Client: Procurement organisation for local government and other entities.
Client Size: Organisation supported procurement needs for Councils servicing 1.7 million people
Project Trigger: From a competitive viewpoint, there were several procurement aggregators who provided services which supports individual Council procurement needs. With this, our client conducts a business and procurement functional review which aim to show organisation could continue to deliver value to Councils on several dimensions and acts a strategic procurement business partner.
Our diagnosis considered several perspectives to deliver a comprehensive review:
- Procurement performance diagnostic: Conducted a comprehensive performance diagnostic analysing organisation process, people, technology and services.
- In-depth procurement analysis: Assessed the individual Council needs for now and into the future from the perspective of each General Manager and their procurement heads.
- Procurement and local government trends: Backed by the need’s analysis, we looked at how the function could best support Council in the future.
- The engagement set out three options:
- Develop a business partner model by connecting all their Council members, share thought leadership, and build relationships to deliver strategically important assets;
- Implement a shared services model where an end to end procurement service is delivered;
- Expand the shared services model into an extended procurement service targeting such items as payroll, audit, insurance and other non-strategic services.
The organisation’s General Manager had a body of evidence that clearly articulated how they could provide significant value in a procurement process in the future. This provide the organisation an option to serve as the basis of an informed dialogue with the Board of Directors.
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