Dimension

Particulars

Policy and Procedures

The ability to provide guiding direction, principles and procedures for its procurement activity, including legal and regulatory requirements

1. Policies are developed linking agency procurement activities to the State Purchasing Policy with the Corporate Procurement Plan and Significant Purchasing planning as essential business practices, influencing decisions & actions.
2. Policies are backed by agency purchasing procedures that provide the framework and operating systems that address how the agency will undertake and manage its purchasing activities. These procedures are recognised and used by all staff to deliver effective outcomes.

Strategy

The development of organisational procurement objectives and strategies that align with the business direction and needs

1. Corporate procurement planning, based on an analysis of the agency’s procurement profile and supply positioning, is an important activity in the Agency’s annual management cycle.
2. A strategy exists to ensure that the purchasing systems to meet the full needs of strategic, tactical and operational procurement are implemented and fully utilised.
3. Significant purchase plans are developed for all high risk/high relative expenditure items.
4. A forward procurement schedule is published annually and updated quarterly.
5. Key performance indicators in the Agency’s Strategic Plan measure the effectiveness of the agency’s procurement activity.

People and Culture

The HR capabilities, capacity and approach to support all functions of strategic, tactical and operational procurement. It also defines the development processes for procurement people

1. The skills and number of staff involved in procurement match the complexity and relative expenditure of procurement activity within the organisation.

Business Systems

The procurement enablers such as electronic and manual procurement systems that are in place and the operating business processes that specify and guide procurement activities

1. Demand and supply market profiles and trends as well as data on the performance of key suppliers is collected, maintained and is readily accessible to support procurement planning.
2. The procurement system supports contract management activity and provides accurate information for managing supplier performance.
3. There are effective and efficient systems in place to automate the procure to pay process.

Practices

The implementation and application of procurement strategies in the process of undertaking tactical and operational procurement

1. Corporate Procurement Planning strategies are accepted, communicated and fully adopted throughout the organisation.
2. Plans for significant purchase are supported, implemented and the resultant supply arrangements effectively managed and measured to verify and deliver the planned outcomes.
3. Appropriate supplier relationships are developed commensurate with the complexity and relative expenditure to the agency.
4. Internal agency relationships are continuously refined to ensure all procurement activity is managed effectively.

Performance Management

The measuring, reviewing and improving the value and effectiveness of all procurement activities

1. There are established procurement performance measurements that are reported and regularly reviewed as part of a continuous improvement cycle.
2. Measurement of supplier performance is central to contract management.
3. Benchmarking and continuous market research is used to assess value for money in the procurement of significant supplies and services.