a way of delivering the required benefits.
  • The Back Office market testing blue-print approach and deliverables were adopted by IM to conduct a very similar exercise.

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