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Collaborative Purchasing Initiative

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Submitted By sgokul123
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Executive Summary

Newfoundland and Labrador (NL) is an eastern Canadian province situated in country’s Atlantic region with a population of 550,000 people. All of the government goods and services for all provincial government departments are currently purchased through a provincial government controlled agency called GPA, also known as Government Purchasing agency.

In order to determine the need and effectiveness of collaborative procurement process for Department of Education NL, there are three key elements involved: extending the use of agreements based on whole-life costing; progressively reducing transaction and process costs, and the provision of more qualitative added-value service. The concept advances Cooperative purchasing from a reaction to outside forces or top-down pressures, to a supply methodology congruent with an overall business strategy.

Based on a detailed research and analysis, we have come to a conclusion that forming a strategic coalition with ISI (Interuniversity Service Inc), a not for profit organization that is currently responsible for all Education related procurement for Atlantic Canadian provinces except NL will solve the major issues discussed above and will provide more value to NL’s educational structure and at the same time will reduce overall operational and overhead costs.
ISI provides strategic sourcing approach towards procurement by operating based on Total Cost of Ownership model and by bulk commodity and services purchasing provides Total Landed cost strategy to the business. Being a not for profit organization, their True north is to serve the community and creating a better Educational structure in Atlantic Canada.

They have demonstrated their ability to add value, reduce cost and therefore providing excellent services within a specified budget to all the other provinces in Atlantic Canada, which has proven

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