BEST VALUE PROCUREMENT
HOW TO FIND THE BEST SUPPLIER
EXPERIENCES FROM THE NETHERLANDS
ANSKAFFELSEKONFERANSEN
OSLO,
NOVEMBER
3RD
JEROEN VAN DE RIJT
Complex IT project
Cataract surgery
Food Services
Fasttrack €800M
Parking Garage €55M
Airport, €100M
Supplies of
routine products
2
Super complex
Construction
Maintenance 8 year contract
Bio
repository
University
/ NEVI / Best Value Group
works© 2016 PBSRG / Arizona State
MICRO-MANAGEMENT
© 2016 PBSRG / Arizona State University / NEVI / Best Value Group
CLIMBING A MOUNTAIN
© 2016 PBSRG / Arizona State University / NEVI / Best Value Group
The use of expertise!
(climbing a mountain)
Scenario A
Scenario B
•
• Hire an expert and let him
lead you to the summit of the
mountain
Hire a guide and:
– Tell him how to climb a mountain
and tell him what tools to bring
– Tell him you know a better route to
climb the mountain
– Tell him how to build his team
– Tell him it can be done faster
– Tell him it can be done cheaper
– Hire another guide to tell him how
to climb...
© 2016 PBSRG / Arizona State University / NEVI / Best Value Group
DOMINANT INFORMATION
Question: Which is the most green circle?
Scenario 1
1
3
1
2
4
6
Scenario 2
5
7
3
2
4
6
5
7
© 2016 PBSRG / Arizona State University / NEVI / Best Value Group
CONSEQUENCE OF SPECIFICATIONS
“The maximum
quality I will
deliver”
Low
High
Low
High
Vendor 1
Vendor 2
Vendor 1
Vendor 2
Vendor 3
Vendor 3
Vendor 4
Vendor 4
High
Low
“The minimum
quality I demand”
Low
Importance of
budget ceiling!
© 2016 PBSRG / Arizona State University / NEVI / Best Value Group
High
THE PROCESS
Preparation phase
Evaluation phase
Clarification phase
Execution phase
6 page offer
Level of Expertise (2 pages)
Risk Assessment (2 pages)
Value Add (2 pages)
Interview
Contract
© 2016 PBSRG / Arizona State University / NEVI / Best Value Group
LANGUAGE OF METRICS
1. Simple: demands no technical expertise to be able to
understand
2. Non-biased / objective
3. Relevant, specific and comparative
4. Documented
5. Predictive for a future performance
© 2016 PBSRG / Arizona State University / NEVI / Best Value Group
LEVEL OF EXPERTISE
Who has the most expertise as a mountain guide
for this specific mountain?
# years experience as guide: 14
# mountains climbed: 11
# times climbed this specific
mountain: 5
# people safely to the top: 44
# accidents: 0
# client satisfaction: 9.0 (10.0)
# years experience as guide: 25
# mountains climbed: 21
© 2016 PBSRG / Arizona State University / NEVI / Best Value Group
WHICH RISK IS MORE INTERESTING
WHEN SELECTING A GUIDE?
1. Risk of the vendor: quality of the rope
2. Risk outside the vendor: physical state of the team members
© 2016 PBSRG / Arizona State University / NEVI / Best Value Group
CLARIFICATION PHASE
• Preplan the delivery of the project
• Clarify that the proposal is accurate (get details)
• Identify the risks/issues that could cause the plan to deviate (surprises)
o Identify what you don’t know
o Set plans to minimize those risks from occurring
o Address all the concerns and risks of the client
• Identify how you will measure your performance (know if you are successful)
o What metrics you will use and how you will report them
o What is the current baseline condition we are comparing against
• Identify all the assumptions that have been made in the proposal
• Identify what you need from the client and have a plan for getting it
• Have completely aligned expectations between all parties so everyone knows
what is going to transpire and what they are supposed to do
© 2016 PBSRG / Arizona State University / NEVI / Best Value Group
12
LAUNCHING PROJECT: FAST TRACK PROJECT
1. Program results: 15 projects finished
(expectation was 10)
2. Delivery time of projects accelerated
by 25%
3. Transaction costs and time reduced
by 50-60% for both vendors and client
4. 95% of deviations were caused by
Rijkswaterstaat or external [not
vendor caused]
5. Ministry of Transport wins prestigious
Dutch Sourcing Award
© 2016 PBSRG / Arizona State University / NEVI / Best Value Group
UNDERGROUND PARKING GARAGE IN
AMSTERDAM
© 2016 PBSRG / Arizona State University / NEVI / Best Value Group
MULTISERVICE AT PROVINCE
1. Cleaning
2. Security
3. Catering
4. Cleaning supplies
© 2016 PBSRG / Arizona State University / NEVI / Best Value Group
DEVELOPMENT LELYSTAD AIRPORT
© 2016 PBSRG / Arizona State University / NEVI / Best Value Group
BUYING INNOVATION: BIOREPOSITORY
© 2016 PBSRG / Arizona State University / NEVI / Best Value Group
IT OUTSOURCING AT HAN
© 2016 PBSRG / Arizona State University / NEVI / Best Value Group
EMERGENCY POWER AND COOLING
DUTCH BROADCASTING FOUNDATION
© 2016 PBSRG / Arizona State University / NEVI / Best Value Group
FIRST NORWEGIAN PROJECT: E18
© 2016 PBSRG / Arizona State University / NEVI / Best Value Group
BEST VALUE GROUP HAS ALREADY
CERTIFIED 45 INDIVIDUALS IN NORWAY
© 2016 PBSRG / Arizona State University / NEVI / Best Value Group
TAKE-AWAYS
1. Best Value is about utilising expertise
2. Metrics & dominant information
3. Best Value is about win/win
4. Best Value is more than just “procurement”
© 2016 PBSRG / Arizona State University / NEVI / Best Value Group
© 2016 PBSRG / Arizona State University / NEVI / Best Value Group
MORE INFO?
Jeroen van de Rijt
nl.linkedin.com/in/jeroenvanderijt/
[email protected]
+31 6 50272855
© 2016 PBSRG / Arizona State University / NEVI / Best Value Group