CASE STUDY: MINISTRY OF SOCIAL DEVELOPMENT TRANSITION
In September 2004, MSD released an RFP for Print and Account Management of
all forms, stationery and brochures. Potential vendors were asked to demonstrate
their ability to:
- Provide a real time reporting system
- Provide stock management
- Understand business needs
- Offer a cost effective service
- Meet service requirements
- Have industry credibility
- Provide effective relationship management with the Ministry
- Work with MSD to ensure compliance with the Government new environmental project "Govt3" Toward Sustainable Practice encompassing the three areas of - brochures, forms and business stationery.
The Ministry of Social Development provides strategic social policy advice
to the New Zealand Government and provides social services to more than one
million New Zealanders including:
- Income support, employment services and New Zealand Superannuation through
Work and Income
- Student allowances and loans through StudyLink
- Services to rural clients through Heartland Services
- Leadership and co-ordination of services and programmes that support families
through Family and Community Services
- Ministry of Youth Development
- Office for Disability Issues
- Office for Senior Citizens
- Office for the Community and Voluntary Sector.
The Ministry at that time had four separate contracts with incumbent suppliers
incorporating print, inventory management, and storage and distribution.
Response
In response Blue Star proposed that MSD combine the four contracts and place
all functionality with a single supplier, Blue Star. A 3 month timeframe was
outlined to manage the transition of the contracts allowing for:
- Identification and transfer of artwork, item specifications and branding
collateral
- Identification and transfer of all physical inventory
- Identification and subsequent management of items identified as obsolete
- approx. 60 items were identified
- Implementation of on line ordering for appropriate aspects of the Ministry
in addition to traditional order placement methodology for the Ministry's 600 cost centres
nationwide
- Integration with the Ministry's in house procurement and finance platform
- Integration with the Ministry's in house business card, name badge and desk
plate electronic ordering tool
- Establishment of relationships with key stakeholders both within the Ministry
and external organizations key to the management of the Ministry's print requirements
ie mailhouses, agencies etc
- Identification of items requiring replenishment during the transition period
- Reporting requirements.
The Blue Star proposal was accepted and transition began in March 2005.
Result
A specialist Blue Star transition team was appointed and achieved:
- Retrieval of all available artwork and a Documentum solution created
- Development of a process for the electronic capture of all business card,
name badge and desk plate orders daily - approx. 5000 orders were received in the first
6 weeks (transitioned mid May due to supply issues with incumbent)
- Creation and customisation of on-line ordering sites, including approval
processes and restricted access rights, for appropriate areas of the Ministry, training
and documentation provided to users
- Identification, receipt and warehousing of physical inventory - including
management of inventory discrepancies of approximately 460 items with negligible disruption
of services to the Ministry's nationwide cost centres
- Provision of on line reporting to appropriate users within the Ministry
of key data
- Establishment of scheduled meetings with key stakeholders encompassing operational
reviews with respect to transition progress
- Establishment of weekly meeting with key stakeholders to manage the replenishment
of stocked items
- In conjunction with key Ministry personnel, identified the structure of
a best fit Relationship Management team for post transition management of the contract.
In addition to the core deliverables of the transition plan, new more visible
processes were introduced to better manage stock management as a result of
the findings of the transition team. The transition process served as a catalyst
in the identification of areas of poor replenishment process, data inaccuracies
and resultant excessive stock holdings in some areas of the Ministry. The
process also created a platform for continuing work, in conjunction with the
Ministry, on the review of all current processes, item rationalization and
areas for further process and product improvement.
The transition was successfully completed and full service supply commenced
on 1 June 2005.