Hot debate at PfH Annual Members Forum.

Big questions and heated debate were the order of the day at PfH's most recent Annual Members' Forum.

This year the event went interactive, providing a platform for Members to discuss some of the most significant procurement issues facing the sector amid the tough economic climate. We wanted to know what our Members thought and find out how PfH can help.

PfH Members rose to the challenge, taking part in a series of round table debates and thrashing out topics related to ‘making procurement work in challenging times.'

The feedback was very positive and the results of the forum debates make for interesting reading. They represent the thoughts and concerns of PfH Members from right across the UK social housing sector. The recommendations they put forward are now being taken on board by PfH. It's our Members that drive the direction of the consortium and over the next few months we'll be looking at ways to address all the issues raised.

Topic 1: How is the current economic climate affecting your use of SME suppliers? How can we ensure that SME suppliers are not disadvantaged in the current context?

Ideas for this topic came thick and fast. Some Members highlighted the importance of finding more innovative ways to aggregate SME suppliers effectively- mainly through electronic purchasing. This is something that PfH has taken note of and is developing through its Account Card - a card based e-procurement system. Members also suggested that more frameworks should be set up via PfH's Account Card involving a broader range of SMEs - something we'll definitely look into.

Members noted that the current economic situation makes housing organisations more risk aware, with a tendency to use larger, more established suppliers; however, some Members considered SMEs as a safer bet, because they tend to have lower overheads, greater transparency and can often be more agile when responding to a changing environment.

It was recommended that PfH looks at the possibility of mentoring SMEs - giving smaller businesses help and assistance to overcome key barriers. Indeed, when a SME is appointed as a PfH supplier they are immediately guaranteed access to a certain level of business, ensuring their stability and giving Members peace of mind. In addition to this, the mentoring issue is something we will explore further.

There were also strong arguments for a ‘mixed' economy of suppliers. Again this is something PfH is aware of and acting on. In line with the Government pledging to help SMEs win 30% of public sector contracts over the next five years, a significant 60% of PfH's suppliers are SMEs. We recognise the importance of creating opportunities for local, smaller suppliers as well as larger national organisations and are committed to continuing our support of SMEs.

Topic 2: How is the current economic climate affecting the environmental objectives of social housing organisations? How do we ensure that sustainable procurement remains economically viable in the current context?

This environmental issue prompted some heart felt and heated responses. Members said there was a danger that the good environmental work carried out over the past ten years could be undone by the downturn. Housing organisations may revert back to focusing solely on price, not whole life costs or working in partnership. There was a fear that this could create long term damage to the green campaign.

Members highlighted the 'unknown' in terms of the payback and reliability of environmental products. They concluded that the infancy of the marketplace and products themselves made decisions to invest harder in this downturn.

Another issue was process versus products. The tough financial climate is forcing the housing sector to look at more long term sustainable processes rather than just environmental products such as eco-building materials, recycled paper and green computer equipment, which require short-term investment. PfH is already focusing on sustainable processes, for example working with suppliers to arrange fewer deliveries, encouraging Members and suppliers to use less paper and energy and investing in solar energy.

But one of the biggest points raised was the lack of clarity within the supply chain around the long term benefits of sustainable products. Members said that suppliers were unable to answer questions on repairs, ‘upgradability', life cycle and whole life costs of sustainable products and just focused on purchase price.

The lack of any clear proposition about environmentally friendly products meant that they were often perceived to be more expensive. Manufacturers' communication about sustainable products had to improve and become less short term, Members concluded.

This is a recommendation PfH is currently addressing. We're looking at the role we can play in aiding the communication of whole life costs and the wide ranging positive benefits of greener products. How can we assimilate this information from our supplier base and communicate it more effectively and clearly to Members? We will report back soon.

Topic 3: In the current economic climate, are social housing organisations under more pressure to reduce costs at the expense of other procurement criteria? How do procurement professionals prove their worth in this context?

It was noted that Members felt there was real pressure - from Boards and tenants - to reduce costs at the expense of quality, loyalty, sustainability and service. The market was offering lower costs and PfH Members said they were concerned this might mean quality is compromised.

PfH has taken on board these concerns and we believe it's the role of procurement experts like ourselves to ensure prices are not reduced at the expense of quality and other criteria. Moving forward we will develop our work with Members to maintain long term sustainability of pricing, not short term cost cutting exercises.

We recognise it's up to the team of procurement professionals within PfH to find out what criteria is important to organisations, customers and colleagues; to ensure those suppliers appointed to contracts are upholding expectations and also plan right from the beginning of the purchasing process - focusing on strategy first and then process.

PfH's interactive Annual Members' Forum has given a voice to PfH Members - gathering their views on some of the most challenging procurement issues facing the sector today. It's also been hugely important to PfH. We hosted the session with the objective of finding out what our Members think. Now we are looking at ways we can address the concerns they raised and support them, wherever possible, through this tough time.