Integrated planning to deal with procurement challenges

As Local Authorities and private businesses are being asked for ‘Financial Prudence’, and to save money whilst still delivering services, more emphasis will be on better integrating and optimising internal procurement systems with the external service delivery providers.

One of the most effective ways for organisations to save money is in their procurement practices, both for professional services and physical works delivery. One o f the questions is what to outsource and how? The author of this paper has had first hand knowledge of Alliancing, Design and Construction Contracts, Professional Service Panel Contracts, and the more traditional NZS3910 contracts. With this knowledge this paper presents the various factors of preparing a robust longer term procurement strategy. A strategy which optimises the in-house skills with the external providers. This is one important way to meet the challenges of cost savings in today’s economic climate and looking beyond to the days of economic recovery.