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108.
- The New Zealand Police are significant purchaser of goods and services. Major areas are telecommunications, computer associated hardware and vehicles. It is important for the future to develop a purchasing strategy which maximises the benefits both financial and non-financial from the suppliers who are a part of the value chain of the New Zealand Police.
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109.
- A tendering process should be in place for the top 100 purchases to be tendered on a once per year basis. Items for tender should be packaged from the various sectors of the New Zealand Police in a way most attractive for suppliers. Given the size of the purchases additional value should be extracted by way of guarantees, technology updates and additional warranty periods for vehicles over the above that being offered by general practice.
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110.
- Benefits which can be maximised by an appropriate process and strategy include buy- back clauses to be exercised at the end of the useful life of appropriate items, technological upgrades, and financing arrangements. A central professional negotiator should be responsible for the formalising and leading of these negotiations.
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111.
- The current expenditure on supplies is of the order of $70 million. Savings of around 5%, or $3.5 million, should be readily achievable through the adoption of a more aggressive purchasing strategy.
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