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NIGP Utah Chapter Meeting. September 16, 2014. Trends in Public Procurement. D. Michael Clawson CPPO, MBA. What is a Trend?. A trend is a measurable or observable tendency or change in direction A prevailing tendency or inclination A general movement A current style or preference.

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nigp utah chapter meeting

NIGP Utah Chapter Meeting

September 16, 2014

trends in public procurement
Trends in Public Procurement

D. Michael Clawson CPPO, MBA

what is a trend
What is a Trend?
  • A trend is a measurable or observable tendency or change in direction
  • A prevailing tendency or inclination
  • A general movement
  • A current style or preference
slide5

New technology in 1983…AT&T passedon this technology at first because it didn’t expect it to ever attract more than a Million

subscribers!

The mobile (?) phone!

what is a trend1
What is a Trend?
  • Since we all see the world from a different perspective, it is probable that we observe different things
references
References
  • Don Buffum, CPPO
  • Darin L. Matthews, FNIGP,CPPO,C.P.M
  • Michael E. Bevis, CPPO,JD,CPSM,C.P.M.,PMP
  • John Adler, CPPO
  • Rick Berry, FNIGP, CPPO
  • Dr. Donna T. Ginter, CPPO,CPPB,C.P.M
  • Voight Shealy
  • Dr. Khi V. Thai, Ph.D.
  • David E. Dise, CPPO
  • Dr. Cliff McCue, Ph.D.
  • Dr. Stephen B. Gordon, FNIGP,CPPO,PH.D.
slide8

“nothing new under the sun…especially in a conservative and risk adverse profession like ours”

  • Is it a trend or trendy? A general tendency or the latest fad?
  • Some people have been doing it for years; to others it is the newest thing.
trend buckets
Trend Buckets
  • Tools and practices that have been around a while, are increasing in use while (sometimes) becoming more sophisticated
  • Trends that Cause Concern
  • Issues impacting Procurement
  • True Game Changers
tools and practices
Tools and Practices
  • Cooperative Contracts
    • More good ones available
    • Easier to access
    • Cooperative Contract Aggregators
    • More people are comparing
    • Asking a supplier to bring us the best contract for our needs
  • Also – restriction against cooperatives (see preferences)
tools and practices1
Tools and Practices
  • E-Procurement
    • People trying different aspects (catalog, bid, quote, rfp, etc) one size does not fit all.
    • Not the “cure all;” face to face sales is still important in many industries
tools and practices2
Tools and Practices
  • RFP
    • Looking for best value
    • Faced with more complex procurements
    • Faced with higher dollar procurements
    • Price, experience, Leeds, e-procurement capability, many more criteria
    • Best value, total cost of ownership
tools and practices3
Tools and Practices
  • Performance Based Contracting
    • What is to be achieved; not How to do it
    • Fully clarify and agree upon the best proposed solution
    • Allows for new ideas, innovation, & creativity
tools and practices4
Tools and Practices
  • Strategic Sourcing
    • Looking beyond the tip of the iceberg (price)
    • Total cost, spend analytics, alternatives, supplier community, etc.
tools and practices5
Tools and Practices
  • Design-Build
  • Reverse Auction
  • Telecommuting
  • Delegation (shrinking staff)
  • Public – Private Partnerships (P3)
  • Procurement Card
tools and practices6
Tools and Practices
  • More and better Standardized Practices
  • Global Standards
  • Use of Social Media (facebook, twitter, LinkedIn, etc)
  • Automation of non-value added functions
tools and practices7
Tools and Practices
  • Performance Measurement
  • Best Value
  • Spend analysis
  • Data Driven Decisions (reporting, metrics, dashboards, “Big Data”, “Business Intelligence”)
trends that cause concern state certification programs
Trends that Cause ConcernState Certification Programs

Good

  • More education
  • Can augment international certification
    • CPPO proves knowledge of over arching body of knowledge, State cert proves knowledge of state specific issues

Bad

  • Limited resources for training pulled in more directions
  • Different requirements reduce confidence in any one certification
  • Confusion
trends that cause concern
Trends that Cause Concern
  • Shrinking staff size
  • Local Preference
  • Concept that Purchasing is a road block to stop the villains
  • An exiting experienced workforce
  • The issues and opportunities presented by a new generation
  • “Over professionalized” work force (ie. Purchasing Police)
issues that have impact
Issues that have Impact
  • Energy Efficiency
    • Was appliances and cars – sounded good
    • Lighting – lamps, ballasts, controllers
    • Heating and cooling
    • Ice Storage cooling
    • Geothermal
    • BIG DOLLARS – Carbon footprint
issues that have impact1
Issues that have Impact
  • Diversity
    • African American
    • Hispanic
    • Women
    • Veteran
    • Disabled
    • Small business
    • Others
issues that have impact2
Issues that have Impact
  • Sustainability
    • Was recycled paper
    • Became recycling
    • Morphed into Green Procurement
    • Now Sustainability
    • Carbon Footprint awareness
issues that have impact3
Issues that have Impact
  • Transparency
  • Higher Standard of Accountability
  • Reduced Staffing
  • Reduced Budgets
  • International Contracting
true game changers
True Game Changers
  • More Higher Education
    • Certificate Programs (Graduate Certificate Program; Global Standard for accreditation of Purchasing and Supply Management programs
    • Procurement Related Courses
    • Logistics Courses
true game changers1
True Game Changers
  • Professionalization of the Work Force
    • Certification
    • Education
    • Knowledge Building
    • Research
true game changers2
True Game Changers
  • Need for new Skill Sets
    • Customer service
    • Communication
    • Negotiation
    • Sales attitude
    • Analytics
    • Technology
    • Others…???
true game changers3
True Game Changers
  • Maturation of the Procurement Profession
  • Global Body of Knowledge
    • Common language
    • Common practices
    • Common skills
true game changers4
True Game Changers
  • Procurement as a Strategic Player
    • At the table
    • Providing input / expertise
    • Involved earlier rather than later
    • The “Go To” source for information
    • Perceived value to the organization
true game changers5
True Game Changers
  • Social Impact
    • Economic development
    • Reduce hunger
    • Provide water
    • Improve infrastructure
    • Procurement is everywhere and we can Save the World!
what did i miss
What did I Miss?
  • Other ideas?
  • What do you see?
thank you
Thank You!!!

Utah NIGP Rocks!

D. Michael Clawson, CPPO, MBA

NIGP Governing Board / Talent Council

City of Sierra Vista, Arizona

Michael.Clawson@sierravistaaz.gov

(520) 458-3315