PSI Asia Pacific Pty Ltd

Organisational Review

'Specialist Procurement Adviser' Procurement Review

THE ASSIGNMENT - Specialist Procurement Adviser

PSI was engaged to undertake a review of the procurement activities of a large multi-discipline Federal Government agency with procurement covering a wide spectrum including scientific and IT supplies, construction services, maintenance works, property management services, travel, and the purchase of stores and equipment. The assignment objectives were to:

• Establish a long-term procurement strategy, including a plan covering aims and objectives, governance, and implementation activities. 
• Investigate and recommend the establishment of national supplier arrangements and purchasing panels. 
• Document and share experiences and findings, including reports, reusable documents and presentations, with other Commonwealth Agencies.

OUR SOLUTION AND THE OUTCOME

PSI advisers conducted a spend analysis to identify the priorities and opportunities for improvement of procurement strategies, followed by workshops designed to assess procurement expertise

• The agency was assessed as not maximising its purchasing power, although leading procurement practice within the agency was identified.
• A new procurement model was established to manage the consistent implementation of the revised procurement strategy and was characterised as 'a centralised system with decentralised access'.
• The model was designed to be achieved via evolutionary rather that revolutionary change, building on existing strengths and utilising existing agency personnel where possible.
•  The model would provide a range of procurement options to all staff across the agency; support the professionalisation of procurement; and improve corporate accountability and governance.
• The model would improve management visibility of corporate expenditure; save money through efficiencies in the administration of procurement and improve the agency's relationship with suppliers and marketplace. 

In implementation the recommendations of PSI's report, the Agency achieved:

• Improved management of the sourcing environment through better organisational arrangements that reflected a centralised expert procurement capability with decentralised access.
• Better value-for-money in procurement through the use of standardised procedures and processes across the agency and the introduction of measures to professionalise procurement.
• Reduced procurement overheads through a focus on outcomes rather than inputs.
• Improved visibility of procurement management information and spend data for executive management supporting the communication and the implementation of corporate procurement strategies across the agency.

LEGACY VALUE OF PSI

• The procurement process review was a successful strategy to reduce costs and improve the delivered value of goods and services.
• PSI provided a framework for a comprehensive review of an organisation's current procurement process and assisted in identifying areas for improvement, and the execution of the right procurement strategies in order to significantly reduce cost ,
• The findings of the procurement review included purchasing and acquisition strategies, logistics, tendering practices, contract management, and improved strategic relationships with related agencies.
• PSI successfully brought together all procurement - related issues by adopting a procurement lifecycle model as the framework for developing and implementing procurement policies and processes.