Purchasing 101… the basics Cathy Simonds CPPO, CPPB University of Missouri-System

Agenda O The Purchasing Agent’s role and needed skills O Specification writing & contract administration O Agreements & Contracts O Vendor Management O Client Relations O Ethics O Resources at your fingertips O Increasing YOUR value

Role & Skills O The Role of the Purchasing Agent Oversees the acquisition of good and services needed by the organization O Required skills: Reading comprehenshion & writing Analyzing technical & financial data Judgment & decision making Negotiation Client relations

Specification writing and contract administration O Where do specs come from? End user, supplier, internet, others schools O Canned vs specific to need Scope, delivery, insurance, term Samples, questions, reporting O Award through expiration Reviews, reporting, problem resolution follow up, renewals vs re-bidding

Agreements & Contracts O Ours vs theirs? Integrating both, if necessary O What do you review? Force Majeure Indemnification Termination Taxes O Get legal involved

Vendor Management O Building relationships O Understanding capacities and boundries O Contract responsibilities

Client Relations O Adopt the mindset that relationship building is part of your job O Who should you connect with: Directors, Business Officers, Faculty O Building the relationship before you need it O Aim to give first, in a way that’s meaningful to the client O Create consistent value with ideals, support and feedback O Be transparent and honest

Resources at your fingertips O Professional Organizations NAEP, NIGP, NPI ListServs (NAEP Forum, NIGP NSite) RFP Libraries Subject matter Experts Network of Colleagues O Cooperatives E & I US Communities Novation ProcureSource

Increasing YOUR value and gaining respect O Over-deliver O Communicate your value O Consciously develop relationships O Join a professional board O Have an article or interview published O Get certified

Purchasing Agent’s 10 Commandments 1) Thou shalt always make decisions in the best interest of thy employer. Good purchasing agents avoid any real, and even perceived, conflicts of interest. 2) Thou shalt always involve thy internal customers throughout the purchasing process. Good purchasing agents never act alone. 3) Thou shalt never make price the only criterion in a purchasing decision. Good purchasing agents take quality, delivery, and other criteria into consideration also. 4) Thou shalt measure thy performance and communicate thy performance to management. Good purchasing agents know and show their value. 5) Thou shalt treat suppliers fairly. Good purchasing agents don't attempt to take advantage of suppliers? mistakes nor trick them to accept unfavorable terms. 6) Thou shalt embrace change and new technologies rather than resist them. 7) Thou shalt negotiate with the understanding that there may some day need to be a close relationship with the supplier across the table. 8) Thou shalt realize that it is a global economy and never make assumptions that thou knowest every supplier available. 9) Thou shalt acknowledge that thy managers job is to develop and implement a strategy for the department and, therefore, thou shalt challenge thyself to solve problems independently rather than involve thy manager in tactical crises that can reasonably be resolved at the purchasing agent level. 10) Thou shalt commit to continuous improvement of thy skills, never letting a year go by without learning new practices used by other purchasing agents. 11) Thou shalt always exceed expectations, consistently delivering more than anticipated. That is why there is an 11th Commandment.

Q & A O Learn from each other; now exchange business cards to begin building your network!