Procurement Performance Report

Transcription

1 Procurement Report (Q4) The Procurement Solutions Directorate delivers strategic supply solutions to support the education and community objectives for NSW. Full year results have exceeded targets in the key areas of realised savings; electronic trading, customer satisfaction and vendor performance. Overview Realised Savings Measure overall Department savings attributed to centrally managed procurement. The Directorate delivered $98 million in realised savings, achieving 108 per cent performance against the target of $90 million. These savings included products and services purchased as part of the Digital Education Revolution and Building Education Revolution programs. $87 million (88 per cent) of these savings were realised by schools through lower prices or an average of $38,857 per school ($104,645 per school since inception of the Directorate in 2008). Information technology and imaging devices returned the greatest proportion of savings, delivering $58 million ($215 million since inception). Electronic Trading Measures the Department s total expenditure through electronic channels. A total of $823 million was transacted through smartbuy. ($3.26 billion transacted since the Directorate s inception). Measures staff satisfaction with the Directorate s activities. 81 per cent average monthly satisfaction with procurement contracts and service delivery. 86 per cent satisfaction with contract value (including prices) among principals and school administration managers. Vendor Measures performance of vendors managed by the Directorate. Overall 96 per cent compliance of the managed supply base to requirements, exceeding the target. Contract Delivery Measures delivery to target of the Program of Contract and Priority Works. Achieved 82 per cent performance, with 23 projects delivered and a further 8 projects active. Annual Scorecard The following Savings Reform Scorecard provides a summary of the Directorate s 2011/12 performance at June through these five key performance indicators. Further performance results include: Cash savings returned to Corporate Finance was $4.4 million. Return on investment: 9:1. This means $9 in savings were realised for every $1 of Directorate costs. Savings per full-time employee (FTE): $2.0 million net savings achieved for the Department for each Directorate FTE. Overall the Directorate captured $104 million in total savings, including costs avoided ($353 million achieved since its inception). NSW DEPARTMENT OF EDUCATION AND COMMUNITIES

2 Average Index 140% 111% PROCUREMENT SAVINGS REFORM SCORECARD - JUNE 2011/12 160% 120% 82% Monthly Index 108% 99% 126% 114% 104% 154% 148% 145% 142% 140% Trend Net Cost of Return on Investment Savings per FTE $4.4m 9:1 $2.0m Realised Net Savings $M Savings Plan DFS BER DER DECPS Net Realised Savings $90m ($4.4m retained) Contract Delivery 92% Contracts Program 31 Electronic Contract Spend 300% Electronic Contract Spend $617m Customer Satisfaction 108% Satisfaction 70% 89% 87% 87% 75% 76% 75% 81% 78% 78% Customer Satisfaction* 81% Avg Contract Vendor 101% 95% 85% Vendor 96% 96% 94% 96% 95% 97% 95% 95% 96% 96% 97% 97% Low High Vendor * 96% Avg All figures correct as at 19 July 2012 *Based on financial year average

3 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Sep-10 Nov-10 Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12 $M since Inception The Procurement Solutions Directorate was established in 2008 to deliver savings reform. This report outlines its cumulative performance for the four year period from July 2008 to June Savings delivered The Procurement Solutions Directorate has achieved total performance savings of $352 million through taking advantage of the Department s purchasing power and economies of scale. $400 $350 $300 $250 Realised Savings $200 $150 $100 $50 $ Retained Returned Cost Avoidance Total ($M) $268 million (87 per cent) of this has been realised by schools, TAFE Institutes and state offices through lower pricing and operating costs ( returned savings. Returned Savings by Organisation - $268M Savings by Savings Type Schools $233M, (87%) TAFE $16M, (6%) State Office $18M, (7%) Returned 76% Retained 11% Cost Avoidance 13% $44 million (13 per cent) has supported budgets through avoiding non-budgeted costs. The Executive has redeployed the centrally retained $40 million (11 per cent) to cover frontline requirements and support operations across the Department.

4 Top areas of savings Student learning technologies and imaging devices have delivered the most procurement savings to the Department. The top four savings initiatives are student laptops ($126 million), interactive whiteboards ($60 million), imaging devices ($29 million) and office products ($26 million). This shows the shift in contemporary teaching practices and the economies of scale now being delivered by the market. Project delivery The Directorate is delivering a high volume of contracts and projects that help the Department to capture savings, minimise risk and build better service levels to support NSW education and community objectives. The project delivery graph shows the number of contract initiatives active each month since the Directorate was established. The red line depicts the cumulative number of projects successfully completed in each month. 84 separate projects have been delivered so far.

5 Jul-10 Sep-10 Nov-10 Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12 Satisfaction Rate Feb-09 Apr-09 Jun-09 Aug-09 Oct-09 Dec-09 Feb-10 Apr-10 Jun-10 Vendor management The Directorate is sustaining high levels of supplier support and performance while continuing to increase the number of suppliers and expenditure it is managing. This ensures the quality and consistency of products, pricing and service for customers in all areas of the Department. Overall, performance in has consistently averaged 96 per cent and almost continuously met target. Contract Vendor Management 95% 85% 75% Monthly Rolling Average (Low) (High) Customer satisfaction Customer satisfaction continued at a high level throughout the year. Overall satisfaction sat consistently above 75 per cent and rose to 90 per cent in June. Changes to service delivery have improved customers satisfaction with all measures (value, process, communications and service) producing significant improvements. It is believed that this high level is sustained in part through the quick response to feedback by Directorate staff. 70% 77% 77% 79% 81% 81% 81% 81% 83% 83% 81% 78% 78% 75% 76% 78% 78% 75% 89% 87% 87% 60% Total Contract Value Service ecatalogues Communications Satisfaction with contract value (which includes prices) continues to perform above target and currently sits at 92 per cent, exceeding the 75 per cent target.