Sourcing and Procurement

Governance

The Ontario Ministry of Finance has issued Supply Chain Guidelines that apply to Broader Public Sector (BPS) organizations in the ministries of Health and Long-Term Care; Education; and Training, Colleges and Universities. BPS organizations are defined as those that receive more than $10 million annually from the Ministry of Finance. These organizations are referred to as “in-scope recipients” and must comply with the Supply Chain Guidelines. ICES is classified as a BPS organization and thus its Sourcing and Procurement governance framework must be in compliance with the Ministry guidelines.

ICES Sourcing and Procurement

Sourcing and procurement are different sets of activities and processes that are conducted under the umbrella of acquiring a product or service. Strategic sourcing is the process and principles that direct how to select and manage a supplier through the contract lifecycle. Procurement is the process and principles that direct how to order and pay for a product or service.

Strategic Sourcing

This process is initiated when someone has approval to buy something. The Sourcing and Procurement Department will determine if there is already a contract in place with a supplier of the product or service. If there is a contract, the request moves directly to the procurement process. If there isn’t a contract, we need to find a supplier by following the quote requirements outlined in the ICES Sourcing and Procurement Policy. The sourcing policy and methodologies followed by ICES are governed by Canadian competition and fair trade laws and Canadian and Ontario contract laws.

Activities include:

1. defining the requirements
2. looking for suppliers who can deliver these requirements
3. issuing the type of quote that complies with the policy
4. evaluating and selecting the supplier
5. negotiating and awarding a contract
6. managing the supplier to ensure that contract obligations and milestones are met

Procurement

The procurement process allows for the organization to ensure that:

1. the request is authorized
2. the order is sent to the right supplier
3. the product or service is delivered as requested
4. the correct cost centre is charged
5. the invoice is prepared correctly for payment

Both of these processes are in place to ensure that ICES is managing costs effectively.