Our summarised assessment of the progress the Ministry has made in implementing our recommendations

Recommendation Status
  1. We recommended that the Ministry of Business, Innovation and Employment:
    • improve the reporting tool for significant service contracts to improve the information available on these contracts and government strategic suppliers; and
    • regularly analyse, share, and report to the Government on this information.
 The Ministry no longer requires organisations to report on their significant service contracts. The Ministry told us that it will put in place a procurement platform that could provide comprehensive data and intelligence on procurement, including identifying strategic suppliers, across the public sector. The Ministry is planning to roll out the platform in a staged approach over several years. Until then, this recommendation remains unaddressed.
  1. We recommended that the Ministry of Business, Innovation and Employment, the Department of Internal Affairs, the Department of the Prime Minister and Cabinet, the Treasury, the National Emergency Management Agency, and other agencies as appropriate:
    • consider how the public sector, including local government, can build on existing initiatives to ensure that strategic supply risks affecting important public services are well understood, managed, and co-ordinated; and
    • work with Te Kawa Mataaho Public Service Commission to ensure that roles and responsibilities are clearly assigned.
 Organisations’ responses from our previous June 2023 follow-up stated that roles and responsibilities are clearer now than they were at the time of our original audit.

Since then, the Secretary for Business, Innovation and Employment has been confirmed as the designated System Leader for Procurement. In our view, the system leader role means the Ministry for Business, Innovation and Employment is well-placed to progress this recommendation.
  1. We recommended that the Ministry of Business, Innovation and Employment provide further guidance to help public organisations identify their significant service contracts and strategic suppliers.
 The Ministry of Business, Innovation and Employment has completed its toolkits and guidance for Supplier Relationship Management. This will support individual organisations to identify and manage their strategic suppliers.

The Ministry is now supporting public organisations to adopt Supplier Relationship Management.
  1. We recommended that public organisations regularly assess which of their suppliers are strategic suppliers, the resilience of these suppliers, and how they manage their relationships with them, both in normal circumstances and in emergencies.
 This is incorporated in the guidance and toolkits for Supplier Relationship Management developed by the Ministry of Business, Innovation and Employment.

The Ministry intends to use organisations’ self-assessment against the Procurement Capability Index to understand organisations’ capability in Supplier Relationship Management and whether further work is needed.
  1. We recommended that public organisations have adequate processes in place for reporting strategic supply risks to their senior leaders and governing bodies.
 This is incorporated in the guidance and toolkits for Supplier Relationship Management developed by the Ministry of Business, Innovation and Employment.

The Ministry intends to use organisations’ self-assessment against the Procurement Capability Index to understand organisations’ capability in Supplier Relationship Management and whether further work is needed.