CIGFARO:

“PROCUREMENT AS A LEVER FOR ECONOMIC GROWTH”

05 June 2018Goudini Spa S Mayekiso

OVERVIEW

Sustainable Procurement

Road Map “Where sustainable procurement lands”

Targets and Goals

Strategy to implement the goals

End Game (Game changer)

Sustainable procurement….

© Western Cape Government 2012 |

Sustainable Procurement – World Bank

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© Western Cape Government 2012 |

Sustainable Procurement – Localised

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Sustainable procurement is an enabling link which allows institutions to stimulate

economic growth;

Allows the achievement of both the Physical delivery of the end product and soft

targets (employment) at the same time:

The main focal points are:

Environmental

impact (Green

Procurement)

Efficiency

Economic use

Economic

impact

Road Map (master plan) ….

© Western Cape Government 2012 |

SCM Capacitation and Training

(Organisational Structure Capacity and Skill)

Assessment of SCM and AM Structures

Training and capacitation strategy and programme

SCM bespoke training

interventions

Internal and external client

service (helpdesks, risk based municipal interventions.)

Supplier Development Initiatives in collaboration with Municipal SCM and

LED units

Strategic Procurement

Procurement Planning / Demand Planning

Value for money (Cost vs. quality vs. opportunity

vs level of service )

Procurement Strategy aligned

to SDBIP and IDP

Effective utilisation of

resources

Assessment of the

MERO/PERO link to

municipal Procurement

Strategies

Economies of Scale

Research market

intelligence and technical expertise to redress and

improve municipal

procurement strategies and

planning

SCM Technology

(Reporting, Data Integrity)

Reporting that is credible consistent and provides for integrity of data and ensure councils oversight role is effectively implemented

Integration of financial and non-financial systems

Development of Enterprise Content

Management System

Vendor Management: Database and Administration

efficiencies

Research, Development and Implementation of a fully fledged

E-Procurement Compliance System

SCM Governance

(Policy and Control)

Development of SOP’s for the Municipal SCM

System

Compliance to policy, prescripts

and alignment to legislative framework.

Development of System of

Delegations

Contractor Development Initiatives

Development of a

framework for risk based

assessments

TIME (CONFORMANCE AND PERFORMANCE) 7

CONFORMANCE

PERFORMANCE

Development of a Information Management System link to vendor performance/contract management

BIG PICTURE….

© Western Cape Government 2012 |

BIG PICTURE

• As a province we are spending (Budget):

R 62 billion• We have over people?

6.1 Million

Reality

TARGETS AND GOALS….

© Western Cape Government 2012 |

Resolutions … 2017 SCM-LED Indaba

12SCM INDABA, 2017

Incorporating SCM-LED statement into the IDP - Identify key champion(s) to drive the process;

Compiling/drafting of Implementation Plan prepared by Core Group ( LED practitioners) in alignment to the Provincial roll-out (PG SCM) ;

Compiling/drafting document to obtain buy-in from Accounting Officer(s), Mayoral committees as well as council members – Using DCF’s to set the scene.

Institutionalise the Agenda of SCM and LED (structured approach);

Utilising data optimally (data enablement) to clearly identify what it is we want out of systems - Identifying gaps, targeted interventions, strategic commodities etc.

Identification of pilot municipalities in order to benchmark best practices –district specific.

Focusing on Contractor development initiatives; and

Adoption of a Provincial Economic of Procurement Policy;

© Western Cape Government 2012 |

Roadmap to link SCM, LED and IDP

13SCM INDABA, 2017

1. Map SCM Value Chain

2. Identify sectors with opportunity (LED

Strategy)

3. Link LED opportunities with

specific sectors

4. Map sector value chain with linkages to

suppliers (can local respond to

procurement demand?)

5. Identify expenditure targets

6. Develop procurement plan

7. Align to procurement and IDP policies and

strategies

8. Monitor & Evaluate

Strategy to implement the goals….

© Western Cape Government 2012 |

Sustainable Procurement: Using technology as a lever

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Data Collection and analysis

(Spend Analysis);

Procurement Plan collection

and analysis;

ERP system and CSD

(e-procurement)

SCM Technology:

Start extracting data from financial system;

Analysis of data: high value transactions,

volume of transactions,

Top suppliers,

Location of suppliers,

repeat use of supplies.

District Spending

Patterns

© Western Cape Government 2012 |

Sustainable Procurement: Case studies at SCM indaba

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Develop best practice guidelines;

Develop toolbox for each

municipality;

Create uniformity and standards

across the province.

SCM strategic Procurement:

Select teams from Districts to investigate and

develop ways to implement the indaba

resolutions.

Teams will present at the indaba their

solutions, and will be formally adopted and

sanctioned as provincial guidelines.

District best practice

Approach….

© Western Cape Government 2012 |

Municipality Strategic Planning Framework Alignment

18WCG-PPT Slide Gallery-01112012.pptx

Current situation…. Supplier registration status (Country wide

© Western Cape Government 2012 |

Supplier registration status (Country wide)

© Western Cape Government 2012 |

Spend Review per district

© Western Cape Government 2012 |

Supplier Spend Review per demographics

GREATEST 21st CENTURY ENTREPENEUR/INVENTOR

What things would have the great impact on the future of

humanity’s destiny? - Elon Musk (TESLA & SPACEX)

Thank you