NSW Social and Sustainable Procurement Forum
‘Modern Strategic Procurement Practice and the integration of the
Quadruple Bottom Line’
Chris Newman
Director ArcBlue Consulting
Chris.newman@arcblue.com.au
www.arcblue.com.au
0412 318 384
The Global Procurement Network
ArcBlue Procurement Development Activity
across Australia/NZ
Gold Coast Council –
Capability Development and
Contract Management
WA Local Government
• Procurement Training
Program
Procurement Capability
Assessment / Development
SA Local Government
• Roadmap Program
• Regional Opportunity
Analysis
NSW Local Government
• Roadmap Program with LGP
• Procurement Leadership Program
• Social Procurement Guidelines
• Sydney Metro Councils Joint
Procurement Development Program
VIC State Government
• CIPSA Certification
Federal Government
State Government
Local Government
Federal Government
• Contract Management
Development
• Regional Procurement
Development Programs
NSW State Government
• Accreditation Program – preparation
and assessment
VIC Local Government
• Procurement Roadmap
development
• Contract Management
Guidelines and Training
NZ Government
• Departmental reviews
NZ Local Government
• Procurement reviews
The Global Procurement Network
Why the focus on procurement ?
The benefits
o Reduce internal and external costs
o Build confidence and
demonstrate professionalism
o Social
o Sustainability
o Regional/local economic
development
o Capital works and budget planning
o Project management and delivery
o Regional and Sector Collaboration
The Global Procurement Network
Levels of procurement maturity
Centre of Excellence
across all expenditure
Procurement foundations in
place with improved controls
Some functional and category
strategies in place
Level 4
•Level
Influencing
the
3
business
Largely unco-ordinated
procurement with gaps in
• Transactional
compliance
• Professional
procurement
Level
2
Advanced
Developing
• Order placement
Level 1
Basic
Emergent
Focus on meeting legislative
requirements
The Global Procurement Network
Procurement Maturity Model
External Focus
Strategic
Procurement
Internal Focus
The Global Procurement Network
New Approaches to Achieving QBL Objectives
All levels of Government (& Private Sector) have social, economic,
environmental and Leadership/ Governance objectives (QBL)
Traditional ‘silo’ approach to achieving objectives
Innovation – Complex issues require new models
New ways to address complex, multi-causal and long-standing
community, economic and environmental issues
Integrating QBLS objectives into procurement, service design and
employment
For Government these may include:
Breaking cycles of long-term disadvantage
Providing genuine pathways to training and sustainable employment
Achieving ‘Zero Waste’ and carbon footprint reduction targets
Driving local and regional economic development outcomes
The Global Procurement Network
Strategic Procurement and the Quadruple Bottom Line
Procurement is moving from an administrative role to a strategic
one
NSW $27bn/ year – State Gov’t $20bn/ Local Gov’t $7bn
It represents over half of Council’s overall expenditure (avg.)
Significant market power to:
Deliver high quality, value for money goods, services and works;
Drive sustainable cost savings;
Influence, enable and stimulate the private and social enterprise
markets to deliver social, economic and sustainability outcomes;
The Global Procurement Network
What is Changing and Why Social and Sustainable
Procurement?
• Growing understanding of the role and power of
Strategic Procurement
• Developing personal, organisational, regional and
sector-wide procurement capability
• Strategic organisational objectives now being reflected
in procurement practice
• Pressure on Government to do more with less, to
collaborate, and to innovate
• Case Studies, evidence and Guidance – a growing body
of knowledge
• It is working!
The Global Procurement Network
Broader Benefits of Social and Sustainable Procurement
Integration - Achieving QBL goals, and addressing community
issues as part of the way you do business
Innovation – Encouraging innovation and the development of
new forms of partnership and service delivery models.
Organisational Identity and Reputation – Building and
broadening the organisational identity.
Competitive Advantage –Directly demonstrating the capacity to
add social, environmental and economic value in delivering on
Government funded projects
Planning Ahead - Rather than responding in an ad hoc way as
community and Government expectations grow, QBL
procurement can be introduced through a managed, systemic
and achievable program.
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NSW Partnership Programs
• LGP Procurement Roadmap Program
• SSROC Procurement Development
Program
• SPAG and the NSW Social Procurement
Guidelines & Regional Programs
• Social Procurement Australasia
The Global Procurement Network
The Day Ahead
The Global Procurement Network