The City of Cape Town used technology to transform its procurement processes and systems. It implemented an SAP system integrated across the city's departments to standardize processes and increase efficiency. This consolidated purchasing, inventory, and payment functions into a strategic shared service. The new system helped the city comply with regulations, realize cost savings, and analyze spending through automated procurement workflows and data analytics. It processed over 1.2 million invoices per month to support the city's operations.
Digital Cities Conference 2007 - The Social and Economic Impact of a Metropol...Nirvesh Sooful
The 3rd Annual BMI-T Digital Cities Forum is a two day event held on the 4th and 5th of October 2007 .
The City of Cape Town is in the process of installing its own broadband telecommunications network. It is envisaged that not only will this network result in considerable cost savings for the City itself, but also has the potential to bring about significant social and economic benefits to the city at large. The objective of this presentation is to identify, explore and, where possible, quantify the potential economic and social benefits that would be generated as a result of the proposed broadband network.
ICT in leadership and Change Manngmnt-SeminarSafaet Hossain
ICT in Leadership and Change Management seminar held on December 21, 2011. Presentation and Keynote speech by SASM Taifur, Chairman Center for ICT Policy Research (CIPR) & ICT Advisor Infrastructure Investment Facilitation Center.
Improving Local Government Procurement through the use of technology Nirvesh Sooful
This is a concept note describing a municipal e-procurement prrof of concept that I embarked upon. It aims to get support from the South African Government to support a project such as this. It is part of African Ideas thought leadership - intended to spark debate and discussion.
This presentation is from WSIS Forum 2016, Session 105 on “ICT-Based Cost & Burden Reduction in Public Administration and Service Delivery”. Room C1, ITU Tower, 11-13hrs CET, 5 May 2016, http://bit.ly/1OcFbIH
Presented by Maria Inés Baqué, Secretary of Public Management and Innovation under the Ministry of Modernization of Argentina Republic
Digital Cities Conference 2007 - The Social and Economic Impact of a Metropol...Nirvesh Sooful
The 3rd Annual BMI-T Digital Cities Forum is a two day event held on the 4th and 5th of October 2007 .
The City of Cape Town is in the process of installing its own broadband telecommunications network. It is envisaged that not only will this network result in considerable cost savings for the City itself, but also has the potential to bring about significant social and economic benefits to the city at large. The objective of this presentation is to identify, explore and, where possible, quantify the potential economic and social benefits that would be generated as a result of the proposed broadband network.
ICT in leadership and Change Manngmnt-SeminarSafaet Hossain
ICT in Leadership and Change Management seminar held on December 21, 2011. Presentation and Keynote speech by SASM Taifur, Chairman Center for ICT Policy Research (CIPR) & ICT Advisor Infrastructure Investment Facilitation Center.
Improving Local Government Procurement through the use of technology Nirvesh Sooful
This is a concept note describing a municipal e-procurement prrof of concept that I embarked upon. It aims to get support from the South African Government to support a project such as this. It is part of African Ideas thought leadership - intended to spark debate and discussion.
This presentation is from WSIS Forum 2016, Session 105 on “ICT-Based Cost & Burden Reduction in Public Administration and Service Delivery”. Room C1, ITU Tower, 11-13hrs CET, 5 May 2016, http://bit.ly/1OcFbIH
Presented by Maria Inés Baqué, Secretary of Public Management and Innovation under the Ministry of Modernization of Argentina Republic
Ciekawy dokument prezentujący wyniki kontroli NAO (National Audit Office) w Wielkiej Brytanii, która zajęła się tematyką wdrożeń SSC w sektorze publicznym.
Co ciekawe, pomimo tego, iż wdrożenia SSC nie dowiozły zakładanych efektów, to nie model sam jest tego przyczyną, a m.in. zbyt rozbuchane wydatki na zbyt mocno rozbudowane systemy IT. Poważne wnioski.
Presentación de Lee, In Jae, Director General de Administración de Políticas. Ministerio de Seguridad y Administración Pública de Corea, en el WorkShop APEC 2013 "Government-to Citizens Service Channels"
Double-up: ICT enabled cost and burden reduction in public sector service del...Morten Meyerhoff Nielsen
This presentation is from WSIS Forum 2016, Session 105 on “ICT-Based Cost & Burden Reduction in Public Administration and Service Delivery”. Room C1, ITU Tower, 11-13hrs CET, 5 May 2016, http://bit.ly/1OcFbIH
Presented by Morten Meyerhoff Nielsen, UNU-EGOV Academic Fellow and Researcher, Tallinn University of Technology Ragnar Nurkse School for Innovation and Governance
Presentation 1 of 2 by Ermo Taks, senior consultant in E-governance architectures and interoperability, Estonia, at seminar 2, held on 18 March 2021, which addresses digital government principles and building blocks. This 2nd event takes place in the framework of a series of three webinars organised by the SIGMA Programme, a joint initiative of the OECD and EU, principally financed by the EU, on the role of life events in end-to-end public service delivery.
E governance - management information systemAkanksha Gohil
Electronic governance, popularly known as E-governance, is the integration of Information and Communication Technology (ICT) in all the processes, with the aim of enhancing government ability to address the needs of the general public. The basic purpose of e-governance is to simplify processes for all, i.e. government, citizens, businesses, etc. at National, State, and local levels
his report summarises the e-government context in Kortrijk, based on interviews with staff from the city, and identifies factors that they feel shape their local e-government context and their involvement in the Smart Cities project. The local e-government environment varies tremendously across the North Sea Region of the EU, with municipal strategies being shaped by very different national, regional and local policy contexts and political and technological agendas. This is the fourth of a series of six reports summarising the local e-government environment in six municipalities from six different countries who are participating in the Smart Cities Interreg IVb project.
Ciekawy dokument prezentujący wyniki kontroli NAO (National Audit Office) w Wielkiej Brytanii, która zajęła się tematyką wdrożeń SSC w sektorze publicznym.
Co ciekawe, pomimo tego, iż wdrożenia SSC nie dowiozły zakładanych efektów, to nie model sam jest tego przyczyną, a m.in. zbyt rozbuchane wydatki na zbyt mocno rozbudowane systemy IT. Poważne wnioski.
Presentación de Lee, In Jae, Director General de Administración de Políticas. Ministerio de Seguridad y Administración Pública de Corea, en el WorkShop APEC 2013 "Government-to Citizens Service Channels"
Double-up: ICT enabled cost and burden reduction in public sector service del...Morten Meyerhoff Nielsen
This presentation is from WSIS Forum 2016, Session 105 on “ICT-Based Cost & Burden Reduction in Public Administration and Service Delivery”. Room C1, ITU Tower, 11-13hrs CET, 5 May 2016, http://bit.ly/1OcFbIH
Presented by Morten Meyerhoff Nielsen, UNU-EGOV Academic Fellow and Researcher, Tallinn University of Technology Ragnar Nurkse School for Innovation and Governance
Presentation 1 of 2 by Ermo Taks, senior consultant in E-governance architectures and interoperability, Estonia, at seminar 2, held on 18 March 2021, which addresses digital government principles and building blocks. This 2nd event takes place in the framework of a series of three webinars organised by the SIGMA Programme, a joint initiative of the OECD and EU, principally financed by the EU, on the role of life events in end-to-end public service delivery.
E governance - management information systemAkanksha Gohil
Electronic governance, popularly known as E-governance, is the integration of Information and Communication Technology (ICT) in all the processes, with the aim of enhancing government ability to address the needs of the general public. The basic purpose of e-governance is to simplify processes for all, i.e. government, citizens, businesses, etc. at National, State, and local levels
his report summarises the e-government context in Kortrijk, based on interviews with staff from the city, and identifies factors that they feel shape their local e-government context and their involvement in the Smart Cities project. The local e-government environment varies tremendously across the North Sea Region of the EU, with municipal strategies being shaped by very different national, regional and local policy contexts and political and technological agendas. This is the fourth of a series of six reports summarising the local e-government environment in six municipalities from six different countries who are participating in the Smart Cities Interreg IVb project.
Open Data & Local Authorities, Paul Maltby-Director of Open Data and Government Innovation.
Presented on the 27th of November 2014 to the "Why is open data important for Cambridgeshire" workshop.
Jon Samuel, Head of Social Performance at Anglo American, discussed how we can use local procurement to grow the economies where we operate
You can find out more about Anglo American here:
http://www.angloamerican.com/
http://www.facebook.com/angloamerican
http://www.twitter.com/angloamerican
http://www.youtube.com/angloamerican
http://www.flickr.com/photos/angloamerican
http://www.linkedin.com/company/anglo-american
A Project Management Office, abbreviated to PMO, is a group or department ... base project management principles on industry-standard methodologies. Daniel outlines best practices for a larger project team.
Total Cost of Ownership, what is it ? and why do we need to know more about it.Ashraf Osman
This is a brief presentation about TCO, a subject that should be addressed by all CIO's. A lot of savings can be realized when one gives TCO a careful look ..
Portfolio Management Processes Flow in English - 3rd EditionRicardo Viana Vargas
The processes are separated into colors according to knowledge areas and process groups. Based on The Standard for Portfolio Management — Third Edition. Developed under permission from Project Management Institute.
Portfolio Management Processes Flow in English - 3rd Edition - Simplified Ver...Ricardo Viana Vargas
In this simplified version of the The Standard for Portfolio Management— Third Edition Processes Flow only the processes names are show, without their inputs, tools and techniques and outputs.
Living in a Hyper-Connected World – How Cities Need to get Smarter and More D...Nirvesh Sooful
Cities are where the action is. That's where innovation is happening. A city is an interconnected system of systems. Infrastructure, people, processes and technology make a city. In modern cities, there's a lot of data about everything. Lots of sensors are already deployed everywhere - in buildings, roads, and utility grids; and lots of new information-based processes are in place. Everything is more information-rich, so you have to think about information as another significant resource you use to manage city life. Citizens are also more connected than ever before, they have access to a lot more information, and have powerful platforms of their own. Big data, mobile, social media, cloud, digital inclusion, open data, broadband, etc. are powerful forces that will impact on cities now and in the future - creating both opportunities and challenges for cities. This case study explores the digital enablement of one large South African city.
In 2000, the newly formed metropolitan City of Cape Town adopted the “Smart City” strategy, which was a turnaround strategy for the city aimed at information-enabling all key business processes in the city and embarking upon a modernisation programme to deliver services based on real information emanating from the ground (operations). This case study looks both at what has been done in the 13 years since the Smart City strategy was adopted, as well as what needs to be done in a future hyperconnected world. In addition to being of relevance to government leaders, the presentation should be of relevance to all CIOs and business leaders on how today’s new technologies, global competition and new business models will shift the focus from an internal efficiency view to a more outside-in view of the digital world and the role of their organisation within it.
Je partage avec vous le plan de transformation digital du Kenya.
Le document que j'ai trouvé lors de mes recherches dans le cadre d'une étude pour un client a l'avantage d'être claire ( vision et stratégie bien identifiée) et précis ( plan d'action avec des indicateurs précis pour chaque secteur).
Loin du buzz politique, un document pareil a l'avantage de:
- Assurer une continuité de l'Etat et permettra aux différents gouvernement de lancer des projets sur ce qui a été déja entrepris.
- La citoyens et les entreprises savent clairement où ils vont ( ou doivent) aller d'ici 10 ans. Ainsi les "sacrifices" s'il y a lieu sont mieux acceptés
- Les investisseurs étrangers ont une plus grande confiance dans l'économie et peuvent aligner leurs plans d'actions sur la stratégie globale du pays
Une démarche simple qui devrait être adoptée par l'ensemble des pays Africains.
This paper reviews the customer transformation program at the Queensland Building Construction Commission against the broader context of digital disruption in the public sector in Australia.
[2011] Next Generation e-Government: Transformation into Open Government - Ol...e-Democracy Conference
e-Democracy Conference 2011 presentation titled 'Next Generation e-Government: Transformation into Open Government' by Oleg Petrov, Program Coordinator at World Bank
Presentation given by Ferras Jaffar Ahmed, Director of Services and Channels Enhancement Directorate, eGovernment Authority in Kingdom of Bahrain on August 3rd, 2011 at eWorld Forum (www.eworldforum.net) in the session Information Management and Security
A flagship CTO event, this has grown into a platform for knowledge-sharing among peer groups steering ICT projects in e-delivery of health care, education and governance. This Forum echoes the Commonwealth's 2013 theme: The Road Ahead for Africa.
Presentation titled "Designing a Training Session for Public Authorities". Rural Inclusion Workshop / EFITA 2011 Conference. Prague, Czech Republic 11-14/7/2011.
HSD presents a white paper discussing the digital transformation imperative faced by Australian government organisations and how agencies can respond using a 'lego approach' to enterprise technology and business applications.
Presentation at the first African Urban Matters: Cities of the Future event in Cape Town, South Africa from 14-15 November 2013 which was held in collaboration with African Ideas.
According to UN-HABITAT, the population in some cities will increase by almost 85% over the next 10 years. This startling fact means that a multitude of problems are arising due to rapid urbanisation spiralling.
As Africa becomes increasingly urbanized with thousands of people flocking to all major hubs - where the urban population was about 36% in 2010, it is projected to increase to 50% and 60% by 2030 and 2050 respectively - and the continent’s rapidly growing middle-class is insisting upon more of a saying how their cities are run, it is becoming crucial to relook models of engagement with citizens and their urban planning methodologies and efficiencies.
Local government organisations, which are already under incredible pressure are facing increasing challenges in providing basic services, let alone the requirements of the future. Relooking these models is also an opportunity to innovate and promote both transparency and efficiencies.
SAP designed its global Urban Matters program in response to these challenges, with the goal to improve people's lives. The program comprises a collection of SAP ICT solutions specifically aimed at helping government organisations of all sizes simply run better.
During this event being hosted in the beautiful Mother City of Cape Town, South Africa, expect to be involved in thought-provoking sessions and discussions with global and local urban development experts and best-in-class cities, to find out how ICT solutions have helped them to create significantly better cities.
Bridging the digital divide – access. content and skills.Nirvesh Sooful
A briefing note on Interactive Comminity Network Nodes. An exciting new project that we are embarking upon with the Western Cape Government aimed at getting mass adoption of digital services in poor communities.
Broad band 14march2012-pgw_cindustrypresentationNirvesh Sooful
Presentation by Andre Stelzner, CIO, City of Cape Town on the City's Broadband Optic fibre project & commercial model. Presented at the Western Cape Government briefing to ICT industry stakeholders on the Western Cape Broadband Programme (March 2012), President Hotel, Bantry Bay, Cape Town
Western cape broadband strategy (industry briefing)Nirvesh Sooful
Presentation by Nirvesh Sooful, Technical Advisor. Presented at the Western Cape Government briefing to ICT industry stakeholders on the Western Cape Broadband Programme (March 2012), President Hotel, Bantry Bay, Cape Town
The objective of this project is to utilise ICT to assist local government in South Africa with improving its service delivery. A key component of this system is an e-procurement solution aimed at reducing corruption in South Africa.
Presentation by Nirvesh Sooful on the topic of “The Emerging Role of the CIO: Leader or Technologist, Visionary or Implementer, Maverick or Collaborator” at the 2nd Annual CIO Challenge 2007 on 14&15 November 2007 at The Park Hyatt in Johannesburg. The conference was co-hosted with Deloitte.
Presentation by City of Cape Town to the South African National Department of Provincial and Local Government (DPLG) in May 2006. Presented by Mehboob Foflonker and Andre Stelzner, the 2 city Directors responsible for this project.
Enterprise Resource Planning (ERP) and Change in the City of Cape TownNirvesh Sooful
Enterprise Resource Planning (ERP) and Change in the City of Cape Town.
A presentation given as part of the CESPAM Executive Training Programme titled "Implementing E-Governance in Public Sector Organisations", held in Cape Town, South Africa, 26-28th February, 2003
RMD24 | Retail media: hoe zet je dit in als je geen AH of Unilever bent? Heid...BBPMedia1
Grote partijen zijn al een tijdje onderweg met retail media. Ondertussen worden in dit domein ook de kansen zichtbaar voor andere spelers in de markt. Maar met die kansen ontstaan ook vragen: Zelf retail media worden of erop adverteren? In welke fase van de funnel past het en hoe integreer je het in een mediaplan? Wat is nu precies het verschil met marketplaces en Programmatic ads? In dit half uur beslechten we de dilemma's en krijg je antwoorden op wanneer het voor jou tijd is om de volgende stap te zetten.
What is the TDS Return Filing Due Date for FY 2024-25.pdfseoforlegalpillers
It is crucial for the taxpayers to understand about the TDS Return Filing Due Date, so that they can fulfill your TDS obligations efficiently. Taxpayers can avoid penalties by sticking to the deadlines and by accurate filing of TDS. Timely filing of TDS will make sure about the availability of tax credits. You can also seek the professional guidance of experts like Legal Pillers for timely filing of the TDS Return.
[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
LEARNING OBJECTIVES
1. Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments.
2. Explore the sustainability implementation model, focusing on effective measures and reporting strategies to track and communicate sustainability efforts.
3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
RMD24 | Debunking the non-endemic revenue myth Marvin Vacquier Droop | First ...BBPMedia1
Marvin neemt je in deze presentatie mee in de voordelen van non-endemic advertising op retail media netwerken. Hij brengt ook de uitdagingen in beeld die de markt op dit moment heeft op het gebied van retail media voor niet-leveranciers.
Retail media wordt gezien als het nieuwe advertising-medium en ook mediabureaus richten massaal retail media-afdelingen op. Merken die niet in de betreffende winkel liggen staan ook nog niet in de rij om op de retail media netwerken te adverteren. Marvin belicht de uitdagingen die er zijn om echt aansluiting te vinden op die markt van non-endemic advertising.
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Affordable Stationery Printing Services in Jaipur | Navpack n PrintNavpack & Print
Looking for professional printing services in Jaipur? Navpack n Print offers high-quality and affordable stationery printing for all your business needs. Stand out with custom stationery designs and fast turnaround times. Contact us today for a quote!
Unveiling the Secrets How Does Generative AI Work.pdfSam H
At its core, generative artificial intelligence relies on the concept of generative models, which serve as engines that churn out entirely new data resembling their training data. It is like a sculptor who has studied so many forms found in nature and then uses this knowledge to create sculptures from his imagination that have never been seen before anywhere else. If taken to cyberspace, gans work almost the same way.
Business Valuation Principles for EntrepreneursBen Wann
This insightful presentation is designed to equip entrepreneurs with the essential knowledge and tools needed to accurately value their businesses. Understanding business valuation is crucial for making informed decisions, whether you're seeking investment, planning to sell, or simply want to gauge your company's worth.
Cracking the Workplace Discipline Code Main.pptxWorkforce Group
Cultivating and maintaining discipline within teams is a critical differentiator for successful organisations.
Forward-thinking leaders and business managers understand the impact that discipline has on organisational success. A disciplined workforce operates with clarity, focus, and a shared understanding of expectations, ultimately driving better results, optimising productivity, and facilitating seamless collaboration.
Although discipline is not a one-size-fits-all approach, it can help create a work environment that encourages personal growth and accountability rather than solely relying on punitive measures.
In this deck, you will learn the significance of workplace discipline for organisational success. You’ll also learn
• Four (4) workplace discipline methods you should consider
• The best and most practical approach to implementing workplace discipline.
• Three (3) key tips to maintain a disciplined workplace.
Using ICT to enable government supply chain and procurement processes
1. How the City of Cape Town used technology
to enable its procurement processes
Nirvesh Sooful
Hetu Consulting
2. Introduction
About me About Hetu Consulting
Hetu Consulting is a strategic
consultancy helping governments to
accelerate the benefits of IT enabled
change - through transformation of
the public sector and the wider
economy.
Hetu Consulting brings together
people with a track record of
success delivering social, economic
and public sector transformation.
At the heart of Hetu Consulting is a
team that has worked at top global
organisations and who led some of
the country’s most ambitious and
successful programmes of e-
transformation.
Hetu Consulting is 100% Black
owned and works in both the public
and private sector, but is focussed
on the public sector.
3. Agenda
City of Cape Town Context
ICT Enabled Procurement context
ICT enablement of City of Cape Town procurement processes
4. Demographics of Cape Town
Population: 3.2 million
Share of National GDP: 10.5 %
Share of Provincial GDP: 75 %
Area: 215 900 ha
Rateable Properties: 800 000
Employees: 23 579
City of Cape Town annual budget 2007/08:
Operating: 13,45 billion ZAR
Capital: 4,316 billion ZAR
City of Cape Town annual Income 2007/08:
From Utility Services: 4,205 billion ZAR
From Property Tax: 5,425 billiion ZAR
5. Local Government – the delivery arm of
Government
Electricity
Water and Sanitation
Solid Waster
Roads, Stormwater and transport
Public Housing
Local Economic Development
Social - and primary health services
Emergency Services
Municipal Policing
Urban Planning and Environment
Sport and Recreation
City Administration
6. Transforming Cape Town
Merging autonomous Organisations is complex even
though enabling legislation was in place:
“Lack of standardised financial
policies and procedures”
“IT systems entrench the „old
order‟”
“Back-office systems were deemed
to be outdated, functionally
inadequate and not properly
integrated”
“Difficulty in merging these
systems was in fact hindering the
merger of the administrations and
undermining the objectives which
motivated the creation of the
Unicity”
7. Address by Dr Ivy Matsepe-
Casaburri, Minister of
Cape Town in Context Communications at Nedlac ICT
Annual Forum Meeting, 25
January 2005
City of Cape Town has positioned itself to become one of our most
technologically advanced cities, through successful IT sector intervention.
By implementing its visionary transformation strategy, Cape Town is now a
frontrunner in South Africa’s National IT Strategy.
The benefits for all have been enormous. E-government services have been
developed; the service to its citizens has been improved. All city
employees have access to mainstream banking giving low-income
employees a measure of economic empowerment. The cherry on top of
the cake for this project, is that they have instituted the largest IT training
programme in our history, boosting the IT skills of the city by training
thousands of employees.
IT businesses owned by the formerly dispossessed are also benefiting
through this partnership. In order for Cape Town to establish itself as a
municipal services leader there had to be a partnership between,
business, labour and the community.
I am sharing this success story with you because I want to see more of such
initiatives. 7
9. Agenda
City of Cape Town Context
ICT Enabled Procurement context
ICT enablement of City of Cape Town procurement processes
10. Defining Procurement
Procurement refers to the overall process of acquiring a
product or service. Depending on the circumstances, it may
include some or all of the following:
identifying a need,
specifying the requirements to fulfill the need,
identifying potential suppliers,
soliciting bids and proposals,
evaluating bids and proposals,
awarding contracts or purchase orders,
tracking progress and ensuring compliance,
taking delivery, inspecting and inventorying the deliverable, and
paying the supplier.
11. Public Sector Procurement Trends
The U.S. federal government is the single largest purchasing entity in the world
The U.S. General Accounting Office (GAO) reports that the federal government alone is wasting
billions of tax dollars owing to underleveraged spend and underperforming procurement and
supply management operations
Procurement is key to reducing the cost structures of government agencies, improving operating
performance and service levels, and satisfying policies and regulations
The need to do more with less and increased scrutiny of legislators and watchdog groups will
force government agencies to improve their cost management operations
Public sector procurement initiatives are primarily driven by requirements to comply with
contracting regulations and mandates, such as full and-open competition, minority and small
business goals, and the spend-to-appropriation culture of government
Most governments have a procurement process that was drafted into law by its legislators,
interpreted by judicial branch judges, and carried out by executive branch leaders and their staff
members
Government procurement culture maintains a strong belief that competition (manifested via the
RFx process) limits cronyism and corruption, and leads to higher performance and lower costs
More than ever, governments across all industries view procurement as a catalyst not only for
supply cost reduction and assurance but also for compliance
Sources: RAND Corporation, “High Performance Government”, 2005; NASPO Research Brief, May 2005; Aberdeen Group
& GCN, “Supply Management in the Public Sector,” May 2004; Aberdeen Group, “Center-Led Procurement”, Nov. 2005
13. Procurement Reform: Asia Pacific / ANZ
“E-procurement has been identified as an instrument in public sector
reform. It enables government to monitor the efficiency and
effectiveness of procurement and provides more transparency and
accountability.”
“In many government organizations, the tools necessary to complete
the procurement transactions (e.g., search, requisition and payment)
often reside in different departments or agencies. Related policies and
procedures may also reside outside the procurement organization.
Therefore, the full integration of the complete end-to-end process and
the deployment of usable policies and procedures to support this
process remain a key challenge.”
http://www.agimo.gov.au/publications/2005/may/e-procurement_research_reports/Case_Studies_on_E-
procurement_Implementations.pdf#search=%22Case%20Studies%20on%20E-
procurement%20Implementations%22
14. Procurement Reform: European Commission
Brussels, 25 April 2006
eGovernment: Commission calls for ambitious objectives in the EU for 2010
Hundreds of billions of euros could be saved for European taxpayers every year as a result of
administrative modernisation in the 25 EU Member States, outlined today in the European
Commission’s eGovernment Action Plan. Information and communication technology is the key to
modernising government services: making them more efficient and more responsive. 100% take-up
of electronic invoicing and electronic public procurement is predicted to save 300billion euros every
year. All Member States already signed up to an ambitious agenda to achieve these goals in
Manchester last year
The new eGovernment action plan adopted today by the European Commission addresses five
priority areas for 2010 and underlines the commitment of the European Commission to delivering
tangible benefits to all Europeans, in cooperation with the Member States:
Implementing e-Procurement: Government procurement represents 15% of GDP or about €1.500
billion a year. The Member States have committed to achieving 100% availability and at least 50%
take-up of procurement online by 2010, with an estimated annual saving of €40billion. The action
plan will lay out a road map for achieving these goals as well as the practical steps required for such
large-scale cross-border procurement pilots and full electronic handling of company documents (the
“Electronic Company Dossier”).
15. Procurement Reform: Developing Countries
”…procurement is often one of the top three types of spending (besides salaries and debt
payments) [in government]. Public procurement spending is estimated to account for 15% of the
world’s GDP.
The influence of good procurement on the effectiveness of public spending is mirrored by its
impact on development of the private sector. A government‟s most direct impact on the private
sector is through its procurement behaviour. The government is often the largest investor in and
purchaser of services, especially in poorer nations. The way it manages its commercial relations
with the business community has a profound influence on whether acceptable business practices
will evolve or not, and on the dynamism of the private sector. Procurement systems can promote
competitiveness and improve the local market‟s ability to survive in international markets by
awarding contracts on an economic basis, just as they can promote inefficiency and corruption by
awarding contracts on the basis of personal relations or private negotiations. In this manner, a
country‟s procurement system has a significant impact on national investment rates, as well as
long-term growth rates.
Strengthening procurement can potentially generate enormous savings, especially in developing
countries. Improving the performance of a national procurement system even slightly could, in
many cases generate enough savings to more than pay for the cost of the reform programme itself
and leave a significant amount of money left over to increase e.g. social spending. Strengthening
procurement efficiency and increasing transparency might equally increase the confidence and
trust of the civil society in its government, in particular in government‟s credibility honesty and
commitment to development.”
16. EIU 2005 Global Survey
• “What role do software tools […] play in ensuring the
overall success of your purchasing strategies and
initiatives?”
Automate and Accelerate Processes
Vital Role Very Important
E-procurement is widely appreciated Electronic
Procurement
19 31
Supplier connectivity equally important Supplier 16 34
Connectivity
RFx and 9 17
Auctions
Optimize and Reduce Cost
Spend
Spend analysis at top of agenda Analysis
26 31
Collaboration valued higher than auctions Supplier 17 34
Collaboration
Category 12 32
Management
Improve Strategy and Compliance
Performance 26 36
High demand for performance management Management
Contract management is seen as key Contract
Management
17 31
Source: Economist Intelligence Unit, April 2005
17. General Procurement Trends
Moving From Tactical To Strategic Purchasing
Tactical Strategic
Purchasing Purchasing
Generate savings Generate value
Manage compliance Manage contribution
Extend processes
Expedite processes
Analyze supply
Analyze spend strategy
history Continuous
One-off initiatives improvement
TRADITIONAL VALUE ADDING
ACTIVITIES ACTIVITIES
18. Agenda
City of Cape Town Context
ICT Enabled Procurement context
ICT enablement of City of Cape Town procurement processes
19. Procurement in the City of Cape Town
In terms of Section 217 of the Constitution of the Republic of SA, the City
of Cape Town is required to implement a procurement system that is fair,
equitable, transparent, cost effective and economical. It is further required
by Section 14 of the Municipal Supply Chain Management Regulations to
keep a list of accredited prospective providers of goods and services that
must be used for the procurement requirements of the municipality though
quotations and formal bids.
Fundamental to the city’s supply chain management strategy is the fact
that procurement is a Strategic Function within Local Government –
through which it is able to influence economic development, give action to
its developmental objectives and exhibit good governance. In the private
sector the supply chain is predominantly a transactional overhead – best
suited to transactional outsourcing and where only those procurement
items which provide a competitive advantage is retain in-house.
Been an evolution
Two platforms underpin the strategy
SAP and Internet
20. SAP-R3 & ISU Foot Print
- Billing to sundry
- Financial Accounting
debtors SD
Sales &
SAP Fact FI
Sheet
Financial
Distribution Accounting
MM 420 end-to-end Business
CO - Management
- Procurement & SCADA*
Materials
Mgmt. Processes Controlling
Accounting
Inventory PP R/3 and AM
Cost:
Production Fixed Assets
IS-U/CCS R354mil (2000-2002)
Management Planning Mgmt
EDI
QM Single Instance – 8 terabyte db
PS
- Plant Maintenance Quality Project
- Asset
Management
PM 7 500 Users
WF
System
Management
Plant
Field Workflow
580 SAP Sites City Wide
Maintenance
Service
Support HR IS IS-RE - Project
Work Industry
Human
Solutions
Accounting
3,2 mil ISU contracts
Clearance* Resources
IS-U /
SM GIS FERC
CAD
- Human Resources & Service
Mgmt 1,2 mil consolidated invoices per
AM/FM
IS-U/
- Real Estate
Management
Payroll
month
CCS
2 mil equipment items. Solution for
- Industry
Utilities
- Customer Care &
Revenue Management
21. The ERP and Process Based Organisation Design
(Business Processes – eg. “Procure to Pay”)
Render PO
Requisition
Receipt to
Match PO
Purchase
Authorize
Authorize
Authorize
to Goods
Payment
Expedite
Receipt
Receipt
Source
Invoice
Invoice
Create
Create
Goods
Order
Order
Make
Each Dept has its own Procurement and Accounts Payable responsibilities.
Render PO
Requisition
Receipt to
Match PO
Purchase
Authorize
Authorize
Authorize
to Goods
Payment
Expedite
Receipt
Receipt
Source
Invoice
Invoice
Create
Create
Goods
Order
Order
Make
Accounts Accounts added and payingcentrally – but each Line Dept. performs own approve.
Procurement nowservices provided provided but Shared Servicefeels the need to buying.
HighPayable buying asservices of vendors centralised stillcontrol and efficiency.
volume Payable a Shared Service by Line Dept for Organization.
Performed by Line Dept
Performed by Supply Chain Specialists
22. Key System Statistics
The SAP transactional environment :
23 000 payroll members.
1 200 000 invoices every month
22 592 Purchase Order Line Items per month
2309 Cost and 1550 Profit Centres
25 Business Areas
7 500 named system users (12 500 user licenses)
554 SAP sites in the City
19 977 254 online transactions per month
+ 50 overnight batch jobs
Prod 24x7, 99.85% availability for 2006 (includes planned down time)
Average online response = 0,7 sec / transaction (1.5 sec design)
Database = 8TB, growing at 60-80GB per month
130 calls per day logged with our SAP Support Desk
23. MM : Procurement and Inventory Management
• Standardised and structured Procurement process
implemented.
• Single master record of all vendors created
(21 000 vendors reduced to 8 000)
Implemented • Compliance with procurement policy (SMME‟s)
30 December 2002 • Consolidated inventory management through
standard material codes across 100 stores.
• Real time postings and reconciliation of store
ledger to main ledger.
MM : Creating Financial Value through:
• On-line authorisation of expenditure with full audit trail.
• Improved financial control through visibility of financial commitments and the
lowest level of detail relating to all expenditure.
• Stock holdings optimization through maximising stock turns, visibility across all
stores and facility rationalisation.
• Procuring against contracts and use of Electronic Bulletin Board for quotations.
MM : Opportunities
• Better use of Supply Chain Management functionality and E-procurement.
24. Financial benefit realisation:
Inventory Optimisation
How is this benefit realised?
• Inventory holdings to be kept to a minimum, while ensuring adequate availability.
• Stock visibility across all stores is the primary driver of this benefit.
• Stores Consolidation will be a function of Organisational Restructuring.
• Reducing the cost of holding inventory by, e.g. disposal of redundant stock and improving stock turns; and
• Optimising the Stores infrastructure based on optimal stock holding.
Inventory Benefit: Calculation:
Discounted Value of Stock Holdings - month on month comparison.
• The year on year value of stock holdings was compared.
Stock Value discounted to March 2003
R 170,000,000.00 • Value of stock compared to March 2003
R 150,000,000.00 • Monthly Stock value discounted by CPIX back to baseline
R 130,000,000.00
date.
• Interest saving calculated and allocated to
R 110,000,000.00
R 90,000,000.00
Financial Benefits (R millions)
R 70,000,000.00
R 50,000,000.00 • Inventory Optimisation
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
• Stock Value reduction = R 55mil
July 2003 to June 2004 July 2004 to June 2005
• Recurring Interest saving = R 6.6mil pa (@ prime = 12%)
25. Financial benefit realisation:
Procurement: Price Standardisation, Inventory
Optimisation
• Procurement will be done in a consolidated and standardised fashion with the
maximum use of tenders and in accordance with City’s procurement policy.
• Inventory holdings to be kept to a minimum, while ensuring adequate availability.
• Eliminating price discrepancies between administrations and vendors on the same commodity – goods &
services;
• Reducing the cost of holding inventory by, e.g. disposal of redundant stock and improving stock turns; and
• Optimising the Stores infrastructure based on optimal stock holding.
Financial Benefits (R millions) Calculation:
• Price Standardisation • Minimum prices across all commodities were compared to the
• Low Road = R 60mil pa (@ 5pm) prices paid over the period that SAP has been live for Store
• High Road = R 96mil pa (@ 8pm) purchases only;
• Inventory Optimisation • The top 20 stores were assessed for their stock value and turn.
• Stock Value reduction = R 55mil • Total stock holding = R 141mil (ideal = R 86mil);
• Recurring Interest saving = R • Ave ST = 2.4 (best case = 4);
6.6mil pa (@ prime = 12%) • Total materials = 52 000 (34 000 active); and
• 3500 materials contribute to 97% of all stock movement in
stores.
26. No Txns per Day
E-Fuel 8 000
7 000
Average Daily Value R744,201 6 000
Average Daily No. of Txns 1140 5 000
4 000
“Another interesting area has been the 3 000
automation of fuel payments through e-fuel 2 000
system and interface into SAP. Through this 1 000
we pay approximately R750 000 per day for 0
fuel to the respective suppliers without any
human intervention......
3 500 000 Inv Value per Day Sum of No Txns
3 000 000
2 500 000 ......What makes things even
2 000 000 better is that the price is checked
against contract pricing and
1 500 000
payment is optimised to ensure
1 000 000
that we only pay on due date. In
500 000 the past we had the fuel supply
0 cut to the city due to late
payment, now nobody worries
about it.”
Sum of Inv Value Andre Stelzner, ESC Manager, City of CT
27. In conclusion – it is a process of evolution
Moving From Tactical To Strategic Purchasing
Tactical Strategic
Purchasing Purchasing
Generate savings Generate value
Manage compliance Manage contribution
Extend processes
Expedite processes
Analyze supply
Analyze spend strategy
history Continuous
One-off initiatives improvement
TRADITIONAL VALUE ADDING
ACTIVITIES ACTIVITIES
28. Hetu Consulting is your full service
supply chain and procurement partner
Hetu Consulting’s experience spans across both strategic and operational
aspects of supply chain and procurement optimisation.
Our experience includes but is not limited to:
The development of an overarching strategy that optimises procurement processes
and drives value from procurement and supply chain management activities
The development of procurement policies in line with national and other applicable
legislation. This includes the integration of local economic development (LED)
imperatives.
The review and overhaul of existing policies to deal with issues like fronting. Also to
make the policies compliant with BBBEE legislation and new codes.
The implementation of new procurement and supply chain systems and processes.
The ongoing improvement of procurement and supply chain processes on existing
systems eg. SAP
The creation and ongoing management of internet based tender management
systems which include advertising and publishing of tenders, publishing results,
providing tender support, etc.
The development of a fair, transparent and defendable tender scoring model that can
be used for tender development and scoring.
29. Thank You
Questions/ Discussion
Nirvesh Sooful
nirvesh@hetuconsulting.com
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