Print Header

Defence goes grocery shopping with Corrections

Bidvest food supplier delivers food stores to Canterbury. Bidvest have just signed a new contract with the Defence to deliver food stores

Bidvest NZ delivers goods to HMNZS CANTERBURY (MC-10-0178-006)

15 June 2010

The New Zealand Defence Force and the Department of Corrections have combined their buying power to deliver better value food stuffs for their organisations. The meals themselves may be different, but the savings are better for everyone.

The Defence Force and Corrections spend in excess of $20 million annually between them on what they refer to as rations – the raw ingredients like flour, milk, and eggs used in menu items for military personnel – and in the case of Corrections, prisoners.

Through the new rations procurement contract with Bidvest NZ Ltd, both the Defence Force and Corrections are able to obtain better prices on products they buy, while maintaining the levels of service they need, as well as achieving administrative efficiencies.

The new rations procurement contract is somewhat unusual in that it’s been negotiated across two ordinarily separate government departments. Forming what’s known as a “purchasing syndicate” between government departments is being encouraged by the Government to help public funds go further, instead of each organisation negotiating individual contracts.

In this case, the collaborative approach of the Defence Force and Corrections has delivered a reduction in food costs. That this has been achieved in an environment of rising costs demonstrates the power of the purchasing syndicate says Corrections Chief Executive Barry Matthews and Chief of Defence Force Lieutenant General Jerry Mateparae.

“Teaming up with other organisations with similar procurement needs translates into larger bulk ordering at a lower per item cost,” says Mr Matthews. “The result is an increased level of savings for everyone – with no decrease in the quality of goods and services purchased.”

In the new rations procurement contract, there will also be additional improvements in process and performance says Chief of Defence Force Lieutenant General Jerry Mateparae.

“Our catering people will have an on-line planning tool to coordinate menu planning, nutritional analysis, and stock ordering,” he says. “This is consistent with a drive across the Defence Force to not only deliver better value for money but also to deliver simpler and better support services to our people. I am pleased that our award-winning chefs will now be included in this initiative.”

For further information contact Major Kristian Dunne, Media Advisor, Army, 021 478 574.

ENDS

Return to the Media Release Summary