The city of Groningen purchases many kinds of services, supplies and goods every year. This involves a lot of relationships with suppliers as well as contracts.
With our purchasing policy and our contracts, we want to add societal value. We want, for example, to purchase locally. Additionally, this entails encouraging innovation, sustainability, and social return. We are ambitious; For instance, we intent to achieve carbon neutrality in 2035 and stop producing waste from 2025 onwards. The manifest ‘Maatschappelijk Verantwoord Inkopen (MVI) [Socially Responsible Purchasing]’ contributes to realizing these ambitions. For us, purchasing and tendering are about more than just the product’s price and quality. In our assignments and requests, we therefore explicitly ask how suppliers can contribute to these goals and we try to reward such contributions
This is why it’s important to comply with, as well as monitor these agreements made in the tendering procedure, and comply with agreements properly during the contract period. A good connection between the organization parts in which the agreements are requested (procurement) and executed (contract management) is therefore of great importance.
What’s the problem?
Currently, we believe we’re not making adequate use of our purchasing potential, in the sense that we’re making insufficient use of our contracts and agreements to contribute to our organizational goals. As it turns out, it’s difficult and strenuous to set up the entire process of drafting, requesting and checking our requirements and to monitor and measure the formulated KPIs during the contract period. Consequently, we suspect that:
contracts are not adequately utilized.
suppliers are not (enabled to be) supplying what they agreed to during the tendering process. Possibly they therefore should not have been offered the tender.
We are looking for approaches that enable us to run our purchasing and CM process more efficiently and more reliably.
– We are not looking for new Contract Management tools.
Issued by: Afdeling / programme: SSC, afdeling Inkoop