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POWER OF PROCUREMENT
MAY THE SOURCE BE WITH YOU!
Dana M. Harris - MPA,CPPO,GCPA
Department of
Administrative
Services
Agency Sourcing
Team
Background and Experience…
• Almost 20 years working in the Public sector
• Grants and Contract Administration (from concept
to close out)
• Experienced at all levels of the enterprise, from
“worker bee” to supporting the “C” Suite
Today’s objective…
Understand how to use the power of
market research as a force to the
source of supply
The Power of Market Research is the
Force of the Source….
Provides credibility to being a trusted Procurement Partner
Positions the buyer to negotiate the best alternatives based on market dynamics
Provides strategies and structure to hit targets
Why is it powerful to conduct market
research before buying?
Create an advantage buy finding key
knowledge about the industry
Find options when you don’t know exactly
what you need
Information justifies procurement approach
Privatized management of operations,
Technology and Information System support,
IV&V, Actuarial and Auditing Services,
Agreements for equipment and facilities
Construction and repair of roads and structures
Determine funding request or for a business case
The Challenge to find the “right”
goods and services
Where is the right place to find the
sources of supply?
Speak with Suppliers to obtain information
about their capabilities.
Read industry chronical materials and
certifying bodies to help distinguish
performance qualities.
Survey users about their experiences.
The Market…What is available?
Review Business Chronical, Trade publications, current and past periodicals
Look for differences in competitors and think about strategies for a model to entice competition
Contact suppliers to confirm their knowledgably about responding to opportunities
Analyze Results
Ask the Stakeholder to review the Supplier profile
Determine if the business model of the Stakeholder and Supplier can be matched
Speak to procurement professionals about their experience buying from the same or a similar source
What is the right price for sources of
supply?
Determine fair and reasonable costs by using a comparison from user’s invoices / contracts.
Look at prices offered by more than one supplier and compare the differences in the offering.
Survey suppliers about their cost models. Comparable prices can be obtained through open records.
Confirm with the Stakeholder
Offer sample options found in the market , refer Stakeholders to review information to confirm if results are on the “right track”
Ask for recommendations from professionals about their supplier experiences
Look at similar procurement strategies employed for similar procurement events
Does your Stakeholder require a
diverse set of suppliers?
Assess the Supplier community , Find suppliers who match the Key Stakeholder’s expectations.
Document the differences in business models
Communicate the results of the market research to the Key Stakeholder for confirmation
Be prepared to adjust the target to your supplier Source based on feedback from the Stakeholder
Qualities of a strong solicitation
strategy
1. Follows a Procurement Methodology
2. Involves Stakeholders! Knowledge is power….
3. Reveals the strengths and weaknesses of the Supplier
4. Creates competitive advantage
Qualities of a strong solicitation
strategy
Follows a Procurement Methodology
Reveals the strengths and weaknesses of the Supplier
Creates competitive advantage
Involves Stakeholders! Knowledge is power….
Prove you have the Force
The successful professional will demonstrate their prowess using market
research to meet Stakeholder expectations
Problem :
Link to Video:
https://www.youtube.com/watch?v=IOqf7DppNmY&feature=youtu.be
? ? ?(Video plays while materials are handed out for the game/exercise)
Rules of the Galaxy
Open your envelopes and identify your Role
Roles include at least 1 Jedi Apprentice (Procurement Professional) and Stakeholders
Use the Wookeepedia reference guide to conduct market research about Suppliers
What is your Role?
Stakeholder/ Primary Users – Will have the description of needs to be sourced…..
Source/ Supplier – Will have their unique capabilities
Jedi Apprentice / Procurement Advisor – Will have Source Sensitivity
( Responsible for Linking the Key Stakeholder to the Supplier)
On the right track…..
Confirm
Questions
Stakeholder
Solution
Market