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 ConsultingChris.newman@arcblue.com.auwww.arcblue.com.au 0412 318 384

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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

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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

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• 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

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Procurement Maturity Model

Strategic Procurement

External Focus Internal Focus

Mission

Delivery

EnablersFramework

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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

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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;

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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.

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NSW Partnership Programs

• LGP Procurement Roadmap Program

• SSROC Procurement Development Program

• SPAG and the NSW Social Procurement Guidelines & Regional Programs

• Social Procurement Australasia

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The Day Ahead