OECD: Toolkit for Resilient Public Procurement Strategies

2. Critical Supply Identification Phase

Supplier Base Assessment Phase — Assess current suppliers — Define Specifications

Toolkit for Resilient Public Procurement Strategies to Minimise Risks of Supply Disruption

Negotiation and Contracting Phase Finalise terms, pricing, and agreements with suppliers

Resilient Public Procurement Strategies 1 Stockpiling 2 Diversification of Suppliers 3 Improved Monitoring of the Supply Chain 4 Collaborative Procurement

Procurement team, Supply Chain Management team, Stakeholders of relevant departments (e.g., operations, finance).

Government agencies, procurement team, Department heads (e.g., production, logistics), Risk management team.

— Review supplier contracts and performance records. — Evaluate historical delivery reliability and quality metrics. — Document findings and create a summary report on current supplier base strengths and weaknesses.

— Identify critical goods and services. — Assess risks associated with each critical supply. — Prioritize critical supplies based on. — Develop criteria for evaluating supplier capabilities specific to critical supplies.

29 November 2024 in a written procedure and prepared for publication

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Contents

Foreword 4

Acknowledgments 6

About the Toolkit 7

Reinforcing Resilience through Innovative

Procurement Strategies 9

Resilient Public Procurement Strategies 12

3 Improved Monitoring of the Supply Chain 4 Collaborative Procurement

Toolkit for Resilient Public Procurement Strategies to Minimise Risks of Supply Disruption

Needs Assessment and Strategy Dev. Phase — Identify critical Items — Develop strategic approach

Planning Phase — Risk assessment — Ensure compliance with PP law

Technology Assessment and Tendering Phase — Assess available technologies — Evaluate potential suppliers — Select technology partner

Supplier Engagement Phase — Engage with selected suppliers — Sign agreement

Implementation and Integration Phase — Implement technologies — Conduct testing — Provide training

Toolkit for Resilient Public Procurement Strategies to Minimise Risks of Supply Disruption

Performance Monitoring and Evaluation Phase — Monitor supplier performance — Conduct evaluation

3 Improved Monitoring of the Supply Chain

ICT Procurement Taskforce in Australia Initiative / Address Market Failure / Australia Link

In 2015-16, Australian government agencies reported that it had spent AUD 6.2 billion on ICT goods and services. That same year, Australian agencies estimated that they would procure AUD 9 billion of ICT goods and services in future years via 17.000 contracts. Australia concluded that its investment in ICT was not delivering the government’s digital transformation agenda quickly enough, however. Therefore, the country established the ICT Procurement Taskforce, which defined five overarching strategies for ICT procurement:

— Measurable, transparent and based on data.

— Apt at generating policies and outcomes that are reviewed regularly.

3. Supplier Engagement and Capacity Building Phase

Procurement team, compliance officers, external auditors.

Procurement team, supplier development specialists, private sector representatives.

— Engage with a diverse range of suppliers to promote competition.

— Ensure transparency in all stages of the procurement process, from pre-tender activities to contract award and implementation.

— Provide capacity-building support through training programs.

— Conduct open and competitive bidding processes to maximise participation.

Toolkit for Resilient Public Procurement Strategies to Minimise Risks of Supply Disruption

— Encourage collaboration and partnerships among suppliers.

Foreword Acknowledgments About the Toolkit Reinforcing Resilience through Innovative Procurement Strategies

Resilient Public Procurement Strategies 1 Stockpiling 2 Diversification of Suppliers 3 Improved Monitoring of the Supply Chain 4 Collaborative Procurement

3. Technology Assessment/ Tendering Phase

Procurement managers, legal advisors, compliance officers.

Procurement team, government agencies, Supply Chain Management experts, legal advisors. Activities

— Conduct a comprehensive needs assessment. — Define strategic objectives focusing on enhancing visibility and control through advanced monitoring mechanisms. — Develop a strategy document outlining goals, timelines, and key performance indicators (KPIs).

Activities — Review and ensure compliance with PP regulations. — Prepare tendering documents on the procurement process, evaluation criteria, and contractual obligations. — Establish clear procurement timelines and milestones.

Procurement team, IT department, technical experts, potential suppliers.

Toolkit for Resilient Public Procurement Strategies to Minimise Risks of Supply Disruption

— Assess available technologies such as real-time tracking systems, IoT devices, and data analytics platforms. — Evaluate and select suppliers and solutions through a competitive bidding process or request for proposal (RFP).

Activities — Engage with selected suppliers to establish collaborative relationships. — Award contract. — Conduct supplier workshops or training sessions.

5 Address Market Failure (10)

tat

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Disruption © OECD 2024 44

STRATEGY 5. ADDRESS MARKET FAILURE

Foreword Context

Acknowledgments A procurement strategy addressing market failure involves designing

and implementing purchasing practices to mitigate the negative impacts

About the Toolkit

of market inefficiencies and ensure the availability of essential goods

and services. Market failure occurs when the free market is unable

Reinforcing Resilience

through Innovative to allocate resources efficiently on its own, often due to issues such

Procurement Strategies as monopolies, information asymmetry, externalities, or public goods.

A procurement strategy tailored to address these failures aims to

correct these inefficiencies and promote a fair, competitive, and

sustainable marketplace.

Resilient Public

Procurement Strategies

Key elements include promoting competition, ensuring transparency,

addressing externalities, supporting public goods, risk mitigation,

5 Address Market Failure (11)

3. Supplier Engagement and 4. Tendering Phase

Capacity Building Phase

Existing Guidance Actors

and Frameworks Actors Procurement team, compliance

Procurement team, supplier officers, external auditors.

Image Credits

development specialists, private

sector representatives. Activities

— Ensure transparency in all

Activities stages of the procurement

— Engage with a diverse range process, from pre-tender

of suppliers to promote activities to contract award

competition. and implementation.

— Provide capacity-building — Conduct open and competitive

support through training bidding processes to maximise

programs. participation.

— Encourage collaboration and

Toolkit for partnerships among suppliers.

Resilient Public

Procurement

Strategies

to Minimise

Risks of Supply

Disruption © OECD 2024 47

STRATEGY 5. ADDRESS MARKET FAILURE

Foreword

Acknowledgments 5. Risk Management 6. Performance Monitoring

and Mitigation Phase and Evaluation Phase

About the Toolkit

Actors Actors

Reinforcing Resilience

through Innovative

Procurement team, risk Procurement team, monitoring and

Procurement Strategies management team, legal advisors. evaluation specialists, stakeholders.

Activities Activities

— Identify and assess risks — Monitor the implementation

Resilient Public associated with market failures, of procurement contracts.

Procurement Strategies

such as supply disruptions,

— Evaluate the effectiveness

quality issues, and cost overruns.

7. Improvement and 8. Reporting Phase

Existing Guidance Adaptation Phase

and Frameworks Actors

Actors Procurement team, compliance

Image Credits

Procurement team, policy makers, officers, legal advisors.

cross-functional teams.

Activities

Activities — Prepare regular reports

— Implement continuous on procurement activities,

improvement initiatives based outcomes, and compliance

on evaluation findings and with regulatory requirements.

lessons learned.

— Facilitate audits and reviews to

— Adapt procurement policies verify adherence to procurement

and practices in response to laws and standards.

emerging market trends and

Toolkit for technological advancements.

Resilient Public — Foster innovation through pilot

Procurement

projects and collaborations.

Strategies

to Minimise

Risks of Supply

Disruption © OECD 2024 48

STRATEGY 5. ADDRESS MARKET FAILURE

Foreword Examples

Acknowledgments

About the Toolkit ICT Procurement

Taskforce in Australia

Reinforcing Resilience

through Innovative Initiative / Address Market Failure /

Procurement Strategies Australia

Link

In 2015-16, Australian government agencies reported that it had spent

Resilient Public AUD 6.2 billion on ICT goods and services. That same year, Australian

Procurement Strategies agencies estimated that they would procure AUD 9 billion of ICT goods

and services in future years via 17.000 contracts. Australia concluded

5 Address Market Failure (12)

Waste Procurement

Recommendations / Address Market

Existing Guidance

Failure / United Kingdom

and Frameworks

Link

Image Credits

The Office of Fair Trading (OFT) worked closely with the Office

of Government Commerce (OGC) and the Department for Environment,

Food and Rural Affairs (Defra) to examine the effects of public

procurement on competition and capacity in the municipal waste

sector. ‘More Competition, Less Waste’ was published by the OFT, making

recommendations to central and local Government for encouraging

more competition in their prourement processes for municipal waste

collection services. For examples, Local authorities were recommended

to tender separately for municipal waste treatment contracts and

landfill contracts.

Toolkit for

Resilient Public

Procurement

Strategies

to Minimise

Risks of Supply

Disruption © OECD 2024 50

Foreword Existing Guidance

Acknowledgments and Frameworks

About the Toolkit

Important National Documents

Reinforcing Resilience

through Innovative

Procurement Strategies — Public Procurement Act (2016)

— Utilities Procurement Act (2016)

— Concessions Procurement Act (2016)

Resilient Public

Procurement Strategies — Defense Procurement Act (2011)

— National Cyber Security Strategy

— Recommendation of the OECD Council on Fighting Bid Rigging in

Public Procurement (2011)

Existing Guidance

and Frameworks

Image Credits

Toolkit for

Resilient Public

Procurement

Strategies

to Minimise

Risks of Supply

Disruption © OECD 2024 51

Foreword Image credits

Acknowledgments

All images are from Shutterstock.

About the Toolkit Stockpiling

Page 12 Medical Supplies and Pharmaceuticals © miguelglxz

Page 12 Food and Water Supplies © Pipas Imagery

Reinforcing Resilience

Page 12 Protective Gear for Personnel © Elliott Cowand Jr

through Innovative

Page 12 Communications Equipment © Kosmogenez

Procurement Strategies

Page 16 Korea © Grigvovan

Page 16 United States © Wirestock Creators

Page 17 Finland © Mircea Moira

Page 17 Australia © Dmitry Kalinovsky

Page 18 International Energy Agency (IEA) © Ramon Cliff

Resilient Public Page 18 Japan © Joaquin Corbalan P

Procurement Strategies

Diversification of Suppliers

Page 20 Raw Materials and Components © Rito Succeed

Page 31 United States © panuwat phimpha

Page 31 United Kingdom © Yulia_Bogomolova

Page 32 Canada © nmedia

Page 32 Germany © sweasy

Existing Guidance Collaborative Procurement

and Frameworks Page 34 Educational Resources © Aquir

Page 34 Textile and Fabrics © Anton_AV

Page 34 Environmental and Sustainable Products © Dimitri Tymchenko

Image Credits Page 34 Innovative Solutions © PopTika

Page 34 Medical Supplies © Iurii Stepanov

Page 39 Nordic Countries © PeopleImages.com - Yuri A

Page 39 Belgium © Owlie Productions

Page 40 Estonia © Who is Danny

Page 40 United Kingdom © Monkey Business Images

Page 41 Sweden © LouieLea

Address Market Failure

Page 43 Infrastructure Development © Prapat Aowsakorn

Page 43 IT and Telecommunications © MARENZO

Page 43 Environmental Services and Renewable Energy © Capt.Pic

Page 43 Healthcare Services and Pharmaceuticals © MMD Creative

Page 47 Australia © Photon photo

Page 47 Austria © Yuliya_P

Page 48 Scotland © Studio Romantic

Page 48 United Kingdom © LightField Studios

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Disruption © OECD 2024 52

Toolkit for

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Procurement

Strategies

to Minimise

Risks of Supply

Disruption

5 Address Market Failure (2)

Existing Guidance

and Frameworks

Image Credits

Toolkit for

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Procurement

Strategies

to Minimise

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Disruption © OECD 2024 5

Foreword Acknowledgments

Acknowledgments This Toolkit builds on the report ”Building a Future-oriented Crisis

Preparedness System in Sweden” and the result of a collaborative effort

About the Toolkit

between the Swedish Civil Contingencies Agency (MSB), the OECD, and

the European Commission’s Directorate–General for Structural Reform

Reinforcing Resilience

through Innovative Support (DG REFORM). The European Commission’s Technical Support

Procurement Strategies Instrument (TSI) financed the development of this document.

The Toolkit was prepared by the OECD Public Governance Directorate

(GOV) under the leadership of Elsa Pilichowski (Director). It had been

Resilient Public jointly developed by two divisions – the Division on Infrastructure and

Procurement Strategies

Public Procurement (IPP) and the Division on Innovative, Digital, and Open

Government (INDIGO). The document was drafted by Matthieu Cahen

5 Address Market Failure (3)

Toolkit for

Resilient Public To maximise utility, a User Guide is included, offering clear instructions

Procurement on navigating the toolkit effectively, ensuring a seamless integration of

Strategies

to Minimise resilient practices into your procurement approach.

Risks of Supply

Disruption © OECD 2024 7

Foreword

Toolkit User Guide: Steps

Acknowledgments

About the Toolkit

Select the

Reinforcing Resilience

procurement

through Innovative category

Procurement Strategies

(with the

involvement of a

category manager)

Resilient Public

Procurement Strategies

Engaging

with

Existing Guidance

Assess risks

and Frameworks

suppliers

and vulnerability

and the

Image Credits (along the

private

supply chain)

sector

is key

Choose the best

PP strategy to

improve resilience

Toolkit for

Resilient Public

Procurement

Strategies

to Minimise

Risks of Supply

Disruption © OECD 2024 8

Foreword Reinforcing Resilience

Acknowledgments through Innovative

About the Toolkit Procurement Strategies

Reinforcing Resilience Crisis management and ensuring the security of supply are

through Innovative

Procurement Strategies complementary activities. Establishing proactive supply risk management

strategies supports crisis preparedness, while effective responses to

emergencies and crisis management can use public procurement to

address the consequences of disruptive events. As these innovative

Resilient Public approaches to procurement strategy evolve, regulatory measures and

Procurement Strategies economic incentives can secure active participation from the private

sector in these efforts.

shaped through public procurement. While different from regulation,

public procurement can effectively enable or restrict supplier

participation in the market. Given its significant role in government

expenditure and GDP, public procurement serves as a powerful economic

Existing Guidance

and Frameworks incentive for private suppliers to meet public sector needs, including

enhanced crisis preparedness, through the requirements set by

Image Credits public procurers.

Public procurement has a crucial role in ensuring access to essential

goods and services. This is reflected in the allocation of procurement

expenditures across government functions. According to the latest OECD

data, over 30% of total procurement spending in OECD countries is

concentrated in health services. In Sweden, public procurement in health

is lower at 23.7%, but spending on general public services (17.7%) and

education (15.3%) is among the highest in the OECD.

Public procurement plays an important part in 1) bolstering resilience

within the supply chain by acting as a strategic lever for governments

to foster adaptability and continuity; and 2) ensuring access to essential

Toolkit for

goods and services, including healthcare, with substantial annual spending

Resilient Public

Procurement

Strategies

to Minimise

Risks of Supply

Disruption © OECD 2024 9

in this area. Beyond the amount of spend, the share of public demand

Foreword

in specific sectors in Europe, as high as almost 80% in education and

human health services.

Acknowledgments

In order to achieve effective procurement, it is essential to continuously

About the Toolkit

explore diverse procurement methods, improve information sharing, and

Reinforcing Resilience

establish collaborative systems, especially if a well-established category

through Innovative manager function is absent in the procuring authorities, which is the

Procurement Strategies

case in Sweden. Securing additional funding and fostering collaborative

opportunities becomes imperative to ensure streamlined development

and interoperability across the procurement landscape.

Resilient Public Integrating a resilience perspective into public procurement is crucial

Procurement Strategies

for addressing vulnerabilities highlighted by recent global disruptions

like the COVID-19 pandemic. Traditionally focused on legal compliance,

5 Address Market Failure (4)

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Disruption © OECD 2024 13

STRATEGY 1. STOCKPILING

Foreword Context

Acknowledgments Stockpiling as a public procurement strategy involves the deliberate

accumulation and maintenance of a reserve of critical goods or resources

About the Toolkit

by a government or organisation. This approach ensures a reliable and

readily available supply in the face of potential disruptions, such as natural

Reinforcing Resilience

through Innovative disasters, geopolitical uncertainties, or other crises. By proactively building

Procurement Strategies and managing stockpiles, entities enhance their resilience, minimise

vulnerabilities, and can better address emergencies without relying solely

on real-time procurement. The concept behind stockpiling is strategic

preparedness, aimed at safeguarding against unforeseen events that

Resilient Public could disrupt the regular supply chain.

Procurement Strategies

Stockpiling can also foster economic stability by reducing the impact

5 Address Market Failure (5)

Actors Actors

Government agencies, Procurement team, legal advisors,

Existing Guidance procurement team, supply chain and quality control experts.

and Frameworks

experts, vendors.

Activities

Image Credits

Activities — Issuing clear requests

— Conduct market research for proposals.

for reliable suppliers. — Evaluation of proposals

— Negotiation of contracts collaboratively.

and pricing terms. — Selection and contract suppliers.

— Ensure compliance with

procurement regulations.

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Procurement

Strategies

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Disruption © OECD 2024 16

STRATEGY 1. STOCKPILING

Foreword

Acknowledgments 5. Inventory Management 6. Distribution Phase

Phase

About the Toolkit Actors

Actors Logistics teams, transportation

Reinforcing Resilience

through Innovative

Procurement team, warehouse providers, local authorities.

Procurement Strategies managers, inventory control

specialists, IT systems Activities

administrators. — Plan efficient distribution routes.

— Coordinate with local authorities

Resilient Public Activities and institutions for effective and

Procurement Strategies

— Implementation of big inventory smooth deliveries.

tracking systems. — Establishment of protocols

Phase

Actors

Actors Procurement team,

Monitoring team, data analysts, and cross-functional teams, and

Existing Guidance

relevant gov.t agencies. stakeholders from each phase.

and Frameworks

Activities Activities

Image Credits

— Monitor stockpile usage and — Conduct regular reviews and

distribution efficiency. share lessons learnt.

— Evaluatation of the effectiveness — Adjustment of stockpile amount

of the strategy against and composition based on

predefined metrics. evolving needs.

— Identification of areas for — Update protocols and

improvement. procedures for continuous

improvement.

Toolkit for

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Procurement

Strategies

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Disruption © OECD 2024 17

STRATEGY 1. STOCKPILING

Foreword Examples

Acknowledgments

About the Toolkit Korea’s Strategy

of Stockpiling of Key

Reinforcing Resilience

through Innovative Industrial Raw Materials

Procurement Strategies Strategy / Stockpiling / Korea

Link

One way of ensuring that supplies are available as they are needed

Resilient Public is to stockpile large quantities in advance by using Government

Procurement Strategies funds. For this purpose, the Korean Public Procurement Service (PPS)

has managed its stockpile fund and stockpiled and released various

US Department

of Defense (DOD)

Existing Guidance Stockpiles

and Frameworks Strategy / Stockpiling /

United States

Image Credits Link

DOD keeps various stockpiles for defense requirements during

emergencies, such as the National Defense Stockpile (NDS). These

stockpiles contain a wide range of Government Purchased Material

(GPM) in varying types and quantities.

DOD follows a “just-in-time” logistics approach, prioritising commercial

solutions like direct vendor delivery, prime vendor contracting, and

contingency contracts.

The strategy minimizes the volume of GPM stockpiled and ensures

timely access to resources.

Toolkit for

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Procurement

Strategies

to Minimise

Risks of Supply

Disruption © OECD 2024 18

STRATEGY 1. STOCKPILING

Foreword

Acknowledgments

About the Toolkit EU Reserves to

Be Established in

Reinforcing Resilience

through Innovative Finland as Part of

Procurement Strategies

the rescEU Project

Strategy / Stockpiling / Finland

Link, Link

Resilient Public The European Commission created rescEU for the EU Civil Protection

Procurement Strategies

Mechanism to better safeguard citizens from disasters and handle

emerging risks.

National Medical

Existing Guidance Stockpile of the

and Frameworks Australian Government

Strategy / Stockpiling / Australia

Image Credits

Link

The Australian Government’s National Medical Stockpile is a strategic

reserve of drugs, vaccines, antidotes, and personal protective

equipment for use in national health emergencies. The Department

of Health and Aged Care purchases and stockpiles these items to

make Australia more self-sufficient during an emergency against an

increased demand.

The National Medical Stockpile is supported by a network of

service providers and suppliers. These include warehousing and

transportation partners, external auditors, technical and clinical

Toolkit for advisors, and pharmaceutical companies.

Resilient Public

Procurement

Strategies

to Minimise

Risks of Supply

Disruption © OECD 2024 19

STRATEGY 1. STOCKPILING

Foreword

Acknowledgments

About the Toolkit IEA Member

Countries Agree to

Reinforcing Resilience

through Innovative New Emergencys

Procurement Strategies

Oil Stock Release

Strategy / Stockpiling / IEA

Link

Resilient Public In 2022, in a decisive move to counteract the market turmoil caused by

Procurement Strategies

Russia’s invasion of Ukraine, the International Energy Agency’s 31 Member

Countries agreed to release additional oil from emergency reserves.

tat

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and Frameworks ion

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Disruption © OECD 2024 21

STRATEGY 2. DIVERSIFICATION OF SUPPLIERS

Foreword Context

Acknowledgments This procurement strategy aims at reducing risk and increasing resilience

within supply chains by engaging multiple suppliers for the same type of

About the Toolkit

goods or services. The primary goal is to mitigate various potential risks

associated with relying on a single supplier, provide more flexibility to the

Reinforcing Resilience

through Innovative procurement, create transparency and increase proximity. By spreading

Procurement Strategies procurement across multiple vendors, organisations can minimise the

impact of disruptions caused by natural disasters, geopolitical events,

economic downturns, or operational issues.

Resilient Public Furthermore, working with multiple suppliers enables comparative

Procurement Strategies

analysis of product or service quality and provides leverage for ensuring

adherence to quality standards and ensure the crisis preparedness

5 Address Market Failure (6)

Existing Guidance 3. Market Research Phase 4. Supplier Qualification

and Frameworks Phase

Actors

Image Credits Government agencies, procurement Actors

team, supply chain experts, market Procurement team, legal advisors,

research analysts, industry experts. quality assurance experts,

compliance officers.

Activities

— Conduct market research Activities

to identify new suppliers. — Develop supplier qualification

— Explore emerging markets and criteria (e.g., financial stability,

niche suppliers. quality certifications).

— Use databases and directories — Review potential suppliers

to gather information on against criteria and conduct

potential new suppliers. screenings.

Toolkit for — Verify compliance with regulatory

Resilient Public and ethical standards.

Procurement

Strategies

to Minimise

Risks of Supply

Disruption © OECD 2024 24

STRATEGY 2. DIVERSIFICATION OF SUPPLIERS

Foreword

Acknowledgments 5. Request for 6. Request for Proposals Phase

Information Phase

About the Toolkit Actors

Actors Procurement team, legal

Reinforcing Resilience

through Innovative

Procurement team, inventory department (for contract terms),

Procurement Strategies control specialists, technical finance department (for budget

experts, stakeholders from user alignment).

departments.

Activities

Resilient Public Activities — Prepare and issue calls

Procurement Strategies

— Prepare and issue RFIs to to selected suppliers.

shortlisted suppliers. — Clearly define submission

7. Evaluation and 8. Negotiation and

Selection Phase Contracting Phase

Existing Guidance

and Frameworks Actors Actors

Procurement team, monitoring Procurement team, legal

Image Credits

team, evaluation committee, department, finance department,

managemen, relevant supplier representatives.

government agencies.

Activities

Activities — Negotiations with selected

— Evaluate proposals against suppliers to finalise terms

criteria such as cost- and pricing.

effectiveness, quality, and — Address any outstanding issues

diversity benefits. or concerns related to contracts.

— Negotiate with top candidates — Draft and review contract

to clarify terms and conditions. agreements, including provisions

— Select suppliers based on for monitoring supplier

Toolkit for evaluation outcomes. performance. Sign contracts

Resilient Public

with suppliers.

Procurement

Strategies — Set up supplier performance

to Minimise assessment mechanisms.

Risks of Supply

Disruption © OECD 2024 25

STRATEGY 2. DIVERSIFICATION OF SUPPLIERS

Foreword Examples

Acknowledgments

About the Toolkit Small Business

Subcontracting

Reinforcing Resilience

through Innovative Program

Procurement Strategies Program / Diversification

of Suppliers / United States

Link

Resilient Public Any contractor receiving a contract with a value greater than

Procurement Strategies the simplified acquisition threshold (700.000 USD, 1.500.000 USD

for constructions) must agree in the contract that small business,

in the Japanese Public

Procurement Strategy

Strategy / Diversification

of Suppliers / Japan

Existing Guidance

and Frameworks Link

Image Credits Japan uses supplier diversification as a part of its public procurement

strategy by supporting local SMEs and encouraging the participation

of a wide range of suppliers.

The Japanese government has initiatives in place to facilitate easier

access for smaller companies to bid on public contracts, thereby

ensuring a diverse and competitive supplier base. Additionally, Japan

does not preclude the diversification of international suppliers by

treating the participation of foreign companies in public tenders

in the same way as domestic companies.

Toolkit for

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Procurement

Strategies

to Minimise

Risks of Supply

Disruption © OECD 2024 26

STRATEGY 2. DIVERSIFICATION OF SUPPLIERS

Foreword

Acknowledgments

About the Toolkit Handbook on Supplier

Diversity in Europe

Reinforcing Resilience

through Innovative Handbook / Diversification

Procurement Strategies of Suppliers / European Union

Link

This Handbook aims to summarise the years of learning so far and to

Resilient Public provide a platform from which to move forward. It seeks to answer the

Procurement Strategies questions that the authors are so often asked, such as “Why should we

care about supplier diversity?”, “What can we do to implement it?”

5 Address Market Failure (7)

Existing Guidance

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Disruption © OECD 2024 28

STRATEGY 3. IMPROVED MONITORING OF THE SUPPLY CHAIN

Foreword Context

Acknowledgments Supply chains consist of highly interconnected sectors, and disruptions

in some of the functions can paralyse the whole chain. Understanding the

About the Toolkit

potential impact of disasters on such interdependencies necessitates

coordinated information exchange between public and private entities.

Reinforcing Resilience

through Innovative This procurement strategy involves the implementation of advanced

Procurement Strategies monitoring mechanisms to enhance visibility and control over various

stages of the supply chain.

The strategy focuses on leveraging real-time tracking systems, IoT

Resilient Public devices, and data analytics to monitor goods movement, evaluate supplier

Procurement Strategies

performance, and identify supply chain risks. Emphasising proactive

measures, it aims to streamline procurement efficiently. Collaboration is

Product categories

Existing Guidance

and Frameworks

Image Credits

Information Technology (IT) Emergency Response Equipment

Infrastructure

Energy and Utilities Pharmaceuticals

and Medical Supplies

Toolkit for

Resilient Public

Procurement

Strategies

to Minimise

Risks of Supply

Disruption © OECD 2024 29

STRATEGY 3. IMPROVED MONITORING OF THE SUPPLY CHAIN

Foreword Implementation

Acknowledgments

Needs Assessment and Strategy Dev. Phase

About the Toolkit

5 Address Market Failure (8)

3. Technology Assessment/ 4. Supplier Engagement

Existing Guidance Tendering Phase Phase

and Frameworks

Actors Actors

Image Credits

Procurement team, IT Procurement team.

department, technical experts,

potential suppliers. Activities

— Engage with selected suppliers

Activities to establish collaborative

— Assess available technologies relationships.

such as real-time tracking — Award contract.

systems, IoT devices, and data — Conduct supplier workshops

analytics platforms. or training sessions.

— Evaluate and select suppliers and

solutions through a competitive

bidding process or request for

Toolkit for

proposal (RFP).

Resilient Public

Procurement

Strategies

to Minimise

Risks of Supply

Disruption © OECD 2024 31

STRATEGY 3. IMPROVED MONITORING OF THE SUPPLY CHAIN

Foreword

Acknowledgments 5. Implementation and 6. Performance Monitoring

Integration Phase and Evaluation Phase

About the Toolkit

Actors Actors

Reinforcing Resilience

through Innovative

Procurement team, IT department, Procurement team, quality

Procurement Strategies supplier representatives. assurance team, stakeholders.

Activities Activities

— Implement chosen monitoring — Monitor supplier performance

Resilient Public technologies and systems and supply chain metrics.

Procurement Strategies

according to project timelines — Analyse data to identify trends,

and specifications. risks, and opportunities.

7. Technology Adaptation 8. Reporting Phase

Phase

Actors

Existing Guidance Actors Procurement team, compliance

and Frameworks

Procurement team, SCM team, officers, legal advisors.

Image Credits cross-functional teams.

Activities

Activities — Maintain thorough

— Implement continuous documentation of procurement

improvement initiatives. processes, decisions,

— Foster a culture of innovation and outcomes.

and adaptation to emerging — Prepare comprehensive reports

technologies. on the implementation and

— Collaborate with industry impact of the supply chain

partners and experts to stay monitoring strategy.

informed about advancements — Facilitate audits and reviews to

in supply chain management. validate adherence to legal and

Toolkit for regulatory standards.

Resilient Public

Procurement

Strategies

to Minimise

Risks of Supply

Disruption © OECD 2024 32

STRATEGY 3. IMPROVED MONITORING OF THE SUPPLY CHAIN

Foreword Examples

Acknowledgments

About the Toolkit Coordination of Supply

Chain Resilience in the

Reinforcing Resilience

through Innovative United States

Procurement Strategies Executive Order / Improved

Monitoring of the Supply Chain /

United States

Link

Resilient Public

Procurement Strategies The US President’s Executive Order on America’s Supply Chains

(2021) underlines the vitality of resilience, diversity, and security in

Measuring the

Resilience of Critical

Existing Guidance

and Frameworks

Infrastructure in the UK

Framework / Improved Monitoring of

the Supply Chain / United Kingdom

Image Credits

Link, Link

The UK published its Resilience Framework in 2022 to create separate

capabilities for preparedness and risk reduction, and crisis response –

the Resilience Directorate and the Cabinet Office Briefing (COBR) Unit.

The UK’s work on resilience is grounded in the principle of prevention

and covers the whole risk cycle. Therefore, the Framework focuses on

the resilience of, and dependencies within the UK’s critical national

infrastructure and supply chains, to build system-wide resilience. The UK

also aims to increase business engagement across the risk landscape,

on emerging and priority areas such as cyber resilience, critical

infrastructure and supply chains.

Toolkit for

Resilient Public

Procurement

Strategies

to Minimise

Risks of Supply

Disruption © OECD 2024 33

STRATEGY 3. IMPROVED MONITORING OF THE SUPPLY CHAIN

Foreword

Acknowledgments

About the Toolkit Public Safety Canada’s

Efforts to Encourage

Reinforcing Resilience

through Innovative Cross-Sector Working

Procurement Strategies Program / Improved Monitoring

of the Supply Chain / Canada

Link

Resilient Public Public Safety Canada has developed an online information-sharing

Procurement Strategies portal for critical infrastructure stakeholders. (The Critical Infrastructure

Gateway.) It hosts information products–including risk management

The Port of Hamburg

Existing Guidance

and Frameworks Uses Analytics and

Emerging Technologies

Image Credits

Strategy / Collaborative

Procurement / Germany

Link

The port of Hamburg in Germany uses analytics to aggregate various

data points (i.e. vessel positions, height and width of bridges, etc.) to

optimise internal port operations.

Additionally, as a smart port, they are leveraging other technologies

such as AI to enhance predictive insights, and cloud computing, data

management, and data sharing among various stakeholders. Robotic

process automation (RPA) is being leveraged to automate processes

across several support functions such as finance, human resources,

procurement, and supply chain management.

Toolkit for

Resilient Public

Procurement

Strategies

to Minimise

Risks of Supply

Disruption © OECD 2024 34

STRATEGY 4. COLLABORATIVE PROCUREMENT

Foreword

Acknowledgments

About the Toolkit

Reinforcing Resilience

through Innovative

Procurement Strategies

Collaborative

Resilient Public

Procurement

Procurement Strategies

tat

Existing Guidance

and Frameworks ion

Image Credits

t io

es rdi

Co o

Toolkit for

Resilient Public

Procurement

Strategies

to Minimise

Risks of Supply

Disruption © OECD 2024 35

STRATEGY 4. COLLABORATIVE PROCUREMENT

Foreword Context

Acknowledgments By joining forces with other public buyers and collaborating throughout

the procurement cycle, contracting authorities can share knowledge

About the Toolkit

and resources and streamline processes for a more effective

procurement system.

Reinforcing Resilience

through Innovative

Procurement Strategies Collaboration can also address new challenges facing public procurement,

such as the complexity of contracts. It can also support the use of

public procurement as a strategic tool to address economic, social, and

environmental policy goals.

Resilient Public

Procurement Strategies Collaboration in public procurement can differ in scope, levels, duration,

and formalisation. The types of collaboration range from coordinated

5 Address Market Failure (9)

Engagement Phase

Actors

Actors Procurement team, legal advisors,

Existing Guidance Government agencies, procurement procurement specialists, market

and Frameworks

teams, department representatives, researchers, industry experts.

key decision-makers, suppliers and

Image Credits

contractors, industry experts. Activities

— Conduct market research.

Activities

— Assess supplier capabilities,

— Involve key stakeholders

pricing, and quality standards

in the planning process.

— Establish communication

channels.

Toolkit for

Resilient Public

Procurement

Strategies

to Minimise

Risks of Supply

Disruption © OECD 2024 39

STRATEGY 4. COLLABORATIVE PROCUREMENT

Foreword

Acknowledgments 5. Compliance Phase 6. Tendering Phase

About the Toolkit Actors Actors

Legal advisors, compliance officers, Government agencies, procurement

Reinforcing Resilience

through Innovative

procurement team. team, vendors.

Procurement Strategies

Activities Activities

— Ensure compliance with relevant — Issue clear and comprehensive.

laws and regulations.

— Encourage competitive bidding

Resilient Public

Procurement Strategies

— Establish transparent and fair to obtain the best product

procurement processes. and value.

experts and consultants.

Activities

Activities — Negotiate contracts with

— Evaluate proposals selected suppliers.

Existing Guidance

collaboratively based on

and Frameworks — Ensure that contract terms align

predetermined criteria.

with collaborative goals.

Image Credits — Select suppliers considering both

— Implement a robust contract

technical and financial aspects.

management system to monitor

performance, resolve issues, and

ensure ongoing collaboration.

Toolkit for

Resilient Public

Procurement

Strategies

to Minimise

Risks of Supply

Disruption © OECD 2024 40

STRATEGY 4. COLLABORATIVE PROCUREMENT

Foreword Examples

Acknowledgments

About the Toolkit Collaboration

on Sustainable

Reinforcing Resilience

through Innovative Procurement in the

Procurement Strategies

NordicHealth Sector

Strategy / Collaborative

Procurement / Nordic countries

Link

Resilient Public

Procurement Strategies The Nordic Criteria for More Sustainable Packaging for Healthcare

Products aims at reducing climate and environmental impacts of

City of Ghent’s

Existing Guidance Socially Responsible

and Frameworks Workwear Toolbox

Strategy / Collaborative

Image Credits Procurement / Belgium

Link

The City of Ghent in Belgium created a Toolbox for Socially Responsible

Workwear with the involvement of all potential suppliers to discuss

sustainability goals rather than conducting separate discussions with

the market players. The City of Ghent also had exchanges with other

procurers in Flanders.

The dialogue allowed the contracting authority to gather knowledge

of the possibilities and availability of sustainable goods and

services in the market (the importance of “knowing your market”).

The dialogue also generated interest in the market for investing

in more sustainable solutions.

Toolkit for

Resilient Public

Procurement

Strategies

to Minimise

Risks of Supply

Disruption © OECD 2024 41

STRATEGY 4. COLLABORATIVE PROCUREMENT

Foreword

Acknowledgments

About the Toolkit Hack the Crisis

Movement

Reinforcing Resilience

through Innovative Strategy / Collaborative

Procurement Strategies Procurement / Estonia

Link

The Hack the Crisis movement that started in Estonia, has reached over

Resilient Public 40 countries and more than 100.000 participants. It aimed at sharing

Procurement Strategies and developing ideas for urgently needed solutions during the current

crisis, as well as to build resilience post-pandemic.

5 Address Market Failure also exemplifies an innovative procurement approach by fostering

long-term sustainability, adaptability, and risk management in the face

of uncertainties. By prioritising resilience, public procurement can

encourage the development and adoption of innovative goods, services,

Existing Guidance and processes that not only meet immediate needs but also enhance

and Frameworks the capacity to withstand future crises. In addition, this approach aligns

procurement with broader public policy goals, promoting innovation while

Image Credits

safeguarding public value in an uncertain global environment..

However, translating these objectives into daily practices by contracting

authorities remains a challenge, especially considering the decentralised

nature of the Swedish public procurement system. Furthermore, fostering

synergies between the procurement and risk management functions

could lead to a forward-looking crisis preparedness system for effectively

anticipating and mitigating potential and emerging threats. Procurement

functions can bring expertise in supplier management and sourcing

strategies, while risk management functions could contribute insights

into identifying, assessing, and managing potential risks. This toolkit

adopts such an integrated approach to help authorities better involve

Toolkit for stakeholders, navigate uncertainties, and maintain operational continuity

Resilient Public in the face of crises.

Procurement

Strategies

to Minimise

Risks of Supply

Disruption © OECD 2024 4

This toolkit has been developed as part of the project ”Building

Foreword

a future-oriented crisis preparedness system in Sweden”, financed

by the European Union’s Technical Support Instrument (TSI), to offer

Acknowledgments

central-level, regional, and municipal authorities comprehensive and

About the Toolkit practical guidance to enhance resilience in the face of uncertainties

and disruptions.

Reinforcing Resilience

through Innovative

Procurement Strategies

Resilient Public

Procurement Strategies

5 Address Market Failure and Networks

(e.g. green procurement network,

procurement students/

Existing Guidance alumni network etc.)

and Frameworks

Image Credits

Knowledge Transfer and

Share of Best Practices

Within the Network

Toolkit for

Resilient Public

Procurement

Strategies

to Minimise

Risks of Supply

Disruption © OECD 2024 38

STRATEGY 4. COLLABORATIVE PROCUREMENT

Foreword Coordination

Acknowledgments

About the Toolkit 1. Needs Assessment Phase 2. Strategic Planning Phase

Reinforcing Resilience Actors Actors

through Innovative

Procurement Strategies Procurement team, government Government agencies, procurement

agencies, procurement officers managers, strategic planners,

and sector-specific professionals, organizational leaders, finance

end-user departments. and budgeting departments.

Resilient Public

Procurement Strategies Activities Activities

— Identify procurement needs — Develop a collaborative

5 Address Market Failure — Apt at generating policies and outcomes that are reviewed regularly.

Existing Guidance ÖkoKauf Wien

and Frameworks

Programme

Image Credits Programme / Address Market

Failure / Austria

Link

The ÖkoKauf Wien programme was set up in 1998 to use this large

purchasing volume to support the procurement of ecologically sound

products and services. It aims to orient the procurement of the Vienna

city administration toward climate protection while respecting legal

requirements and achieving value for money.

Since 2003, an ordinance of the director general of administrative

services has obliged all services of Vienna to take the objectives of

ÖkoKauf into account in procurement. Subsequently, public procurement

officers must make sure that the ecological requirements become part

Toolkit for of the contract.

Resilient Public

Procurement

Strategies

to Minimise

Risks of Supply

Disruption © OECD 2024 49

STRATEGY 5. ADDRESS MARKET FAILURE

Foreword

Acknowledgments

About the Toolkit Developing a Baseline

for Educational

Reinforcing Resilience

through Innovative Improvements

Procurement Strategies

Through Procurement

in Scotland

Framework Agreements / Addressing

Market Failure / Scotland

Resilient Public

Procurement Strategies

Link

The Scottish government set out to procure framework agreements

5 Address Market Failure from external dependencies that might compromise their geopolitical

or economic interests. This self-reliance not only enhances national

security but also empowers governments to navigate global complexities

with resilience, ensuring sustainable development and safeguarding the

Existing Guidance interests of their citizens.

and Frameworks

Image Credits Product categories

Medical Supplies and Food and Water Supplies

Pharmaceuticals

Toolkit for

Resilient Public

Procurement Protective Gear for Personnel Communications Equipement

Strategies

to Minimise

Risks of Supply

Disruption © OECD 2024 14

STRATEGY 1. STOCKPILING

Foreword Implementation

Acknowledgments

About the Toolkit Planning Phase

Reinforcing Resilience

5 Address Market Failure operation while those that ignored market trends struggled to source

cutting-edge components. Another example is the pharmaceutical

industry where there has been a significant supplier consolidation leading

to increased drug prices. Public buyers who accounted for these changes

Existing Guidance

and Frameworks

by building relationships with smaller suppliers or entering into long-

term agreements with key manufacturers could avoid – or at least flatten

Image Credits – price spikes. Finally, with growing regulations around sustainability,

such as the EU’s Green Deal, procurement teams that monitor market

trends and adapt their sourcing strategies to meet these demands can

find opportunities for cost savings through sustainable suppliers and

reduced risks of non-compliance.

The need for strengthening resilience is further emphasised by events

such as the war in Ukraine and fluctuating energy prices, which inflate

material costs and cause project delays. Effective procurement strategies,

such as including pass-through clauses to manage price fluctuations, can

mitigate these impacts. By adopting comprehensive risk management,

public procurement can ensure better market outcomes and enhance

resilience against future disruptions.

Toolkit for

Resilient Public

Procurement

Strategies

to Minimise

Risks of Supply

Disruption © OECD 2024 10

Collaboration among public entities is also important, especially in

Foreword

decentralised procurement landscapes like Sweden. At the sub-national

level, Adda implements framework agreements and dynamic purchasing

Acknowledgments

systems for the benefit of municipalities and regions. At the central level,

About the Toolkit the National Procurement Services (a department within Kammarkollegiet)

offers central government authorities coordinated framework agreements

Reinforcing Resilience for goods and services of general use and developed a handbook on

through Innovative category management.

Procurement Strategies

Sweden is also working towards greater consistency in procurement

approaches to secure the provision of goods and services. To steer

contracting authorities’ practices across the Swedish procurement

Resilient Public

Procurement Strategies

ecosystem, the National Agency for Public Procurement (NAPP)

published several guidance and reports that provide insights on

5 Address Market Failure Purchasing Consortia

Strategy / Collaborative

Procurement / United Kingdom

Link

Existing Guidance

and Frameworks UKUPC is a partnership between eight UK consortia who created

a formal entity to support collaborative procurement within Higher

Image Credits and Further Education.

All eight consortia work together to share knowledge and best practice,

to support each other and our wider procurement community.

The UKUPC Strategy 2020–2025 outlines the benefits of working with

consortia for members, our strategic aims and key areas of focus.

Toolkit for

Resilient Public

Procurement

Strategies

to Minimise

Risks of Supply

STRATEGY 4. COLLABORATIVE PROCUREMENT

Foreword

Acknowledgments

About the Toolkit The Cooperation of

Södermanland County

Reinforcing Resilience

through Innovative Council on Crisis

Procurement Strategies

Preparedness

Strategy / Collaborative

Procurement / Sweden

Resilient Public The Södermanland County Council had decided to cooperate with

Procurement Strategies four other counties on the procurement of goods in an administration

under a joint politically appointed committee. In this cooperation,

5 Address Market Failure Strategy / Diversification

of Suppliers / Germany

Link

Existing Guidance Germany encourages supplier diversity through its Mittelstand policy,

and Frameworks which focuses on supporting small and medium-sized enterprises

(SMEs) to address challenges such as demographic change, the energy

Image Credits transition, and digitization. It emphasises providing incentives to help

companies adapt to structural changes, improve productivity through

digital solutions, and seize new business opportunities. Managed by the

Federal Ministry for Economic Affairs and Climate Action, the policy aims

to ensure the long-term success of SMEs by promoting both continuity

and innovation.

By modernising public procurement, Germany has drastically reduced

the cost of compliance for companies (by some €2 billion in total).

The modernisation of procurement law also makes it easier for SMEs

to secure public contracts. The SME test has also been introduced to

ensure that the financial impact of new regulation on SMEs is assessed

before any such measures are taken.

Toolkit for

Resilient Public

Procurement

Strategies

to Minimise

Risks of Supply

STRATEGY 3. IMPROVED MONITORING OF THE SUPPLY CHAIN

Foreword

Acknowledgments

About the Toolkit

Reinforcing Resilience

through Innovative

Procurement Strategies

Improved

Monitoring

of the

Resilient Public

Procurement Strategies

Supply Chain

5 Address Market Failure supply dynamics and foster a more competitive market.

Product categories

Existing Guidance

and Frameworks

Image Credits

Infrastructure Projects Information Technology (IT)

and Telecommunications

Environmental Services Healthcare Services

and Renewable Energy and Pharmaceuticals

Toolkit for

Resilient Public

Procurement

Strategies

to Minimise

Risks of Supply

STRATEGY 5. ADDRESS MARKET FAILURE

Foreword Implementation

Acknowledgments

About the Toolkit Needs Assessment Phase

Reinforcing Resilience

5 Address Market Failure The team would also like to thank Andrea Uhrhammer, Thibaut Gigou,

and Dovile Bogusyte for communication, Deborah Fernandez, Deirdre

Kiernan and Takumi Akama for administrative support. Sharon Mah

designed the Toolkit.

Existing Guidance

and Frameworks

Image Credits

Toolkit for

Resilient Public

Procurement

Strategies

to Minimise

Risks of Supply

Foreword About the Toolkit

Acknowledgments The Toolkit on Resilient Public Procurement Strategies provides a

comprehensive resource rooted in robust logic and proven theories

About the Toolkit

to fortify your procurement practices against unforeseen challenges.

In addition, it encompasses a diverse range of content, featuring

Reinforcing Resilience

through Innovative a strategic framework backed by case studies and manifested in

Procurement Strategies practical tools designed to enhance the resilience of public procurement

processes. Moreover, the Toolkit offers users detailed insights into

adaptable public procurement strategies for various scenarios.

Resilient Public The Toolkit has been developed to offer authorities at central-level,

Procurement Strategies

regional, and municipal levels comprehensive and practical guidance

to enhance resilience in the face of uncertainties and disruptions.

5 Address Market Failure to social impact and economic growth.

The implementation of such strategy involves strategic sourcing practices

such as supplier segmentation, supplier relationship management, and

Existing Guidance

maintaining a robust supplier evaluation and monitoring system. Overall,

and Frameworks this strategy supports long-term sustainability and operational continuity.

Image Credits

Product categories

Raw Materials and Components Technology and IT Services

Toolkit for

Resilient Public

Procurement

Strategies Logistics and Transportation Medical Supplies and Equipment

to Minimise

Risks of Supply

STRATEGY 2. DIVERSIFICATION OF SUPPLIERS

Foreword Implementation

Acknowledgments

About the Toolkit Supplier Base Assessment Phase

Reinforcing Resilience

5 Address Market Failure

Existing Guidance and Frameworks 51

Image credits 52

Foreword Foreword

Acknowledgments Recent challenges, such as those posed by the COVID-19 pandemic and

Russia’s war of aggression against Ukraine, have had a significant impact

About the Toolkit

on Sweden’s civil preparedness system, making it crucial to strike the right

balance between planning for known events and creating generic response

Reinforcing Resilience

through Innovative capabilities. Focussing on essential services is necessary to anticipate

Procurement Strategies and manage high-impact, low-probability events effectively. In addition,

citizens and businesses expect government to proactively prepare for a

wide range of global crises, which entails integrating foresight practices

into planning and decision-making processes.

Resilient Public

Procurement Strategies

Public procurement can play a crucial role in this endeavour, given its

significant share in the national economy. Sweden allocates SEK 800

6. Performance Monitoring and Evaluation Phase

Foreword Acknowledgments About the Toolkit Reinforcing Resilience through Innovative Procurement Strategies

Resilient Public Procurement Strategies 1 Stockpiling 2 Diversification of Suppliers 3 Improved Monitoring of the Supply Chain 4 Collaborative Procurement

Procurement team, IT department, supplier representatives.

Procurement team, quality assurance team, stakeholders.

— Implement chosen monitoring technologies and systems according to project timelines and specifications. — Integrate monitoring solutions with existing IT infra and data management systems. — Conduct tests to ensure functionality and usability. — Provide training and support to end-users.

— Monitor supplier performance and supply chain metrics. — Analyse data to identify trends, risks, and opportunities. — Share performance reports with stakeholders.

Procurement team, compliance officers, legal advisors.

7 — Evaluate proposals

— Select suppliers

Toolkit for

Negotiation and Contracting Phase

Resilient Public

Procurement Finalise terms, pricing, and agreements with suppliers

Strategies

to Minimise

Risks of Supply

STRATEGY 2. DIVERSIFICATION OF SUPPLIERS

Foreword Coordination

Acknowledgments

About the Toolkit 1. Supplier Base 2. Critical Supply

Assessment Phase Identification Phase

Reinforcing Resilience

through Innovative

Actors Actors

Procurement Strategies

Procurement team, Supply Chain Government agencies,

Management team, Stakeholders procurement team, Department

of relevant departments heads (e.g., production, logistics),

Resilient Public (e.g., operations, finance). Risk management team.

Procurement Strategies

Activities Activities

7 — Evaluation of proposals

— Selections of suppliers

Toolkit for Contracting Phase

Resilient Public

Procurement 8 — Contract negotiations

Strategies — Contract implementation monitoring

to Minimise

Risks of Supply

STRATEGY 4. COLLABORATIVE PROCUREMENT

Foreword

A Possible Domain for Collaboration

Acknowledgments

About the Toolkit

Capacity-Building Initiatives

Reinforcing Resilience

through Innovative

Procurement Strategies

Common Trainings

Resilient Public on Specific Topics

Procurement Strategies

Risk managment competencies

7. Improvement and Adaptation Phase

Procurement team, risk management team, legal advisors.

Procurement team, monitoring and evaluation specialists, stakeholders.

— Identify and assess risks associated with market failures, such as supply disruptions, quality issues, and cost overruns.

— Monitor the implementation of procurement contracts.

— Develop risk mitigation strategies and contingency plans to ensure continuity of supply and service delivery.

— Evaluate the effectiveness of the procurement strategy in addressing market failures. — Gather feedback from stakeholders and suppliers.

— Implement monitoring and evaluation mechanisms to track supplier performance and address issues promptly.

Procurement team, compliance officers, legal advisors.

Procurement team, policy makers, cross-functional teams. Activities — Implement continuous improvement initiatives based on evaluation findings and lessons learned.

Toolkit for Resilient Public Procurement Strategies to Minimise Risks of Supply Disruption

— Adapt procurement policies and practices in response to emerging market trends and technological advancements.

Activities — Prepare regular reports on procurement activities, outcomes, and compliance with regulatory requirements. — Facilitate audits and reviews to verify adherence to procurement laws and standards.

— Foster innovation through pilot projects and collaborations.

8 — Feedback Mechanisms

— Adaptability

Strategies

to Minimise

Risks of Supply

STRATEGY 1. STOCKPILING

Foreword Coordination

Acknowledgments

About the Toolkit 1. Planning Phase 2. Needs Assessment Phase

Reinforcing Resilience Actors Actors

through Innovative

Procurement Strategies Government agencies, emergency Sector-specific professionals,

response teams, relevant ministries, logistics experts, and local

procurement team. communities.

Resilient Public

Activities Activities

Procurement Strategies — Definition of the objectives — Assessment of medical and

and scope. emergency needs.

8. Negotiation and Contracting Phase

Toolkit for Resilient Public Procurement Strategies to Minimise Risks of Supply Disruption

Procurement team, monitoring team, evaluation committee, managemen, relevant government agencies.

Procurement team, legal department, finance department, supplier representatives.

— Negotiations with selected suppliers to finalise terms and pricing. — Address any outstanding issues or concerns related to contracts. — Draft and review contract agreements, including provisions for monitoring supplier performance. Sign contracts with suppliers. — Set up supplier performance assessment mechanisms.

— Evaluate proposals against criteria such as costeffectiveness, quality, and diversity benefits. — Negotiate with top candidates to clarify terms and conditions. — Select suppliers based on evaluation outcomes.

8 — Report on the implementation (2)

— Faclitate audit

Strategies

to Minimise

Risks of Supply

STRATEGY 5. ADDRESS MARKET FAILURE

Foreword Coordination

Acknowledgments

About the Toolkit 1. Needs Assessment Phase 2. Market Analysis Phase

Reinforcing Resilience Actors Actors

through Innovative

Procurement Strategies Procurement team, legal advisors, Procurement managers, legal

stakeholders from relevant public advisors, market analysts,

entities and communities. stakeholders from relevant public

entities and communities.

Resilient Public

Activities

Procurement Strategies — Conduct a comprehensive Activities

needs assessment. — Conduct a thorough analysis

8 — Report on the implementation

Strategies — Faclitate audit

to Minimise

Risks of Supply

STRATEGY 3. IMPROVED MONITORING OF THE SUPPLY CHAIN

Foreword Coordination

Acknowledgments

About the Toolkit 1. Needs Assessment and 2. Planning Phase

Strategic Development Phase

Reinforcing Resilience Actors

through Innovative

Actors Procurement managers, legal

Procurement Strategies

Procurement team, government advisors, compliance officers.

agencies, Supply Chain

Management experts, Activities

Resilient Public legal advisors. — Review and ensure compliance

Procurement Strategies with PP regulations.

Activities — Prepare tendering documents

Acknowledgments About the Toolkit Reinforcing Resilience through Innovative Procurement Strategies

Toolkit for Resilient Public Procurement Strategies to Minimise Risks of Supply Disruption

— Evaluate proposals collaboratively based on predetermined criteria. — Select suppliers considering both technical and financial aspects.

— Ensure that contract terms align with collaborative goals. — Implement a robust contract management system to monitor performance, resolve issues, and ensure ongoing collaboration.

Collaboration on Sustainable Procurement in the NordicHealth Sector Strategy / Collaborative Procurement / Nordic countries Link

Resilient Public Procurement Strategies 1 Stockpiling 2 Diversification of Suppliers 3 Improved Monitoring of the Supply Chain 4 Collaborative Procurement

The Nordic Criteria for More Sustainable Packaging for Healthcare Products aims at reducing climate and environmental impacts of packaging associated to products provided to the healthcare sector. The criteria have been developed in collaboration between stakeholders responsible for public green procurement in Norway, Sweden, Denmark, Iceland and the Faroe Islands. By joining forces in the development, and the implementation, of these environmental criteria for packaging, we want to send a strong signal to the market and set a clear direction for suppliers.

Procurement team, SCM team, cross-functional teams. Activities — Implement continuous improvement initiatives. — Foster a culture of innovation and adaptation to emerging technologies. — Collaborate with industry partners and experts to stay informed about advancements in supply chain management.

Toolkit for Resilient Public Procurement Strategies to Minimise Risks of Supply Disruption

Activities — Maintain thorough documentation of procurement processes, decisions, and outcomes. — Prepare comprehensive reports on the implementation and impact of the supply chain monitoring strategy. — Facilitate audits and reviews to validate adherence to legal and regulatory standards.

Coordination of Supply Chain Resilience in the United States Executive Order / Improved Monitoring of the Supply Chain / United States Link

Resilient Public Procurement Strategies 1 Stockpiling 2 Diversification of Suppliers 3 Improved Monitoring of the Supply Chain 4 Collaborative Procurement

The US President’s Executive Order on America’s Supply Chains (2021) underlines the vitality of resilience, diversity, and security in the US supply chains for economic prosperity and national security. To combat threats like pandemics, cyber-attacks, and climate shocks, the US Administration aims to bolster domestic production, maintain competitive edges, and foster job creation. By coordinating with industry, academia, and local governments, the goal is to develop robust, secure supply chains that can withstand disruptions and support small businesses and vulnerable communities. This initiative is also meant to strengthen alliances and enhance emergency response capabilities.

Engaging with suppliers and the private sector is key

Toolkit for Resilient Public Procurement Strategies to Minimise Risks of Supply Disruption

To maximise utility, a User Guide is included, offering clear instructions on navigating the toolkit effectively, ensuring a seamless integration of resilient practices into your procurement approach. © OECD 2024

Select the procurement category (with the involvement of a category manager)

Resilient Public Procurement Strategies 1 Stockpiling 2 Diversification of Suppliers 3 Improved Monitoring of the Supply Chain 4 Collaborative Procurement 5 Address Market Failure

Toolkit for Resilient Public Procurement Strategies to Minimise Risks of Supply Disruption

Foreword Acknowledgments About the Toolkit Reinforcing Resilience through Innovative Procurement Strategies

Resilient Public Procurement Strategies 1 Stockpiling 2 Diversification of Suppliers 3 Improved Monitoring of the Supply Chain 4 Collaborative Procurement 5 Address Market Failure

Existing Guidance and Frameworks Image Credits

Reinforcing Resilience through Innovative Procurement Strategies Crisis management and ensuring the security of supply are complementary activities. Establishing proactive supply risk management strategies supports crisis preparedness, while effective responses to emergencies and crisis management can use public procurement to address the consequences of disruptive events. As these innovative approaches to procurement strategy evolve, regulatory measures and economic incentives can secure active participation from the private sector in these efforts. In Sweden, regulatory measures address both crisis response (e.g., the Rationing Act) and crisis preparedness (e.g., the Requisition Act). Additionally, some regulations specifically focus on continuity of supplies. Many industries require firms to obtain licenses and ensure compliance with safety standards (e.g., chemical process resilience), economic resilience (e.g., banking system stress tests), and market power regulation (e.g., monopoly oversight mandating crisis preparedness). Beyond regulation, relationships with the private sector can also be shaped through public procurement. While different from regulation, public procurement can effectively enable or restrict supplier participation in the market. Given its significant role in government expenditure and GDP, public procurement serves as a powerful economic incentive for private suppliers to meet public sector needs, including enhanced crisis preparedness, through the requirements set by public procurers. Public procurement has a crucial role in ensuring access to essential goods and services. This is reflected in the allocation of procurement expenditures across government functions. According to the latest OECD data, over 30% of total procurement spending in OECD countries is concentrated in health services. In Sweden, public procurement in health is lower at 23.7%, but spending on general public services (17.7%) and education (15.3%) is among the highest in the OECD.

Toolkit for Resilient Public Procurement Strategies to Minimise Risks of Supply Disruption

Public procurement plays an important part in 1) bolstering resilience within the supply chain by acting as a strategic lever for governments to foster adaptability and continuity; and 2) ensuring access to essential goods and services, including healthcare, with substantial annual spending

Foreword Acknowledgments About the Toolkit Reinforcing Resilience through Innovative Procurement Strategies

Resilient Public Procurement Strategies 1 Stockpiling 2 Diversification of Suppliers 3 Improved Monitoring of the Supply Chain 4 Collaborative Procurement 5 Address Market Failure

Measuring the Resilience of Critical Infrastructure in the UK Framework / Improved Monitoring of the Supply Chain / United Kingdom Link, Link

The UK published its Resilience Framework in 2022 to create separate capabilities for preparedness and risk reduction, and crisis response – the Resilience Directorate and the Cabinet Office Briefing (COBR) Unit. The UK’s work on resilience is grounded in the principle of prevention and covers the whole risk cycle. Therefore, the Framework focuses on the resilience of, and dependencies within the UK’s critical national infrastructure and supply chains, to build system-wide resilience. The UK also aims to increase business engagement across the risk landscape, on emerging and priority areas such as cyber resilience, critical infrastructure and supply chains.

Toolkit for Resilient Public Procurement Strategies to Minimise Risks of Supply Disruption

National Medical Stockpile of the Australian Government Strategy / Stockpiling / Australia Link

The Australian Government’s National Medical Stockpile is a strategic reserve of drugs, vaccines, antidotes, and personal protective equipment for use in national health emergencies. The Department of Health and Aged Care purchases and stockpiles these items to make Australia more self-sufficient during an emergency against an increased demand.

Toolkit for Resilient Public Procurement Strategies to Minimise Risks of Supply Disruption

The National Medical Stockpile is supported by a network of service providers and suppliers. These include warehousing and transportation partners, external auditors, technical and clinical advisors, and pharmaceutical companies.

Foreword Acknowledgments About the Toolkit Reinforcing Resilience through Innovative Procurement Strategies

IEA Member Countries Agree to New Emergencys Oil Stock Release Strategy / Stockpiling / IEA Link

Resilient Public Procurement Strategies 1 Stockpiling 2 Diversification of Suppliers 3 Improved Monitoring of the Supply Chain

In 2022, in a decisive move to counteract the market turmoil caused by Russia’s invasion of Ukraine, the International Energy Agency’s 31 Member Countries agreed to release additional oil from emergency reserves. The IEA Ministers emphasised the urgent need to address the severe impacts on global oil markets, exacerbated by Russia’s significant role as a top oil producer. With commercial inventories at their lowest since 2014, the Ministers highlighted the critical situation in diesel markets and urged conservation efforts alongside accelerating the clean energy transition.

Foreword Acknowledgments About the Toolkit Reinforcing Resilience through Innovative Procurement Strategies

Resilient Public Procurement Strategies 1 Stockpiling 2 Diversification of Suppliers 3 Improved Monitoring of the Supply Chain 4 Collaborative Procurement 5 Address Market Failure

Toolkit for Resilient Public Procurement Strategies to Minimise Risks of Supply Disruption

Foreword Recent challenges, such as those posed by the COVID-19 pandemic and Russia’s war of aggression against Ukraine, have had a significant impact on Sweden’s civil preparedness system, making it crucial to strike the right balance between planning for known events and creating generic response capabilities. Focussing on essential services is necessary to anticipate and manage high-impact, low-probability events effectively. In addition, citizens and businesses expect government to proactively prepare for a wide range of global crises, which entails integrating foresight practices into planning and decision-making processes. Public procurement can play a crucial role in this endeavour, given its significant share in the national economy. Sweden allocates SEK 800 billion annually to the procurement of goods, services, and public works, amounting to 16.4% of its GDP – significantly above the OECD average of 12.9%. Public institutions across Sweden are already starting to integrate a crisis preparedness perspective in public procurement. By applying this “resilience lens” to public procurement, governments can better anticipate and mitigate risks, promote sustainable development, and enhance societal resilience through proactive risk management. Integrating a resilience perspective into public procurement strategies also exemplifies an innovative procurement approach by fostering long-term sustainability, adaptability, and risk management in the face of uncertainties. By prioritising resilience, public procurement can encourage the development and adoption of innovative goods, services, and processes that not only meet immediate needs but also enhance the capacity to withstand future crises. In addition, this approach aligns procurement with broader public policy goals, promoting innovation while safeguarding public value in an uncertain global environment.. However, translating these objectives into daily practices by contracting authorities remains a challenge, especially considering the decentralised nature of the Swedish public procurement system. Furthermore, fostering synergies between the procurement and risk management functions could lead to a forward-looking crisis preparedness system for effectively anticipating and mitigating potential and emerging threats. Procurement functions can bring expertise in supplier management and sourcing strategies, while risk management functions could contribute insights into identifying, assessing, and managing potential risks. This toolkit adopts such an integrated approach to help authorities better involve stakeholders, navigate uncertainties, and maintain operational continuity in the face of crises.

Actors Government agencies, procurement team, supply chain experts, market research analysts, industry experts. Activities — Conduct market research to identify new suppliers. — Explore emerging markets and niche suppliers. — Use databases and directories to gather information on potential new suppliers.

Toolkit for Resilient Public Procurement Strategies to Minimise Risks of Supply Disruption

Actors Procurement team, legal advisors, quality assurance experts, compliance officers. Activities — Develop supplier qualification criteria (e.g., financial stability, quality certifications). — Review potential suppliers against criteria and conduct screenings. — Verify compliance with regulatory and ethical standards.

Foreword Acknowledgments About the Toolkit Reinforcing Resilience through Innovative Procurement Strategies

Handbook on Supplier Diversity in Europe Handbook / Diversification of Suppliers / European Union Link

This Handbook aims to summarise the years of learning so far and to provide a platform from which to move forward. It seeks to answer the questions that the authors are so often asked, such as “Why should we care about supplier diversity?”, “What can we do to implement it?” The Handbook examines the context of supplier diversity in Europe and activity undertaken to date. There is a particular focus on the situation in the United Kingdom, France, Germany, and Sweden.

Germany encourages supplier diversity through its Mittelstand policy, which focuses on supporting small and medium-sized enterprises (SMEs) to address challenges such as demographic change, the energy transition, and digitization. It emphasises providing incentives to help companies adapt to structural changes, improve productivity through digital solutions, and seize new business opportunities. Managed by the Federal Ministry for Economic Affairs and Climate Action, the policy aims to ensure the long-term success of SMEs by promoting both continuity and innovation. By modernising public procurement, Germany has drastically reduced the cost of compliance for companies (by some €2 billion in total). The modernisation of procurement law also makes it easier for SMEs to secure public contracts. The SME test has also been introduced to ensure that the financial impact of new regulation on SMEs is assessed before any such measures are taken.

Toolkit for Resilient Public Procurement Strategies to Minimise Risks of Supply Disruption

Resilient Public Procurement Strategies 1 Stockpiling 2 Diversification of Suppliers 3 Improved Monitoring of the Supply Chain 4 Collaborative Procurement 5 Address Market Failure

Toolkit for Resilient Public Procurement Strategies to Minimise Risks of Supply Disruption

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Toolkit for Resilient Public Procurement Strategies to Minimise Risks of Supply Disruption

Foreword Acknowledgments About the Toolkit Reinforcing Resilience through Innovative Procurement Strategies

Resilient Public Procurement Strategies 1 Stockpiling 2 Diversification of Suppliers 3 Improved Monitoring of the Supply Chain

Toolkit for Resilient Public Procurement Strategies to Minimise Risks of Supply Disruption

Foreword Acknowledgments About the Toolkit Reinforcing Resilience through Innovative Procurement Strategies

Resilient Public Procurement Strategies 1 Stockpiling 2 Diversification of Suppliers 3 Improved Monitoring of the Supply Chain 4 Collaborative Procurement 5 Address Market Failure

This toolkit has been developed as part of the project ”Building a future-oriented crisis preparedness system in Sweden”, financed by the European Union’s Technical Support Instrument (TSI), to offer central-level, regional, and municipal authorities comprehensive and practical guidance to enhance resilience in the face of uncertainties and disruptions.

Resilient Public Procurement Strategies 1 Stockpiling 2 Diversification of Suppliers 3 Improved Monitoring of the Supply Chain 4 Collaborative Procurement 5 Address Market Failure

Toolkit for Resilient Public Procurement Strategies to Minimise Risks of Supply Disruption

Foreword Acknowledgments About the Toolkit Reinforcing Resilience through Innovative Procurement Strategies

Resilient Public Procurement Strategies 1 Stockpiling 2 Diversification of Suppliers 3 Improved Monitoring of the Supply Chain 4 Collaborative Procurement 5 Address Market Failure

Acknowledgments This Toolkit builds on the report ”Building a Future-oriented Crisis Preparedness System in Sweden” and the result of a collaborative effort between the Swedish Civil Contingencies Agency (MSB), the OECD, and the European Commission’s Directorate–General for Structural Reform Support (DG REFORM). The European Commission’s Technical Support Instrument (TSI) financed the development of this document. The Toolkit was prepared by the OECD Public Governance Directorate (GOV) under the leadership of Elsa Pilichowski (Director). It had been jointly developed by two divisions – the Division on Infrastructure and Public Procurement (IPP) and the Division on Innovative, Digital, and Open Government (INDIGO). The document was drafted by Matthieu Cahen and András Hlács (IPP) with inputs received from Angela Hanson and Julia Staudt (INDIGO), and Nestor Alfonzo Santamaria (IPP), under the guidance of Paulo Magina (Head of Division, IPP) and Marco Daglio (Head of Unit, INDIGO). The Toolkit benefited from the review and suggestions of János Bertók, Deputy Director, and Camilla Saffirio, Advisor, of the Public Governance Directorate (OECD), Christine Odhnoff, Niklaz Kling, Jacob Nordfors, Sandra Liden, Emma Ferm Lindgren, and Anna Rinne (MSB) as well as Florian Hauser (DG REFORM). The team would also like to thank Andrea Uhrhammer, Thibaut Gigou, and Dovile Bogusyte for communication, Deborah Fernandez, Deirdre Kiernan and Takumi Akama for administrative support. Sharon Mah designed the Toolkit.

Toolkit for Resilient Public Procurement Strategies to Minimise Risks of Supply Disruption

Foreword Acknowledgments About the Toolkit Reinforcing Resilience through Innovative Procurement Strategies

Resilient Public Procurement Strategies 1 Stockpiling 2 Diversification of Suppliers 3 Improved Monitoring of the Supply Chain

About the Toolkit The Toolkit on Resilient Public Procurement Strategies provides a comprehensive resource rooted in robust logic and proven theories to fortify your procurement practices against unforeseen challenges. In addition, it encompasses a diverse range of content, featuring a strategic framework backed by case studies and manifested in practical tools designed to enhance the resilience of public procurement processes. Moreover, the Toolkit offers users detailed insights into adaptable public procurement strategies for various scenarios. The Toolkit has been developed to offer authorities at central-level, regional, and municipal levels comprehensive and practical guidance to enhance resilience in the face of uncertainties and disruptions. The Toolkit provides five tailored and adaptable resilient public procurement strategies to help procurement professionals navigate challenges and unforeseen events effectively, fortify supply chain resilience, and ensure the continuity of critical services, ultimately leading to more sustainable and reliable procurement outcomes..

City of Ghent’s Socially Responsible Workwear Toolbox Strategy / Collaborative Procurement / Belgium Link

The City of Ghent in Belgium created a Toolbox for Socially Responsible Workwear with the involvement of all potential suppliers to discuss sustainability goals rather than conducting separate discussions with the market players. The City of Ghent also had exchanges with other procurers in Flanders.

Toolkit for Resilient Public Procurement Strategies to Minimise Risks of Supply Disruption

The dialogue allowed the contracting authority to gather knowledge of the possibilities and availability of sustainable goods and services in the market (the importance of “knowing your market”). The dialogue also generated interest in the market for investing in more sustainable solutions.

Toolkit for Resilient Public Procurement Strategies to Minimise Risks of Supply Disruption

in this area. Beyond the amount of spend, the share of public demand in specific sectors in Europe, as high as almost 80% in education and human health services. In order to achieve effective procurement, it is essential to continuously explore diverse procurement methods, improve information sharing, and establish collaborative systems, especially if a well-established category manager function is absent in the procuring authorities, which is the case in Sweden. Securing additional funding and fostering collaborative opportunities becomes imperative to ensure streamlined development and interoperability across the procurement landscape. Integrating a resilience perspective into public procurement is crucial for addressing vulnerabilities highlighted by recent global disruptions like the COVID-19 pandemic. Traditionally focused on legal compliance, the epidemic showed that effective public procurement approaches must also consider market dynamics. For example, the pandemic revealed how competition for essential goods led to price volatility and an increased risk of fraud, underscoring the need for a proactive approach. In addition, public entities that proactively monitored market conditions and diversified suppliers were better positioned to avoid costly supply disruptions. Furthermore, those that adapted to rapidly changing technologies — such as digitising the internal process and setting up videoconferencing for communication — were able to maintain smoother operation while those that ignored market trends struggled to source cutting-edge components. Another example is the pharmaceutical industry where there has been a significant supplier consolidation leading to increased drug prices. Public buyers who accounted for these changes by building relationships with smaller suppliers or entering into longterm agreements with key manufacturers could avoid – or at least flatten – price spikes. Finally, with growing regulations around sustainability, such as the EU’s Green Deal, procurement teams that monitor market trends and adapt their sourcing strategies to meet these demands can find opportunities for cost savings through sustainable suppliers and reduced risks of non-compliance. The need for strengthening resilience is further emphasised by events such as the war in Ukraine and fluctuating energy prices, which inflate material costs and cause project delays. Effective procurement strategies, such as including pass-through clauses to manage price fluctuations, can mitigate these impacts. By adopting comprehensive risk management, public procurement can ensure better market outcomes and enhance resilience against future disruptions.

Foreword Acknowledgments About the Toolkit Reinforcing Resilience through Innovative Procurement Strategies

Important National Documents — Public Procurement Act (2016) — Utilities Procurement Act (2016) — Concessions Procurement Act (2016)

— Defense Procurement Act (2011) — National Cyber Security Strategy — Public Procurement on the Swedish Competition Authority website

— National Agency for Public Procurement website — Guidance of the National Agency for Public Procurement (2023)

OECD Documents on Public Procurement — Recommendation of the OECD Council on Public Procurement (2015) — Recommendation of the OECD Council on Fighting Bid Rigging in Public Procurement (2011)

Toolkit for Resilient Public Procurement Strategies to Minimise Risks of Supply Disruption

Acknowledgments All images are from Shutterstock.

3. others (fundamental construction materials, forest products, recyclable raw materials, materials subject to emergency supply measures).

US Department of Defense (DOD) Stockpiles Strategy / Stockpiling / United States Link

DOD keeps various stockpiles for defense requirements during emergencies, such as the National Defense Stockpile (NDS). These stockpiles contain a wide range of Government Purchased Material (GPM) in varying types and quantities. DOD follows a “just-in-time” logistics approach, prioritising commercial solutions like direct vendor delivery, prime vendor contracting, and contingency contracts.

The strategy minimizes the volume of GPM stockpiled and ensures timely access to resources.

Toolkit for Resilient Public Procurement Strategies to Minimise Risks of Supply Disruption

Foreword Acknowledgments About the Toolkit Reinforcing Resilience through Innovative Procurement Strategies

EU Reserves to Be Established in Finland as Part of the rescEU Project Strategy / Stockpiling / Finland Link, Link

Resilient Public Procurement Strategies 1 Stockpiling 2 Diversification of Suppliers 3 Improved Monitoring of the Supply Chain 4 Collaborative Procurement

The European Commission created rescEU for the EU Civil Protection Mechanism to better safeguard citizens from disasters and handle emerging risks. In early 2023, the European Commission granted Finland EUR 242 million to establish a strategic reserve for chemical, biological, radiological, and nuclear emergencies, comprising personal protective equipment, measuring tools, and medical supplies. Finland also received EUR 62.9 million for creating reserves with medical materials, including devices, surgical instruments, radiation meters, and essential medicines for emergency medical care.

Small Business Subcontracting Program Program / Diversification of Suppliers / United States Link

Any contractor receiving a contract with a value greater than the simplified acquisition threshold (700.000 USD, 1.500.000 USD for constructions) must agree in the contract that small business, veteran-owned small business (VOSB), service-disabled veteran-owned small business (SDVOSB), HUBZone small business, small disadvantaged business (SDB), and women-owned small business (WOSB) concerns will have the maximum practicable opportunity to participate in contract performance consistent with its efficient performance.

Supplier Diversification in the Japanese Public Procurement Strategy Strategy / Diversification of Suppliers / Japan Link

Japan uses supplier diversification as a part of its public procurement strategy by supporting local SMEs and encouraging the participation of a wide range of suppliers. The Japanese government has initiatives in place to facilitate easier access for smaller companies to bid on public contracts, thereby ensuring a diverse and competitive supplier base. Additionally, Japan does not preclude the diversification of international suppliers by treating the participation of foreign companies in public tenders in the same way as domestic companies.

Toolkit for Resilient Public Procurement Strategies to Minimise Risks of Supply Disruption

Foreword Acknowledgments About the Toolkit Reinforcing Resilience through Innovative Procurement Strategies

Resilient Public Procurement Strategies 1 Stockpiling 2 Diversification of Suppliers 3 Improved Monitoring of the Supply Chain

Toolkit for Resilient Public Procurement Strategies to Minimise Risks of Supply Disruption

Foreword Acknowledgments About the Toolkit Reinforcing Resilience through Innovative Procurement Strategies

Resilient Public Procurement Strategies 1 Stockpiling 2 Diversification of Suppliers 3 Improved Monitoring of the Supply Chain 4 Collaborative Procurement 5 Address Market Failure

Context A procurement strategy addressing market failure involves designing and implementing purchasing practices to mitigate the negative impacts of market inefficiencies and ensure the availability of essential goods and services. Market failure occurs when the free market is unable to allocate resources efficiently on its own, often due to issues such as monopolies, information asymmetry, externalities, or public goods. A procurement strategy tailored to address these failures aims to correct these inefficiencies and promote a fair, competitive, and sustainable marketplace. Key elements include promoting competition, ensuring transparency, addressing externalities, supporting public goods, risk mitigation, and capacity building. Promoting competition involves implementing policies to avoid single-supplier dominance through open bidding processes and supporting smaller or new entrants to the market. It also includes establishing strict regulations and monitoring mechanisms to prevent collusion among suppliers, ensuring fair pricing and contract terms. Ensuring transparency and information sharing entails providing comprehensive information to all potential suppliers about procurement opportunities, criteria, and processes, as well as conducting and disseminating thorough market analyses to understand demand and supply dynamics and foster a more competitive market.

Toolkit for Resilient Public Procurement Strategies to Minimise Risks of Supply Disruption

The Port of Hamburg Uses Analytics and Emerging Technologies Strategy / Collaborative Procurement / Germany Link

The port of Hamburg in Germany uses analytics to aggregate various data points (i.e. vessel positions, height and width of bridges, etc.) to optimise internal port operations.

Toolkit for Resilient Public Procurement Strategies to Minimise Risks of Supply Disruption

Additionally, as a smart port, they are leveraging other technologies such as AI to enhance predictive insights, and cloud computing, data management, and data sharing among various stakeholders. Robotic process automation (RPA) is being leveraged to automate processes across several support functions such as finance, human resources, procurement, and supply chain management.

Toolkit for Resilient Public Procurement Strategies to Minimise Risks of Supply Disruption

Context Stockpiling as a public procurement strategy involves the deliberate accumulation and maintenance of a reserve of critical goods or resources by a government or organisation. This approach ensures a reliable and readily available supply in the face of potential disruptions, such as natural disasters, geopolitical uncertainties, or other crises. By proactively building and managing stockpiles, entities enhance their resilience, minimise vulnerabilities, and can better address emergencies without relying solely on real-time procurement. The concept behind stockpiling is strategic preparedness, aimed at safeguarding against unforeseen events that could disrupt the regular supply chain. Stockpiling can also foster economic stability by reducing the impact of supply chain shocks. Price fluctuations and shortages that often accompany crises can be mititgated by maintaining robust reserves. This proactive approach helps decision-makers to swiftly respond to emerging challenges and uphold continuity in essential services, thus safeguarding public welfare during periods of uncertainty. Moreover, the strategic accumulation of stockpiles fosters strategic autonomy and sovereignty in crucial sectors. By securing domestic reserves of vital goods and resources, nations can shield themselves from external dependencies that might compromise their geopolitical or economic interests. This self-reliance not only enhances national security but also empowers governments to navigate global complexities with resilience, ensuring sustainable development and safeguarding the interests of their citizens. Product categories

OECD: Toolkit for Resilient Public Procurement Strategies

Toolkit for Resilient Public Procurement Strategies to Minimise Risks of Supply Disruption

This document was approved by the Public Governance Committee on 29 November 2024 in a written procedure and prepared for publication by the OECD Secretariat. This document, as well as any data and map included herein, are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. Photo credits: See at the end of the document. This work is made available under the Creative Commons Attribution 4.0 International licence. By using this work, you accept to be bound by the terms of this licence. (https://creativecommons.org/licenses/by/4.0). Attribution – you must cite the work. Translations – you must cite the original work, identify changes to the original, and add the following text: In the event of any discrepancy between the original work and the translation, only the text of the original work should be considered valid. Adaptations – you must cite the original work and add the following text: This is an adaptation of an original work by the OECD. The opinions expressed and arguments employed in this adaptation should not be reported as representing the official views of the OECD or its Member countries. Third-party material – the licence does not apply to third-party material in the work. If using such material, you are responsible for obtaining permission from the third party and for any claims of infringement. You must not use the OECD logo, visual identity, or cover image without express permission or suggest the OECD endorses your use of the work. Any dispute arising under this licence shall be settled by arbitration in accordance with the Permanent Court of Arbitration (PCA) Arbitration Rules 2012. The seat of arbitration shall be Paris (France). The number of arbitrators shall be one.

Programme / Address Market Failure / Austria

— Directed and delivered by a highly capable APS.

— Apt at encouraging innovation and SME participation.

The ÖkoKauf Wien programme was set up in 1998 to use this large purchasing volume to support the procurement of ecologically sound products and services. It aims to orient the procurement of the Vienna city administration toward climate protection while respecting legal requirements and achieving value for money.

Toolkit for Resilient Public Procurement Strategies to Minimise Risks of Supply Disruption

Since 2003, an ordinance of the director general of administrative services has obliged all services of Vienna to take the objectives of ÖkoKauf into account in procurement. Subsequently, public procurement officers must make sure that the ecological requirements become part of the contract.

Foreword Acknowledgments About the Toolkit Reinforcing Resilience through Innovative Procurement Strategies

Resilient Public Procurement Strategies 1 Stockpiling 2 Diversification of Suppliers 3 Improved Monitoring of the Supply Chain 4 Collaborative Procurement

Developing a Baseline for Educational Improvements Through Procurement in Scotland Framework Agreements / Addressing Market Failure / Scotland Link

The Scottish government set out to procure framework agreements for consultants and temporary staff under the category of “flexible resources”. With a budget of up to USD 144 million per year, these flexible resource framework agreements had considerable potential to facilitate economic growth and increase the education levels of those working in SMEs in Scotland. The continuum of roles under the category of flexible resources was broken down into 13 separate framework agreements to allow SMEs to compete. Furthermore, the government included a requirement to facilitate literacy, numeracy and career progression improvements in the flexible workforce, within the specifications.

Recommendations / Address Market Failure / United Kingdom Link

The Office of Fair Trading (OFT) worked closely with the Office of Government Commerce (OGC) and the Department for Environment, Food and Rural Affairs (Defra) to examine the effects of public procurement on competition and capacity in the municipal waste sector. ‘More Competition, Less Waste’ was published by the OFT, making recommendations to central and local Government for encouraging more competition in their prourement processes for municipal waste collection services. For examples, Local authorities were recommended to tender separately for municipal waste treatment contracts and landfill contracts.

Toolkit for Resilient Public Procurement Strategies to Minimise Risks of Supply Disruption

Reinforcing Resilience through Innovative Procurement Strategies

Toolkit for Resilient Public Procurement Strategies to Minimise Risks of Supply Disruption

Government agencies, emergency response teams, relevant ministries, procurement team.

Sector-specific professionals, logistics experts, and local communities.

— Definition of the objectives and scope. — Establishing collaboration frameworks and communication protocols. — Allocation of budget and resources.

— Assessment of medical and emergency needs. — Engagement with local communities to understand specific requirements. — Identification of critical items for stockpiling.

Government agencies, procurement team, supply chain experts, vendors.

Procurement team, legal advisors, and quality control experts.

— Issuing clear requests for proposals. — Evaluation of proposals collaboratively. — Selection and contract suppliers.

Resilient Public Procurement Strategies 1 Stockpiling 2 Diversification of Suppliers 3 Improved Monitoring of the Supply Chain 4 Collaborative Procurement 5 Address Market Failure

Market Analysis Phase — Conduct analysis of market dynamics — Identify market inefficiencies

Supplier Engagement and Capacity Building Phase — Engage with suppliers — Provide capacity building — Encourage collaboration

Tendering Phase — Ensure transparency — Conduct open and competitive bidding processes

Risk Management and Mitigation Phase — Identify and assess risks — Develop risk mitigation strategies

Toolkit for Resilient Public Procurement Strategies to Minimise Risks of Supply Disruption

Performance Monitoring and Evaluation Phase — Monitor supplier performance — Conduct evaluation

Procurement team, legal advisors, stakeholders from relevant public entities and communities.

Procurement managers, legal advisors, market analysts, stakeholders from relevant public entities and communities.

Resilient Public Procurement Strategies 1 Stockpiling 2 Diversification of Suppliers 3 Improved Monitoring of the Supply Chain

Activities — Conduct a comprehensive needs assessment. — Engagement with local communities to understand specific requirements. — Develop a strategy document outlining goals, timelines, and key performance indicators (KPIs).

Activities — Conduct a thorough analysis of market dynamics and identify instances of market failure, such as monopolies, information asymmetry, externalities, and inadequate provision of public goods. — Assess market inefficiencies.

Toolkit for Resilient Public Procurement Strategies to Minimise Risks of Supply Disruption

Needs Assessment Phase — Identify procurement needs — Assessment of resources and gaps

Strategic Planning Phase — Development of procurement strategy — Determining scope, scale, and specifications

Market Research Phase — Identify potential suppliers — Mapping market dynamics — Assessment of suppliers

Compliance Phase — Compliance with laws and regulations — Compliance with ethical principles

Toolkit for Resilient Public Procurement Strategies to Minimise Risks of Supply Disruption

Procurement team, government agencies, procurement officers and sector-specific professionals, end-user departments.

Government agencies, procurement managers, strategic planners, organizational leaders, finance and budgeting departments.

— Identify procurement needs and requirements through collaboration.

— Develop a collaborative procurement strategy.

Resilient Public Procurement Strategies 1 Stockpiling 2 Diversification of Suppliers 3 Improved Monitoring of the Supply Chain

— Assess current resources and potential gaps.

— Align procurement goals with organizational priorities.

Resilient Public Procurement Strategies 1 Stockpiling 2 Diversification of Suppliers

— Conduct market research for reliable suppliers. — Negotiation of contracts and pricing terms. — Ensure compliance with procurement regulations.

Toolkit for Resilient Public Procurement Strategies to Minimise Risks of Supply Disruption

Foreword Acknowledgments About the Toolkit Reinforcing Resilience through Innovative Procurement Strategies

Logistics teams, transportation providers, local authorities.

Procurement team, warehouse managers, inventory control specialists, IT systems administrators. Activities — Implementation of big inventory tracking systems. — Regular update of stock levels and expiration dates. — Establishment of protocols for rotation and replenishment.

Activities — Plan efficient distribution routes. — Coordinate with local authorities and institutions for effective and smooth deliveries. — Establishment of protocols for emergencies.

Foreword Acknowledgments About the Toolkit Reinforcing Resilience through Innovative Procurement Strategies

Hack the Crisis Movement Strategy / Collaborative Procurement / Estonia Link

The Hack the Crisis movement that started in Estonia, has reached over 40 countries and more than 100.000 participants. It aimed at sharing and developing ideas for urgently needed solutions during the current crisis, as well as to build resilience post-pandemic. Several technological solutions emerged from this initiative, and as a result, a new digital solution by MASC (Management of Acute Supply during Crises) was created to enable hospitals and public institutions to monitor personal protective equipment stockpiles and demand.

Resilient Public Procurement Strategies 1 Stockpiling

Collaboration among public entities is also important, especially in decentralised procurement landscapes like Sweden. At the sub-national level, Adda implements framework agreements and dynamic purchasing systems for the benefit of municipalities and regions. At the central level, the National Procurement Services (a department within Kammarkollegiet) offers central government authorities coordinated framework agreements for goods and services of general use and developed a handbook on category management. Sweden is also working towards greater consistency in procurement approaches to secure the provision of goods and services. To steer contracting authorities’ practices across the Swedish procurement ecosystem, the National Agency for Public Procurement (NAPP) published several guidance and reports that provide insights on strengthening the resilience of procurement processes and increasing the effectiveness of purchasing organisations.

Toolkit for Resilient Public Procurement Strategies to Minimise Risks of Supply Disruption

Actors Monitoring team, data analysts, and relevant gov.t agencies.

Procurement team, cross-functional teams, and stakeholders from each phase.

— Monitor stockpile usage and distribution efficiency. — Evaluatation of the effectiveness of the strategy against predefined metrics. — Identification of areas for improvement.

— Conduct regular reviews and share lessons learnt. — Adjustment of stockpile amount and composition based on evolving needs. — Update protocols and procedures for continuous improvement.

Korea’s Strategy of Stockpiling of Key Industrial Raw Materials Strategy / Stockpiling / Korea Link

One way of ensuring that supplies are available as they are needed is to stockpile large quantities in advance by using Government funds. For this purpose, the Korean Public Procurement Service (PPS) has managed its stockpile fund and stockpiled and released various commodities. The major items stockpiled are divided into

Resilient Public Procurement Strategies

Procurement team, legal advisors, procurement specialists, market researchers, industry experts.

Government agencies, procurement teams, department representatives, key decision-makers, suppliers and contractors, industry experts. Activities — Involve key stakeholders in the planning process.

Activities — Conduct market research. — Assess supplier capabilities, pricing, and quality standards

— Establish communication channels.

Toolkit for Resilient Public Procurement Strategies to Minimise Risks of Supply Disruption

Legal advisors, compliance officers, procurement team.

Government agencies, procurement team, vendors.

— Ensure compliance with relevant laws and regulations.

— Establish transparent and fair procurement processes.

— Encourage competitive bidding to obtain the best product and value.

Procurement team, evaluation committee, end-users, industry experts and consultants.

Legal advisors, procurement team, selected suppliers.

— Negotiate contracts with selected suppliers.

1 Stockpiling 2 Diversification of Suppliers 3 Improved Monitoring of the Supply Chain 4 Collaborative Procurement 5 Address Market Failure

STRATEGY 2. DIVERSIFICATION OF SUPPLIERS

Foreword Acknowledgments About the Toolkit Reinforcing Resilience through Innovative Procurement Strategies

Resilient Public Procurement Strategies 1 Stockpiling 2 Diversification of Suppliers 3 Improved Monitoring of the Supply Chain 4 Collaborative Procurement

Procurement team, legal department (for contract terms), finance department (for budget alignment).

Procurement team, inventory control specialists, technical experts, stakeholders from user departments. Activities — Prepare and issue RFIs to shortlisted suppliers. — Specify information requirements, such as capabilities, capacities, and references. — Review and analyse RFI responses to create a shortlist of potential suppliers. — Conduct supplier interviews or follow-up discussions to help the informed decision.

Activities — Prepare and issue calls to selected suppliers. — Clearly define submission requirements, scope of work, budget. — Provide guidelines for proposal submission and evaluation criteria.

Toolkit for Resilient Public Procurement Strategies to Minimise Risks of Supply Disruption

Foreword Acknowledgments About the Toolkit Reinforcing Resilience through Innovative Procurement Strategies

Resilient Public Procurement Strategies 1 Stockpiling 2 Diversification of Suppliers 3 Improved Monitoring of the Supply Chain

Toolkit for Resilient Public Procurement Strategies to Minimise Risks of Supply Disruption

Foreword Acknowledgments About the Toolkit Reinforcing Resilience through Innovative Procurement Strategies

Resilient Public Procurement Strategies 1 Stockpiling 2 Diversification of Suppliers 3 Improved Monitoring of the Supply Chain

Context This procurement strategy aims at reducing risk and increasing resilience within supply chains by engaging multiple suppliers for the same type of goods or services. The primary goal is to mitigate various potential risks associated with relying on a single supplier, provide more flexibility to the procurement, create transparency and increase proximity. By spreading procurement across multiple vendors, organisations can minimise the impact of disruptions caused by natural disasters, geopolitical events, economic downturns, or operational issues. Furthermore, working with multiple suppliers enables comparative analysis of product or service quality and provides leverage for ensuring adherence to quality standards and ensure the crisis preparedness maturity of suppliers. A diverse supplier base can also foster innovation and help organisations to respond more readily to changing demands. Lastly, a multiple-supplier approach can help mitigate risks related to compliance, ethical concerns, or reputational risks associated with a single supplier’s practices.

Supplier diversity can also foster innovation, improve competitiveness, and provide opportunities for small and medium size enterprises (SMEs). By embracing supplier diversity, procurement authorities also contribute to social impact and economic growth.

The implementation of such strategy involves strategic sourcing practices such as supplier segmentation, supplier relationship management, and maintaining a robust supplier evaluation and monitoring system. Overall, this strategy supports long-term sustainability and operational continuity.

Toolkit for Resilient Public Procurement Strategies to Minimise Risks of Supply Disruption

STRATEGY 3. IMPROVED MONITORING OF THE SUPPLY CHAIN

Foreword Acknowledgments About the Toolkit Reinforcing Resilience through Innovative Procurement Strategies

Public Safety Canada’s Efforts to Encourage Cross-Sector Working Program / Improved Monitoring of the Supply Chain / Canada Link

Resilient Public Procurement Strategies 1 Stockpiling 2 Diversification of Suppliers 3 Improved Monitoring of the Supply Chain 4 Collaborative Procurement

Public Safety Canada has developed an online information-sharing portal for critical infrastructure stakeholders. (The Critical Infrastructure Gateway.) It hosts information products–including risk management documents, best practices, lessons learned, meeting material, standards, and events calendars to enhance situational awareness. Public Safety Canada has also established a Virtual Risk Analysis Cell. This virtual cell develops and shares critical infrastructure focused risk analysis products, with an emphasis on identifying and examining the cascading impacts of disruptions across the 10 critical infrastructure sectors in Canada. The work of this cell includes enhancing understanding of cross-sector dependencies and linkages through modelling.

Foreword Acknowledgments About the Toolkit Reinforcing Resilience through Innovative Procurement Strategies

Toolkit for Resilient Public Procurement Strategies to Minimise Risks of Supply Disruption

Foreword Acknowledgments About the Toolkit Reinforcing Resilience through Innovative Procurement Strategies

Resilient Public Procurement Strategies 1 Stockpiling 2 Diversification of Suppliers 3 Improved Monitoring of the Supply Chain 4 Collaborative Procurement 5 Address Market Failure

Context Supply chains consist of highly interconnected sectors, and disruptions in some of the functions can paralyse the whole chain. Understanding the potential impact of disasters on such interdependencies necessitates coordinated information exchange between public and private entities. This procurement strategy involves the implementation of advanced monitoring mechanisms to enhance visibility and control over various stages of the supply chain. The strategy focuses on leveraging real-time tracking systems, IoT devices, and data analytics to monitor goods movement, evaluate supplier performance, and identify supply chain risks. Emphasising proactive measures, it aims to streamline procurement efficiently. Collaboration is vital, involving shared systems for transparency. Additionally, a category manager function may be developed for specialised oversight of procurement categories, ensuring expertise in managing specific needs. Overall, the strategy should emphasise the importance of investing in technology, training, and partnerships to achieve efficient development, interoperability, and continuous improvement in monitoring capabilities within the supply chain.

STRATEGY 4. COLLABORATIVE PROCUREMENT

Foreword Acknowledgments About the Toolkit Reinforcing Resilience through Innovative Procurement Strategies

Resilient Public Procurement Strategies 1 Stockpiling 2 Diversification of Suppliers 3 Improved Monitoring of the Supply Chain

Toolkit for Resilient Public Procurement Strategies to Minimise Risks of Supply Disruption

Foreword Acknowledgments About the Toolkit Reinforcing Resilience through Innovative Procurement Strategies

Resilient Public Procurement Strategies 1 Stockpiling 2 Diversification of Suppliers 3 Improved Monitoring of the Supply Chain

Context By joining forces with other public buyers and collaborating throughout the procurement cycle, contracting authorities can share knowledge and resources and streamline processes for a more effective procurement system. Collaboration can also address new challenges facing public procurement, such as the complexity of contracts. It can also support the use of public procurement as a strategic tool to address economic, social, and environmental policy goals. Collaboration in public procurement can differ in scope, levels, duration, and formalisation. The types of collaboration range from coordinated procurement based on common specifications through joint procurement processes to capacity-building initiatives. Collaboration can occur among several contracting authorities from the same country, where one or more procure on behalf of all, or by cross-border procurement with contracting authorities from more than one country.

UK Universities Purchasing Consortia Strategy / Collaborative Procurement / United Kingdom Link

UKUPC is a partnership between eight UK consortia who created a formal entity to support collaborative procurement within Higher and Further Education. All eight consortia work together to share knowledge and best practice, to support each other and our wider procurement community. The UKUPC Strategy 2020–2025 outlines the benefits of working with consortia for members, our strategic aims and key areas of focus.

Toolkit for Resilient Public Procurement Strategies to Minimise Risks of Supply Disruption

Foreword Acknowledgments About the Toolkit Reinforcing Resilience through Innovative Procurement Strategies

The Cooperation of Södermanland County Council on Crisis Preparedness Strategy / Collaborative Procurement / Sweden

Resilient Public Procurement Strategies 1 Stockpiling 2 Diversification of Suppliers 3 Improved Monitoring of the Supply Chain 4 Collaborative Procurement

The Södermanland County Council had decided to cooperate with four other counties on the procurement of goods in an administration under a joint politically appointed committee. In this cooperation, various issues relating to procurement are discussed, including potential crisis preparedness requirements. Through this cooperation, a dialog on various procurements is conducted. The committee discusses what needs to be purchased, how it should be done and what questions/ requirements are good to ask. To respond, the market requires alignment in requirements and scale. In the case of special requirements for crisis preparedness in procurement, the collaborating parties also set the right level to have an impact on operations.

2. Critical Supply Identification Phase

29 November 2024 in a written procedure and prepared for publication

3 Improved Monitoring of the Supply Chain 4 Collaborative Procurement

3 Improved Monitoring of the Supply Chain

3. Supplier Engagement and Capacity Building Phase

3. Technology Assessment/ Tendering Phase

5 Address Market Failure (10)

5 Address Market Failure (11)

5 Address Market Failure (12)

5 Address Market Failure (2)

5 Address Market Failure (3)

5 Address Market Failure (4)

5 Address Market Failure (5)

5 Address Market Failure (6)

5 Address Market Failure (7)

5 Address Market Failure (8)

5 Address Market Failure (9)

5 Address Market Failure also exemplifies an innovative procurement approach by fostering

5 Address Market Failure and Networks

5 Address Market Failure — Apt at generating policies and outcomes that are reviewed regularly.

5 Address Market Failure from external dependencies that might compromise their geopolitical

5 Address Market Failure operation while those that ignored market trends struggled to source

5 Address Market Failure Purchasing Consortia

5 Address Market Failure Strategy / Diversification

5 Address Market Failure supply dynamics and foster a more competitive market.

5 Address Market Failure The team would also like to thank Andrea Uhrhammer, Thibaut Gigou,

5 Address Market Failure to social impact and economic growth.

5 Address Market Failure

6. Performance Monitoring and Evaluation Phase

7 — Evaluate proposals

7 — Evaluation of proposals

7. Improvement and Adaptation Phase

8 — Feedback Mechanisms

8. Negotiation and Contracting Phase

8 — Report on the implementation (2)

8 — Report on the implementation

Acknowledgments About the Toolkit Reinforcing Resilience through Innovative Procurement Strategies

Engaging with suppliers and the private sector is key

Existing Guidance and Frameworks Image Credits

OECD: Toolkit for Resilient Public Procurement Strategies

Programme / Address Market Failure / Austria

Recommendations / Address Market Failure / United Kingdom Link

Reinforcing Resilience through Innovative Procurement Strategies

Resilient Public Procurement Strategies 1 Stockpiling 2 Diversification of Suppliers

Resilient Public Procurement Strategies 1 Stockpiling

Resilient Public Procurement Strategies

STRATEGY 2. DIVERSIFICATION OF SUPPLIERS

STRATEGY 3. IMPROVED MONITORING OF THE SUPPLY CHAIN

STRATEGY 4. COLLABORATIVE PROCUREMENT

3 Improved Monitoring of the Supply Chain 4 Collaborative Procurement

3 Improved Monitoring of the Supply Chain

Resilient Public Procurement Strategies 1 Stockpiling 2 Diversification of Suppliers