Newsletter - November 2018 Print

Procurious

Bravo!

"Some of us are born with the ability to tell a really great story, but it usually requires three pints and a shot of tequila. For the rest of us (and where alcohol isn’t an option), the answer is to sharpen your skills..."

Julie Masters, CEO - Influence Nation 

 

When we say a story, what we really mean is five stories... 

In Bravo, a new five-part procurement podcast series, we interview five inspiring  and courageous women to discover the secrets to their success.

Discover why you should become a master storyteller, learn how to focus on your strengths, and listen as we debate critical issues including the salary gap, keyprocurement skills and the greatest challenges facing the profession. 

 

How do I listen to the podcasts?

Simply sign up here and you’ll be re-directed to the Bravo group where a new podcast will be published each day starting Monday 26th November. You will also join a mailing list, which will alert you each time a new podcast is released.

Is the podcast series available to anyone?

Absolutely! Anyone & everyone can access the podcasts and it won’t cost you a penny to do so. Simply sign up here. 

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Purchasing Advantage

Influencing Internal Business Units to Align with Procurement Strategy
by Omid Ghamami

Influence

This problem has been plaguing procurement for much longer than the 25 years that I’ve been around the profession.  Why is it that we spend all of our focus on how to negotiate with suppliers and not so much on internal negotiations?

In fact, I’ve consistently found that the biggest barrier to world class procurement results is internal business unit alignment.

Let me tell you a true story first:  years ago, a saleslady came to my house selling magazine subscriptions.  She had an inventory of hundreds I could order from.  What was her big sales pitch to get me to buy?  “The big bonus is, if I sell enough magazines, I get a free trip to Europe!!”.  Needless to say, she didn’t capture my interest, and I didn’t buy any magazines.

More on this story later.  Back to procurement, for a little bit.

Let’s say you work for a big company that spends lots of money, and you are getting very favorable results with suppliers, but are struggling with internal business unit alignment with your strategies.

Does this sound familiar?  If it does, you are in trouble.

The reason is that it introduces the possibility that your suppliers are getting in line because of all the money they stand to get and not because of your incredible negotiation skills.  The red flag?  Your internal business unit hasn’t been influenced at all by those same incredible negotiation skills.

All of you will be saying “yeah but that’s not why my end users don’t get in line with our policies and procedures, the reason is that__________”.

In fact, what you put at the end of that sentence doesn’t matter.  The problem is with procurement, not the end users.  We can get away with using position power externally.

Position power is really powerful when you are spending gobs of money with suppliers.  Position power goes absolutely nowhere internally.  You are either using influence internally or you are dead in the water.

Read this twice:  internal business units and their end users don’t care about your procurement policies and procedures. 

Got that?  Stop fighting it.  If you embrace this reality, you will do much better in this profession.

The reason your company or government entity exists is to produce a set of products/services that somehow add value in the marketplace.  If your procurement policies and procedures aren’t perceived as helping them do this, you are merely a roadblock.

Any internal escalations will be resolved in the end user’s favor, because the bottom line is product must go out the door.  You may not like it, but it makes perfect sense.

And how does our profession handle this?  Well, we do internal roadshow presentations.  We use resources to sit in on business unit staffs, *just in case* something comes up.  We run around doing education presentations on our policies and procedures.

We beg end users to engage us earlier than they are today.  We even structure our organizations to be end user aligned instead of category/commodity aligned.  And worst of all, sometimes our organizations get structured, usually against our will, to be reporting into the business unit itself!  How can you challenge the person that writes your review?!

Most of all, we daydream about having a tops down policy from the CEO that says “thou shalt use procurement, otherwise the following painful consequences will take place….”

And absent getting this CEO mandate, we keep doing the same things above over and over and expecting a different result.

And what criteria do we use to motivate end users?  Cost savings, increased competition, ability to select their non-supplier of choice that provides a lower cost or total cost.  All the right things, but in most cases, none of these are what your end users care about.

In the end, you are using criteria that YOU and YOUR organization values to try and convince a business unit and their end users to get into compliance with YOUR policies.

In such case, what makes you different than the saleslady who wanted to motivate me to buy HER magazines so SHE could get a free trip to Europe?  She was dead to me the minute she left my doorstep, because she only cared about her own success and not mine.

How are you and that saleslady PERCEIVED differently by your end users?  Not much, really.  You too are likely focusing on what’s in it for YOU instead of what’s in it for the other person.  It doesn’t matter if what you are pushing SHOULD be of interest to your end users.  Their perception is their reality.

The best alignment model I’ve ever seen with clients was at Mercedes Benz.  For this very large division, they had procurement and engineering reporting to the same VP.  They had a set of shared metrics, and they were all motivated to work towards the same goals, because they had…… (wait for it, wait for it…) the same goals.

Your objectives must be and be perceived as tied directly to things that your end user believes makes them successful.  For as long as you beat the procurement policies/processes drum, you will forever be a road block.

The key lies in truly understanding what the business unit is trying to achieve, and aligning your interests, communications, and strategies towards that exclusive objective, and in doing so, ensuring lowest total cost is achieved. But the focus MUST be on the business unit goals, and your end users need to see and believe that this is not just lip service.

It is only then that they will see you as an enabler of their vision and not yours, and you will have ambassadors of procurement’s mission throughout the company because end users will engage you not because they have to, but because they want to.

And you won’t ever have to push magazines onto unwilling recipients again.  See how that works?

Now go off and do something wonderful.

Be your best!

Note: The author of this article, Omid Ghamami, THE Godfather of Negotiationing, will be presenting “How to Buy Performance Results (and Stop Buying Goods and Services) at the December 6, 2018 WAPP meeting.

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Meeting Minutes

Meeting

Minutes of the VALUE Planning Committee
October 17, 2018

Present:
Barwick, Robert
Fleming, Matt
Kurer, Bill
Liesener, Craig
Martin, Catherine
McKinney, Duane
Schaack, Beth
White, Jen

Hammernik and Associates needed information to move forward with processing the paperwork for VALUE to dissolve and reincorporate. The following decisions were discussed and made by the group:

  • Name of the Agency: VALUE in Local Government” (removed the “.” after each letter)
  • Main Registered Agent: Robert Barwick at the City of West Allis
  • Officers: Moving forward, the term “Chair” will be referred to as President. The President and Treasurer will remain elected positions.
  • Bylaws: The bylaws need to be rewritten. Jen White and Matt Fleming agreed to edit these and bring the changes to the next group meeting.


The group discussed the need to revamp the logo in conjunction with the other changes and would prefer to keep the state of Wisconsin in the logo if possible. Jen White offered to check with the Graphics department at her work to see if one of the Graphic Designers was interested in assisting with the redesign.

The group discussed their need for a Membership Committee and Website Administrator. Catherine Martin and Jen White agreed to take over these duties and reach out to Cindy Matz to get trained.

No new VALUE memberships were received last month.

The Treasurer’s report was read.

The group discussed potential speakers for the 2019 annual spring VALUE/WAPP meeting. Ideas were mentioned which included Amazon Business, U.S. Communities, NIGP speakers, etc. The group will discuss further at the next meeting.

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Piggyback Updates

Pig

Below are changes or additions to the various piggyback opportunities available to VALUE member agencies.  Visit the piggyback page on the VALUE website, and click on the Pig to see the full list.

Do you have a contract to add to the list? Contact cmmatz@co.walworth.wi.us to add your contracts to the piggyback list!

New Contracts

None

 

Contract Extensions

Aftermarket Auto Parts & Supplies
Dairy Products
IT Professional Services
Pest Control Services
Stealth 4500 PSI Cylinders

 

Contract Expirations

Chrysler, Dodge, Jeep OEM Parts
De-Icing Chemical – Beet 55 Organic Excelerator, bulk
De-Icing Chemical - Ice Melt
De-Icing Chemical - Liquid Calcium Chloride
Food Products & Supplies
HVAC Filters
Water Softener Salt

 

 

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State of Wisconsin Contract Updates

Wisconsin

Updates to State of Wisconsin contracts are issued weekly by the State of Wisconsin.  VALUE is reprinting the weekly information received as a courtesy to our members. 

The following contracts have been updated for the week of 10/8/2018 - 10/12/2018:

505ENT-O17-BODYARMOR-00 Body Armor (NIJ approved Bullet/Stab Resistant Tactical Products, Including Vests)- Contact information updated on User Guide and Authorized Distributor list for Point Blank

505ENT-M18-WTRTRTMHAC-00 Water Treatment & Services Area 2 – 5- Added updated Boiler Chemical Pricing for Fremont

505ENT-O15-POLICERADAR-00 WSCA Police Radar, Lidar, Parts & Equipment- Update to the contract synopsis to reflect a note from NASPO ValuePoint that there will be a lapse in contract coverage as the re-solicitation of this contract will not be completed before the current Master Agreement expires.

The following contracts have been updated for the week of 10/15/2018 - 10/19/2018:

505ENT-O16-Ammunition-00 Ammunition - Statewide Use- Extended contract renewal until 12/31/19

505ENT-O17-SALESFORCE-00 Salesforce Implementation Services- Contracts have been extended for an additional year ending in 2019, except for 505ENT-O17-SALESFORCE-03, Bluewolf Group.

505ENT-U99-DSPLGLOVES-01 GLOVES, Non-Sterile, Disposable- VV100 price decreased based on fair market pricing cost analysis. NPF100 removed from contract. HAL100 is comparable to NPF100.

505ENT-U97-BROOMS ETC-01 Brushes & Brooms- Five items removed from contract that did not meet fair market pricing. Stainless Steel Brush (1259), Wire Hand Brush (1215), Floor Sweeping Brush 18" (3407), Scrub Brush (2470) and Window Squeegee (4745). These items can be purchased from the MRO contract.

505ENT-U07-FLOOR PADS-01 Floor Pads for Cleaning Machines- Price decrease for nine (9) items to comply with fair market pricing: (20" Black - 7200; 17" Black - 7200; 20" Red - 5100; 20" Brown - 7100; 20" White - 4100; 20" Pink - 3600; 17" Hi-Pro Black - 7300; 20" Hi-Pro Black - 7300; 20" Surface Prep Pad - SPP20) - New price sheet attached with updated pricing.

505ENT-U15-WRITINGINS-01 Writing Instruments- Two (2) items removed form contract that did not meet fair market pricing. (P-0314 and P-5259A). Updated price sheet added to contract.

505ENT-M18-ASLINTERP-00 IN-PERSON INTERPRETATION SERVICES FOR AMERICAN SIGN LANGUAGE (ASL)– New contract

505ENT-M18-FORINTERP-00 IN-PERSON INTERPRETATION SERVICES FOR FOREIGN LANGUAGE– New contract

505ENT-M19-EDDYTESTING-00 Eddy Current Testing Services– New contract

 

The following contracts have been updated for the week of 10/22/2018 - 10/26/2018:

505ENT-O18-VARIDESK-01 VariDesk Sit/Stand Desks- Renewal signed by North Dakota. New price list (with reduced prices) posted.

505004-O14-MANAGITSEC-01 Managed Security Services Solution (MSS) and Related IT Security Consulting- Updated vendor contact info for Dell Secureworks

505ENT-O15-FLOORING-00 Statewide Flooring Including Commercial Carpet, Resilient Coverings (Virgin and Recycled) and Related Services- Added Tandus Tapis to Creative Solutions

 

The following contracts have been updated for the week of 10/29/2018 - 11/2/2018:

505ENT-M16-StackTest WI-00 Furnishing of Stack Emission Testing Services- Extended contract to November 30, 2019 and posted pricing for the 2018-2019 term.

505ENT-M18-RATECERT-00 Class 5 Legal/Public Notices: Rate Certification Program- Certification Rates Bulletin updated for November 2018

505ENT-U18-SPICES-01 Spices and Seasonings - Nutritional Guides have been updated to include Ground Cinnamon, Cream of Tartar, Dark Red Paprika, Whole Pickling Spice, Popcorn Salt, Rosemary Leaves and Ground Sage.  Order form has been updated to include more detailed descriptions.

 

The following contracts have been updated for the week of 11/5/2018 - 11/9/2018:

505004-O17-GARTNERMSA-01 Gartner Information Technology Consulting Services - Added Amendment 1 allowing purchase of subscription (seats) and updated DET contact

505ENT-O14-BUSINESSISP-00 Internet Service Provider (ISP) Services - Final contract renewal executed, AT&T no longer on contract and updated price list for Charter added

505004-O14-MANAGITSEC-01 Managed Security Services Solution (MSS) and Related ITSecurity Consulting - Updated rate list with new Dell Secureworks contact info

505ENT-O16-SAFETYCOMM-00 NASPO Public Safety Communication Equipment - Removed Radio Frequency Systems (RFS) from the contract. RFS did not renew the contract.

505ENT-M19-FACILITMRO-00 Facilities Maintenance and Repair & Operations (MRO) andIndustrial Supplies - NASPO ValuePoint Market Baskets added to attachments

505ENT-O15-FLOORING-00 Statewide Flooring Including Commercial Carpet, ResilientCoverings (Virgin and Recycled) and Related Services - Added new products to Halverson Price List

505ENT-U18-SPICES-01 Spices and Seasonings - Product recall - Parsley Flakes - See contract synopsis for more information.

505ENT-M18-ELEVATORSV-00 Elevator Maintenance and Repair Services- UW-La Crosse (Lot 17), DOA Office Building, La Crosse (Lot 18) moved from Schindler to Schumacher UW-Milwaukee (Lot 42) Removed.

505ENT-M19-BOTEST&TUNWI-00 BOILER TESTING AND TUNE-UP SERVICE– New contract

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NIGP Webinars

NIGP Webinars

Webinar

Improving the Bid: Understanding Qualifications, Responsiveness, and Responsibility

November 27, 2018
1:00 - 2:30 CST

Clarity is the hallmark of good procurement, but the language can be difficult to understand. As such, articulating the differences between responsiveness and responsibility can be a confusing task, especially when you have to balance qualifications alongside the mix. Participants in this session may plan to consider how to approach qualifications, while ensuring that they have the details needed without being overly restrictive.

 

Webinar

Cooperative Procurement: Like a Country Love Song

December 11, 2018
1:00 - 2:30 CST

As a huge country music fan, Tammy Rimes also has a famous singing cousin. But Tammy chose a much more exciting career – that of a Purchasing Agent! Combining her knowledge of both, Tammy is passionate about sharing how cooperative procurement and country music have so much in common. Besides buying stuff like tractors and trucks, cooperative procurement is no longer an emerging trend, it is now a proactive way to gain commodities and services. This informative presentation will help you discover ways in which this contracting tool can help with emergency preparedness, construction projects and unique strategies that you may not be aware of. Highlighting real case studies where procurement teams “rocked” and used innovative ways to solve their problems and includes a panel of cooperative partners to answer your questions on emerging issues. Whether you work in a big city or a small country town, sing a different “tune” by taking your cooperative strategy to the next level.

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