BEST VALUE PROCUREMENT HOW TO FIND THE BEST SUPPLIER EXPERIENCES FROM THE NETHERLANDS JEROEN VAN DE RIJT

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1 BEST VALUE PROCUREMENT HOW TO FIND THE BEST SUPPLIER EXPERIENCES FROM THE NETHERLANDS ANSKAFFELSEKONFERANSEN OSLO, NOVEMBER 3RD JEROEN VAN DE RIJT

2 Complex IT project Cataract surgery Food Services Fasttrack 800M Parking Garage 55M Airport, 100M Supplies of routine products Construction works Super complex Bio repository Maintenance 8 year contract 2

3 MICRO-MANAGEMENT

4 CLIMBING A MOUNTAIN

5 The use of expertise! ( climbing a mountain) Scenario A 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... Scenario B Hire an expert and let him lead you to the summit of the mountain

6 DOMINANT INFORMATION Question: Which is the most green circle? Scenario 1 Scenario

7 CONSEQUENCE OF SPECIFICATIONS The maximum quality I will deliver High Low High Low Vendor 1 Vendor 2 Low Vendor 3 Vendor 4 The minimum quality I demand High Low Vendor 1 Vendor 2 Vendor 3 Vendor 4 Importance of budget ceiling! High

8 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

9 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

10 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

11 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

12 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 12

13 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

14 UNDERGROUND PARKING GARAGE IN AMSTERDAM

15 MULTISERVICE AT PROVINCE 1. Cleaning 2. Security 3. Catering 4. Cleaning supplies

16 DEVELOPMENT LELYSTAD AIRPORT

17 BUYING INNOVATION: BIOREPOSITORY

18 IT OUTSOURCING AT HAN

19 EMERGENCY POWER AND COOLING DUTCH BROADCASTING FOUNDATION

20 FIRST NORWEGIAN PROJECT: E18

21 BEST VALUE GROUP HAS ALREADY CERTIFIED 45 INDIVIDUALS IN NORWAY

22 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

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24 MORE INFO? Jeroen van de Rijt nl.linkedin.com/in/jeroenvanderijt/