Implementing New Procurement Policies in the Public Sector Essay

1148 WordsMar 13, 20155 Pages
SCMP Designation Program – Module 7 Implementing New Procurement Policies in the Public Sector Case Report Prepared for Jean Loitz Woo-Jin Han 2/14/2015 Implementing New Procurement Policies in the Public Sector Case Report Table of Contents Executive Summary....................................................................................................................................... 2 Issue Identification ........................................................................................................................................ 3 Immediate Issue ........................................................................................................................................ 3 Systemic Issues…show more content…
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. Implementing New Procurement Policies in the Public Sector Case Report Page 3 Environmental & Root Cause Analysis Qualitative Analysis - The City’s 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. Quantities Analysis - The new proposed policy would require purchasing FT coffee which will increase the cost between 15 and 20 percent of $150,000. Implementing New Procurement Policies in the Public Sector Case Report 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-op program with suppliers. Pros: - Learn and implement the best practice quickly. Supplier can share their resources to lower administrative overhead. Early supplier
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