the global procurement network nsw social and sustainable procurement forum ‘modern strategic...
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The Global Procurement Network
NSW Social and Sustainable Procurement Forum‘Modern Strategic Procurement Practice and the integration of the Quadruple Bottom Line’
Chris NewmanDirector ArcBlue [email protected] 0412 318 384
The Global Procurement Network
ArcBlue Procurement Development Activity across Australia/NZ
VIC State Government• CIPSA Certification
VIC Local Government• Procurement Roadmap
development• Contract Management
Guidelines and Training
NSW State Government• Accreditation Program –
preparation and assessment
NSW Local Government• Roadmap Program with LGP• Procurement Leadership Program• Social Procurement Guidelines• Sydney Metro Councils Joint
Procurement Development Program
State Government
Local Government
SA Local Government• Roadmap Program• Regional Opportunity
Analysis
Procurement Capability Assessment / Development
Federal Government• Contract Management
Development• Regional Procurement
Development Programs
Federal Government
Gold Coast Council – Capability Development and Contract Management
WA Local Government• Procurement Training
Program
NZ Local Government• Procurement reviews
NZ Government • Departmental
reviews
The Global Procurement Network
Why the focus on procurement ?The benefits
Efficiency and financial stability
Probity and process
Support council objectives
Enabler of broader reform
o Reduce internal and external costs
o Build confidence and demonstrate professionalism
o Socialo Sustainabilityo Regional/local economic
development
o Capital works and budget planningo Project management and deliveryo Regional and Sector Collaboration
The Global Procurement Network
• Professional procurement
• Influencing the business
• Transactional• Order placement
Level 1
Emergent
Level 2
Basic
Level 3
Developing
Centre of Excellence across all expenditure
Procurement foundations in place with improved controlsSome functional and category strategies in place
Focus on meeting legislative requirements
Largely unco-ordinated procurement with gaps in
compliance
Level 4
Advanced
Levels of procurement maturity
The Global Procurement Network
Procurement Maturity Model
Strategic Procurement
External Focus Internal Focus
Mission
Delivery
EnablersFramework
The Global Procurement Network
New Approaches to Achieving QBL Objectives
All levels of Government (& Private Sector) have social, economic, environmental and Leadership/ Governance objectives (QBL)
Traditional ‘silo’ approach to achieving objectives
Innovation – Complex issues require new modelsNew 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 disadvantageProviding genuine pathways to training and sustainable employmentAchieving ‘Zero Waste’ and carbon footprint reduction targetsDriving local and regional economic development outcomes
The Global Procurement Network
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 $7bnIt 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;
The Global Procurement Network
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, evidence and Guidance – a growing body of knowledge
• It is working!
www.pmms.com.auwww.pmms.com.au
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Broader Benefits of Social and Sustainable Procurement
Integration - Achieving QBL goals, and addressing community issues as part of the way you do businessInnovation – 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 projectsPlanning 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.
The Global Procurement Network
NSW Partnership Programs
• LGP Procurement Roadmap Program
• SSROC Procurement Development Program
• SPAG and the NSW Social Procurement Guidelines & Regional Programs
• Social Procurement Australasia