peter naujoks, monash uni, director of strategic procurement
DESCRIPTION
Peter was one of many procurement specialists sharing his knowledge at IQPC's Procure to Pay conference 2009. Procure to Pay 2010 will run in Melbourne this year on 16-17 Nov. Find out more at www.procure-2-pay.com.au or email [email protected]TRANSCRIPT
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Peter Naujoks, Director Strategic Procurement
Establishing a best practice procurement capability
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Establishing a best practiceprocurement capability
- Design- Procurement Framework- Deployment- Making the change stick- Next steps
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DESIGN
Establish a University wide strategic procurement framework to extract maximum value from external spend
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Organisational culture and structure
• 10 faculties and 10 divisions• 6 campuses• Autonomy and independence• Wide range of goods and services• High volume, low value transactions
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Not necessarily a “green field”!
• Organisational and compliance culture• Existing governance structure• Existing policy, procedures and
guidelines• Existing supply arrangements• Sources of influence and support• Change fatigue
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Avoid the temptation to start fixing things
time was taken to ensure a coherent approach was designed and developed
2007 Jan - Sep 2008 Oct -Dec 2008 to Dec 2010
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PROCUREMENT FRAMEWORK
Need to extract value, NOT the creation of a checklist/process approach based on policies and procedures
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3 key elements
• Capability• Compliance• Support
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Procurement Framework
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The devil is, as always, in the detail
• Ownership• Accountability• Consequence
Management
• Policy• Guidelines• Templates
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Procurement Processes
<$200K
>$200K
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• Performance monitoring• Compliance monitoring• Supplier management• Specification improvement• Data capture & analysis• Process improvement
Extracting maximum value
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DEPLOYMENTLong term view to establish the culture change
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Winning the hearts and minds
• Ensure credibility• Short term wins• Engagement• Communication• Training
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MAKING THE CHANGE STICKReinforcing the culture change
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Champions of change
• Promote the benefits of the framework• Identify and implement changes• Promote the co-ordination of
procurement• Sponsor the development and delivery of
procurement strategies
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Challenges
• Compliance• Influenceable spend • Number of staff• Accountability• Independence
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Top down…
• Monthly reporting• Linking lost opportunities with budget
increase requests• Professional, researched fact based
analysis• Direct engagement• Identifying improvement opportunities
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…bottom up
• Training• Best practice examples• Direct support and engagement• Strong customer focus• Pragmatic and realistic solutions• Utilising other organisational aims
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NEXT STEPSLong term objective, adoption is not expected until 2010
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After building and deploying
• Consolidate• Lift capability• Increase influence
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QUESTIONS