Value of procurement training
UNE Partnerships has been actively involved in procurement professionalisation, having successfully delivered procurement training to the Border Rivers-Gwydir Catchment Management Authority and ongoing accredited training to the Department of Defence.
Procurement, according to the Chartered Institute of Purchasing Supply Australia, is the “…business management function that ensures identification, sourcing, access and management of the external resources that an organisation needs or may need to fulfil its strategic objectives. Procurement exists to explore supply market opportunities and to implement resourcing strategies that deliver the best possible supply outcome to the organisation, its stakeholders and customers.”
Procurement covers a range of activities from identifying the need for a good or service, through to the disposal of an asset or completion of services. It incorporates activities before and after signing the contract as well as general management activities. Pre-contract includes planning, needs identification, analysis and sourcing, whilst post-contract includes contract management, supply chain management and disposal. Procurement also encompasses general management aspects such as corporate governance, supplier relationship management, risk management and compliance. It delivers a range of benefits to organisations including security of supply, lower costs, reduced risk, improved quality, greater added value, increased efficiency and innovation.
In 2009 UNE Partnerships developed and delivered procurement and contract management training for the Border Rivers-Gwydir Catchment Management Authority, located in northern New South Wales. One of 13 Catchment Management Authorities (CMA) in New South Wales, the Border Rivers-Gwydir CMA is responsible for engaging with its local communities in the management of the catchment’s natural resources.
Intensive face-to-face procurement training was customised for the Border Rivers Gwydir CMA covering procurement policy framework and principles, managing the procurement process, tendering methods, developing tender specifications and administration.
Contract management training developed participant’s skills, covering a range of topics including types and development of contracts, formalising contracts, performance management and managing contracts through to finalisation.
Public sector procurement of goods and services across all three levels of government in Australia is approximately $100 billion annually. In the fiscal year 2008-2009 the Australian government entered into 85,870 contracts, with a value of almost $33 billion (Department of Finance and Deregulation).
By far the largest agency in terms of value of contracts is The Department of Defence at 56%. Procurement remains a major economic activity performed by government and accounts for approximately 15% Australia’s gross domestic product.
Procurement is now recognised as a management discipline, linking financial and strategic outcomes through management of external resources. Value for money is the core principle underpinning Australian government procurement. Public sector leaders are seeking procurement professionals to leverage greater benefits from their investments in external resources.
If you are interested in learning how UNE Partnerships can help you and your organisation better understand the procurement process and also develop and manage contracts, please contact Richard Doyle at UNE Partnerships (richard.doyle@unep.edu.au).
