mgro monthly meeting corporate governance unit feedback...
TRANSCRIPT
CIGFARO:
“PROCUREMENT AS A LEVER FOR ECONOMIC GROWTH”
05 June 2018Goudini Spa S Mayekiso
OVERVIEW
Sustainable Procurement
Road Map “Where sustainable procurement lands”
Targets and Goals
Strategy to implement the goals
End Game (Game changer)
Sustainable procurement….
© Western Cape Government 2012 |
Sustainable Procurement – World Bank
4
© Western Cape Government 2012 |
Sustainable Procurement – Localised
5
Sustainable procurement is an enabling link which allows institutions to stimulate
economic growth;
Allows the achievement of both the Physical delivery of the end product and soft
targets (employment) at the same time:
The main focal points are:
Environmental
impact (Green
Procurement)
Efficiency
Economic use
Economic
impact
Road Map (master plan) ….
© Western Cape Government 2012 |
SCM Capacitation and Training
(Organisational Structure Capacity and Skill)
Assessment of SCM and AM Structures
Training and capacitation strategy and programme
SCM bespoke training
interventions
Internal and external client
service (helpdesks, risk based municipal interventions.)
Supplier Development Initiatives in collaboration with Municipal SCM and
LED units
Strategic Procurement
Procurement Planning / Demand Planning
Value for money (Cost vs. quality vs. opportunity
vs level of service )
Procurement Strategy aligned
to SDBIP and IDP
Effective utilisation of
resources
Assessment of the
MERO/PERO link to
municipal Procurement
Strategies
Economies of Scale
Research market
intelligence and technical expertise to redress and
improve municipal
procurement strategies and
planning
SCM Technology
(Reporting, Data Integrity)
Reporting that is credible consistent and provides for integrity of data and ensure councils oversight role is effectively implemented
Integration of financial and non-financial systems
Development of Enterprise Content
Management System
Vendor Management: Database and Administration
efficiencies
Research, Development and Implementation of a fully fledged
E-Procurement Compliance System
SCM Governance
(Policy and Control)
Development of SOP’s for the Municipal SCM
System
Compliance to policy, prescripts
and alignment to legislative framework.
Development of System of
Delegations
Contractor Development Initiatives
Development of a
framework for risk based
assessments
TIME (CONFORMANCE AND PERFORMANCE) 7
CONFORMANCE
PERFORMANCE
Development of a Information Management System link to vendor performance/contract management
BIG PICTURE….
© Western Cape Government 2012 |
BIG PICTURE
• As a province we are spending (Budget):
R 62 billion• We have over people?
6.1 Million
Reality
TARGETS AND GOALS….
© Western Cape Government 2012 |
Resolutions … 2017 SCM-LED Indaba
12SCM INDABA, 2017
Incorporating SCM-LED statement into the IDP - Identify key champion(s) to drive the process;
Compiling/drafting of Implementation Plan prepared by Core Group ( LED practitioners) in alignment to the Provincial roll-out (PG SCM) ;
Compiling/drafting document to obtain buy-in from Accounting Officer(s), Mayoral committees as well as council members – Using DCF’s to set the scene.
Institutionalise the Agenda of SCM and LED (structured approach);
Utilising data optimally (data enablement) to clearly identify what it is we want out of systems - Identifying gaps, targeted interventions, strategic commodities etc.
Identification of pilot municipalities in order to benchmark best practices –district specific.
Focusing on Contractor development initiatives; and
Adoption of a Provincial Economic of Procurement Policy;
© Western Cape Government 2012 |
Roadmap to link SCM, LED and IDP
13SCM INDABA, 2017
1. Map SCM Value Chain
2. Identify sectors with opportunity (LED
Strategy)
3. Link LED opportunities with
specific sectors
4. Map sector value chain with linkages to
suppliers (can local respond to
procurement demand?)
5. Identify expenditure targets
6. Develop procurement plan
7. Align to procurement and IDP policies and
strategies
8. Monitor & Evaluate
Strategy to implement the goals….
© Western Cape Government 2012 |
Sustainable Procurement: Using technology as a lever
15
Data Collection and analysis
(Spend Analysis);
Procurement Plan collection
and analysis;
ERP system and CSD
(e-procurement)
SCM Technology:
Start extracting data from financial system;
Analysis of data: high value transactions,
volume of transactions,
Top suppliers,
Location of suppliers,
repeat use of supplies.
District Spending
Patterns
© Western Cape Government 2012 |
Sustainable Procurement: Case studies at SCM indaba
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Develop best practice guidelines;
Develop toolbox for each
municipality;
Create uniformity and standards
across the province.
SCM strategic Procurement:
Select teams from Districts to investigate and
develop ways to implement the indaba
resolutions.
Teams will present at the indaba their
solutions, and will be formally adopted and
sanctioned as provincial guidelines.
District best practice
Approach….
© Western Cape Government 2012 |
Municipality Strategic Planning Framework Alignment
18WCG-PPT Slide Gallery-01112012.pptx
Current situation…. Supplier registration status (Country wide
© Western Cape Government 2012 |
Supplier registration status (Country wide)
© Western Cape Government 2012 |
Spend Review per district
© Western Cape Government 2012 |
Supplier Spend Review per demographics
GREATEST 21st CENTURY ENTREPENEUR/INVENTOR
What things would have the great impact on the future of
humanity’s destiny? - Elon Musk (TESLA & SPACEX)
Thank you