Be a Hero! How to Save Your
Organization Money
Marcheta E. Gillespie, CPPO, CPPB, C.P.M., CPM
NIGP Board of Directors
Deputy Director of Procurement – City of Tucson
The World We Live In…..
Financial
Turmoil
OPPORTUNITY
FOR
PROCUREMENT
Strain on
Agency
Our opportunity to show:
Value
OPPORTUNI
TY
Strategic
Orientation
Profession
Targeted Opportunities:
• Organizational Savings
▫ Hard savings
▫ Soft savings
▫ Avoided costs
• Revenue Opportunities
Organizational Savings – Hard Costs
• Solicitations
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Spec & scope analysis
Increase in RFP usage
Alternative approaches
Everything is negotiable
Standardization
Alternative funding strategies
Pricing strategies
Organizational Savings – Hard Costs
• Contract Administration
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Start off on the right foot
CAT, CAP & PAP
Change Order standards, process and review
Project Management
Communication
Documentation
Organizational Savings – Hard Costs
• Contract Renewal
• Consider market conditions
• Re-negotiate
• Opportunities to improve
• Supplier Contribution
• Solicitation and Contract
• Creative solutions
• Sharing tasks, risks and savings
Organizational Savings – Hard Costs
• Inventory
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Reduction
JIT vs Stock on Hand
Value vs. carrying cost
Turnover
Critical Items
EOQ
Packaging
Organizational Savings – Hard Costs
• Spend Analysis
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Availability of data & coding
Reporting
Benchmarking
NIGP Observatory
• Freight, delivery service analysis
Organizational Savings – Hard Costs
• Sourcing Alternatives
▫ Cooperatives
▫ Inventory & Surplus
▫ Lease vs. Buy
▫ Supplier Offers (demos, pilots)
Organizational Savings - Soft Costs
• Process re-engineering
▫ Procurement
▫ Customers
• Technology
▫ eProcurement, website
▫ Function & fit
 Solicitation delivery
 Vendor registration
 On-line contracts
Organizational Savings - Soft Costs
• Staff
▫ Coordination with customers
▫ Appropriate staffing levels
▫ Appropriate tasking
Organizational Savings – Cost Avoidance
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Specification and scope reviews
Mitigation of risk
IGAs
Outsourcing, “In-sourcing”
Grants
Advisory and Oversight Role
▫ Expenditure Oversight Team
▫ Budget 911
Generating Revenue Opportunities
• Analyzing Opportunities
▫ Customer Requests
▫ Procurement
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Cooperative Contracts
pCard
On-Line Surplus
Outsourcing Procurement Services
Storage services
Getting Started
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Identify and prioritize
Stakeholder input
Transparency & accessibility
Communication
Training and education
Customer Service
Share Your Successes!
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Performance metrics
ROI/P&L
Negotiated Value Data
Stakeholder Reports
Focus Groups
Media
Now….Go Be A Hero!
Marcheta E. Gillespie, CPPO, CPPB, C.P.M., CPM
Deputy Director of Procurement – City of Tucson
NIGP Board of Directors
(520)940-7194
[email protected]