Project
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 conducted a business and procurement functional review which aimed to show that the organisation could continue to deliver value to Councils on several dimensions and act as a strategic procurement business partner.
Our Scope
Our diagnosis considered several perspectives to deliver a comprehensive review:
- Conducted a comprehensive performance diagnostic analysing organisation process, people, technology and services.
- Assessed the individual Council needs for now and into the future from the perspective of each General Manager and their procurement heads.
- Backed by the needs analysis, we looked at how the function could best support Council in the future.
Project Outcomes
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; or
- Implement a shared services model where an end-to-end procurement service is delivered; or
- Expand the shared services model into an extended procurement service targeting such items as payroll, audit, insurance and other non-strategic services.
Our Values
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 provided the organisation options to serve as the basis of an informed dialogue with the Board of Directors.
Top 3 Tips
Clients that require a business and procurement review should:
- Understand and assess their businesses procurement operating model.
- Develop a clear timeline for the roll out of any new model and implement a change management strategy.
- Understand clearly their current and future capability requirements.