Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 

Auditor-General: Government Needs Better Understanding, And Management, Of Strategic Suppliers

The Auditor-General is concerned that important public services will remain vulnerable to unexpected failure unless the public sector improves how it manages its strategic suppliers.

A new report, Strategic suppliers: Understanding and managing the risks of service disruption, looks into how well the public sector understands, and manages, the risk of disruption if a strategic supplier fails to deliver goods and services.

Strategic suppliers are companies that provide goods and services that are critical to the delivery of public services. These suppliers are not easily replaced. They can include, for example, companies that can build major infrastructure, provide highly specialised medical equipment, or IT systems that hold important information.

The Auditor-General found that most public organisations know who their own key suppliers are. However, many of these suppliers support a wide range of important public services and, as a whole, the government lacks understanding and visibility of which strategic suppliers it relies on. It also lacks visibility of the risk of disruption to important services if a government strategic supplier fails to deliver.

“I am concerned about the current state of strategic supplier management across the public sector. A significant failure of a government strategic supplier could affect many public services and thousands of New Zealanders,” says Auditor-General John Ryan.

An important first step is to improve the information available about strategic suppliers. Some public organisations are required to report their significant service contracts to the Ministry of Business, Innovation and Employment (MBIE). MBIE is working to better understand which suppliers are government strategic suppliers. However, MBIE needs to do more to improve the process for reporting significant service contracts. Without better information, the Government will remain uninformed about some of the risks it faces.

There is also a need for a co-ordinated approach across central and local government to ensure that risks are well understood and managed.

The report identifies the need for better communication with government strategic suppliers about which public services to prioritise after an emergency.

“Covid-19 has highlighted New Zealand’s vulnerability to global supply chains. Understanding and managing strategic supply risks is an important part of ensuring that services to New Zealanders are not interrupted. More broadly, I also expect public organisations to consider their preparedness for shocks to ensure that important public services continue to be delivered in an emergency,” says Mr Ryan.

The report has five recommendations to help improve information on strategic suppliers and reporting of risks to the Government; ensure the public sector – including local government – takes a co-ordinated approach to strategic supply risks; and improve how public organisations identify, manage, and report on their strategic suppliers and strategic supply risks.

 

This report is also available as an epub and a one-page summary.

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines


Gordon Campbell: On The America’s Cup, Critical Race Theory And A New, Weekly Music Playlist

So… Why don’t they just cut to the chase, and call it the Emirates Cup? As this column predicted several months ago, the next America’s Cup challenge is headed overseas. Here’s what Werewolf said back in March:
Emirates has made a major commitment to Portsmouth/Isle of Wight as a sailing centre of excellence – and voila, that’s where the next challenger of record is coming from, and where the next Cup contest could well be sailed. Such incredible luck for Emirates, right..? More>>

 



Marine: Wider Roll-out Of Cameras On Boats To Support Sustainability And Protect Marine Life

Up to 300 inshore commercial fishing vessels will be fitted with on-board cameras by 2024 as part of the Government’s commitment to protect the natural marine environment for future generations... More>>

ALSO:


Government: Plan For Vaccine Rollout For General Population Announced

New Zealanders over 60 will be offered a vaccination from July 28 and those over 55 from August 11, Prime Minister Jacinda Ardern announced today... More>>

ALSO:



Jewish Council: New Zealand Not Immune From Rise In Antisemitism

The representative body of New Zealand Jewry, the NZ Jewish Council (NZJC), has expressed concern about the high number of antisemitic incidents in New Zealand recorded last month. Spokesperson for the NZJC, Juliet Moses, said... More>>

NZNO: Nurses Reject DHB Offer And Confirm Strike Action

The New Zealand Nurses Organisation says its 30,000 members who work in DHBs have voted overwhelmingly to reject a second offer in their current round of multi-employer collective agreement (MECA) negotiations... More>>

ALSO:


 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels