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NSW Social and Sustainable Procurement Forum

NSW Social and Sustainable Procurement Forum. ‘Modern Strategic Procurement Practice and the integration of the Quadruple Bottom Line’ . Chris Newman Director ArcBlue Consulting Chris.newman@arcblue.com.au www.arcblue.com.au 0412 318 384.

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NSW Social and Sustainable Procurement Forum

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  1. NSW Social and Sustainable Procurement Forum ‘Modern Strategic Procurement Practice and the integration of the Quadruple Bottom Line’ Chris Newman Director ArcBlue Consulting Chris.newman@arcblue.com.au www.arcblue.com.au 0412 318 384

  2. ArcBlue Procurement Development Activity across Australia/NZ Gold Coast Council – Capability Development and Contract Management • WA Local Government • Procurement Training Program • NSW State Government • Accreditation Program – preparation and assessment 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 Joint Procurement Development Program • VIC State Government • CIPSA Certification • NZ Government • Departmental reviews Federal Government • VIC Local Government • Procurement Roadmap development • Contract Management Guidelines and Training • Federal Government • Contract Management Development • Regional Procurement Development Programs State Government Local Government • NZ Local Government • Procurement reviews

  3. Why the focus on procurement ?The benefits • Reduce internal and external costs Efficiency and financial stability • Build confidence and demonstrate professionalism Probity and process • Social • Sustainability • Regional/local economic development Support council objectives Enabler of broader reform • Capital works and budget planning • Project management and delivery • Regional and Sector Collaboration

  4. Levels of procurement maturity Centre of Excellence across all expenditure Procurement foundations in place with improved controls Some functional and category strategies in place Level 4 Advanced Level 3 Developing • Professional procurement • Influencing the business • Transactional • Order placement Largely unco-ordinated procurement with gaps in compliance Level 2 Basic Level 1 Emergent Focus on meeting legislative requirements

  5. Procurement Maturity Model Mission Strategy Results and benefits Delivery Organisation Category Management Contract Management People External Focus Strategic Procurement Internal Focus Sustainability Policy Framework Systems and Data Social Procurement Framework Enablers Compliance Management Economic Development

  6. New Approaches to Achieving QBL Objectives • All levels of Government (& Private Sector) have social, economic,environmentaland Leadership/ Governance objectives (QBL) • Traditional ‘silo’ approach to achieving objectives • Innovation – Complex issues require new models • New ways to address complex, multi-causal and long-standing community, economic and environmental issues • Integrating QBLS objectives into procurement, service design and employment • For Government these may include: • Breaking cycles of long-term disadvantage • Providing genuine pathways to training and sustainable employment • Achieving ‘Zero Waste’ and carbon footprint reduction targets • Driving local and regional economic development outcomes

  7. Strategic Procurement and the Quadruple Bottom Line • Procurement is moving from an administrative role to a strategic one • NSW $27bn/ year – State Gov’t $20bn/ Local Gov’t $7bn • It represents over half of Council’s overall expenditure (avg.) • Significant market power to: • Deliver high quality, value for money goods, services and works; • Drive sustainable cost savings; • Influence, enable and stimulate the private and social enterprise markets to deliver social, economic and sustainability outcomes;

  8. What is Changing and Why Social and Sustainable Procurement? • Growing understanding of the role and power of Strategic Procurement • Developing personal, organisational, regional and sector-wide procurement capability • Strategic organisational objectives now being reflected in procurement practice • Pressure on Government to do more with less, to collaborate, and to innovate • Case Studies, evidenceand Guidance – a growing body of knowledge • It is working!

  9. Broader Benefits of Social and Sustainable Procurement • Integration - Achieving QBL goals, and addressing community issues as part of the way you do business • Innovation – Encouraging innovation and the development of new forms of partnership and service delivery models. • Organisational Identity and Reputation – Building and broadening the organisational identity. • Competitive Advantage –Directly demonstrating the capacity to add social, environmental and economic value in delivering on Government funded projects • Planning Ahead - Rather than responding in an ad hoc way as community and Government expectations grow, QBL procurement can be introduced through a managed, systemic and achievable program.

  10. NSW Partnership Programs • LGP Procurement Roadmap Program • SSROC Procurement Development Program • SPAG and the NSW Social Procurement Guidelines & Regional Programs • Social Procurement Australasia

  11. The Day Ahead

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