We responded to A Ministry of Economic Development all of Government RFP on behalf of a client with a national presence in office consumables. The response was submitted through the Government’s e-portal procurement website. The project involved the development of a pitch that conveyed the client’s commercial proposition and competitive advantages. Within a tight time frame, we worked alongside the client to create a competitive business case based on pricing, customer service and purchasing incentives.
CROWN ASSET COMMERCIALISATION
We have worked with New Zealand’s Defence Force to create commercialisation strategies that can release surplus capacity of relevant Crown assets to the private sector, generating new sources of revenue to offset other expenditure. The pilot project was to explore private sector access to aviation safety technology involved significant policy, process and procedure change. The outcome has been the opportunity to leverage assets and specialist skills for the benefit of the aviation, R&D, and sports medicine markets.
We undertook research to gain a comprehensive understanding of competition in the marketplace. The research anticipated changes to all of Government procurement and the impact this is likely to have on bidding processes and the awarding of future contracts.
The client required an objective analysis of the aspirations of each of the parties involved and the development of a negotiation strategy that best positioned them to secure a future contract. Our negotiation expertise and in-depth experience of contract management supported the client to analyse and understand Government’s objectives, thereafter to engage in dialogue that leveraged all competitive advantages and future commercial innovations.
PROCUREMENT CATEGORY DEVELOPMENT
We established a strategy and new processes allowing the client to identify opportunities within their current spend for immediate and ongoing savings. The project prepared the client to approach their strategy development and category analysis in a structured manner, utilising tools established by us to ensure robust decision making, and the development of a practical plan of action. The projects also equipped staff with the knowledge to identify their spend categories, opportunities for immediate savings, as well as a process for applications in other categories into the future.
We have recently been commissioned to develop an Industry Plan that will increase collaboration between Government, Industry and related agencies. The benefits of effective commercial partnering will provide cost saving opportunities through Whole of Life and Total Cost of Ownership plus economies of scale in building a sustainable high technology, science, and skills base in New Zealand. Additionally, the resulting synergies will incentivise new employment opportunities and deliver tangible economic benefits to those sectors that can fulfil appropriate contracts in part or in their entirety.
INVENTORY MANAGEMENT PITCH
We were engaged to research options in response to an RFP issued by a multinational OEM. Having created a range of alternative strategies to respond to the RFP, a strategic pitch was developed with the client that leveraged infrastructure, expertise, intellectual property and existing world-wide industry relationships. The resulting negotiations were successful and the client secured US$50m of new business as a result.
To achieve the goal of the Inventory Optimisation Project, we provided personnel with Material Requisition Planning (MRP) and inventory management expertise. The team mentored the Materiel Requisition Provisioners, enabling them to align their business disciplines with MRP best practice.
Our team monitored and recorded decision making (including recommendations for obsolescence) within an agreed template. This generated a list of purchase decisions from the MRP controllers, highlighting the purchase options utilising the previous stockholding strategy. Our techniques and practices align with the University of Auckland, Aerospace Supply Chain Management Programme.
SUPPLY CHAIN ANALYSIS
Engaged to assist with best practice management accounting methodologies throughout a rapidly growing product base, we provided financial modelling and innovative presentation methods, adding value while complementing existing financial reporting and IT systems.
Outcome-aided decision making delivered on the strategic and operational objectives of the business. Applying a gap analysis methodology between the current state of the business and industry best practice provided a means to meet the operational, financial and unique cultural environment, whilst developing a series of high level recommendations/options to support known and predicted needs.
To achieve Total Cost of Ownership value delivery to the bottom line, commercial constructs were developed, enabling the business to best work market forces to their advantage. This was achieved by identifying potential TCO savings across all agreed spend categories, unlocking savings over an agreed period of time and building a procurement organisation that delivers to the client’s current and future needs.
The client also commissioned our experienced coaching team to evolve its leadership capability across the senior executive through targeted executive coaching and the implementation of accurate performance measures.