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Current Issues and Trends

Current Issues and Trends. Portland State University Governmental Procurement, ISQA 440 Darin Matthews CPPO, C.P.M . Issues and Trends. Use of technology in procurement Strategic sourcing initiatives Sustainable procurement Corporate social responsibility Relationship management

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Current Issues and Trends

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  1. Current Issues and Trends Portland State University Governmental Procurement, ISQA 440 Darin Matthews CPPO, C.P.M.

  2. Issues and Trends • Use of technology in procurement • Strategic sourcing initiatives • Sustainable procurement • Corporate social responsibility • Relationship management • Education and certification

  3. Technology • Electronic distribution of bids and RFP’s • Agency web site, 3rd party supplier • Receipt of electronic offers • Bids, proposals, CD submissions • Electronic supplier registration • 3rd party web-based systems • Contract management software • Cost control, reporting tools

  4. Technology • Reverse auctions • How low can you go? • Online disposition of surplus property • Ebay, Craigs List, GovDeals • Use of social media • Facebook, Twitter, LinkedIn • Enterprise resource planning (ERP) systems • Oracle, SAP, Banner

  5. Article Review – Social Media • Read “Impact of Social Media on Public Procurement” • What is meant by cone of silence? • How can companies wanting to do business with government use social media? • Is there a opportunity for influence in contractor selection? How? • How can government best deal with this issue?

  6. Strategic Sourcing The collaborative and structured process of critically analyzing an organization’s spending and using this information to make business decisions about acquiring commodities and services more effectively and efficiently Source: Office of Management and Business

  7. Strategic Sourcing • Commodities used across multiple parts of an organization (departments) • Routine items that are not specialized or unique • Involve a high dollar spend • Used by many state and local governments in the past decade

  8. Article Review – Spend Analysis • Read article “What’s the Buzz About Spend Analysis” • What is spend analysis? • Why do you think it is important to trust your data? • Why aren’t agencies allowed to go through steps 1 and 2?

  9. Sustainable Procurement • Consideration of sustainable attributes of products that an organization purchases • Considering how a purchase today can impact the community in the future • Adoption of sustainable procurement policies and strategies • Environmental Protection Agency, Greater London Authority, City of Portland, City of Seattle are just a few that have adopted such policies

  10. Sustainable Procurement • Recycled paper in copy machines • Energy efficient equipment and electronics • Hybrid fleet vehicles • Environmentally friendly cleaners • Low VOC paint products • Use of sustainable packaging

  11. Corporate Social Responsibility

  12. Corporate Social Responsibility • An organization’s self regulating policies • Essentially an effort to “do the right thing” • Can include policies and practices that focus on the environmental, social, and economical impacts of their actions and decisions

  13. Corporate Social Responsibility • Monetary donations to local charities or schools • Adoption of minority and women owned business programs, diversifying spend • Provision of local jobs • Spending locally in support of the local economy • Extending healthcare benefits to domestic partners • Refusing to do business with companies that use sweat shop labor

  14. Relationship Management • Building positive relationships in business (not adversarial) • Focusing on the relationship as much as the bottom line • Realizing value of customers and suppliers (CRM, SRM)

  15. Relationship Management • Managing suppliers relationships is seen as a priority • Listen to our key suppliers • Share information that is valuable to both parties • Strengthening interpersonal, communication and teaming skills

  16. Education and Certification • Alignment of procurement profession with higher education institutions • Examples include Portland State University, National Institute of Governmental Procurement, and Florida Atlantic University • Requirement or preference for an accredited Bachelor’s degree

  17. Education and Certification • Survey of accepted professions • Law (JD) • Accounting (CPA) • Project management (PMP) • Medical (MD, DMD) • Degree requirements have long existed

  18. Education and Certification • CPSM, C.P.M., CSM • CPPO, CPPB • CPCM • CPP (Canada) • MCIPS (United Kingdom) • Universal certification?

  19. Article Review - Credentials • Read column on “Valuing Professional Credentials” • What is meant by body of knowledge? • Why would someone pursue professional certification? • What are some reasons for an organization to support these credentials?

  20. Questions, Comments

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