CIPS Presentation

RNLI

Jason Dunham

Principal Procurement Manager

V1 16.01.2015

Agenda

• Introduction and welcome

• RNLI in a minute

• What we do

• Project 235

• ‘Spend Wise Save Lies’

• Tours – College and ALC - Brian McIlwraith

Production Engineer

Our Mission –The RNLI is a charity that

provides a 24-hour lifesaving

service around the UK and

Republic of Ireland

–Reaching up to 100 nautical

miles offshore

Covering:

Open sea and inshore Over 200 of the UK's beaches

Tidal reaches of the Thames

Inland waters

Flood Rescue

– 236 lifeboat stations

– Lifeguards on over 200 beaches

– More than 4,600 lifeboat crew members

– 250 Flood Rescue Team members

– 95% of people are volunteers

– Funded by voluntary contributions and legacies

– Working alongside UK Maritime and Coastguard Agency and Irish Coast Guard

Some key

facts…

in 2014

8,462 Lifeboat launches

8727

rescued by Lifeboat

368 Lives Saved

17,050

Lifeguard incidents

1,769 Rescued by Lifeguards

92 Lives Saved

Project 235 ‘Made for Life’

The Made for Life project had the aim of taking lifejackets beyond their designed useful life and using the materials from these old lifejackets to generate a revenue stream for the RNLI.

• Establishing an up-cycling option for the lifejackets - the term up-cycling

means taking waste materials and transforming them into a new

product for sale.

• Separation of materials and decommissioning the 5000 lifejackets

• Development of products.

• Supplier selection

• Marketing and sales of the new products

• Media PR and social media to raise awareness of the unique product

range

• 235 video

• Key Facts – Buckles reused saving £12,670

– 120 Lights reused saving £2,482

– 50 Pallets less lifejackets aiming to go to landfill

– Following the project the RNLI is working with WRAP to generate

a case study from the project and other sustainability initiatives to

publicise more widely the work being undertaken by the RNLI in

this area.

– A 100 per cent of the profit generated from sales of the products

through RNLI shop goes towards the cost of paying for new

lifejackets for the lifeboat crews. Circa £120K of new revenue.

• Lessons Learned – Volunteers were essential

– Having a strong USP creates added value

– Choosing the right supply partner

– Celebrate internal collaboration. The project core team included

volunteers and experts from across the RNLI. Supply Chain,

Commercial Management, Fundraising, Creative Development,

Sales and Marketing, Sustainability, Disposals and Public

Relations staff were all involved.

The Beaufort scale is an empirical measure that relates wind speed to observed

conditions at sea or on land. Its full name is the Beaufort wind force scale,

WRAP is a registered Charity No. 1159512 and registered as a

Company limited by guarantee in England & Wales No.

4125764.

235 Red Range Every item has been handmade in the UK, and the swing tag is signed by the person who made it. Some items even feature the original hand-

written service label that shows the lifejacket’s own unique history.

Picture courtesy of CIPS Supply Management Awards Events Team

RNLI © Carmen Valino

Alexander Armstrong/Jason Dunham – Principal Procurement

Manager/Adrian Frogley – Disposal Manager/Gary Coleman – Commercial

Manager/Cath Hill Group Marketing & Membership Manager

https://acenterprises.org.uk/blog/best-product-awards-2015-winners

‘Spend Wise Saves Lives’

• The RNLI’s ambition for procurement is to be recognised as a leading exponent of innovative, sustainable

and modern procurement practice, whilst striving for continuous improvement in our performance.

• This RNLI Procurement Strategy sets the framework in which the RNLI will work to ensure that procurement

delivers value for money across all services and directly contributes to the achievement of our corporate

priorities and the outcomes within the RNLI’s Business Strategy.

• Every year we spend circa £150 million securing goods, services and capital to save lives. We typically

work with 3000 suppliers a year to enable this work to be completed. More than 90% of our spend is with

8% of our suppliers. We have about 500 people engaged in some way in the purchasing process. We have

very few ( less than a dozen) professionally trained procurement specialists that meet our future

requirements.

• Supply Chain have saved more than £6.3 million in recent years. We have reduced the supply base from

10,500 to circa 6000 suppliers on our ERP system, using 3000 in 2014. We have trained, coached and

mentored more than 250 people in some form of procurement.

‘Spend Wise Saves Lives’ Benefits to the organisation will include

• Improved visibility and control of the spend across the business)

Suppliers selected to better meet RNLI current and future requirements

• Clear roles and responsibilities, with the right skillset managing the commercial aspects

• Consistent ways of working driving efficiency, and providing an auditable process

• Increased level of innovation, as suppliers invest in the relationship with the RNLI

• Improved due diligence on vendor selection

• Improved RNLI reputation as a commercially astute charity, working in partnership with suppliers as appropriate

• Rationalisation of the supply base to a size and shape that can be managed efficiently and effectively, circa 2400 in the ini tial phase and 1500

as a future state

• £11 m of Cost reductions, cash flow improvement, lower transaction costs, reduced exposure to risk, less re-work

Benefits to those that require our procured goods and services include;

• Clear governance and risk management

• Significantly reduced transaction effort, reducing manual input and data inaccuracy and improving invoice matching

• Improved processes that customers can get what they need, in a timely and cost effective manner

• Reduce the variety of systems, handoffs, and individuals involved in procure to pay

• Significantly reduced chaos and frustration in the process

• Improved the internal reputation of key procurement and accounts payable teams

• The Future State

• Continue to develop a category management approach to procurement across the organisation.

• Deliver a common, corporate process of strategic sourcing, supplier relationship development and contract management.

• Drive out efficiencies and cost reduction in the transactional procurement process.

• Enhance leadership, governance and skills within procurement.

• Ensure compliance with relevant policies and procedures.

• Increase the proportion of spend against contracted and approved suppliers.

Thank you

&

Questions?