Presentation Transcript

1. Driving Change

   SA LGAP Procurement Development Programs- NPP Presentation

   Chris Newman PMMS Consulting Group
2. Procurement Development Activity across Australia/NZ QLD State Government QGCPO change program Gold Coast Council – Capability Development and Contract Management NSW State Government Accreditation process with 7 Departments $1bn Savings Program Procurement Capability Assessment / Development SA Local Government Roadmap Program Regional Opportunity Analysis NSW Local Government Roadmap Program with LGP Procurement Leadership Program Social Procurement Guidelines Sydney Metro Councils (16) Joint Procurement Development Program VIC State Government CIPSA Certification Federal Government NZ Government Agency assessment State Government Federal Government Contract Management Development Local Government VIC Local Government Procurement Excellence Program Contract Management Guidelines and Training
3. SA LGA Procurement Roadmap Pilot Program Based on PMMS Procurement Capability Analysis (PCA) methodology – undertaken with over 300 organisations Capability Assessment benchmarked against over 140 Victorian, NSW and South Australian Councils 7 Councils participated in the Pilot MetroRegional West Torrens Loxton Waikerie Salisbury Wattle Range Burnside Mount Barker Murray Bridge
4. Why the focus on procurement ?The benefits Drive efficiency and financial sustainability Improve probity and process Support council strategic objectives Delivering services, projects and capital works programs Regional/ Local Economic development Sustainability and Social objectives Act as an enabler of broader reform Capital works and budget planning Project management and delivery Regional and Sector Collaboration
5. Procurement Maturity Model
6. Procurement best practice ‘dimensions’ BENEFITS Council objectives Sourcing & Collaboration STRATEGY Triple Bottom Line Supplier management Process & Governance Strategy & Organisation FOUNDATIONS Technology People & skills Leadership & Influence Dimensions of Procurement Excellence
7. Procurement Roadmap Process Senior Mgmt Presentation Roadmap Implementation 1 2 3 4 5 6 7 8 Kick-Off Workshop Final Program Workshop 3-4 weeks 1-2 weeks 2-3 weeks 1.5 Hours 1 day 2 hours Half – Full day 6/12/24 months Preparation of Roadmaps Distribution to Key Stakeholders for review Brining together participating councils Sharing of roadmaps, issues and opportunities Identification of collaboration opportunities Data analytics pack Capability assessment Stakeholder questionnaire Documentation review Opportunity analysis Spend analysis Best practice comparison Single council Review analysis findings Validate opportunities Draft strategy and roadmap Presentation to Senior Management Team Regular reviews of roadmap progress Tracking at 6,12 and 24 monthly reviews Background Process overview What it is All Council Project Leaders/ Teams PMMS All Council Project Leaders/ Teams Key Council stakeholders PMMS All Council Project Teams Key Council Stakeholders Council Project Team Key Council Stakeholders PMMS Support PMMS Council Project Team Key Council Stakeholders PMMS Council Project Team Key Council Stakeholders PMMS Project Leaders GM and Senior Management Team PMMS Who Attends
8. Procurement Roadmap Phase 3 12-24 months Phase 1 0-6 months Phase 2 6-12 months Communication , Training and Annual Planning Direction, Roles and Procedures Supplier Engagement and Strategic Opportunities Develop Triple Bottom Line Procurement Define contract management roles and undertake training Audit compliance to preferred supplier contracts Develop procurement skills development/ training plan Hold supplier forums assist local businesses Review Stores processes and opportunities Incorporate Disposal of Assets into procurement procedures Develop and implement Cost Savings Tracking Register Build Roadmap into Council Strategy/ Action Plan Establish Procurement Steering Group Finalise procurement processes, documentation and templates Incorporate Procurement into key processes - Budget, Records, Corruption Prevention Plan Introduce Leadership Training and Induction Develop program for introducing purchase cards Develop business case for procurement resource Review application of Finance System for data and procure-to-pay model Develop Procurement Portal on Intranet site Staff Training Program Develop contract management processes and systems Review current contract coverage and plan for new panel contracts Develop Annual Procurement Plan and Quarterly Reports Develop Supplier Education Program to assist local businesses Develop Category Coding Structure Undertake Procurement Audit as part of internal audit program
9. Procurement Roadmap Example
10. Spend analysis is used to identify procurement opportunities
11. Total Procurement Spend
12. SA LG - Procurement Capability Self-Assessment Summary
13. Key Opportunities Regional Collaboration Centre-led Procurement Models Spend analysis and market intelligence driving decision-making Increasing contract coverage – panels/ supply contracts Innovative sourcing models Savings – Procurement delivery of efficiency dividends Strengthened Contract and Supplier Management Streamlined and managed low-value transactions Technology – Better use of existing systems/ e-procurement/ panel management
14. Why Participate? Creating a ‘burning bridge’ to support your work using Council’s own data and benchmarking Engaging and committing the GM and Senior Management Establishing organisational ownership of procurement development (incl: engineering) Providing a Business Case for: A genuine Centre-led procurement model Raising the seniority of procurement roles Additional resourcing in procurement teams A new focus on strategic procurement Providing a step by step achievable, measurable Plan (Roadmap) for development Creating momentum and enthusiasm!
15. Key Benefits (From Participants): Engagement and participation from client business units Developing a plan for continuous improvement An action plan with achievable and tangible benefits Staff enthusiasm and understanding of what council needs to do A focused approach to improving current procurement practices and developing a Targeted savings program's Meeting other like minded people in local government and other contacts to allow for information sharing and exchange. Networking and identifying similar across industry issues, collaboration to deal with "issues", increased collaboration and break down of barriers between metro and regional councils Agreement to engage a Senior Procurement Officer to progress a centre led model
16. Pilot Roadmap Program feedback “A great program that supports change and provides credible, practical and customisable assistance for implementation in any Council situation.” Julie Bussenschutt – Burnside City Council “The delivery of the programme allowed all staff - from coal face purchasing to strategic management to give input and understand where the council needs to improve or look at alternative money saving alternatives. We had lots of "ahhh light globe moments" that could be implemented very quickly.” Robyn Cusick – District Council of Loxton Waikerie “You do not have to invent the wheel, someone else already has it and they are more than willing to share.” Andrew Makin – Rural City of Murray Bridge
17. Riverland Regional Procurement and Economic Impact Project Program Objectives: Make savings & create efficiencies Stimulate economic development Build staff capability in procurement Strengthen regional collaboration Provide a model for broader SA regional roll out
18. Spend Category Matrix
19. Procurement enabling strategies
20. Top Tier 1 Spend Categories FY 11-12 represents 76 % of total spend
21. Tier 1 Category FY comparison
22. Construction Categories FY 11-12 C1 C2 C3 C1 C2 C3
23. Category:Construction– Road Reseal FY 11-12 C1 C2 C3
24. Next Steps? New LGA Roadmap Program participation opportunities in 2013 EOIs now open for Program to begin in June/ July Individual Councils Council Groups Subsidised by the LGA $4,000 cost for Regional Councils $5,000 cost for Metro Councils On-going support for all participating Councils Expansion of the Riverland Regional Development Model to other SA Regions New activities to support council development