People Innovation Excellence

Forward Procurement Planning in DAFWA (Department’s of Agriculture and Food) and Education (DoE)

Forward planning helps you monitor your current contracts and provide a heads up for approaching expiration dates. DAFWA and DoE offer different approaches for better equipping an agency for future procurement. DAFWA always keep finger on pulse so it will be less of unbudgeted surprise. DoE demonstrates on how strategic procurement unit can assist in mitigating future risks. DAFWA has aggregated contract requirements and trialled new pricing techniques for some of its major capital equipment purchases. DAFWA has saved in excess of $350,000. These changes give benefits to DAFWA such as reduce small and ad hoc purchases, improve forward procurement planning, explore new technologies and reduce total number of agency tenders

In the previous procurement process, DAFWA purchased agricultural equipment as part of Capital Equipment Replacement Program (CERP). It used to be duplication of similar item being purchased from different suppliers resulting significant cost for DAFWA.

Then, DAFWA changed their procurement process by identify opportunity to aggregate its purchasing requirements. Forward planning is done by procurement staff to be aware of the department’s needs. Agency and Department of Treasury and Finance (DTF) procurement staff are involved in CERP process. To manage the procurement activities, staff always tracking the contract expiration date. DAFWA also reduces 13 tender processes to six bundling to form single contracts and three of the six contracts were tender under online auction.

As result, it reduces the number and frequency of tenders. DAFWA saved in excess of $180,000. It can be used to purchase additional and urgently required equipment. By knowing our requirement in advance we can plan and take advantage of many aggregation opportunities as possible to reduce number of contract processes conducted. By monitoring, doing analysis of item on CERP, and build good communication among departmental requesters will provide more savings to agency. By allowing suppliers to see the lowest possible price that currently being bid will increase market competitiveness and give us the best possible price.

By implementing well monitored procurement program based on aggregation DAFWA has been able to reduce piecemeal buying, forward plan procurement processes, reduce contract processes and duplication effort. By trialling new technologies such as online auction system, DAFWA has reduced negotiation effort with suppliers, increased competition in marketplace and achieved the best price possible for equipment.

Published at : Updated
Written By
Sugiarto Hartono
Subject Content Coordinator | School of Information Systems
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