City manager has expressed great concern of no other benchmark available, financial impact to the City’s budget and the Supply Management team’s limited working knowledge. Because the support from key internal stakeholders is critical to success of the policy, the implementing project will concentrate its efforts on engaging them. To answer these concerns propose to hire 3rd party consulting firm, cooperate current supplier and potential new qualified supplier to assess financial impact and develop tools and process that would not increase administrative and financial burdens on the City and suppliers.
This report will discuss this in more detail. implementing New Procurement Policies in the Public Sector Case Report page 2 Issue Identification Immediate Issue The city has to find qualified staff, develop the policy and minimize cost impact. Systemic Issues Problem 1: Limited working knowledge and lacking of staffs with expertise -? The City doesn’t have proper staffing resources with expertise and hasn’t done any benchmarking. Problem 2: The fear of cost increase – Often purchasing in an ethical way may incur additional costs to a business when compared with others who may not do in a same way. Problem 3:
Public Sector Essay Grade 12
Implementation timeline has been set up prior to full assessment Of scope. 6 month to approve policy, 1 year to implement the first phase of cloths procurement from ethical source and 2 years to expand it to City-wide. Page 3 Environmental & Root Cause Analysis Qualitative Analysis The City Manager of the Supply Management team has little experience of ethical purchasing. Lack of staffing resources with expertise in the area of sustainability. Need cost impact analysis of staff budget. The new proposed policy would require purchasing FT coffee which will increase the cost between 15 and 20 percent of $150,000. Page 4
Options There are several strategic options that need to be considered in order to fully address the issues. Option 1 Increase staffing budget and hire the sustainable and ethical purchasing experts. Pros: Secure permanent subject experts. Procurement processes time stays close to current due to increase of staff. Could cause additional stress to the current staffing budget. May need to steal staffing budget from other City departments to create a fund to support new staffs. Cons: Option 2 Hire 3rd party consulting firm and organize co-pop program with suppliers. Pros: Learn and implement the best practice quickly.
Supplier can share their resources to lower administrative overhead. Early supplier involvement would give them time to prepare for the new changes. It would allow supplier to find alternate sources that are ethnically responsible. Owe initial cost because the City doesn’t have to hire new staffs. Still need to find a fund to hire consulting firm. Suppliers could influence the implementation negatively. Recommendation recommend the second option. The City has little experience of new purchase policy so it is critical to involve industry experts to develop implementation plan. Assistant buyer and supervise from City Inventory &
Distribution branch would become a qualified staff without high new staffing cost. They are familiar with existing with purchase process. It would provide insight of City process and new purchasing policy to new sustainability specialists. Supplier Implementing New procurement policies in the public Sector Case Report page 5 participation in early stage of implementation is very critical. Suppliers have sourcing network already that could be utilized to find ethical manufactures. Finding new suppliers isn’t always easy and building up new relationship requires efforts and time. It would create another overhead burden to the reject.
Sustainable and ethical purchasing has to maximize the benefits for themselves, partners and peoples in City. To prevent negative influence from suppliers, Supply chain manager has to review suppliers’ inputs carefully and direct them. Page 6 Recommendation Implementation Plan Implementation would . Element Description Responsibility Timeline Search and hire 3rd party consulting Task force team 1-?2 month Establish new purchase policy 1-2 months Present new purchase policy to Supply chain manager 1 month supplier City Manager Hold hearing and get approval from Create co-pop team with suppliers 3 months
Find ethical manufactures and 6 months negotiate prices Co-pop team Roll out phase 1 – cloth Roll Out phase 2 24 months firms public Council City manager page 7 Monitor and Control The new purchasing policy implementation progress should be checked timely. Suggest every 2. 5 weeks. Some of tasks have to be done in a month, this mid-point check is critical to handle any delays or changes. There are three aspects to the monitor and control. The first one is budget overhead, the second one is implementation progress and the third one is Supply availability and affordability. If budget overhead is below 5% – 4 million, it