1. 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

2. The World We Live In….. Financial Turmoil Strain on Agency OPPORTUNITY FOR PROCUREMENT

3. Our opportunity to show: OPPORTUNI TY Value Strategic Orientation Profession

4. Targeted Opportunities: Organizational Savings ▫Hard savings ▫Soft savings ▫Avoided costs Revenue Opportunities

5. Organizational Savings – Hard Costs Solicitations ▫Spec & scope analysis ▫Increase in RFP usage ▫Alternative approaches ▫Everything is negotiable ▫Standardization ▫Alternative funding strategies ▫Pricing strategies

6. Organizational Savings – Hard Costs Contract Administration ▫Start off on the right foot ▫CAT, CAP & PAP ▫Change Order standards, process and review ▫Project Management ▫Communication ▫Documentation

7. 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

8. Organizational Savings – Hard Costs Inventory Reduction JIT vs Stock on Hand Value vs. carrying cost Turnover Critical Items EOQ Packaging

9. Organizational Savings – Hard Costs Spend Analysis ▫Availability of data & coding ▫Reporting ▫Benchmarking ▫NIGP Observatory Freight, delivery service analysis

10. Organizational Savings – Hard Costs Sourcing Alternatives ▫Cooperatives ▫Inventory & Surplus ▫Lease vs. Buy ▫ Supplier Offers (demos, pilots)

11. Organizational Savings - Soft Costs Process re-engineering ▫Procurement ▫Customers Technology ▫eProcurement, website ▫Function & fit  Solicitation delivery  Vendor registration  On-line contracts

12. Organizational Savings - Soft Costs Staff ▫Coordination with customers ▫Appropriate staffing levels ▫Appropriate tasking

13. Organizational Savings – Cost Avoidance Specification and scope reviews Mitigation of risk IGAs Outsourcing, “In-sourcing” Grants Advisory and Oversight Role ▫Expenditure Oversight Team ▫Budget 911

14. Generating Revenue Opportunities Analyzing Opportunities ▫Customer Requests ▫Procurement Cooperative Contracts pCard On-Line Surplus Outsourcing Procurement Services Storage services

15. Getting Started Identify and prioritize Stakeholder input Transparency & accessibility Communication Training and education Customer Service

16. Share Your Successes! Performance metrics ROI/P&L Negotiated Value Data Stakeholder Reports Focus Groups Media

17. 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 marcheta.gillespie@tucsonaz.gov