Procurement and Contract Management Plan
1. Procurement Plan
Overview
The Mines Are Us procurement strategy plan is a process of sourcing food and beverages and other human resource services for a contractor in the companys head office in Perth. This program is based on increasing usage of sustainable and socially friendly trends within the company's catering services as a portion of the general green initiative. The strategy adopted is based on the University of Toronto especially their procurement strategy for food that considers the need to work on a concept known as value for money by considering the environmental and social importance of foods being sourced locally from environmentally sustainable suppliers.
Reflected in the University of Toronto case analysis, building a connection with local food suppliers and promoting sustainable food services is appropriate. The local and sustainable food source strategy also helped enhance the quality of food available in the university, reduce the impact of the food chain on the environment and enhance the relationship between the local producers and the university. This is the same strategy that Mines Are Us wants to employ knowing fully well that not only does the act of sourcing supplies locally reduce food miles and therefore conserve the environment but also due to market forces that require EFAs sourced from healthy and ethical means (Alibai?, 2023).
Therefore, the procurement plan is centred on creating a competitive tendering policy with adequate experience in sustainability and stakeholder engagement among the contractors. The contractors will not only be awarded based on the lowest prices but also their stewardship plans detailing how they will include sustainable food management strategies such as the management of food waste, sourcing of certified organic and locally sourced fresh produce, and compliance with labour rights benchmarks in their supply chains. Specifically, it ensures that the contractor to be hired would align with Mines Are Us vision and mission and contribute to the companys achievement of its CSR objectives.
Furthermore, the plan allows for the evaluation of the performance of the identified contractor in the implementation of the tasks within the project. Therefore, the KPIs will be employed as a means of assessing the level of conformity with sustainability practices among the contractor, customer satisfaction, and the general service provision efficacy. This will involve the setting of measures for assessment and feedback through which constant change and improvement processes shall be made, besides acting as an oversight body to monitor whether the set policies are being implemented or not. This framework was modelled after the University of Toronto, whereby a constant evaluation of the performance of all the suppliers was needed to hit and maintain high standards that would lead to long-term relationships with the suppliers (Carino et al. 2020).
Mines Are Us has pointed out that sustainable procurement practices in the corporate catering plan shall enhance the corporate image, employees, community, and environment. The procurement plan sets the competitive advantage of Mines Are Us by targeting the sustainable procurement strategy based on the University of Toronto case and forms a part of the companys vision and mission as a socially responsible sourcing company in the mining industry.
Objectives
1. To source a catering company that aligns with the companys values of sustainability and quality.
This procurement plan aims to select a logistics and food provider suitable for Mines Are Us needs that also shares the companys sustainable and high-quality oriented business strategies and visions. This includes the establishment of a willing business partner to adopt environment-friendly practices such as sourcing from local producers, minimization of food waste, and use of organic produce where necessary. The selected catering company should also meet quality and safety standards to present food fit for human consumption, and freshly prepared for the occasion. In conclusion, through using sustainable and quality solutions, Mines Are Us seeks to improve its corporate social responsibilities and corporate governance on the aspect of environmental management in its operations, including food and catering services.
2. To build a long-term relationship with a contractor that can provide consistent, high-quality service with a focus on local and sustainable food sourcing.
Another objective relates to the selection of a qualified catering contractor, with whom sustainable and mutually beneficial cooperation can be established to guarantee the consistent quality of the services provided by the contractor. Extends the initial contract to develop a bond that is based on trust, reliability, as well as common assumptions. The contractor that would have been selected should be able to demonstrate his readiness to implement the following sustainable practices; Foods should be sourced locally to support an increase in the economic aspect and also since they will not require frequent transportation. In the context of local policy, environmental goals can be met if the contractor uses local and sustainable ingredients and this will ensure that quality food is served. This long-term relationship should cultivate a standard and consistent manner in the food service that will build and improve both the contractor and Mines Are Us (Chou et al. 2022).
3. To ensure competitive pricing and flexibility to adapt to the company's evolving needs.
In addition to the above-mentioned two objectives, the procurement plan seeks to achieve the objective of the organizations cost advantage which entails the provision of services at a cheaper charge yet satisfying the customers needs. The contractor to be selected must be able to address this criterion by serving food and providing services that are within the companys financial reach without compromising the quality of the food services. Another consideration is flexibility as the contractor must be able to address Mines Are Us ever-changing requirements and adapt by presenting new services for bigger events, suggest new dishes, and meet some probable special dietary requirements. Thus, this objective serves to ensure that the catering service remains relevant and capable of responding to the changing development of the company and its preferences as well as enhance the functioning of the food service operation (Grech et al. 2020).
Key Strategies
Inspired by the University of Torontos approach:
1. People and Partnership:
A collaborative partnership approach will therefore inform the identified procurement strategy alongside a choice of the contractor in line with the University of Toronto model. Different from a typical vendor-buyer relationship where Mines Are Us only has power over the contractor who will be providing the service of delivering food to us, this relationship involves more commitment and cooperation of the contractor with Mines Are Us through the chain of internal stakeholders such as the internal kitchen manager, the procurement officer, and the sustainability coordinator. It would embrace a co-creation process of service delivery models to ensure that they are sustainable and meet the quality expectations of the company. Letting these stakeholders participate in the decision-making process and in the management of the catering service on a daily basis will also benefit all employees mentioned above and make them feel personally responsible for the success of Mines Are Us. In this regard, this strategy ensures proper goal congruence between the contractor and the company goals of delivering proper food services that are sustainable and meeting the needs of the changing organization.
2. Disrupting the Mainstream Model:
Mines Are Us will be established as a business, which is completely different from the most popular foreign food service contractors. However, following the footsteps of the University of Toronto which moved to a more localized approach, the company will attempt to reach out to independent local caterers or make orders from local co-operatives, who are more conscious of their environmental impact, including the sourcing of food. This is not only beneficial because local enterprises and cooperatives thrive, but also because the supply chain becomes better and more efficient. Buying foods from local farmers was stated to mean that foods purchased would be fresher with more choices available while at the same time, there would be a reduction in transportation-related emissions. After that, cooperating with local caterers also has its advantages in that, unlike large companies or chains, the local suppliers can be controlled by Mines Are Us which ensures that the food provided is sourced from appropriate ethical and sustainable producers. Consequently, the existing procurement model preferred by the food service company called Mines Are Us would be altered and evolved into a unique and representative area-organizational food offering (Greer et al. 2020).
3. Mid-sized Infrastructure:
From another strategy for procurement practised at the University of Toronto, Mines Are Us will select contractors for food processing and distribution networks as one of the major agendas. The concept of this approach regards the fact that the mid-scale suppliers can contribute to the food corporate catering supply chain, supplying the large-scale and small-scale suppliers infrastructures lack while taking environmental consequences into account using sustainable, high-quality products. Thus, sourcing from existing Local Food Networks means having a more stable supply to increase reliability and sustainability to balance and adjust to a highly dynamic demand without sacrificing the concept of sustainability that local foods offer. This not only complements the aspect of cost to the greatest extent as Mines Are Us will be able to leverage economies of scale but also it will have adopted local and sustainable sources of supply yet it will be able to balance the aspect of costs as well as the environment (Hong et al. 2021). This, the company has to embrace mid-sized infrastructures; this goes hand in hand with ensuring a constant and effective supply of electricity in addition to achieving organizational objectives that include stimulating local economic growth as well as utilizing renewable resources.
Therefore, it is true that Mines Are Us has directions to improve on these strategies for the firm to strive to contribute towards the achievement of sustainable, flexible and quality catering service in an organization as a part of its total visions and objectives.
Performance Requirements and Measures
To ensure a contractor aligns with Mines Are Us' goals, the following performance requirements will be established:
Local and Sustainable Sourcing: The contractor has to commit to sourcing not less than (e.g. 50%) of the food from local and sustainable sources. This is in line with how the University of Toronto identified what constitutes local and sustainable procurement requirements.
Diversity of Offerings: This for instance presupposes that vegetarian, vegan, gluten-free and halal foods have to be offered as options on the menu (Morley, 2021).
Quality and Freshness: The quality and freshness of the food will be assessed and audited regularly.
Service Efficiency: There will be importance in delivering or scheduling conference/Board of directors meetings, events, schedules for meals/meal preparations and other several operational procedures. This will mean that there will be a need to establish a standard maximum waiting time.
Waste Management: Implement waste reduction announcement to follow the University of Toronto's successful waste reduction strategy, this involves announcing waste reductions and demonstrating proper waste reduction goals such as composting, recycling, and minimizing food waste to clients.
Strategy for Approaching and Selecting Prospective Contractors
Market Engagement Approach:
The Market Engagement Approach for catering services for the Mines Are Us main office in Perth is intended to attract potential contractors that are interested in sustainability and quality as well as locally sourced products and services. This approach will involve, therefore, conducting an initial survey on the type of services offered and engagement with service providers of sustainable services capable of sourcing food items on the menu locally without compromising on quality. To replicate similar success the Mines Are Us seeks to open up new possibilities for Local Food Plus and Toronto University in catering for and recognizing local growers and producers to enhance the regional economy and healthy food systems.
The first of these steps will involve a marketing-sounding exercise to gather the necessary intelligence and possibly identify the contractors who fit with the companys sustainability and quality levels. It is the practice of informing a diverse range of potential catering firms, coops and SMEs with high levels of sustainability, particularly about the backing of local food chains and pro-environmental stances. This step will help in identifying potential suppliers willing and able to provide quality food and beverage services and at the same time align with and support and promote Mines Are Us sustainability and social responsibility principles (Neto, 2020).
As it has been observed with the University of Toronto with Local Food Plus, Mines Are Us shall focus on supplier relations with producers who are into sustainable sourcing. Local Food Plus was a not-for-profit organization that was central to helping the University of Toronto get food from local producers only and from sustainably produced farms. Similarly, as Mines Are Us we will look for proper collaboration with local catering firms, and also a food cooperative that promotes producers, workers and environment-friendly suppliers by sourcing food from local farms, paying reasonable prices for produce and avoiding food wastage. This strategy will ensure that the corporate headquarters provides their employees with fresh foods that are environmentally friendly and sourced locally.
Due to the great importance of market development, Mines Are Us will be holding pre-procurement activities including workshops and information sessions. These sessions will therefore be used in setting the pace by the company in all matters related to sustainability apart from being the core platform for setting the service standards. By involving potential suppliers in the procurement process at an early stage as Mines Are Us has done, it is in a position to understand who will be able to support its vision and also Is In a position to make those suppliers offer something special that would improve the procurement process. Such interactions will help both parties to mutually understand the requirements for a sustainable, acceptable quality, and affordable outsourced service.
Another aspect of the market engagement approach will be the encouragement of local food processing and distribution facilities. Mines Are Us can thus assist in the creation of a legal vertical relationship concerning potential contractors and material suppliers which can mitigate information injustice that is mostly to blame for the lack of vertical integration of small-scale suppliers by these firms. This strategy is in line with the University of Toronto model of sourcing from mid-tier food suppliers and processors who deliver well in terms of providing fresh, local and sustainable foods. Candidates who are most likely to fit into these networks will be preferred as this will give a positive input towards the sustenance of Mines Are Us and the food ecosystem (Silva & Nunes, 2022).
Moreover, sustainability criteria will be included in Mines Are Us RFPs to make contractors aware of Mines Are Uss requirements and expectations. The RFPs will have to obtain disaggregate information from the bidders regarding their sourcing profiles, supplier localisation strategies, handling of wastes, and sustainability offers. When Mines Are Us incorporates such specifications in the RFPs, it will be able to eliminate those suppliers who are not willing to work with the company and obtain a broader pool of more serious bidders. In this context, the execution of such a plan will guarantee the proper selection of a competent contractor, particularly regarding overall productivity, business-like demeanour, compliance with the company mandate of sustainability, and community support.
Evaluation Criteria:
Sustainability Practices: Some of the performance indicators include percentage compliance with local and sustainable food procurement standards of contractors.
Experience and Reliability: Previous experience in similar settings especially in managing corporate dining and catering for event services.
Pricing and Value for Money: Contractors need to make sure that they have developed realistic lower bids that contain the cost of ownership, and social and environmental costs.
Flexibility and Innovation: Contractors may be able to demand that the services delivered to them be adaptable to such conditions (Snnichsen & Clement, 2020).
Form of Contract
Contract Type: Performance-Based Service Contract
For both the catering and the provision of complimentary meals to the corporate office of Mines Are Us, a Performance-Based Service Contract (PBSC) shall be applied. This is not a procedural contract but an efficiency contract in which performance outcomes are targeted as opposed to activities to be performed or procedures to be followed. PBSCs bear this merit because they align the contractors payment structure with success, drawing the provider to conform to the stipulated quality and sustainability standards. This approach also embraces the vision of the company in that sustainable means/methods of delivering quality services are embraced and the contractor is made to explain different outcomes that would have been accomplished during the contractor's consolidated contractual agreement (Stahlbrand, 2019).
Accountability for Sustainability and Quality Standards
This approach will go a long way in helping Mines Are Us to put down sustainability standards in the contract and where standards are ambiguous, to define specifications as performance requirements that the contractor is under contractual obligation to achieve. Some examples of the specific tangible goals that can be translated and incorporated as key measurable objectives may include such example that is the percentage of local purchase, the allowed maximum carbon footprint, disposal and segregated disposal, and rules on sustainable procurement etc. Including these benchmarks in the assessment of the contract will assist Mines Are Us to guarantee that the contractor will keep on exercising sustainable development up to the contract period. This approach is similar to that of the University of Toronto, which set local sourcing and sustainability through contracts as permanent top-priority categories for continuous improvement and accountability.
Flexibility and Adaptability in Service Delivery
Another benefit of a performance-based contract is that it has more flexibility compared to a fee-for-service contract, which is suitable since Mines Are Us is a fast-paced corporate corporation. Because the activity in the companys requirement is dynamic, the contractor must be able to adjust to the changes in the delivery models of their service due to fluctuations in demand or changes in diet patterns and other sustainability issues. It is also necessary to point out that the PBSC framework can miscarry the performance measures and targets in such a way that they have a review and update frequency. It affords freedom to the contractor and Mines Are Us to make adjustments as and when changes occur in the future for instance modified sperling on sustainability otherwise, new and evolving corporate policies. Therefore, flexibility is a key enabler to deliver such high levels of service while following the principles of sustainable development (Swensson & Tartanac, 2020).
Incentive Structures and Penalties
To increase the level of compliance with the signed sustainability and quality standards in the working environment, the PBSC will offer a reward-and-punishment program. There could be incentives for add-on accreditation in sustainability or even high customer rating while penalties could be affected for failing to meet minimum accreditation. This dualism assists in ensuring that the contractor is motivated to opt for increased performance levels bearing in mind that there are rewards or positive reinforcements for any added performance above the expected norm coupled with a similar penalty for shirking or negligent behaviors. It promotes the culture of having to be improvement-orientated and ensures that the contractors practice offers what Mines Are Us requires.
Monitoring and Evaluation Mechanisms
Monitoring and evaluation procedures are important for effectively managing and putting into operation a PBSC. As for the contractors evaluation according to the sustainability and quality standards Mines Are Us will develop an adequate mechanism. This could involve steady checking such as audits, customer satisfaction surveys, sustainability audits and performance checks on a quarter basis. These assessments will determine the amount the contractor will be paid and other bonuses contingent on the performance of the job. This structured approach to performance assessment presupposes that both parties have a clear sight of such changes towards building up of decisions, modifications as well enhancements (World Health Organization, 2021).
Building a Collaborative RelationshipWhile PBSC shifts the accountability for performance to the contractor, it at the same time fosters a more collaborative relationship between Mines Are Us and the service provider. Since the nature of the services to be delivered is not prescribed in the contract only the results are expected; this puts the contractor in a position where he is in search of the most appropriate means of delivering the services as required. Thus, using the setting up of this approach, it is possible to establish a solution for both the supplier and the firm that will correspond to the needed aspect of sustainability of the firm, and its value as well as the money it would require. Showing the spirit of cooperation and shared objectives, PBSC is an instrument that might help create an enabling partnership for supporting the strategic vision of Mines Are Us.
2. Contract Management Plan
The contract management plan will include a comprehensive approach to managing and monitoring the catering services:
Performance Monitoring
The performance monitoring system is one of the key components in the contract management plan proposed below. This will require periodic assessments of the contractors performance about these set targets, which may include for instance the aspect of sustainability besides the quality of meals that the restaurant offers and the ability to satisfy customers among other factors. These reviews will be made periodically at times such as monthly or quarterly and the checkpoints to be reviewed will be defined at the time of contracting through KPIs. The performance monitoring would involve, a sometime check on the performance, feedback from the employees and visitors to Mines Are Us, and a measure of sustainability such as the percentage of locally sourced salt and how its waste would be disposed of. This way, Mines Are Us can always have an idea of the contractors performance, and this makes it easier for the organization to ensure that the service provided has met the standard and the strategic goals of the firm.
Stakeholder Engagement
When it comes to catering contract management, there is also a consideration of stakeholder management. That will make it possible for the management of Mines Are Us and the catering contractor, the sustainability coordinator, and the health and safety officer of the company to have a planned systematic and effective manner of how they communicate. They may include organizing monthly meetings performance progress and feedback on the quality of service provided, the likely constraints and better opportunities to offer better services. It means stakeholders are part of the communication process and this allows them to make adjustments that are mutually beneficial to the business and the shareholders. Following the structure used at the University of Toronto where emphasis is laid on the present engagement strategy and the partnership model used, the contractor is presented as a permanent player with whom Mines Are Us will need to engage actively and continually improve (Wu et al. 2021).
Change Management Process
It shall also be possible to include in the contract management plan a change management plan that shall outline how changes to the scope, cost, and service levels of the catering contract shall be dealt with. As per the University of Torontos model, with a specific focus on the openness of the process and the cooperation between the key stakeholders, this process is to be defined as open to being modified by Mines Are Us and the contractor involved as needed. The document shall also indicate the process of reviewing and changing as well as the option of setting cost control parameters and referring to the impact of the change on service delivery and sustainability objectives. This flexibility is also advisable in a large firm as there are likely to be fluctuations in the requirement for the product at different times.
Risk Management Plan
Risk management is another key component of contract management that will assist in managing the risks that may be faced with catering services. Some risks of consideration may include, Supply chain disruptions, sustainability audits, foodborne illnesses, and fluctuation in food prices. By so doing we will be in a position to develop the risk management plan by assessing the general risk, probability and severity of the risk to come up with the risk management control measures. For example, to minimize supply chain risks the plan may require the contractor to have risk managing measures such as backup suppliers or buffers. Similarly, to ensure that it does not fail to meet the laid down sustainable standards, the party will periodically review and assess its performance. Thus, the potential threats to the delivery of services can be predicted and controlled, making Mines Are Us as reliable as needed.
Continuous Improvement Framework
The contract management plan will also include a continuous improvement plan to force the contractor to make continuous improvements in delivering the services. This framework will entail the formulation of annual targets and specific success factors in line with the performance as pointed out by the reviews and feedback from the stakeholders. Mines Are Us will integrate the notion of the contractors culture of improvement to ensure that they will deliver superior quality services that are sustainable and cheaper to provide in the long run. The use of a continuous improvement process will also involve conducting several workshops and other training activities with the contractor on areas of concern or areas of improvement.
Reporting and Documentation
Lastly, the time constraint under the contract management will be reporting and documentation. Documentation of all communications, appraisals, changes and risk management will be important for auditing, particularly where these are periodic. About the work plan of Mines Are Us mentioned herein, the particular work plan must include a reporting format in which the contractor is expected to report on performance, challenges experienced and measures taken to address the challenges. This documentation will be useful in evaluating the performance of the contractor in as much as the contractual terms especially when one wants to decide whether to renew or terminate the particular contract.
3. Reflection
This procurement and contract management plan is largely informed by the case study of the University of Toronto. For instance, the energy with People and Partnership led to working with contractors to ensure that they have a good working relationship with the company and linked them with the sustainability vision and strategy. Likewise, the decision to focus on mid-sized infrastructure and on challenging the mainstream strategy corresponds to the Mines Are Us strategy to cater to North Korean businesses and reduce the tendency of rendering reliance on global contractors. This reflection argues that it is possible for Mines Are Us to move forward to sustainable value creation as it achieves operational and strategic objectives based on community-oriented procurement.
In the same way as the University of Toronto can, Mines Are Us can take back control over its catering services and in that way make a local-based, sustainable food service-based system that in the long run will enhance the corporate culture and values.
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