SHARED

PROCUREMENT
Compiled by
R.MAWENI
T. MANDUDE
A. MBEDZI
 OUTLINE
• Definition
• Advantages of shared procurement
• Disadvantages of shared procurement
• How it works
• Key features of shared procurement
• Shared procurement models
• Zimbabwean law and shared procurement
• Conclusion
 Shared procurement defined
• The purchase at one time, and often at a reduced price, of a large quantity
of a particular commodity

OR

The procurement conducted by, or on behalf of, more than one Procuring
entities using one PMU
 Advantages of shared procurement
It brings together councils with similar ambitions to help leverage efficiency savings
and manage supply markets.
The ability to collaborate and influence markets better can only increase.
 Achieve aggregation as required by the Act-ensures procurements not to split to
avoid competitive tendering.
 Reduced administrative costs of procurement.
Results in less need for emergency procurements
Maintains public confidence through ethical and transparent procurement practices.
Advantages of shared procurement
• Economies of
skill
• Lean, flat
• Common
• Entities organization
• Enhanced systems &
maintain support
control of career
decisions Progression
• Synergies • Consistent
• Independence standards &
• Responsive to
of business controls
needs
• Optimisation of
• Economies
• Maintenance skills
• Dissemination of scale
of business
units of
decisions best practices
• Center of
excellence
 Disadvantages of shared procurement
• High implementation and transition costs;
• Reduced control of administrative services for participating
councils;
• Councils may need to compromise on specialised needs; and
• Support services may be less accessible to or appropriate for
council staff (e.g. HR).
• Managing the change in the organization is a challenge
 Shared procurement categories/models
1. Collaboration or standardisation model
This is where two or more councils collaborate to develop a shared solution

Advantages Disadvantages

 It can minimise legal  May limit innovation

and procurement costs and growth opportunities
 Allows for resource and if vision only extends to
expertise pooling a few neighbouring
 Can be more rapidly councils
implemented
Advantages
2. Outsourcing model
Disadvantages
 Simpler and quicker to implement than setting up a
new shared services arrangement
 Transfers many risks to the third party outsourcer
 Provides access to new technologies and processes,
as well as specialist expertise
 Quality and service levels can be clearly set out in
contracts and service agreements
 Limits benefits of partnering, eg learning from peer
councils
 If waste / inefficiency are not removed before
transfer, the outsourcer may be chief beneficiary of
any cost savings
 Influence is limited to contractual arrangements and
user groups, rather than via governance of a shared
services structure
 While shared services may reduce costs and secure
profits, councils which just “outsource customers” to
the agreement may see few benefits themselves
 Recommended shared procurement model
• Delivered through a shared PMU rather than a outsourced service
• Operates within Zimbabwean public procurement laws and all resulting procurements
are fully compliant.
• Your council’s local uniqueness of requirements will be retained through the delivery
of a specific tailored work programme.
• Your councils’ products/services will be purchased in line with procurement policy,
allowing balance of risk, sustainability and impact on the market.
• All products/services will be purchased through a compliant route with a clear audit
trail.
• The shared PMU will always consider the most sustainable solution to achieve a
balance between collaboration and supporting the local economy.
 Zimbabwean law & shared procurement
The Public Procurement and Disposal of Public Assets Act Cap: 22:23 & Public Procurement and Disposal of
Public Assets Regulations of 2018 have provisions for achieving and conducting shared procurement” among
Procuring Entities

Under the new act and regulations lead procuring entities can aggregate procurement requirements, where
appropriate, and make full use of framework agreements, in order to achieve economies of scale.

REFERENCES: Section 19 of the new Act, Section 6 Subsection (1) -(5) & Section 11 of 2018
Public Procurement and Disposal of Public Assets Regulations.
 Conclusion
• It’s about more than cost. It’s about service.
• Measure performance. Demonstrate achievements.
• Importance of stakeholder management.
• There is need for a solid technology platform e-procurement
 Conclusion
• By establishing solid shared procurement processes and procedures,
maintaining clear channels of communication and working together closely,
local government can create a “win-win” situation for taxpayers and
suppliers.
THANK YOU ALL