#10: Be Proactive
I am beginning this series with a call to action. Canadian and BC governments have enacted legislation designed to increase transparency in public procurements. The Supreme Court of Canada continues to create new law that affect procurement processes. Ratepayers are demanding greater value from public sector administrators. Those of us responsible for public procurements are adapting to the changing realities of our field of practice.
Let’s be proactive:
- Review policies and procedures for conformity with requirements
- Review request documents, look for:
- “Must” and “shall” requirements, are they really needed?
- Consider performing a spend analysis, look for:
- Frequent transactions of small value
- Frequent transactions for similar types of goods
- Frequent emergency or rush orders
- High dollar value transactions
- Any combination of the above
- Apply the right tools with the goal of reducing both administrative costs and the cost of goods and services purchased.
- Consider the total cost of ownership when buying anything including:
- Installation, maintenance, storage, and disposal
- Training to use effectively
- Mitigation of risk
- Contract Management
- Use cost reduction strategies when drafting your contracts.
The time to consider the relationships that will evolve during a
contract is before a contract exists. Be Proactive!
Upcoming in the series: How to Add Value to Your Procurements
• Be Proactive
• Analyze what is required – bring clarity to the specification
• Understand the supply chain
• Align procurement strategies with corporate strategies
• Apply the highest standard of ethics
• Use the right tool for the job
• Plan contract management before there is a contract
• Learn from what was done
• Mitigate procurement risks
• Utilize the skills of supply management professionals
Over the coming year, Rusty Joerin, guest blogger, will expand on the above. Your comments are welcomed.
Rusty James Joerin, C.P.P. is a Supply Chain Management Professional and accredited by the Purchasing Management Association of Canada as a Certified Professional Purchaser. He offers procurement services primarily to public sector organizations that do not have a professional supply manager on staff and provides additional capacity to assist with project related supply for those organizations with purchasing specialists on staff.
Information about his experience and qualifications may be found at: www.woodsgift.com
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