. Procurement Development Programs Free Powerpoint Templates Page 1
Why Should Procurement Matter? The benefits to the enterprise Drive efficiency and financial sustainability Improve probity and process Return on investment 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 No matter how small the procurement department is it makes a significant contribution to the company Free Powerpoint Templates Page 2
Procurement Maturity Model Advanced • Clear definitions and established Intermediate processes on all expenditure • Procurement work flows in place Establishing • Process improvement • Main focus on controls meeting established regulatory requirements • Functional Emerging categories in • Uncoordinated place • Lack of structure Free Powerpoint Templates Page 3
The Dimensions Procurement Best Practice’s Free Powerpoint Templates Page 4
Procurement Roadmap Process 1 2 3 4 5 6 7 8 Data Consultant Roadmap Roadmap Senior Mgmt Kick-Off Final Program Roadmap Capture Analysis Workshop Review Presentation Workshop Workshop Implementation 3-4 1.5 Hours 1-2 1 day 2-3 2 hours Half 6/12/24 months weeks weeks weeks day • Preparation of • Brining • Background • Data analytics • Documentation • Single council • Presentation to • Regular Roadmaps together pack review • Review Senior reviews of • Process • Capability • Opportunity analysis • Distribution to Key Management participating roadmap overview assessment analysis findings Stakeholders for Team councils progress it is What • Stakeholder • Spend analysis • Validate review • Sharing of • Tracking at roadmaps, questionnaire • Best practice opportunities 6,12 and 24 issues and comparison • Draft strategy monthly opportunities and roadmap reviews • All Council • All Council • Council • Internal or • Council • Council • Project • All Council Project Project Project Team external Project Team Project Team Leaders Project Teams Attends Leaders/ Leaders/ • Key Council consulting • Key Council • Key Council • GM and Senior • Key Council Who Teams Teams Stakeholders support Stakeholders Stakeholders Management Stakeholders • Key Council • PMMS Team stakeholders Support Free Powerpoint Templates Page 5
Procurement Roadmap in Detail Phase 2 6-12 months Phase 1 0-6 months Phase 3 12-24 months Communication , Training Direction, Roles and Supplier Engagement and and Annual Planning Strategic Opportunities Procedures 17. Develop ROI goals 1. Build Roadmap into Council 9. Develop Procurement Strategy/ Action Plan 18. Define contract Portal on Intranet site management roles and 2. Establish Procurement 10. Staff Training Program undertake training Steering Group 11. Develop contract 19. Audit compliance to 3. Finalise procurement management processes preferred supplier processes, documentation and systems contracts and templates 12. Review current contract 20. Develop procurement 4. Incorporate Procurement coverage and plan for skills development/ into key processes - new panel contracts training plan Budget, Records, 13. Develop Annual 21. Hold supplier forums Corruption Prevention Plan Procurement Plan and assist local businesses 5. Introduce Leadership Quarterly Reports Training and Induction 22. Review Stores processes 14. Develop Supplier and opportunities 6. Develop program for Education Program to 23. Incorporate Disposal of introducing purchase cards assist local businesses Assets into procurement 7. Develop business case for 15. Develop Category procedures procurement resource Coding Structure 24. Develop and implement 8. Review application of 16. Undertake Procurement Cost Savings Tracking Finance System for data Audit as part of internal Register and procure-to-pay model audit program Free Powerpoint Templates Page 6
Key Benefits to the Enterprise Collaboration across all divisions 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 Free Powerpoint Templates Page 7
Key Benefits to Participants Engagement and participation from all 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 peers and suppliers allowing 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 divisions Free Powerpoint Templates Page 8
Procurement Enabling Strategies Strategy Outcome Pros Cons Establish new contract Leverage volume via Potentially high impact Requires time & new market approach resources Renegotiate existing Improve current Less time & effort – Limited negotiating contract contract including also less disruptive leverage option to leverage added volume Piggy-back other Leverage benefits Ease of May hamper large contracts previously negotiated implementation contract negotiations Vary the supply model Innovative solution and Breakthrough Potentially higher risk or change demand /or reduced demand improvement and effort to establish Establish effective Achieve desired Short term return, Requires resource & contract management outcomes, manage eliminate waste & capability to establish change & target leverage supplier & maintain improvement resource Free Powerpoint Templates Page 9
Thank You For more information… gereld@rci-technologies.com 908 217 1826 Free Powerpoint Templates Page 10
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