Supply Chain Centralization
Modernizing the way we purchase goods and services
Ontario is taking a modern, efficient and transparent approach to eliminate redundancies and deliver simpler, faster, better services to the people of Ontario. Our goal is to get the best value for every public dollar that is spent, to protect what matters most.
Centralizing procurement across the Ontario Public Service and the broader public sector is one of the most forward-thinking ways to do that.
Where we're at today
Every year, Ontario spends about $29 billion on goods and services ranging from pacemakers to bandages, to computer and IT hardware. The Ontario Public Service and organizations across the broader public sector - like hospitals and schools – buy those goods and services independently. Imagine how much could be saved if those purchases were purchased in bulk?
Our future process
By leveraging our massive buying power and streamlining how we work, we will be more efficient, deliver innovative services and goods, and most importantly, work together to reduce costs for the people of Ontario. At the same time, a single-window approach will make it easier for companies of all sizes to work with government.
Spending less money on procurement by taking advantage of the combined buying power of government will save money that can be reinvested in the things that matter most.
Here's what you need to know
- The Government of Ontario estimates that centralized procurement can generate savings of approximately $1 billion annually.
- A centralized procurement process will improve access to top quality products and services, and save money by taking advantage of the combined buying power across the Ontario Public Service and broader public sector.
- We will consider the best practices and approaches that other provinces, such as British Columbia and Quebec, have implemented to develop the best plan for the people of Ontario.
- Our new procurement structure and function will be created after consultation with stakeholders to ensure that we consider their unique requirements.
- Our new procurement processes will expand and develop the supplier market because a broad supplier base offers more options and selection for goods and services, along with competitive pricing.
- Our goal is to implement a simpler, more innovative sales process that will save money, allowing businesses to reinvest in better, more innovative solutions.
To make sure our plan makes the most sense for the people of Ontario, we need your input.
As we reduce duplication the government has put Interim Measures in place as our first step towards collaborative purchasing. These include regular reporting and limiting long-term contracts where appropriate, for example.
If you have additional questions, please contact us at:
DoingBusiness@ontario.ca
BPSSupplyChain@ontario.ca
