Author: ruish16

Current state

Organisations and their respective procurement and contracting departments are constantly looking for ways to reduce costs and improve outcomes to attain a competitive advantage over competitors. One approach is to source good and services from low cost regions. Although not a new technique, in recent years Low Cost County Sourcing (LCCS) has become increasingly entrenched within the overall sourcing strategy, especially with the increased costs of wages and associated goods and services in Australia.

Yet with so much focus on LCCS, many companies still feel that they are not maximising the benefits, with supply risks, lack of internal experience and cultural barriers sighted as primary deterrents. more

RESOURCE2SOURCE was appointed the Probity Advisor throughout the Hamilton Northshore Land Development by the Department of Infrastructure, Local Government and Planning. The multi-phased tender process incorporated early works design engagements, site visits and comprehensive project development workshops.  more

Santos GLNG required a Strategic Contract Management Plan to be developed to assist its personnel with contract management activities for its LNG facility maintenance services contract. RESOURCE2SOURCE developed the CMP using fundamental project management principles to ensure a fit for purpose plan was delivered in accordance with the organisational and individual needs. more

RESOURCE2SOURCE was appointed the Probity Advisor throughout the development of the Yeerongpilly Green project by the Department of Infrastructure, Local Government and Planning. The multi-phased tender process incorporated early works design engagements, site visits and comprehensive project development workshops more

The Department of Education, Training and Employment (DETE) Information and communications technology (ICT) Category Management team required an ICT Procurement Specialist to provide support to the Training Management System (TMS) project. RESOURCE2SOURCE provided one of its  procurement consultants into the role ICT Procurement Specialist.

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Origin Integrated Gas (IG) required the services of a specialised procurement consulting firm to undertake category analysis, to identify the category structure and develop the Category Plans for the Origin Integrated Gas Materials and Services Supply Chain teams. RESOURCE2SOURCE was engaged to deliver the plans, within a tight timeframe and to the satisfaction of a range of internal stakeholders. more

Santos GLNG required additional procurement support to deliver over $500M of tender processes related to maintenance contracts for the operations phase of the project. RESOURCE2SOURCE was engaged to deliver these services, providing Santos GLNG with an outsourced procurement team.

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Current state

Predominately it’s the case that during procurement activities buyers rely on the competitive tension from the market to ensure a competitive pricing is achieved from the process.  During the business case stage projected procurement costs are developed but tend to simply be based on historical expenditure, perhaps modified to allow for changes in predicted future usage, influences from new technology and inflation factors. However, there is a high degree of uncertainty with the accuracy of these estimates.

As a result of the above, when tender responses are received and commercial evaluation is undertaken, price evaluation and price negotiations can be problematic, as the buyer does not have a detailed understanding of the tenderer’s cost structure / influencing factors. Without this knowledge the buyer’s ability to adequately evaluate and negotiate price is diminished.

With an increasing focus to obtain maximum value for their organisation, buyers are seeking to acquire additional market intelligence to reduce current costs, with one such method being ‘Should Cost Analysis’. more

Sunshine Coast Council sought an experienced consultancy firm to prepare a service specification and pricing schedule for a cleaning services tender process for Council’s various sites. RESOURCE2SOURCE was selected to deliver the work following a competitive tender process and successfully delivered on the requirements.

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