Procurement Capability Review

Redland City Council (RCC), a local government authority in south-east Queensland, engaged Charles Kendall Australia (CKA) to assist them in moving from prescribed, spend-based procurement activities to a strategic model. CKA undertook a review of RCC's procurement functions and designed strategies to improve efficiency, capability and alignment with corporate objectives.

The Challenge

Determine RCC's procurement capability and maturity level.
Design strategies to move towards a strategic procurement model.
Identify opportunities to reduce costs and increase efficiency.
Mitigate supply risks within RCC's procurement and contract management function.

Our Approach

Spend analysis to identify RCC's management of expenditure and highlight cost-saving opportunities.
Capability analysis to determine procurement structure, people and processes.
Governance analysis to establish the appropriateness of existing structure and controls.

Outcomes

Identified costs savings of approximately AUD$1M through better aggregation of spend and increasing the level of spend under management.
Developed a sustainable procurement model including corporate social responsibility (e.g. quadruple bottom line, social procurement, etc.).
Delivered an improvement plan detailing costs/benefits, associated actions and timeframes for recommendations including procurement structure, strategy, policies and procedures, roles and responsibilities, leadership and performance management, and systems and monitoring.