Procurement Services

CPL – Choice, Passion, Life is a not-for- profit organisation providing disability, therapy, employment and aged care services across Queensland. Following a comprehensive procurement review and the provision of ad-hoc contract review and negotiation services, CPL engaged Charles Kendall Australia (CKA) to deliver procurement services on an on-going basis. The engagement started in May 2017 and is still thriving as of today. The outcomes outlined in this case study were all achieved by June 2018.

The Challenge

No internal procurement resource to lead procurement and contract management activities.
No sufficient workload to justify a full-time procurement manager.
Low level of expenditure control due to decentralised procurement model.
Key supplier contracts not consistently managed leading to contract leakage.
Lack of capability and capacity to manage high value and complexity contracts.

Our Approach

Deployed a procurement resource via a flexible arrangement with a mix of on-site and off-site delivery of services and supported by a team of procurement experts in areas such as dispute resolution, contract law and category specific intelligence.
Demonstrated the value of procurement and contract management across key departments such as Corporate Services, IT and Marketing.
Consolidated all future procurement activities in a forward procurement schedule and identified priority categories to be addressed.
Consolidated all supplier contracts into a single database.
Established relationships and value alignment with key suppliers.
Continuously identified value for money and efficiency improvement opportunities by, for example, reviewing the fleet specifications and benchmarking the fleet contract.
Acted as a trusted procurement advisor to the business for contract drafting, reviews and negotiations.

Outcome

Delivered $317k in annualised financial savings in addition to qualitative benefits resulting in return on investment of more than 3 times.
Increased transparency of procurement procedure, spend limits and approval authority.
Improved planning of procurement resources to address high value categories.
Improved contract database that includes key contract information and documentation.
Negotiated fundraising rebates and donations as part of key supplier contracts
Conducted 14 contract reviews and reduced risk exposure to CPL.
Raised more than $10k for programs such as the Let’s Talk and Rai Collective programs