HCT Group publishes groundbreaking report on transport procurement innovation
A new report published today reveals how savings of up to 40% could be being missed in the procurement of transport services. The report’s author is Frank Villeneuve-Smith, Communications Director at HCT Group - one of the UK’s best-known social enterprises and an established provider of transport services. It has been produced in partnership with Mouchel, a consulting and business services group, and the Community Transport Association, the lead UK body for social and community transport.
The report, entitled Innovation in transport procurement: Seven big ideas to beat the public spending crunch, explores in some detail how recent economic conditions are impacting those involved in the delivery of public services, including commissioners, procurers, and the operators themselves. It suggests a different approach from the widely adopted “inputs and outputs” model (a certain number of buses delivering a certain number of journeys along a given route). The report argues that an approach that is focused on “outcomes” (such as how do we get 400 young people with special educational needs to school on time), would allow transport commissioners to focus their supply chain on innovative solutions, improve service quality, save costs and improve social impact.
HCT Group operates mainstream bus services, education transport, and adult care transport services in London, West Yorkshire and Hull. It reinvests surpluses generated by its commercial contracts into community transport initiatives and training services for long term unemployed people in the areas in which it operates.
Frank Villeneuve-Smith said, “This was a fascinating project. It was always our intention to provoke thought and debate on how improving service quality does not necessarily mean spending more money. In fact, we have shown that it is possible to do this whilst achieving considerable savings.”
The full report in downloadable PDF format can be viewed here.
Hayley Brent-Isherwood at CO3 hayley@CO3.coop 020 7749 3349 or 07909 544817
Tim Purcell at CO3 tim@CO3.coop 020 7749 3368 or 07904 056668