market at the time of need can derive better value. For example quarry supplies for road building vary according to input costs (fuel, labour) and seasonal impacts. Buying from the market in accordance with a price cycle will deliver lower costs than having annual supply. Summary Governments have the opportunity to reform to revisit their buying methodology, and in particular to assess the inventories and contract structures under which the supply of goods is provisioned. Supplier optimisation and strong Supplier Relationship Management are key elements of a successful inventory management program. Checklist: Compile a list of current goods contracts (contracts How many suppliers are Stage 1 to July 2014 (review) – register extract) What tracking mechanisms are in place to monitor inventories? Determine future mechanisms for managing and Contracts Management system Stage 2 Aug 2014 to March 2015 (plan) – tracking supplies Ordering and tracking functionality within Stage 3 April 2015 to June 2015 (mobilise) – purchasing system Future operations Effect new arrangements for the entity Stage 4 July 2015 onwards (implement) – Action procurement plan and regularly review Engage in contract management performance review Shift from annual and biannual supply contracts to point of purchase buying structure Further support resources specific to Reference Resources: The WALGA Procurement Handbook contains template documentation including General Terms and Conditions for the supply of goods. WALGA eQuotes contains buyers guides and other contract information relating to supply contracts.
market at the time of need can derive better value. For example quarry supplies for road building vary according to input costs (fuel, labour) and seasonal impacts. Buying from the market in accordance with a price cycle will deliver lower costs than having annual supply. Summary Governments have the opportunity to reform to revisit their buying methodology, and in particular to assess the inventories and contract structures under which the supply of goods is provisioned. Supplier optimisation and strong Supplier Relationship Management are key elements of a successful inventory management program. Checklist: Compile a list of current goods contracts (contracts register extract) How many suppliers are What tracking mechanisms are in place to monitor inventories? Stage 1 – to July 2014 (review) Determine future mechanisms for managing and tracking supplies Contracts Management system Ordering and tracking functionality within purchasing system Stage 2 – Aug 2014 to March 2015 (plan) Stage 3 – April 2015 to June 2015 (mobilise) Future operations Effect new arrangements for the entity Action procurement plan and regularly review Engage in contract management performance review Shift from annual and biannual supply contracts to point of purchase buying structure Stage 4 – July 2015 onwards (implement) Further support resources specific to Reference Resources: The WALGA Procurement Handbook contains template documentation including General Terms and Conditions for the supply of goods. WALGA eQuotes contains buyers guides and other contract information relating to supply contracts.
Reform-Toolkit-Procurement-Guide_99.docx