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Feasibility Study Template

Version 0.1

Guidance note The first stage of the Collaborative Category Management Process
adopted by SSF will include some initial analysis at the very start of the Category Sourcing
Process.
This include;

High level analysis at Master Category level to support the proposed approach;

The analysis at this stage should include as a minimum:


o
o
o
o
o
o
o

A broad scope of the Category


Verifiable spend;
Details of existing contracts;
Details of the major suppliers;
A high level market analysis;
A profile of the customer base and how it is segmented ie central
government, local authorities, health sector, education sector etc; and
Other identifiable stakeholders ie trade associations or bodies,
environmental/sustainability.

Options; and

Next steps

Depending on the complexity of the Master Category the Feasibility Study should not
realisticaly exceed 15 to 20 sheets of single sided pages of A4. At this stage the study will
be at Master Category level e.g. Fleet
A more detailed analysis will be undertaken at the Initiative Detailed Analysis Phase and a
full Feasibility Study document (layout/contents as below) produced to support the go/no go
decision of moving on to full Project Launch. In most cases at this stage the study will be for
a Category e.g. tyres.
If the decision is taken to progress, the content of the Feasibility Study report will be the
starting point for the Source Plan.

TABLE OF CONTENTS
1
1.1
1.2
1.3
1.4
1.5
1.6

Executive Summary
Background and Baseline
Benchmarking and Opportunities
Recommendations
Implementation Planning
Savings
Return on Investment

6
6
6
6
6
6
6

2
2.1
2.2
2.3
2.4
2.5
2.6
2.7
2.8

Terms of Reference
Introduction and Background to Analysis
Scope of Work
Objectives
Expected Deliverables
Resources Available
Management Arrangements
Reporting Regime
Risk Management and Mitigation

8
8
8
8
8
8
8
8
8

3
3.1
3.2
3.3
3.4
3.5
3.6
3.7
3.8

Business Requirements
Who? (e.g. customer, stakeholders)
What? (e.g. functional, volumes)
Where? (e.g. locations, sites)
When? (e.g. time frequency volatility)
Why? (e.g. demand drivers)
Needs and Nice to Haves
Using QCLDM (Quality, Cost, Logistics Development Management)
Missing Information and Assumptions

9
9
9
9
9
9
9
9
9

4
4.1
4.2
4.3
4.4
4.5
4.6

Goods and Service Delivery


Who? (e.g. suppliers, stakeholders, subcontractors)
What? (e.g. specifications, volumes)
Where? (e.g. locations, sites)
When? (e.g. time, frequency, volatility)
Deliver Model
Missing Information and Assumptions

10
10
10
10
10
10
10

5
5.1
5.2
5.3
5.4
5.5
5.6
5.7
5.8

Supply Market
Balance of Power
Rivalry (Porters 5 Forces Analysis)
Substitutes
New Entrants
Product/Service Development
Technology
External forces (PEST analysis)
Number of Buyers and Number of Suppliers

11
11
11
11
11
11
11
11
11

6
6.1
6.2
6.3
6.4
6.5

Procurement
Influence
Maturity
Capability
Capacity
Structures

12
12
12
12
12
12

6.6
6.7
6.8

Process
Constraints
Models

12
12
12

7
7.1
7.2
7.3

Baseline and Benchmarking


Approach
Spend and Price by
Assumptions

13
13
13
13

8
8.1

Procurement Levers
Overview

14
14

9
9.1

Opportunities
Overview

15
15

10
10.1

Risks
Overview

16
16

11
11.1
11.2
11.3

Recommendations
Tactical
Strategic
Programme

17
17
17
17

12
12.1
12.2
12.3

Savings Indentified
Assumptions
Confidence
Type

18
18
18
18

13
13.1

High Level Delivery Plan


Overview

19
19

14
14.1

Resource Plan
Overview

20
20

15
15.1
15.2
15.3
15.4

Return on Investment
Investment Cost (year 1, year 2etc)
Benefit (year 1, year 2.etc)
Break Even Point
Assumptions

21
21
21
21
21

16
16.1

Appendices
Table of Appendices

23
23

Feasibility Study
Executive Summary
Version 0.0

0 Executive Summary
0.1

Background and Baseline

0.2

Benchmarking and Opportunities

0.3

Recommendations

0.4

Implementation Planning

0.5

Savings

0.6

Return on Investment

Feasibility Study
Main Body
Version .0

Part of the
Pan Government Collaborative
Procurement Programme

Terms of Reference
1.1

Introduction and Background to Analysis

1.2

Scope of Work

1.2.1

Whats In

1.2.2

Whats Out

1.3

Objectives

1.4

Expected Deliverables

Including Descriptions, Quality, Criteria,


1.5

Approval process

Resources Available

Including Assigned staff, Roles, Duration


1.6

Management Arrangements

1.7

Reporting Regime

Including schedule, structure and content


1.8

Risk Management and Mitigation

Business Requirements
2.1

Who? (e.g. customer, stakeholders)

2.2

What? (e.g. functional, volumes)

2.3

Where? (e.g. locations, sites)

2.4

When? (e.g. time frequency volatility)

2.5

Why? (e.g. demand drivers)

2.6

Needs and Nice to Haves

2.7

Using QCLDM (Quality, Cost, Logistics Development Management)

2.8

Missing Information and Assumptions

Goods and Service Delivery


3.1

Who? (e.g. suppliers, stakeholders, subcontractors)

3.2

What? (e.g. specifications, volumes)

3.3

Where? (e.g. locations, sites)

3.4

When? (e.g. time, frequency, volatility)

3.5

Deliver Model

3.6

Missing Information and Assumptions

10

Supply Market
4.1

Balance of Power

4.2

Rivalry (Porters 5 Forces Analysis)

4.3

Substitutes

4.4

New Entrants

4.5

Product/Service Development

4.6

Technology

4.7

External forces (PEST analysis)

4.8

Number of Buyers and Number of Suppliers

11

Procurement
5.1

Influence

5.2

Maturity

5.3

Capability

5.4

Capacity

5.5

Structures

5.6

Process

5.7

Constraints

5.8

Models

12

Baseline and Benchmarking


6.1

Approach

6.2

Spend and Price by

6.2.1

By Supplier

6.2.2

By Business Unit

6.2.3

By Change over Time

6.2.4

By Product

6.3

Assumptions

13

Procurement Levers
7.1

Overview
Lever

Description

Leverage volume

Simplify specification

Develop suppliers

Reduce joint costs

Contract smartly

Increase competition

Rationalise suppliers

14

Opportunities
8.1

Overview

# Opportunity
1

Run tender

Description
e.g. Run tender exercise for X spend across Y business
units.

Difficulty Of
Implementation
e.g. M

Timescale
Start

Complete

e.g. 3 months e.g. 12 months

Type of
Benefit
e.g. Reduced
price

6
7

15

Risks
9.1
ID

Overview
Risk

Probability

Impact

Mitigation

1
2
3
4
5
6
7
8
9

16

10

Recommendations
10.1 Tactical

10.2 Strategic

10.3 Programme

17

11

Savings Indentified
11.1 Assumptions
11.2 Confidence
11.3 Type

18

12

High Level Delivery Plan


12.1 Overview
Apr 06

Jun 06

Sept 06

Dec 06

Feb 07

Apr 07

Jun 07

Tactical activities
Team formation

Contract award

Manage
contracts

Go to market

Duration

Activities

End of
phase
milestones

c.12 weeks

c.12 weeks

c.12 weeks

c.12 weeks

For example
Verify the Opportunity
Assessment
Complete the Source
Plan
Identify all stakeholders
and map

For example:
Commence migration of offcontract spend to competitive
arrangements
Establish compliance regime to
improve current and future
arrangements

For example:
Assessment of bids
Run eAuction

For example:
Establish supplier
and contract
management
regime for new
arrangements
Track benefits

For example:
Review
effectiveness
of strategy

For example:
OJEU notice

For example:
contract award

For example:
supplier
management
regime

For example
post
implementation
review

For example:
Source plan

c.16 weeks

Increase
benefits
realisation

19

13

Resource Plan
13.1 Overview
.

Role
Category
team
resource

Key Skills
Planning
Operational support
Options development and

assessment

Estimated resource
Number Duration
1

12 months

Cost

Potential sources

Internal appointment

Analysis

20

14

Return on Investment
14.1 Investment Cost (year 1, year 2etc)
14.2 Benefit (year 1, year 2.etc)
14.3 Break Even Point
14.4 Assumptions

21

Feasibility Study
Appendices
Version 0.

22

15

Appendices
15.1 Table of Appendices

23