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
