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Achieving Value for Money in Public Sector ... - Federated Press

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Ensur<strong>in</strong>g efficient<br />

procurement<br />

Kurt Ritcey, Partner,<br />

Deloitte & Touche LLP<br />

1:30-2:15<br />

CASE STUDY: STREAMLINING THE PROCUREMENT PROCESS<br />

Boris Ts<strong>in</strong>man, Jo<strong>in</strong>t Director, Procurement & Supply Cha<strong>in</strong>,<br />

Rouge Valley Health System<br />

A procurement procedure that is mired <strong>in</strong> red tape and <strong>in</strong>efficient processes<br />

is highly unlikely to obta<strong>in</strong> value <strong>for</strong> money from its external<br />

spend. This discussion details how to streaml<strong>in</strong>e the procurement<br />

process to ensure that procurement itself achieves value <strong>for</strong> money <strong>for</strong><br />

the organization.<br />

· Driv<strong>in</strong>g <strong>in</strong>ternal per<strong>for</strong>mance to establish a<br />

streaml<strong>in</strong>ed procurement process<br />

· Creative strategies <strong>for</strong> improv<strong>in</strong>g the efficiency of the procurement<br />

stream through <strong>in</strong>novation and greater accountability<br />

· Reduc<strong>in</strong>g the cost of procurement <strong>for</strong> both the<br />

public sector and private bidders<br />

· Us<strong>in</strong>g streaml<strong>in</strong>ed approaches to improve<br />

supplier relationship management<br />

· Institut<strong>in</strong>g the right technology, policies and processes<br />

· Facilitat<strong>in</strong>g <strong>in</strong>novative contract<strong>in</strong>g approaches, such as<br />

e-procurement, remote requisition<strong>in</strong>g, tender<strong>in</strong>g sites<br />

· Ensur<strong>in</strong>g you have the right people <strong>in</strong> place with the<br />

skill set to support your long-term structure needs<br />

2:15-3:00<br />

CASE STUDY: ACHIEVING VALUE FOR MONEY WITHIN<br />

THE GOVERNMENT’S PROCUREMENT POLICY<br />

Kathleen Callan, Manager, Procurement, Ornge<br />

At first glance, government procurement directives designed to foster<br />

fairness and transparency can appear to be a roadblock to achiev<strong>in</strong>g<br />

value <strong>for</strong> money. Strategies and approaches adopted by the private<br />

sector to negotiate or squeeze value from suppliers are often not part<br />

of the public sector approach. However, gett<strong>in</strong>g value <strong>for</strong> money while<br />

work<strong>in</strong>g with<strong>in</strong> these constra<strong>in</strong>ts is possible. This discussion details<br />

how Ornge, Ontario’s transport medic<strong>in</strong>e organization funded by the<br />

M<strong>in</strong>istry of Health, achieves value <strong>for</strong> money <strong>in</strong> their spend, while comply<strong>in</strong>g<br />

with government directives.<br />

· Improv<strong>in</strong>g efficiency and effectiveness of the spend<br />

· Driv<strong>in</strong>g additional value from supplier relationships<br />

· Encourag<strong>in</strong>g competition among contractors<br />

· Obta<strong>in</strong><strong>in</strong>g the highest quality of goods and services<br />

· Ensur<strong>in</strong>g fairness, objectivity, accountability and<br />

transparency and achiev<strong>in</strong>g value from your spend<br />

3:00-3:30 NETWORKING BREAK<br />

3:30-4:15<br />

CASE STUDY: COMPLYING WITH THE NEW BROADER PUBLIC<br />

SECTOR PROCUREMENT DIRECTIVE - MAXIMIZING VALUE<br />

FOR MONEY FROM HOSPITAL PROCUREMENT AT BAYCREST<br />

Mark Wilson, Manager Supply Cha<strong>in</strong>, Baycrest<br />

With government dollars <strong>in</strong> short supply, patient care costs <strong>in</strong>creas<strong>in</strong>g<br />

at an exponential rate, a decreas<strong>in</strong>g tax base and the prov<strong>in</strong>cial<br />

government’s recently <strong>in</strong>troduced Broader <strong>Public</strong> <strong>Sector</strong> Procurement<br />

Directive, hospitals now have to look closely at maximiz<strong>in</strong>g the value<br />

they receive from the use of public funds. This discussion details how<br />

Baycrest has identified <strong>in</strong>efficient processes and faster, smarter ways<br />

to conduct bus<strong>in</strong>ess so that the money saved can be re<strong>in</strong>vested <strong>in</strong> <strong>in</strong>frastructure,<br />

upgraded materials and patient care.<br />

· SSOs (JIT), GPOs<br />

· Competitive RFTs, RFPs (<strong>in</strong>vitational or directed) processes<br />

· Government VORs<br />

· Long-term service contracts: Ma<strong>in</strong>tenance, Repair<br />

· Proactive contract adm<strong>in</strong>istration<br />

· Lean<strong>in</strong>g purchas<strong>in</strong>g and logistics functions<br />

4:15-5:00<br />

ACHIEVING VFM THROUGH LEAN SOURCING<br />

Kurt Ritcey, Partner, Deloitte & Touche LLP<br />

Cont<strong>in</strong>uous improvement tools such as lean and six sigma may have<br />

orig<strong>in</strong>ated <strong>in</strong> a manufactur<strong>in</strong>g environment, but they have been successfully<br />

deployed <strong>in</strong> many public sector procurement departments.<br />

Indeed, apply<strong>in</strong>g these cont<strong>in</strong>uous improvement methodologies to<br />

advance strategic sourc<strong>in</strong>g policies and procedures can help secure<br />

significant sav<strong>in</strong>gs and further cost reductions over the life of the contract.<br />

· Challeng<strong>in</strong>g the team to not just manage cost but also<br />

streaml<strong>in</strong>e process improvements and tackle <strong>in</strong>efficiencies<br />

· Conduct<strong>in</strong>g lean assessments<br />

· Tak<strong>in</strong>g a six sigma approach<br />

· Examples of cont<strong>in</strong>uous improvement projects<br />

· Work<strong>in</strong>g process improvement <strong>in</strong>to the<br />

government-contractor relationship<br />

· Additional cost reduction opportunities via<br />

collaboration with supply partners<br />

· Quantify<strong>in</strong>g quality <strong>in</strong> lean sourc<strong>in</strong>g <strong>in</strong>itiatives<br />

Collaborative Procurement<br />

SESSION 2<br />

Monday, June 13 th

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