Institutional Procurement: Reflecting on Past Successes and Designing the Future
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'From System to strategy in Institutional Procurement: Reflecting on past success and designing for future' presented by Kathy Berger, Phil Mount and Hayley Lapalme during 'Local Food Economies' session at Bring Food Home 2015
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Institutional Procurement: Reflecting on Past Successes and Designing the Future
- 1. From Systems to Strategy in Institutional Procurement Reflecting on the Past Successes and Designing for the Future Bring Food Home | November 22, 2015 | Sudbury, Ontario FacilitatedbyHayleyLapalme withKathyBerger(HealthSciencesNorth) &PhilMount(ProjectSOIL)
- 3. Stakeholders in a Complex System
- 4. Complexity in the Food SystemPublic Procurement of Food in Ontario
- 5. Complexity in the Food System Demand Subsystem
- 7. Complexity in the Food System Supply Subsystem
- 8. Consolidation in the Value Chain Supply Subsystem
- 9. Complexity in the Food System Fishbowl Discussion
- 10. Thank you! Bring Food Home | November 22, 2015 | Sudbury, Ontario hayley.lapalme@gmail.com
Notes de l'éditeur
- So what can we do? Let’s look at the demand subsystem
- So what can we do? Let’s look at the demand subsystem
- Describe picture: all these institutions spend $750 million/year Directive + regulations from province Funding from the province – again these are public tax dollars [click reveal] Each instituion individually connects with the supply-side value chain, Primarily through a public contracting process: the Request for Proposal. BPS Directive dictates if over $100k… Must go through a fair open transprantent procurement process I would say on average an institution will purchase about 80% of it’s food through this process
- Let’s begin on the supply side of this system of public procurement
- The distributor draws from the processors and producers in the system to provide their service to institutions. It is in the distributor’s interest to find efficiencies, by streamlining their processes. There are costs related to ADMIN, LOGISTICS, and RISK for each new producer and processor the distributor works with. This creates an incentive reduce that number. Creates an incentive to vertically integrate. Work with prefered vendors. Two gray funnels. The line of best fit runs through the producers and processors who are easiest to work with – they have their food safety and liability in order. And the farther outside those gray funnels the distributors draw, the higher they perceive the cost and risk to be. (This leads to the exclusion of producers who don’t fit into the business model that maximizes efficiciency.) So again, this search for efficiency claims value and decreases resilience. This consolidation through vertical integration– or the goal to “engulf everything” [click] as J.K Galbraith described it, is a function of trying to shield the corporation from uncertainty. Corporate goals of survival in this subsystem (not just of profits or returns to shareholders) is leading to system suboptimization. This goal is pursued at the expense of the total system goal – as I would frame it, that would be to nourish the growing number of us in a dignified way in perpetuity! But that’s my bias!
- So what can we do? Let’s look at the demand subsystem