Faced with a dominant supplier of domiciliary care services, annual price increases and weighted average prices substantially above the target level across the County, ADR supported Oxford County
Council’s (OCC) Head of Procurement, Stephen McHale, to conduct a review and arrange a forum with key stakeholders including the
Directorate Head of Adult Services to:
1) Set out the current situation
2) Agree a strategy to achieve improved VFM
3) Develop an implementation plan.
ADR conducted an analysis of the market and current situation based on data provided and designed a workshop to facilitate the forum. Using segmentation tools and competition analysis, ADR presented current situation and facilitated the group to debate options and to decide upon a forward direction.
Key outputs included:
– Conduct a brief benchmark study to identify opportunities to improve working processes, including demand management
– OCC set a target price and developed a business case to take to the market
– A negotiation strategy was developed to create competition in the market prior to market engagement.
The strategy is currently being implemented (March 2011).
OCC Contact: Stephen McHale, Head of Procurement, Oxford County Council, County Hall, Oxford.