Advisory Services Procurement Efficiency Assessment Tool PEAT

UNOPS Advisory Services UNOPS’ Procurement Efficiency Assessment Tool (PEAT) Main features: (i) It´s an expert–led diagnostic instrument (not a self-assessment survey); (ii) it has been developed for public sector entities (iii) considers the entire supply chain but focuses on the procurement link; (iv) it provides verified information on –Structure & regulations –Processes & Workflows –Capacity –Results (v) conveys quantitive savings estimations (vi) it´s adaptable to the assessed entity’s characteristics 2

UNOPS Advisory Services PEAT – Methodology & key sections Led by UNOPS experts Based on: –Documents, –Surveys, –Interviews, –Data (+ comparators) Sections: - 1. Spend Analysis (SA) - 2. Model Assessment Questionnaire (MAQ) - 3. Key Performance Indicators (KPIs) - 4. Open Interviews & analysis (OI) - 5. External Benchmark & Gap Estimation (EB) 3

Therefore integration is the key otherwise the pipe “leaks” like water from a damaged pipe Client (Internal and External) Demand Price / Cost Inventory & Price Price, Total Cost & Life Cycle Value Discounts 'Outbound Logistics / Distribution Costs' Revenue & Productivity Losses Inventory & Usage Wastage Inbound Logistics Costs Value Leakage Key Drivers Facilities & Equipment Information Systems & Technology Organisation, Skills & Culture Manage Supply Chain Relationships Manage Supply Chain Infrastructure Distribute & Dispose Produce Develop & Maintain Procure SettleSupply Forecast & Plan Supply Chain Strategy Supply Chain Performance Capital & Large Projects Costs UNOPS concept of Supply Chain Management The supply chain model helps us integrate our thinking to help Developing Countries identify potential savings opportunities The supply chain model helps us integrate our thinking to help Developing Countries identify potential savings opportunities

Preliminary work Interviews Data gathering Targeted Quality interviews Benchmark Analysis Internal process quality data (Tender reference, procurement method …) Internal timeframe efficiency data External benchmarks (average prices, quality and delivery timeframes obtained in the same market by suitable comparators) Internal process quality data (Tender reference, procurement method …) Internal timeframe efficiency data External benchmarks (average prices, quality and delivery timeframes obtained in the same market by suitable comparators) Inputs External/internal regulations Internal structure Procedures Tools Budget Contracts awarded External/internal regulations Internal structure Procedures Tools Budget Contracts awarded Inputs Procurement Efficiency Assessment Tool (PEAT) Process Process Quality Report List of Key Issues Gap Analysis and Potential Savings estimate PEATs End Products Spend Analysis Model Assessment Questionnaire KPIs Open Interviews and Analysis External Benchmark & Gap Estimation

PEATs Intermediate outputsPEATs End Products PEAT Intermediate and Final Products 6 Spend Analysis Model Assessment Questionnaire KPIs Open Interviews and Analysis External Benchmark & Gap Estimation Process Quality Report List of Key Issues Gap Analysis and Potential Savings estimate

UNOPS Advisory Services PEAT – Section 1 - Spend Analysis – Basic data 7

UNOPS Advisory Services PEAT – Section 1- Spend Analysis - Graphs 8

UNOPS Advisory Services PEAT – Section 2 MAQ 9

UNOPS Advisory Services PEAT – Section 3 KPIs 10

UNOPS Advisory Services PEAT – Section 3 KPI Graphs 11

UNOPS Advisory Services PEAT – Section 4 Open Interviews & analysis (OI) (a) Priority issues (b) Key stakeholders (c) Key actions (d) Expected outputs (e) Desired Impacts 12

UNOPS Advisory Services PEAT – Section 5 External Benchmark & Gap Estimation (EB) Example 13

Q & A José Moscoso Global Lead, Procurement Advisory Services UNOPS 14