UiO procurement strategy 2024¨C2028

Sustainable procurement practices refers to good long-term solutions that take account of economic, environmental, and social conditions, including compliance with international humanitarian law, human rights, and international law in conflict areas.

The Procurement Strategy contributes to a decision-making structure that appropriately prioritises sustainability, especially where climate and environmental choices have budgetary or other consequences.

Vision, mission and main objectives

• Vision: UiO shall be characterised by sustainable procurement practices, with a high level of academic integrity and professionalism.
• Mission: UiO's procurement practices shall contribute to value creation for the core activities of research, teaching, and dissemination.
• Main objectives: UiO's procurement practices shall contribute to sustainable solutions for current and future needs.

Supporting objectives

To achieve the main objective and in light of the organisation's main challenges, UiO is prioritising the following three areas for the strategy period.

1. Sustainability

Supporting objective: UiO shall promote value-creating solutions that reduce its climate and environmental footprint, the risk of work-related crime, violations of international humanitarian law, human rights, and international law in conflict areas.

Desired effect

• Contribute to achieving the objectives in UiO¡¯s Comprehensive Climate and Environmental Strategy
• Contribute to positive social impact.
• A comprehensive and sustainable procurement practice within the organisation.
• That UiO is recognised for sustainable procurement practices.

Main actions

1. Increase the use of market dialogue for competence development between UiO and the supplier markets.
2. Ensure compliance with and further development of UiO¡¯s procedures for safeguarding social responsibility.
3. Conduct due diligence assessments to safeguard sustainability and as a basis for supplier follow-up.
4. Use recognised tools for identifying and managing risks associated with sustainability.
5. Select strategic partners and networks to develop competence, ensure quality, and improve efficiency in the procurement process.

Risks

• Inadequate framework for implementing sustainable procurement
• Technological limitations and systemic challenges
• Increased bureaucracy and non-compliance with procedures
• Resistance to change and conflict.
• Inadequate competence and insufficient cooperation, both internally and externally
• Changes in external framework conditions (e.g., market, regulations, etc.)

Governance parameters / KPI

• Number and proportion of new procurements and existing framework agreements where requirements and criteria for climate, environment, and social responsibility are set as eligibility requirements, contract performance requirements, or award criteria
• Number and proportion of contracts that enable users to order goods or services with eco-labels or social certification schemes.
• Number of inspections of pay and working conditions conducted annually.
• Number of signed framework agreements on reuse.

Performance targets

• Achieve Ethical Trade Norway¡¯s base level by 31 December 2025
• Procedures to safeguard social responsibility are applied in all procurements
• All high-risk procurements shall have climate/environmental or social responsibility requirements or criteria by 2026.

2. Governance and interaction

Supporting objective: UiO shall ensure effective governance by focusing on interdisciplinary cooperation.

Desired effect

• Increased utilisation of relevant competence
• Improved quality performance in contracts
• Efficient contract management and contract coverage
• Improved user satisfaction within the Procure-to-Pay (P2P) process

Main actions

1. Conduct annual surveys of demand fulfilment and user satisfaction.
2. Establish category management in the organisation with a clarification of roles and responsibilities.
3. Further develop forms of communication and interaction platforms.
4. Improve data quality, prepare procurement analyses, and identify measures to improve management data.
5. Explore the use of AI in procurement efforts.
6. Establish an annual cycle for procurement planning

Risks

• Inadequate use of and/or limitations in standards, systems, procedures, and process support tools
• Inadequate and/or poor-quality underlying data
• Inadequate revision of action plan
• Lack of organisation and meeting arenas
• Inadequate management buy-in
• Inadequate prioritisation and participation from professional communities and requirement owners

Governance parameters / KPI

• Number of established category teams

Performance targets

• User satisfaction surveys are conducted for >10 contracts annually.
• Three category teams are established during the period, in addition to travel, property, and ICT.

3. Contract management

Supporting objective: UiO shall develop and implement guidelines, tools, roles, and processes for effective contract management.

Desired effect

• Efficient supplier development and increased follow-up
• Increased data quality that strengthens decision-making processes and documents achievement of objectives
• Improved flow of information and communication regarding contracts

Main actions

1. Development of comprehensive portfolio management for UiO, including the use of category management.
2. Evaluation of a selection of important procurements for learning and further development.
3. Ensure the quality of underlying data for reporting on the procurement process, contract management, and expenditure.
4. Improve the flow of information and communication regarding contracts, including contract implementation, changes, and adaptations during the contract period.
5. Operationalise knowledge for learning in contract follow-up.
6. Ensure compliance and further development of procedures for contract management.
7. Establish traffic-light indicators and improve the utilisation of tools such as CLM and Tableau, while maintaining systems and exploring the application of AI in contract management.
8. Conduct risk analyses and due diligence assessments to monitor suppliers¡¯ sustainability performance during the contract period.

Risks

• Inability to communicate and understand the purpose of the contract
• Inadequate flow of information
• Poor data quality in systems
• Governance parameters / KPI
• Percentage of invoices linked to a contract
• Percentage of invoices linked to purchase orders

Governance parameters / KPI

• Percentage of invoices linked to a contract
• Percentage of invoices linked to purchase orders

Performance targets

• >50% of invoices linked to a contract by 2028.
• >80% of invoices linked to purchase orders by 2028.
• Perform two major procurement evaluations annually.
• Establish appropriate KPIs related to contract follow-up by 2026.

Implementation

Measurement and reporting

The Procurement Strategy was adopted by the University Board on 17 September 2024, and is communicated to all employees.

The University administration has overall responsibility for implementing the Strategy. Managers at all levels play a special role in ensuring the Strategy's objectives are achieved; however, all employees have a responsibility to contribute. The Department of Finance and Business Management is responsible for coordinating the work and reporting on progress.

The Procurement Strategy shall be formalised in an annual action plan with activities applicable to the following year. The Department of Finance and Business Management is responsible for creating the action plan.

Financial and administrative consequences

It is assumed that all the University's faculties and units will adhere to the Strategy's guidelines and implement its measures within approved budgets during the strategy period.

Achievement of objectives

At the conclusion of the strategy period, the benefits and effects achieved shall be documented.

Publishing

The Procurement Strategy is published on UiO's website.