1. Procurement Services Transformation 2012 Company Forum – 28 Feb 2013

2. Purpose
The purpose of the presentation is to inform respective parties of the Transformation of the Procurement Services initiative, process and timelines of all the actions involved in the initiative.

3. Transformation of Procurement Services- Background
As a result of a request by Exco to look into the transformation of Procurement Services a Task team comprising of the Heads of Procurement Services have been established.
The task team will come up with areas that will be looked at, and indicate the possible impact that it may have.
The possible impact will be determined during the study

4. Scope of the Initiative
The following areas have been identified
Ensure cost effective and ethical procurement;
Enhance Turn Around Time;
Streamline the Procurement Process;
Increase the utilisation rate of e-Sourcing;
Manage wastage;
Warehouse and Distribution optimization;
Improve customer experience;
Reduce supply chain operating costs.
Improve Efficiency within Procurement Services

5. Identification and Process - Continued
The following process has been embarked upon;
RFx to be prepared to request a proposal to solicit a partner for the transformation of Procurement Services which will include the areas as per slide 4 of this presentation
Load balancing models to be developed for all functions with in Procurement Services

6. Impact on Resources
The impact on the resources for fixed and mobile at this stage cannot be quantified, however the following should be taken into account
Rebalancing (move) of over and under utilization of staff
Impact of NGNEC stock levels
Impact on warehouse locations

7. Timelines
Current high level timelines have been identified as follows,
Identify areas to be transformed and prepare documentation to go out with a RFx – end February 2013
Appoint Vendor as per RFx requirements – end March 2013
Prepare / compile load balancing models – end February 2013
Finalise and do rebalancing – end March
Overall transformation – Based on outcome of appointed Vendor

8. Thank you