October 11, 2019
Shopping Smarter Leads to Savings for Manitoba Taxpayers
– – –Modernization of Way Government Conducts Business Saves Close to $13 Million: Premier
A whole-of-government approach to purchases is already seeing results for Manitoba taxpayers with savings of close to $13 million, Premier Brian Pallister announced today.
“We are shopping smarter by knocking down silos and bundling purchases for volume discounts,” said Pallister. “Our first year alone has generated significant savings and Manitobans can expect so see more savings as we continue to focus on better ways of pooling our resources to generate more buying power.”
Savings are being generated across several categories including architectural and engineering services, janitorial services and paving materials, fuel purchases and IT hardware.
In the past, Manitoba’s purchasing power was decentralized. Not only did many departments shop on their own, sometimes several different agents within an individual department made purchasing decisions in isolation. This resulted in Manitoba paying more for goods and services.
“Manitobans are known for their smart shopping skills and we want to bring that keen eye for savings to government. We want government to shop the same way Manitobans shop,” said Pallister.
The initiative is slated to achieve $200 million in savings by the end of the 2024-25 fiscal year, the premier said.
PricewaterhouseCoopers Canada (PwC) is assisting the Manitoba government to modernize the purchasing process. PwC is currently working with the Nova Scotia government to modernize its procurement services in a similar way with current savings of more than $25 million per year.
“We can benefit from their experience with this type of reform and we expect to see continued cost savings while maintaining the quality of services Manitobans expect and deserve,” said Finance Minister Scott Fielding.
“By co-ordinating our approach to contract decisions and sharing that purchasing power across government, we will continue to see cost benefits,” said Pallister. “We remain committed to smart solutions that save Manitoba taxpayers’ money as we move Manitoba forward.”
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