6 March 2017
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LGP News March 2017
" Keeping you connected in local government procurement "
Supplier Relationship Management – Redefining Collaboration
by Luke Kenny, Chief Executive Officer
Supplier Relationship Management (SRM) is a demanding process few organisations deploy, for those procurement functions that execute SRM well, they create measurable value for their business. Jonathan Webb in Forbes Magazine last month explained that SRM was born in 1983 care of Peter Kraljic, a McKinsey consultant suggesting buyers must become proactive in supply management.
With procurement in local government, I think you would agree that we can all (buyers and suppliers) be better at managing and maintaining long-term supply relationships to deliver against each other’s strategic goals, operational priorities and measure our performance together. Below is an outline from a number of sources, on how to demystify SRM for your organization, irrespective of whether you are a NSW council, or a contractor providing services to local government. How do you compare?
Supply Management magazine published a blog by Mickey North Rizza explaining some of the key ‘secrets’ on SRM. Here they are in summary, blended with some supporting extracts from Jonathan Webb’s Forbes article:
- Focus on the Relationship: Under sound SRM practice there is a need to earn the trust of suppliers, by describing your business strategy, operating through honest communication, listening to feedback on the relationship, sharing data, and bringing them into your processes as a partner. Good SRM challenges us, and allows us to let go of our sub-conscious obsession of relentless cost-cutting.
The Forbes Magazine article suggests we consider providing sensitive procurement data to a supply partner under an SRM program to the supplier to plan and configure its own activities to support the buyers long-term strategy. Some buyers suggest this squanders a perceived negotiating position, however Webb explains strategically through this trust approach, we create a bigger pie, instead of what I suggest many of us in local government do…which is argue over the size of the pie’s slices!
- Every-changing Expectations: Procurement teams who focus on spend data analysis will identify weak points, risks and opportunities across their supply chain. Through this data analysis new procurement directions and strategies can be developed to help both businesses adapt to the identified changes.
- Must be Mutually Beneficial: If supplier organisations and procurement teams operate in isolation, it is virtually impossible to explore opportunities that exist for either group in regards to innovation, cost/price reductions, quality enhancements through feedback. All of these benefits are available under an SRM program if both parties can gain across these areas.
CIPS explain Supplier Performance Monitoring Post-contract allows both parties to manage monitor compliance, identify corrective action and measure change and improvements. Using some of these you have the criteria to compare with other suppliers.
- Suppliers can grow your business: Procurement teams who successfully deploy SRM across categories can see services deployed faster into the community, make transactions more efficient, improve risk management and bring savings. Webb in his Forbes article suggests buyer need to assess their assigned categories in terms of risk to their business, but also in terms of spend and profitability impacts. If we can do this in our local government environments, we can stretch our allocated budgets further, deliver against our time-pressured delivery programs and start showing our senior executives how procurement does actually deliver value. Another real challenge in public sector procurement.
SRM does not simply provide another negotiating weapon to use against suppliers. Rather, it demands that buyers fundamentally shift their mindsets to understand new possibilities. The move to true supplier relationship management, can be difficult to make.
Through our procurement consulting capability LGP can support suppliers and councils on defining and executing good Supplier Relationship Management. With our 800+ contractors under LGP contracts we have the ideal supplier-base for you to segment and start applying SRM.
Jonathan Webb can have the final word on this topic, “SRM is a demanding process and few organizations are adept at deploying it. For those that can, they can create enormous value for their businesses.”
'Networking in the Bush'
Registration Now Open
Following the success of LGP's Networking meetings last year, the first LGP Regional Network meeting this year will be held on Thursday 11 May 2017 in Dubbo.
The meeting provides an opportunity for people in councils involved in procurement to meet in an environment where networking and information sharing is conducted, as well as discuss the latest procurement initiatives within local government.
Agenda: Click here
LGP encourages people involved in procurement to attend the LGP Regional Network meeting.
Further metro and regional meetings are planned and will be announced shortly.
Date: Thursday, 11 May 2017
Time: 9:15am to 3:30pm
Location: Dubbo Regional Council – Dubbo Branch,
Civic Administration Building, Central Conference Room,
Corner Church and Darling St, Dubbo
Cost: Free to attend
If you would like a question to be addressed at the meeting, please email it to us not later than Friday 5th May 2017.
Upcoming Event - Save the date!
LGP Annual Conference - 30 Nov to 1 Dec 2017
Stay tuned for more information.
Do you know how to mitigate loss in contracts?
Mitigating your loss can make a substantial difference to the damages that may be available upon breach of a contract, but just what does ‘mitigating loss’ mean and how do we go about it? The case of Clark v Macourt* makes us question how to apply some-held legal principles.
This case is slightly contentious and was not unanimous. Much of the ruling dealt with how the claim was drafted and may have been found in the alternative if the claim was drafted differently but it explains a simple principle, that loss is generally valued by the court at the time the breach occurs.
Message to take away
- How to mitigate your loss is, like most things in law, dependant upon the facts of the case
- The earlier you are aware of the potential loss, the more likely you will be able to mitigate it
- Try to view the facts from an objective position which considers both party’s perspectives. This can be difficult because we usually see things only from our eyes
- Call Prevention Partners NSW on 0438 280 621 to assist
Monica Kelly from Prevention Partners explains more here.
*1 (2013) 353 CLR 1
Local Government Procurement Training
What professional goals have you set for yourself this year?
Whatever you want to achieve, LGP can support you. We have an exciting and extensive range of training:
ProcureLearn, LGP’s eLearning Program uses state-of-the-art technology delivering cost effective training, specifically designed for council employees engaged in purchasing, quoting, tendering and contract management.
LGP Learning Centre, our face-to-face Training Program features a range of interactive and leading practice modules, designed specifically for NSW Local Government, covering critical areas of procurement and contract management.
Procurement Qualifications, accredited procurement qualifications courses developed specifically for NSW council staff.
Upcoming Training
Registrations are open for LGP's upcoming procurement training for council staff.
Procurement for Local Government
Casino – Thursday 16 March 2017
Providing a comprehensive overview of the purchasing function within the NSW local government sector, learn the end-to-end procurement life-cycle and practical ways to apply principles within council. More information and to register.
Contract Management Essentials
Casino – Friday 17 March 2017
Understand the key principles of managing contracts in the local government sector, and learn essential information on the contract management life-cycle including foundation insights to procurement principles. More information and to register.
Planning and Specifications
Sydney CBD – Wednesday 29 March 2017
Designed on the key principles that need to be observed when writing a best practice procurement plan and specifications development, council staff will be able to construct a basic plan to develop requirements, ensuring that contract arrangements are effective and practical. More information
and to register.
Spend Analysis for Savings, Efficiencies, Compliance & Collaboration
Sydney CBD – Wednesday 5 April 2017
A practical full day course will provide you with the ability to look for efficiencies, savings and reinforce compliance. It will cover internal analysis, external factors such as economic development and how to drive fact based procurement and contract management decisions. This course will particularly suit procurement and finance professionals. More information
and to register.
Advanced Contract Management
Sydney CBD – Tuesday 16 & Wednesday 17 May 2017
This two-day course, designed to advance skills in contract management, is suitable for those managing high-risk, complex contracts or wishing to learn more in this space. A large portion of value is extracted (or lost) post contract award. Through advanced contract management, you can manage risk, increase innovation, reduce waste and increase efficiency. More information
and to register.
Evaluation, Supplier Selection and Contract Establishment
Sydney CBD – Wednesday 24 May 2017
This one day course supports supplier selection and evaluation techniques aligned to probity and value for money. Learn key tips on setting up evaluation criteria for the quotation and tender stage to ensure the right supplier is selected. Designed for staff either currently involved in quotation/tender evaluations or about to do so, participants will come away with practical skills applicable in the Local Government context. More information
and to register.
All LGP training can be conducted in-house at a location of your choice. For further information; visit LGP Training Calendar or contact LGP Training or 02 8270 8709.
Government Procurement Training – Procurement Qualifications
Registrations are open for accredited procurement qualifications courses developed specifically for NSW council staff.
The following courses are available:
Certificate IV in Procurement and Contracting
Sydney CBD
2017 dates (participants must attend all four blocks):
Block 1: 8-10 May 2017
Block 2: 7-8 June 2017
Block 3: 28-30 June 2017
Block 4: 2-4 August 2017
A practical, hands-on program that gives participants practice gaining approvals, and developing procurement plans, related legislation and key documents such as specification requirements, the Request for Tender and the Tender Evaluation Plan.
More information and to register.
Diploma of Procurement and Contracting
Sydney CBD
2017 dates (participants must attend all four blocks):
Block 1: 29-31 May 2017
Block 2: 21-23 June 2017
Block 3: 26-27 July 2017
Block 4: 14-16 August 2017
This specialist qualification covers the competencies required for independent and self-directed work as a procurement and contract manager in the local government sector. The program is suitable for local government staff who have completed Certificate IV to progress to a higher qualification.
Learn to:
- Conduct more significant procurements, including managing contract performance
- Apply government processes, implement policy and promote and monitor compliance with legislation
- Coordinate risk management activities and manage contract risk.
More information and to register.
Advanced Diploma of Procurement and Contracting
Sydney CBD
2017 dates (participants must attend all four blocks):
Block 1: 19-21 July 2017
Block 2: 28-30 August 2017
Block 3: 12-14 September 2017
Block 4:10-12 October 2017
A practical program in which participants will develop the strategic management skills necessary to operate at the middle-to-senior management level in the public sector, with emphasis on conducting and managing higher level and more complex procurement processes. Students will participate in significant case studies and negotiation scenarios, make presentations and examine the legal, legislative and policy framework in which higher level procurements occur.
Learn to:
Develop a comprehensive understanding of strategic procurement and contract management in the public sector, including legislative requirements
Understand the importance of good corporate governance and internal controls
Support strategic thinking in relation to government procurement issues
Communicate effectively with staff and other stakeholders
Support productive working relationships and achieve results
More information and to register.
LGP in-house training is a cost-effective and convenient way to provide training that meets your organisation's needs.
For further information visit LGP website or contact, LGP Training or 02 8270 8709.
ISO20400 Interactive Workshop
After 4 years of development, ISO20400 is coming! Join other like-minded Sustainability and Procurement Professionals from the public and private sectors for a highly interactive one-day workshop (15 participants maximum) about how to use ISO20400, the first international standard on Sustainable Procurement publishing in March 2017, to manage social, environmental and economic risks and opportunities in your supply chains.
Learn how to use ISO20400 to successfully achieve social, environmental and economic objectives through procurement.
One-day training sessions:
Canberra - 29 March - National Botanic Gardens
Melbourne - 26 April - General Assembly
Brisbane - 4 May - The New Inchcolm Hotel
Sydney - 9 May - The Ethics Center
Don't miss the Early Bird!
For more details on each session contact, Planet Procurement.
ProcureLearn
LGP's eLearning program, ProcureLearn, delivers cost-effective training, specifically designed for council employees engaged in all aspects of purchasing.
ProcureLearn eLearning modules include:
- Procurement essentials
- Contract management essentials
- Probity in purchasing and procurement
The program aims to:
- Develop and enhance the standard of procurement across the region
- Provide a technically proficient progress path for procurement professional
- Teach best practice procurement through the latest training
- Provide technical understanding of probity and policy legislation
- Offer a cost-effective training solution for the region
Benefits include:
- Training that provides insights into skill gaps with the opportunity to target development
- Pre-and post-learning assessments to ensure knowledge transfer
- Completion tracking that can be measured and reported
- Access to refresher modules upon module completion
- Access to FAQ and an ask-the-expert forum
With purchase of a three-package course, receive access to specialised procurement topics:
- Risk management
- Supplier evaluation
- Sustainable procurement
For further information visit LGP website or contact, LGP Training or 02 8270 8709.
Procurement
Tip of The Month
By LGP Projects Team
Records Management
Records Management is the process of keeping all documents secure, organised and accessible. Technology is available that provides tools to enable councils to store documents electronically and to enable documents to be shared and viewed with ease and frequency. When multiple stakeholders are involved in tenders and contracts, access to the documents is imperative for streamlining and accurate record keeping. It is important to record any changes during the process. When documents are recorded and stored appropriately, the auditing of any tender and contract management process will demonstrate the effectiveness, or identify any gaps to the process. This will enable the effective methods to be repeated, the negative methods to be eliminated, and any gaps can be reviewed which can lead to continuous improvement in future processes.
Want to Know Who Your
Business Manager is at LGP?
Local Government Procurement has dedicated business managers to look after the needs of councils, approved contractors, not for profit organisations and other government bodies.
Click here to see who can help you.
As part of our commitment to more sustainable procurement, Local Government Procurement is proud to be a member of Social Procurement Australasia (SPA).
New Contracts Announcement
Workwear and Personal Protective Equipment (PPE) (NPN3.11-2)
The contract initially concludes on 30 September 2019 with optional [2] x [12] month extensions. For further information contact your LGP Business Manager.
Panel Status Update:
- Akubra Hats Pty Ltd - Approved
- Alltrades Safety & Workwear Supplies - Approved
- Amare Safety Pty Ltd - Approved
- Ambassador Apparel Group Pty Ltd - Approved
- Atom - Approved Pending Deed
- Blackwoods - Approved Pending Deed
- Brandworx Australia - Approved
- Defender Safety Pty Limited - Approved
- Elliott Australia Pty Ltd - Approved
- Jiyano Promotional Merchandise & Uniforms Pty Ltd - Approved
- Lifestyle Australia Pty Ltd - Approved
- Marque Haus Pty Ltd - Approved
- Mensland, Sportspower, Camping World - Approved Pending Deed
- Onsite Safety Australia Pty Limited - Approved
- Orange Clothing Company Pty Ltd - Approved
- Prescription Safety Glasses Pty Ltd - Approved
- Protecta-Vision Australia - Approved
- Ray-Safe Workwear - Approved
- RSEA Pty Ltd - Approved
- Safety Supplies (SA) Pty Ltd - Approved
- SafetyQuip Sunshine Coast - Approved
- Southern Cross Safety & Workwear Pty Ltd - Approved
- Staples Australia Pty Ltd - Approved
- The Workwear Group Pty Ltd - Approved Pending Deed
- Totally Workwear Management Pty Ltd - Approved
- Tuffwear - Approved
- Uniform Shop SA Pty Ltd - Approved
- Uniform Solutions - Approved (QLD only)
- Workin' Gear - Approved
- Worksense Safety & Workwear - Approved
Library Books and Resource Materials (LGP507-3)
The contract concludes on 29 February 2020 with optional [2] x [12] month extensions. For further information contact your LGP Business Manager.
Panel Status Update:
- Abbey's Bookshop, Language Book Centre, Galaxy Bookshop - Approved
- Phoenix Library Services - Approved
- ALS Library Services Pty Ltd - Approved
- Aussie Global Books Pty Ltd - Approved
- Game Traders Parramatta - Approved
- The Book House - Approved
- Book Supplies Pty Ltd - Approved
- CAVAL Languages Direct - Approved Pending Deed
- Peter Pal Library Supplies - Approved Pending Deed
- Digital Education Services Pty Ltd - Approved Pending Deed
- Educational Concepts, Book Zone Sales - Approved Pending Deed
- Global Language Books Pty Ltd - Approved
- James Bennett Pty Ltd - Approved
- Kairos International Pty Ltd - Approved Pending Deed
- Keith Ainsworth Pty Ltd - Approved
- All Access Australasia - Approved
- Library AV and Large Print Pty Ltd - Approved
- LOTE Libraries Direct Pty Ltd - Approved
- Impact Comics - Approved
- MDM Entertainment Pty Ltd - Approved
- Dymocks Parramatta - Approved
- Sydney Books Online - Approved Pending Deed
- Sound Text Media Pty Ltd - Approved Pending Deed
- Bridge Bookshop - Approved Pending Deed
- Ulverscroft Large Print (Australia) Pty Ltd - Approved
- Wavesound Pty Ltd - Approved
- Zenith Management Services Group Pty Ltd - Approved
Amendments to LGP Contracts
To find out information about amendments that have occurred between LGP and Approved Contractors, click here.
IPWEA – 2017 NSW Regional Forums
LGP is proud to be a Silver Partner at this year's IPWEA NSW Regional Forums and will be attending all locations between 27 February and 5 April 2017.
The Regional Forum is a state-wide program delivered to public works practitioners and is supported through a dynamic and high profile program covering topics like road repairs, water solutions, smart lighting, bridges, procurement, pavement and asphalt, with a focus on key current issues and technical information.
The Regional Forums will include informative presentations and local projects with plenty of informal discussion concluding with a relaxed dinner creating the opportunity to share knowledge with peers and suppliers.
For information regarding the forums, locations, dates and registrations please click here.
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