Government

Government, Federal, State and Local, provide services and support across all areas of the Australian community. Increasingly, budget, time, technology and human capital pressures can impact on the ability of all levels of government in meeting key expectations and requirements. Evolving technologies and increasing connectivity impact the government’s ability to meet what are often competing demands.  

To assist in this complex and challenging environment the Australian private sector partners with government to provide appropriate expertise, scale, technology and/or innovation across a broad expanse of key government enterprises.

The trend of using private sector assistance will continue to accelerate into the foreseeable future and increasingly Australian Government, at all levels, are championing the use of Australian-grown/based industries to assist in enabling appropriate levels of support. 

The need for continued outsourcing, partnering and collaboration impacts on all supply chain services–from strategic initiatives and policies through to service or product delivery–and across governance and audit required for transparency.

The evolving nature of Government and Private Sector relationships can create significant challenges for all parties. As an example; transport, warehousing and value added supply chain activities are regularly outsourced. To maintain a competitive edge, and to meet efficiency requirements, private sector industries willingly embrace technological changes. The Public Sector, while understanding of these changes often lack a detailed understanding of how these changes can impact on core service delivery requirements.

Key differences include:

  • Service delivery failures result in more than lost revenue or inconvenienced customers, the risk profile is totally different
  • Incidents regardless how small can have significant impacts given the public interest and involvement (via the media) in service failures
  • Contracts can be complex and extend across multiple domains
  • The scale of tasks can be extremely large and complicated and extend across multiple jurisdictions
  • Engagement during tendering processes can be difficult due to complex procurement rules and probity concerns
  • Understanding of private sector (strengths and weaknesses) is not well understood by all levels of the Government bureaucracy
A way forward

As Australia’s premier supply chain consulting firm specialising in supply chain strategy, planning and execution, GRA works with federal, state and local government departments to solve challenging and complex supply chain and managed services issues. 

The opportunity to provide ‘value add’ to assist both government and the private sector can enhance the services and products that government provides to the community.  The list below provides some insights and questions that can be considered…

Questions to consider
  For Government… For the private sector…

Strategy

What are the outcomes that we are trying to achieve?

Do we know the capabilities of the private sector?

Do we really understand what government is trying to achieve?

Do we understand the scale and complexity of the task?

Business case

Do we understand the cost drivers, potential savings and sensitivities?

Have we costed the value added services and integration costs?

Are we providing enough flexibility for the private sector to innovate?

Are the assumptions in the business case reasonable?

Do we have cost and volume data that enables us to provide a reasonable tender?

Risk

We cannot fully outsource risk so how are we going to manage risk with our new partner?

What risk are we accepting?

Do we understand the risks inherent in this activity?

Process

How will the partner integrate with our business rules and requirements?

How will they interact with us on a daily basis?

Have we got the right people, capabilities and delegated authorities?

Do we understand the complexity of the processes and business rules?

Do we understand how they operate and how decisions are made and by whom?

Technology

Do we understand how new technologies will interface with our systems?

Do we have the data, appropriate business rules and processes to enable new technologies to operate?

Is there knowledge of the data and current technology and processes?

What is the integration strategy?

Have we called out the resources required to undertake integration?

Transition & Change Management

How will we transition services, current roles and manage communications?

Do we have the resources to do this properly?

Do we understand the level of integration and transition required?

Have we factored in enough time and resources?

Reporting

What capabilities do they have to report?

What do we need versus all the things we may like?

How can we mirror their organizational requirements?

Can metrics be automated and delivered quickly and effectively?

How do we manage provision of data due to investigations, ministerial questions etc…?

Continuous improvement

How will we align the provider to innovate and provide improvement to our service delivery?

Will we offer innovation or just deliver to the contract requirements?

Smart Buyer

Do we achieve good outcomes for our Customers?

Have we enabled an appropriate financial return for our Suppliers?

Do we understand the roles that Government must perform?

Do we effectively outsource functions when that is the smart thing to do?

Do we make timely decisions that optimise approval strategies, procurement and project management?

Do we use industry best practice?

Do we understand the government approvals process?

Are we ‘Government Committee’ savvy?

Do we understand the full capability requirement?

Are we willing to accept Government risk?

Are we best in industry?

 

At GRA we have significant experience working with government and the private sector …

We have played a pivotal role in outsourcing contracts working with either party to help bridge the gap. Our knowledge of government requirements, their organisations and constraints combined with a complete understanding of private sector capabilities enables us to add value. Our ability to ensure the strategy / business case is fully understood and that a tender process is undertaken to maximise value for both parties.

Specifically we can assist:

  • Government during the strategy / business case, design the future operating model, conduct market testing, understand private sector capabilities, write tenders, assist with selection, assist with integration, conduct post implementation reviews and address specific challenges in an outsourcing relationship
  • For private operators we can assist during the tender stage to assist in understanding the environment and requirements, assist with tender responses, help solve challenge and facilitate issues should they occur.
  • Working with either party to drive efficiency and improved customer service in their existing processes, infrastructure and systems.

Find out who we've worked with within Government.

Testimonials

"GRA conducted a very thorough analysis and provided recommendations within an ambitious timeframe... GRA helped us improve morale and productivity almost immediately while giving us a roadmap for strategic planning as it relates to our warehouse operations."

– Larry Fells, Managing Director, Liberty Medical Pty Ltd

Typical results

  • 20-40% inventory investment reduction
  • increased service levels ranging up to 99.9%
  • 10%-15% reduction in supply chain operating costs
  • 5%-20% spend management savings
  • the ability to fund business initiatives from operating cash flow (OCF) improvements
  • improved return on capital employed (ROCE)
  • a minimum 3:1 ROI (10:1 to 30:1 typical)