Public Sector Procurement Optimization and Cost Reduction

CRG identifies process, governance and procurement value-for-money opportunities for one of the Greater Toronto Area's largest municipalities

The Challenge:

The increasing volume and complexity of procurement activity as a result of the City’s rapid growth and expansion created a strain on the organization’s Procurement Services department. Legacy procurement processes, policies and capabilities were no longer sustainable, and were impeding the City’s ability to achieve its Service Excellence Strategy.

Some of the key systemic challenges included:

• Absence of a defined procurement strategy combined with an operating model that lacked a strategic focus
• Lack of formal documentation around procurement processes, roles and responsibilities
• Limited technology enablement contributing to process inefficiencies
• Risk of non-compliance to procurement policy due to the lack of formalized governance and policy infrastructure

CRG delivered the following:

• Facilitated strategic planning workshops and delivered a future state vision, mission and strategic priorities for the procurement function
• Designed a future state operating model and organizational structure for the procurement function to improve capabilities and efficiencies
• Developed recommendations to streamline existing procurement policies as well as designed a governance framework to manage compliance
• Provided Lean training to procurement staff and facilitated ‘Kaizen’ events to identify opportunities to improve the procurement process
• Identified opportunities to deliver a 35% reduction in procurement cycle time
• Identified opportunities for the City to achieve $8.0M in financial benefits over the next 3-5 years by focusing on strategic spend management
• Communicated vision, captured key requirements and obtained strategic buy-in on future procurement model from city leadership including the Mayor and Council leadership