Tuesday, July 6th, 2010
NSW Local Government Procurement is leap-frogging the best practices of corporate and government organisations with the launch of an innovative new Australian technology that is revolutionising the way they access and manage their preferred suppliers.

This month, over 160 local councils in NSW will be the first to access VendorPanel.com/NSWLGP – a new web based technology designed and developed by the young Australian technology firm Magnetized Markets.

According to Brian O’Mara, General Manager of NSW Local Government Procurement “The goal is to provide a solution that is better for all parties – to make it easier for Councils to access the best match preferred suppliers; easier for preferred suppliers to access opportunities and benefit from their preferred status; and easier for procurement to optimise supplier relationships while reducing administration and risk, with real time visibility before decisions are made”.

Managing Director of Magnetized Markets and the creator behind the VendorPanel technology, James Leathem, said “buyers are struggling to work out which preferred suppliers best match their needs, suppliers are frustrated at not getting access to opportunities, and procurement want to reduce administration while better realising the value of preferred supplier arrangements”.

This technology is directly targeted at those areas of procurement that have previously sat in the ‘too hard basket’, categories like professional services and Maintenance Repairs and Operations (MRO), which are frequently composed of dozens of preferred suppliers and inherently difficult to source.

The importance of bringing innovation and accountability to this sector is paramount. It’s not just about reducing risk, it is also about increasing inefficiency and optimising the value of money spent by ensuring the best match service providers are used for each project.

According to a Canadian Expert Cal Harrison, “Service providers are enormously frustrated. All too often they work very hard to become a preferred supplier, then get little or no benefit as they languish as a name on a spreadsheet somewhere on the organisations intranet. VendorPanel is the first real solution I have come across that addresses this challenge in a way that adds value to suppliers, organisational procurement and the individual buyer. Once again, Australian innovation is leading the way”.

The VendorPanel technology is designed specifically to increase efficiency and utilisation. It also promises significant savings and benefits to the thousands of Australian Services firms and Suppliers that are already endorsed preferred suppliers to Australian organisations, but struggling to get real access to opportunities.

Targeted benefits to NSW LGP include: Simpler access to preferred suppliers; Increased panel utilisation; Reduced 'maverick' spend; Reduced supplier administration; Greater opportunity and easier access for vendors.

Contact Profile

NSW Local Government Procurement

NSW Local Government Procurement (LGP) provides a fully integrated procurement service to 152 general purpose local government councils, 13 special purpose councils, 13 Regional Aboriginal Land Councils in the state of New South Wales, and assists Not for Profit Groups across Australia with their procurement needs. It delivers a procurement operation dedicated to saving councils significant money through "whole of Local Government" supply arrangements, and assists in making the procurement process reach "best practice".

LGP has established preferred supplier arrangement across key categories such as IT Services, Engineering Services and many others. These arrangements were accessed by Council Users via a suite of PDF buyer guides and supplier listings. While this served its purpose, it provided limited guidance to councils when choosing which suppliers were best suited for their projects. Vendor administration was high and supplier sourcing was manual and difficult to monitor in real time.

In 2010, the NSW LGP sought to increase utilisation of bulk supplier arrangements, provide better and easier access to suppliers and reduce administration overhead. They selected VendorPanel.
Brian O'Mara
P: (02) 8270-8700
M: 0419 197 286
W: www.lgp.org.au

Magnetized Markets

Magnetized Markets is an innovative technology business that has developed the 'attract engine' as the basis for a range of business-to-business marketplaces and web based sourcing tools. Our tools help organisations to find the right service providers and suppliers based on their specific needs… without searching.

VendorPanel is Magnetized Markets enterprise SaaS platform for the management of preferred supplier panels. More info at http://www.magnetizedmarkets.com/VendorPanelBrochure.pdf
James Leathem
P: 0390956181
M: 0429992024
W: www.magnetizedmarkets.com


procurement, technology, suppliers, risk, compliance, local government



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