Prosperous ratepayers are happy ratepayers – and prosperity comes when local governments make the best possible use of public funds. In this article, we’ll explore the not-so-secret key to success in delivering real-world value from your government procurement spending – Public Dollar Optimisation.
Public Dollar Optimisation: your key to enhancing ratepayer prosperity
Procurement has always been a necessary aspect of governance and compliance for local councils. Traditionally, the focus has been on preventing adverse outcomes and minimising risks – but with the right tools, data and capabilities council procurement can be so much more than simple risk mitigation. It can be a value-adding service that balances risk, service outcomes and deliverables with community-mindedness to enable faster, better decision making and deliver greater results to your constituents.
So, what exactly is Public Dollar Optimisation?
Public Dollar Optimisation is a data and values-driven approach to public spending, one that squeezes every drop of value from a council’s budget and delivers optimum value to its triple bottom line: people, profit and planet.
The action of making the best or most effective use of public funds to generate optimal community outcomes and enhance ratepayer prosperity.
By using the Public Dollar Optimisation approach to public spending, councils can improve the efficiency of using ratepayer dollars, gain valuable supplier insights and use data to make the best possible decisions for their ratepayers.
How does Public Dollar Optimisation benefit you and your ratepayers?
As the beating heart of our communities, local government organisations spend billions delivering vital services to ratepayers. By empowering your teams to have more control over that spending, be more efficient and deliver better community outcomes, you can drive better results for your ratepayers AND get more bang from your budgets.
So, how will Public Dollar Optimisation impact your community?
1. Invest in community-based spending
When you have greater visibility over your procurement and a deeper understanding of your suppliers you can increase your local procurement capabilities and inject spending right back into your community. Engaging small businesses and minority groups is easy when you have the right data about your local supply networks. Thriving local businesses supported by local councils lead to more community-based employment opportunities.
2. Leave more money in the pot by eliminating operational redundancies
When repetitive, time-consuming and mundane tasks are eliminated it leaves more time and energy for big-picture thinking. Managing supplier relationships and keeping a thorough, easily accessible bank of approved vendors can massively reduce unnecessary admin and repetitive tasks, freeing up more time for your staff to invest in value-adding projects.
3. Visibility and Sustainable Procurement
Your local council can work towards sustainability goals by gaining greater insight and visibility into your suppliers’ sustainability practices. Your government agency will have environmental standards to uphold and targets to reach – by proactively procuring from suppliers who match those goals and values, you’re already one step ahead.
Public Dollar Optimisation and procurement for local government
Public Dollar Optimisation enables councils to turn procurement from a simple internal process into a value-adding public service. How? By empowering councils with the right data, tools and capabilities to enable optimal management of every dollar, unlocking new community outcomes and enhancing ratepayer prosperity.
Every procurement decision is about more than just who can fulfil the brief on time and on budget. As a government agency, it’s your responsibility to award procurement to tenders that are beneficial to ratepayers, the environment and, of course, your financial bottom line.
Ok, let’s do it! How to boost procurement value with Public Dollar Optimisation in 5 steps
1. Make better, data-driven decisions – with the right data in front of you and real-time analytics, visualisations and reports, you can make data-driven decisions that benefit your community and your budget.
2. Optimise your supplier lifecycle– Take charge of spend planning, procurement, contract management, third party risk, due diligence, ESG alignment, innovation, and strategic partnering with purpose-built supplier management software.
3. Get strategic about your procurement– Procurement and supplier relationship management can take months – don’t waste your time on vendors who don’t fit the bill. Get strategic with your procurement by using supplier onboarding software, and establishing procurement criteria that automatically weeds out the wrong suppliers and brings your best options to the surface.
4. Bring your processes online– Eliminate cumbersome, time-consuming paper-based processes into a single online solution. How many times have you lost an important document or waited months for an approval that got lost in the shuffle? Keeping all your procurement, supplier and relationship management documentation in a single online hub can eliminate the risk of wasting valuable public time and resources.
5. Foster strong partnerships with the private sector – Manage the entire contract lifecycle and maintain strong ties with your local suppliers. Investing in businesses within your community not only strengthens your community ties, it can also help you align with your ESG goals and reduce supply chain risks.
Learn more about Public Spend Optimisation
Keen to learn more about Public Dollar Optimisation and how to get the best results for your ratepayers? Download our free Guidebook today!
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