your procurement team needs a check-up!

Your Procurement Team Needs a Check-UP!A 10-step checklist to survive in a post-Covid environment

James Tanzosch, North Carolina Central University

Virtual Forum nigp.orgAugust 25, 2021

How Can We Make This More Interactive?

❑ Polls

❑ Chat Feature

❑Make Friends

❑ New Contacts

2 | NIGP FORUM 2021 nigp.org


North Carolina Central UniversityCosmopolitan Magazine #11 Most Beautiful College Campuses


Winter in

Iowa


North Carolina Central UniversityCosmopolitan Magazine #11 Most Beautiful College Campuses


The Best Time fora Checkup is before Youare Sick!!!


Narrow Your Focus

Poll - Is Your Team Going to Work?

❑ Remotely/At Home

❑ In Office

❑ Hybrid

❑ No Decision#1Ability

of Team

to Work

Remotely


Who do we think is more productive?

#1Ability

of Team

to Work

Remotely


HOME OFFICE

Items to Consider –

❑Computer

❑Printer

❑Monitors

❑Internet

❑Remote Log in Capabilities

❑Skillset of Employees

❑Software

#1Ability

of Team

to Work

Remotely


Items to Consider –❑ Computer

❑ Printer

❑Monitor

❑ Internet

❑ Remote Log in Capabilities

❑ Skillset of Employees

❑ Software

❑ Desk, Chair, Office Space

Will employees be reimbursed for their office expenses?

#1Ability

of Team

to Work

Remotely


$$$

Items to Consider –❑ Computer

❑ Printer

❑Monitor

❑ Internet

❑ Remote Log in Capabilities

❑ Skillset of Employees

❑ Software

❑ Desk, Chair, Office Space

❑ Employees reimbursed for office expenses?

Do you have a way to track

production?

#1Ability

of Team

to Work

Remotely


Chat Topic – In the Chat please tell us how your entity conducts competitive solicitations?

❑ Electronic

❑ Paper

❑ Both

If you use eProcurement what type of software do you use?

Do you like it?

#2Analyze Your Sourcing Process


Pre-Solicitation Meetings & Evaluations

❑ On Site

❑ Electronic

❑ Attendance

❑ Social Distancing Requirements

❑ Evaluation Committees

❑ Supplier Interviews

❑ FOIA Requests

❑ Do You Need to Review and Change Your Policies?

#2Analyze Your Sourcing Process


Key Features of a Contracting Tool:

❑ Repository – Contract Storage

❑ Authoring

❑ Signature

❑ Tracking – Milestones

❑ Certificates of Insurance

#3Is Your Contracting Process

Healthy?


Poll – Does Your Entity Currently Have an Effective Process to Track Certificates of Insurance?

❑ Yes

❑ No

❑We get most of them

#3Is Your Contracting Process

Healthy?



A Story about the Supply Chain

Have You Audited Your Contracts?

❑ Commodity Prices Increasing

❑Markets are Disrupted

❑ Services – Labor Issues #4Audit

Your Contracts


Chat Talk – Tell us how you are using the Pcard?

Have you had any issues or successes with the Pcard that you would like to share?

#5Examine Your Procurement Card Program


Benefits

❑ Reduce Transaction Costs

❑ Rebate

❑ Ease of Use

Concerns

❑ Improper Use

❑ Spend Control

❑ Fraud/Risk

#5Examine Your Procurement Card Program


Poll – Is There Opportunity for Your Entity to Reduce Inventory, Eliminate Warehouse Space, and Improve Your Delivery Process?

❑ Yes

❑ No

❑ Probably

❑ I have no idea

#6Does Your Delivery, Warehouse, or Inventory Process Need to be Rebuilt?


Just-In-Time (JIT) DeliveryFrom the NIGP Dictionary….

A quality concept first perfected by the Japanese. Its basic tenet is the elimination of waste: the waste of overproduction, unneeded motion, transportation, excessive inventory and production and labor time. The term has been adapted to mean that previously held maintenance, repair, operating (MRO) inventory items are outsourced to JIT suppliers who may provide next day delivery. JIT generates best value through supplier partnerships that generate savings through labor, inventory, production, and processing costs. (Business, 2002)

#6Does Your Delivery, Warehouse, or Inventory Process Need to be Rebuilt?


Just-In-Time Delivery

❑ Can you eliminate some or all of Your warehouse?

❑Maintenance Vehicles or Closets Filled With Parts #6

Does Your Delivery, Warehouse, or Inventory Process Need to be Rebuilt?


Sustainable Procurement

❑ Consider Environmental Impact

❑ Total Cost of Ownership

❑ Reduce Deliveries

❑ Effective Recycling Program#7Can We Become More Sustainable?


Sustainable Procurement Examples

❑ Printing

❑ Paper

❑ Janitorial

❑ Disposal of Items

❑ Please Share in the Chat Anything That Your Entity is Doing

#7Is Our

Entity

Green?


Chat Talk – Tell us if you regularly report key metrics.

#8Take a Daily Dose of Metrics


Keep Score & Improve Performance

❑ Savings

❑ Contracts

❑ PCard v PO v Direct Payment

❑ PCard Rebate

❑ Average Order Size

❑ Green Metrics

❑ Processing Times

❑ Spend Analysis

#8Take a Daily Dose of Metrics


Transactional or Strategic Procurement:

Transactional – Processes Orders

Strategic – Seeks Efficiency

#9Take Your Strategic Blood Pressure


Transactional or Strategic Procurement:

Spend Analysis – Identify a strategy for your top suppliers.

#9Take Your Strategic Blood Pressure


Seek Excellence in Procurement:

❑ Build a Team

❑ Employee Development Program

❑ Pursuit of Credentials

❑ Promote Procurement#10An Apple a Day Leads to Excellence In Procurement


Seek Excellence in Procurement:

❑ NPI Achievement of Excellence in Procurement

#10An Apple a Day Leads to Excellence in Procurement



A Story About the Supply ChainStart the Process

Seeking “Procurement Excellence” to Solve the World’s Problems

Procurement excellence means aligning procurementstrategies and programs with the overall objectives of the organization, helping everyone to align with those objectives, and managing the risks that are inherent in the procurementprocesses. The ultimate goal: A more competitive institution.

James Tanzosch CPPB, CPPO, MBA

Purchasing Director, North Carolina Central University


your procurement team needs a check-up!

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