strategic procurement for councillors
DESCRIPTION
Training for councillors in strategic procurement at the Leadership Academy Graduate Summer School 2010TRANSCRIPT
Learning the lessons from procurement disasters of our time
Leadership Academy Graduate Summer School
Dr Gordon Murray
4 August 2010
How can councillors manage strategic procurement risk?
The key strategy for members?
Procurement Positioning Model
Bottleneck Strategic
Routine Leverage
Supply Market Complexity/
Risk
Expenditure
Procurement Cycle
8. Closure / Review Need
1. Identify Need
2. Develop Business Case
3. Define Procurement Approach
4. Supplier Appraisal5. Tender Evaluation
6. Award Contract
7. ManageImplementation
of Contract
8. Closure / Review Need
1. Identify Need
2. Develop Business Case
3. Define Procurement Approach
4. Supplier Appraisal5. Tender Evaluation
6. Award Contract
7. ManageImplementation
of Contract
Gateway Stages ‘Peer Review’
Challenge
Challenge
Challenge
Challenge
Challenge
Challenge
Procurement Disasters of our time
For each case study
1. Analyse the news article and summarise
2. Identify the main issues and what went wrong
3. Identify the stages in the procurement cycle when effective scrutiny could have been used to reduce the risk
4. Identify which questions you would have asked at that stage/s
5. Prepare to feedback
So what?
What are the key lessons for us?
So what?
1. Asking questions fundamental to procurement risk management
2. Procurement requires skilled teams3. Ensure appropriate procurement portfolio positioning4. Optimise collaborative procurement5. Clearly articulate the need in outcomes and performance6. Consider alternative solutions 7. Ensure all costs considered (Total Acquisition Costs)8. Check the contract provides all you need9. Ensure sufficient time 10. Apply risk management
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Learning the lessons from procurement disasters of our time
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