Joint Purchasing and Resource Sharing Strategy
The Roads Alliance engaged Charles Kendall Australia (CKA) to review and provide recommendations for improving uptake of Joint Purchasing and Resource Sharing (JP&RS) among local councils in Queensland. CKA identified, developed and implemented a wide range of tools and processes to assist in promoting participation and the associated gains in capacity, efficiency and return.
- Review why JP&RS was not being adopted by councils and develop a toolkit to assist councils with implementation.
- Identify opportunities and develop pathways for promotion of JP&RS uptake, with the end goal of consolidating purchasing and procurement to achieve mutually beneficial outcomes.
Development of a JP&RS pilot scheme (and later a full toolkit) to deliver:
- Assessment and opportunity identification within current procurement strategies, processes and skills.
- Detailed presentation of options, resources and required improvements to achieve and measure potential gains in return, processes, skills and capacity.
- Recommendations to embed new practices in participating organisations into the future
- Cost savings through aggregation opportunities.
- Increased return on investment and value for money from resources.
- Standardisation of goods and services.
- Advancement of government priorities.
Procurement Value Management Project
The Department of Transport and Main Roads (TMR) engaged Charles Kendall Australia (CKA) to embed Procurement Value Management (PVM) into the organisation and deliver savings. CKA delivered the PVM project on time and within budget, providing a consistent plan and structure to achieve estimated procurement savings of $140 million.
- Coordinate with the TMR’s dedicated project team and wide-ranging (and often conflicting) stakeholders to develop a PVM framework and supporting implementation plan.
- Achieve results for reporting to the Queensland Government Chief Procurement Office (QGCPO) despite decentralised procurement activity and an absence of consistent historical measurement or performance reporting on procurement.
The team faced a number of challenges including absence of consistent historical records, decentralised procurement activity, and a broad spectrum of stakeholders with conflicting priorities.
In order to fulfil TMRs requirements, CKA:
- conducted workshops with TMR to map current procurement activity and identify improvement areas;
- conducted spend analysis and spend categorisation;
- researched and developed best practice procurement performance measures capable of reporting to QGCPO requirements; and
- identified category savings initiatives and developed a corresponding implementation roadmap.
- An estimated procurement department saving of $140 million.
- Delivery of a PVM plan capable of being embedded into TMR, along with consistent methodology and plan for future procurement performance measurement.
- A defined TMR spend category structure and savings initiatives, with full implementation roadmap and reporting process.
- Knowledge transfer from CKA to the internal TMR team to establish in-house capabilities for future development and enhancement.
Contract Management Review
The Department of Transport and Main Roads (TMR) engaged Charles Kendall Australia to review existing contracts within the Passenger Transport (PT) Division to improve and build its procurement and contract management capabilities while minimising exposure to the risks involved in third-party transport service contracts.
- Develop and implement recommendations to increase procurement and contract management capability.
- Improve organisational and individual competency based on review of existing practices and contracts.
- Detailed review of existing transport service contracts to identify shortfalls and areas for performance and capability/key skill improvement.
- Capability gap analysis to identify current procurement and contract management practice levels versus best standards.
- Market research/analysis to identify contract management systems for adoption by PT for future use.
- Recommendations for improved contract performance, including proposed clause variations and tasks/activities to be undertaken for each contract reviewed.
- Best practice performance management framework for management of PT contracts, plus options for changes to organisational structure.
- Detailed report and analysis of shortfalls within PT staff’s current procurement capability and practice level, with proposals for improvements.
- Comprehensive list of contract management system tools, outlining pricing, functionality and potential software providers to engage.
Category Management Uplift
The Department of Transport and Main Roads (TMR) engaged Charles Kendall Australia (CKA) to evaluate, assess and provide recommendations on potential improvements to their procurement category management function. CKA delivered a comprehensive report and offered a number of options and strategies for improvements to the department's capabilities and competency.
- Assess and build on category management capability.
- Identify and prioritise category management opportunities.
- Evaluate effectiveness of work allocation and team organisation.
- Use findings to build on skills and knowledge of category management staff, as outlined in TMR’s centre-led procurement operating model published in July 2013.
- In-depth capability assessment of 32 TMR Chief Procurement Office (CPO) staff based on 11 criteria (e.g. risk management, relationships, strategy, etc.) to establish benchmarks.
- Full report addressing findings, including shortfalls and possible remediation and improvement strategies (particularly featuring mentoring and knowledge sharing).
- Additional support actions, including documentation drafting, interpreting procedures and reviewing templates.
- Successful delivery of comprehensive report outlining findings and outcomes.
- Measurable value added, with significant uplift in confidence, category management capability and strategic competency across varied seniority levels.
- Detailed data provided to TMR Chief Procurement Officer for consideration and future planning.