• Why GP did the comparison

    In 2018/2019 a survey and audit was conducted along with the consultation from a client reference group, (CRG) on the Groceries Common Use Arrangement (CUA). All three produced outstanding results.

    Surveys and audits are undertaken on all CUA’s at certain points in order to determine whether or not customers value them, and to ensure the terms and conditions and KPIs of the CUA are being met. The Client Reference Group (CRG) are representatives of the key CUA customers.

    The survey was completed by buyers from government agencies:

    • Overall satisfaction with CUA – 100%
    • Value for Money – 93%
    • Ease of Use – 98%
    • Satisfaction with Suppliers – 100%.

    The audit was completed on the CUA’s largest supplier, Sealanes:

    • Audit findings were strongly positive.
    • The supplier is well versed with their responsibilities under the CUA, has well established systems and operates seamlessly to the benefit of the agencies.
    • The pricing provides Government agencies with good savings.

    The CRG:

    • Unanimously agreed that they want the CUA to continue
    • Happy with the current CUA as it stands.

    What did we compare?

    We selected a basket of 18 products from the CUA categories, six fruit and vegetables and seven dairy products.

    These products were compared from a selection of the CUA suppliers, Zimbulis, Bidfood, Select Fresh and Brownes with online prices from Coles and Woolworths. The same size and measure was used across all six suppliers.

    Apple Granny Smith KG

    Capsicum red KG

    Apple Red Delicious

    Capsicum Yellow KG

    Kiwi Fruit Each

    Chillies Red KG

    Orange Navel 100’s KG

    Cucumber Green Each

    Rockmelon Each

    Ginger KG

    Bean Stringless KG

    Mushroom Button KG

    Cabbage Red Each

    Spring Onion Bunch

    Cabbage White Each

    Brownes Milk 2L

    Capsicum Green KG

    Brownes Thickened Cream 300ML

    What we found

    The least expensive goods, based on the unit of measure stated below, were from the four CUA suppliers. In some instances the prices were almost 50% cheaper to that of the non CUA suppliers.

    This CUA averages 40% savings because it focuses on buying in bulk and aggregation of volumes.

    Zimbulis

    Select Fresh

    Bidfood

    Brownes

    Coles

    Woolworths

    $2.39

    $1.50

    $2.36

     

    $4.50

    $5.50

    $2.39

    $1.50

    $2.46

     

    $5.50

    $5.50

    $0.49

    $0.33

    $0.41

     

    $0.70

    $0.72

    $1.93

    $1.65

    $2.05

     

    $3.90

    $3.90

    $3.71

    $2.22

    $3.25

     

    $3.20

    $5.90

    $6.70

    $6.55

    $7.68

     

    $13.33

    $13.75

    $3.24

    $1.65

    $2.94

     

    $4.00

    $4.00

    $1.66

    $1.23

    $3.42

     

    $3.50

    $4.00

    $4.25

    $2.75

    $3.96

     

    $7.50

    $6.90

    $6.93

    $3.40

    $3.51

     

    $7.50

    $6.00

    $7.86

    $6.55

    $6.04

     

    $7.50

     

    $10.83

    $8.00

    $8.82

     

    $19.90

    $20.00

    $1.28

    $0.90

    $1.33

     

    $2.90

    $2.80

    $13.76

    $11.50

    $23.58

     

    $25.00

    $25.00

    $9.82

    $7.50

    $10.84

     

    $20.00

    $20.00

    $1.45

    $1.30

    $1.66

     

    $2.50

    $2.50

     

     

     

    $2.13

    $2.95

    $3.00

     

     

     

    $1.40

    $2.40

    $2.50

    The good news continues…

    The contract turnover was $112 million (ex GST), from October 2014 to September 2018. That’s approx. $28 million spend per annum.

    There are seven categories that together have saved agencies a staggering $40.8M over the four years:

    • Shelf Stable, Non Perishable and Dry Goods ($12.3M)
    • Dairy Products including Yoghurt, Cheese, Milk and Eggs ($11.1M)
    • Bread and Bakery Products ($4.7M)
    • Ready-to-drink Beverages (Non-Alcoholic) ($4.1M)
    • Fresh Meat, Poultry and Smallgoods ($4M)
    • Frozen Meat, Poultry, Seafood and Savoury Products ($2.4M)
    • Fruit and Vegetables including Prepared Vegetables ($2.2M).

    How are we improving?

    With the current CUA expiring on 1 October 2019, Government Procurement is working to develop a new CUA with a number of enhancements including:

    • Pre-Qualify suppliers and award their entire product catalogue, rather than award suppliers on a per-category basis. This will reduce non-catalogue expenditure by capturing a higher % of agency purchases through the catalogue.
    • Updated and modernised reporting requirements, which will allow for more effective monitoring of sales data and KPI measurements.
    • Easier identification of non-catalogue items so that commonly purchased non-catalogue items can be added to the catalogue.
    • Identifying opportunities to tap into the supplier’s online ordering catalogue instead of the e-Decision Aid.

    More information

    Please contact us if you have questions, comments or need support with your agencies groceries purchasing.

    Email CUAEnquiries@finance.wa.gov.au

    Date of Case Study – January 2019

    Published date: 30 May 2019