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THE SUPPLY CHAIN GUIDELINE
Strategic Procurement Services www.queensu.ca/procurement/index.html
Terms and Definitions
Ontario Government: Provincial government of the province of Ontario, whose powers include legislation and control of the budget
Broader Public Sector (BPS): Any organization which receives operational funding from an Ontario Government ministry and is determined to be a major transfer payment recipient, this includes -
• Municipalities; • Academic Institutions i.e. - every university in Ontario; every college in
Ontario and every post secondary institution and School Board in Ontario • Health Care Providers - Hospitals and healthcare facilities
BPS Supply Chain Secretariat: Min. of Finance organization that develops and implements the government’s corporate procurement strategy.
Ontario Buys: is a program of the Ontario Ministry of Finance that provides funding and advice to the province’s broader public sector (BPS) partners — principally, hospitals, school boards, colleges and universities — to help them modernize their supply chains and other back-office processes. …
Introduction
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Terms and Definitions
Supply Chain: refers to the multiple processes that connect customers and suppliers. It is about logistics — getting the right materials to the right people and places at the right time.
Transfer payment agreements: Transfer payments refer to unilateral payments made between various sectors of the economy such, governments, and defined recipients. The recipients are not required to provide any service in return. However, the recipients must fulfill certain conditions to be eligible for the transfer. If the conditions are not met, the payments may decrease or discontinue
Ontario Education Collaborative Marketplace (OECM): has been established, by Ontario Buys, to facilitate group purchasing and introduce an integrated electronic marketplace. Once implemented, savings and productivity gains are expected to exceed $250 million over five years and will be redirected to supplies, equipment and other student needs.
Introduction
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In April 2009, the Ontario Government issued the following direction in the statement to the House on the 2009 Budget :
• BPS Supply Chain Secretariat issued the Supply Chain Guideline that requires
• a Procurement Policy & Procedures that have supply chain standards, includes 25 mandatory items
• a code of ethics and
• Procurement metrics (delivered to SCS)
to be followed by broader public sector (BPS) institutional transfer payment recipients;
• Guideline to be incorporated into the transfer payment agreements of education and healthcare institutions receiving more than $10 million per fiscal year, as of April 1, 2009.
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Introduction of the Supply Chain Guideline
March 2010
March 2011
Supply Chain Guideline (SCG)
“Core of the Core” • Leading Practices • Metrics • Standards
Version 1.0 – April 2009 • Code of Ethics • Procurement Policies and
Procedures
Version 2.0 – April 2010 • Expected to be legislated; will
include common documents
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SCG Metrics
Metrics • The SCG will include core supply chain metrics that BPS
institutions will be required to adopt. • Expectations as to the nature and timing of adoption will
need to allow for the requirements and starting point of different sectors and institutions.
Currently under Consideration: • Percentage of Total Spend through GPI • Percentage of Total Spend Under Contract • Investment in Education and Skills Development • Number of Purchase Orders in a Month • Number of non PO Invoices • Percentage of Invoices Paid within Due Date • Dollar Savings as a Percentage of Total Spend • Average number of Purchase Orders placed per Top Ten Supplier per month • Percentage of Low Dollar Value Purchase Orders
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SCG Standards
Standards • The SCG will include core supply chain standards that BPS
institutions will be expected to adopt. • Expectations as to the nature and timing of adoption will
need to allow for the requirements and starting point of different sectors and institutions.
Currently under Consideration : • Common Tendering and Contracting • Segregated Approval and Authority Schedules
• Contracts Database
• Supply Chain Information Systems Strategy
• Low Dollar Value Transactions
• Customer Survey Tools and Processes
• Supplier Performance Management • Job Roles and Specifications
• Performance Appraisal Process
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Later SCG Versions
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Are expected to include a Balanced Scorecard
THE SUPPLY CHAIN GUIDELINE
Strategic Procurement Services
www.queensu.ca/procurement/index.html
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Hyperlink Definitions
Effective supply chain management is vital for organizations to be successful. Modernizing supply chain management means finding better ways for the public sector to procure the goods and services it needs to continue to serve the citizens of Ontario.
Back-office processes are administrative functions that include: human resources, financial management and budgeting, procurement and payment for purchases
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Requirement # Objective
1 Segregation of Duties
2 Delegation of Authorities
3 RFx for > $100,000
4 RFI is not a pre-qualifier
5 RFSQ Ts & Cs must oblige Use of Supplier
6 RFx must be posted on accessible electronic site
7 RFx minimum response time of 15 days
8 RFx closing date during business days
9 Evaluation criteria before issue and disclosed
10 Disclose evaluation methodology
11 Evaluation team confidentiality & conflict of interest
12 All evaluators must participate & be fair
13 Highest ranked supplier selection – no alternate proposals
14 Tie-break score resolution must be disclosed
15 No discrimination or preferential treatment of suppliers
16 Contract must be executed before service or products received
17 Contract released with RFP & executed
18 Contracts must include Termination clauses
19 Contract term & extensions
20 Awards of contracts >$100,000 must be published
21 All RFx participants entitled to debriefing
22 Documentation requirement for no competitive process
23 Document retention (7 years)
24 Conflict of interest requirement
25 Rfx result protest procedure