Recognise the benefit in building capability in procurement
In engaging with a number of Australian government agencies to understand their challenges, it is clear that more needs to be done to build procurement capability with agencies. As resources within agencies have been heavily reduced, so has procurement as a valued skillset.
Procurement skills are non-transferable. You cannot do a handover and become a procurement expert overnight. It takes years to develop the necessary expertise and requires on-the-job experience.
But more importantly, there needs to be an appreciation of the benefits of doing procurement right. When this is acknowledged, agencies can begin their journey on the pathway to achieving better procurement outcomes.
Building capability starts with understanding the benefits.
It starts and ends with better requirements
Building a statement of requirement that makes sense to suppliers, is achievable and comprehensively meets everything is a skill – and requires more than just good writing. There is a need to know the market and write requirements from their perspective – as well as yours. This needs to be developed in consultation with a range of stakeholders and sometimes requires tough conversations on expectations so that everyone is on the same page. The best statement of requirements are not looked at as a solution but as as a starting point.
It can be tricky to get the balance right between under and over specifying. But when done right, it leads to no surprises which makes contract management much easier.
Keep your finger on the pulse
The best outcomes come from people with their finger on the pulse. They know how the industries work, what innovative approaches are happening, how their clients think and they understand what performance looks like. It requires a commitment to benchmarking and continuous improvement, comprehensive market analysis, an open dialogue with suppliers and clients.
This takes time, it takes resources. But the benefits are evident. Procurement goes quicker and smoother, clients are satisfied and long-term, outcomes are at forefront of best practise.
Improve procurement outcomes into the future
Procurement is a marathon event, not a sprint. Improving outcomes is as much about the end game as it is about the immediate results. In procurement we can achieve much more by driving performance, competitiveness and collaboration long term than with one single engagement.
The Australian Government Coordinated Procurement agenda demonstrates the significant benefits through long term investment. Into the second and third phases of arrangements, the agreements deliver tangible savings but more importantly, a much more refined offering to clients.
Do the simple things right
The best professionals get the simple things right all the time. They understand the value in following all the steps and not taking short cuts. Good administration isn’t about avoiding non-compliance, it is about good governance