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Keep up to date with conversations that are happening across the public sector that focus on procurement. We welcome your feedback and suggestions for stories to include in upcoming editions.

May 2024

In this newsletter:

  • Rules review 2024
  • Office supplies contract - changes that deliver savings
  • Advisory and Business Services - here to help
  • Government proposing stronger requirements for eInvoicing in NZ
  • Knowledge Hour recap: City Rail Link procurement project

Rules review 2024

Thanks to everyone who participated in our Rules Review engagement sessions. Your feedback provided invaluable insights and perspectives.


Over 190 individuals attended the two in-person sessions, on average 40 individuals attended each of the five online sessions, representing over 85 agencies.


We’re now analysing the feedback as we start to consider potential revisions to the Rules. 
We’ll continue to keep you informed of upcoming steps on this project.


As mentioned in earlier emails, there will be formal consultation on the proposed Rules changes before submission to Cabinet for approval.


If you have any questions, additional feedback, ideas or suggestions, email the Rules Review team. 

 

Office supplies contract - changes that deliver savings

The All-of-Government (AoG) Office supplies contract covers stationery, cleaning, hygiene and washroom consumables, ICT consumables, educational supplies, health and safety products, and milk and milk alternatives. Cost savings, value for money and greater efficiencies are a stronger focus of conversations this year. NZGP’s Collaborative Procurement team have been working with suppliers to workshop ways we can deliver savings.  


Below is a combination of initiatives ranging from consolidating orders, examining your own agency’s usage and some swaps or hard changes NZGP has made to product ranges. 


Consolidate orders
These small orders attract a small order fee of between $5-7.50. Consolidate where you can - especially with non-perishable products such as A4 paper, paper towels and tea and coffee.


Areas with savings potential
Here are some suggestions which agencies can target. Not all suggestions will be right for your agency, but some may work for you. Please contact your current supplier should you wish to trial any of these products or switch straight over.


A4 copy paper – 80gsm versus 70gsm

  • This product is office supplies largest selling product. Discuss internally what grade/weight of A4 copy paper is needed for what type of output.
  • Moving 80gsm over to 70gsm collectively would represent savings for government agencies and schools. NB 100% may not be achievable, but it demonstrates the savings we can make by examining external copying requirements.
  • 70gsm copy paper is thinner and lighter and ideal for everyday printing jobs and internal documents. A high percentage of use is internal. 
  • 80gsm is more durable and has a higher quality finish, this makes it ideal for printing documents that require a professional look, or external documents. 
  • 75% of collective A4 copy paper purchases are in the 80gsm, 25% in 70gsm. 
  • Our PTAS contract suppliers Ricoh and Canon advise that copiers are designed to handle a 50-300 gsm range of paper.


Energizer batteries to Varta batteries – AA, AAA

  • The products are made by the same manufacturers. Varta batteries are 40% cheaper and life span isn’t too dissimilar. 

Milk and Beverages
Where possible, buy 2L over 1L of milk. Some agencies are buying a variety of teas ranging from 5-8 cents a bag to over 20 cents a bag. Order ranges can expand over time. Take this opportunity to reconsider your agency beverage needs.  


Hard changes and product swaps NZGP has made


Pens, adhesives and notebooks  

  • Working with suppliers we have swapped out over 300 products from the catalogues. 

A combination of direct product swaps, consolidation and mindful spending could achieve a 5% savings in this AoG contract based on 2023 spend.


The Collaborative Contracts team is here to help. If you have any questions or tips you’d like to share, contact the Office supplies team.

 

Advisory and Business Services - here to help

The Advisory and Business Services team within NZGP offers support to government agencies – from quick questions on procurement, through to supporting development of commercial strategies, and the go-to-market processes.


“Whether we are answering a quick email or spend several weeks with an agency, or one of the team is presenting at a conference – we are here for the public service to help raise procurement capability or to lend a hand with the mahi.” Says Craig Butler, Head of Advisory and Business Services.


Read more about the work our Advisory and Business Services team is currently supporting 

 

Government proposing stronger requirements for eInvoicing in NZ

The Government recently announced its intention to repeal the Business Payments Practices Act 2023 and ramp up the use of eInvoicing in New Zealand. 


The Government is proposing to:

  • Require more government agencies to send and receive eInvoices and
  • Introduce a 5 working day payment target for them to pay eInvoices.
  • Consult with Crown Entities on extending the current ‘pay 95% of invoices within 10 days’ 
  • requirement for Central Government agencies’ to them.  
  • Publish government agency payment times.

Businesses who trade with government organisations can expect eInvoicing to become the norm, and these proposals provide an extra cash flow incentive to send eInvoices to Government.


These proposals will provide further confidence for businesses to adopt eInvoicing and realise the benefits it is already providing many NZ organisations. 


The more businesses who send and receive eInvoices, the more they’ll benefit from time-savings, no lost invoices, faster payment, and reduced risk of invoice fraud.


Find out more 

 

Procurement Knowledge Hour recap: City Rail Link procurement project

For our first Knowledge Hour of the year, we were joined by City Rail Link (CRL), winner of the 2023 New Zealand Procurement Excellence Forum (NZPEF) Supreme, Environmental Impact and Social Impact Awards. They shared with us the mahi behind their win on New Zealand’s largest infrastructure project.


The City Rail Link project is a 3.4km twin track underground tunnel connecting downtown Waitemata station (Britomart) with a redeveloped Maungawhau station, along with wider network improvements. 


As one of the largest infrastructure projects in New Zealand, it offered an opportunity to push the bar for social and sustainability outcomes. 


You can watch this Knowledge Hour, and previous Knowledge Hours, in the Hīkina Video library.


Read more about City Rail Link’s procurement project


Hīkina

 

Ministry of Business, Innovation and Employment 

25 The Terrace, Wellington Central, Wellington 6011


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