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
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 Trend? • Since we all see the world from a different perspective, it is probable that we observe different things
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.
“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.
So……some may be trends, some may be old hat, some may not be on the radar.
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 • 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 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 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 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 Practices • Strategic Sourcing • Looking beyond the tip of the iceberg (price) • Total cost, spend analytics, alternatives, supplier community, etc.
Tools and Practices • Design-Build • Reverse Auction • Telecommuting • Delegation (shrinking staff) • Public – Private Partnerships (P3) • Procurement Card
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 Practices • Performance Measurement • Best Value • Spend analysis • Data Driven Decisions (reporting, metrics, dashboards, “Big Data”, “Business Intelligence”)
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 • 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 • 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 Impact • Diversity • African American • Hispanic • Women • Veteran • Disabled • Small business • Others
Issues that have Impact • Sustainability • Was recycled paper • Became recycling • Morphed into Green Procurement • Now Sustainability • Carbon Footprint awareness
Issues that have Impact • Transparency • Higher Standard of Accountability • Reduced Staffing • Reduced Budgets • International Contracting
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 Changers • Professionalization of the Work Force • Certification • Education • Knowledge Building • Research
True Game Changers • Need for new Skill Sets • Customer service • Communication • Negotiation • Sales attitude • Analytics • Technology • Others…???
True Game Changers • Maturation of the Procurement Profession • Global Body of Knowledge • Common language • Common practices • Common skills
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 Changers • Social Impact • Economic development • Reduce hunger • Provide water • Improve infrastructure • Procurement is everywhere and we can Save the World!
What did I Miss? • Other ideas? • What do you see?
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