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Strategic Planning For Purchasing

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2 Rooms with 50 File Cabinets of Files. Develop Budget with Five Lines. Evaluate Process. PP 74 Base Line to Work From. 7. PRE-TEST. 8. EXERCISE. Relationship. 9 ... – PowerPoint PPT presentation

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Title: Strategic Planning For Purchasing


1
Strategic Planning For Purchasing
  • Dick Florey, CPPO
  • Director of Purchasing
  • St. Louis County

2
REGISTRATION
3
CELL PHONES
  • Off or Low Tone

4
LEAP DIFFERENCES
Academia vs. Practitioner
5
OBJECTIVES
  • Informative and Practical
  • Meet Your Expectations
  • Keep Your Attention
  • 1 to 2 Resources To Use
  • Develop Three Year Purchasing Plan
  • Have Fun!

6
3 YEAR PLAN
  • Totally Manual
  • 10 Staff with Little Training
  • 2 Rooms with 50 File Cabinets of Files
  • Develop Budget with Five Lines
  • Evaluate Process
  • PP 74 Base Line to Work From

7
PRE-TEST
8
EXERCISE
  • Relationship

9
What is Planning?
Strategic vs. Tactical
10
Why Dont We Plan?
  • Hard
  • Culture

11
What is Purchasings role?
15 18
12
PLANNING FRAMEWORK
  • Mission
  • Vision
  • Goals
  • Objectives
  • Strategies
  • Performance Measurement
  • Evaluation

13
PLANNING FRAMEWORK
14 18
Internal/External Environment
Mission and Values
Vision
Goals and Objectives
14
PLANNING FRAMEWORK
14 18
Action Plans
Performance Measures
Monitoring and Tracking
Evaluation and Feedback
15
EXERCISE
  • WBS

16
PROCUREMENT CYCLE
20
17
40
PUBLIC SECTOR LIMITATIONS
  • Lack of commitment to planning
  • Failure to develop and implement sound
    strategies
  • Lack of meaningful objectives or goals

18
41
PUBLIC SECTOR LIMITATIONS
  • Failure to see planning as both a rational and
    creative process
  • Excessive reliance on past experiences
  • Failure to identify the most critical factor for
    success

19
41
PUBLIC SECTOR LIMITATIONS
  • Lack of clear delegation
  • Lack of adequate control techniques and
    information on results and
  • Resistance to change.

20
PLANNING MODEL
42
  • Evaluation of the current environment and, if
    applicable, evaluation of current strategy
  • Identification and evaluation of the role of the
    organization within its internal and external
    environments

21
42
PLANNING MODEL
  • Development/determination of anticipated
    adjustments to identified goals, objectives,
    and/or strategies
  • Examination and evaluation of practical
    alternative courses of action

22
42
PLANNING MODEL
  • Implementation of changes
  • Development of performance measures
  • Monitoring progress and
  • Evaluation and feedback.

23
EXERCISE
  • Mission Statement

24
PLANNING ELEMENTS
43
  • Who are we as an organization?
  • Whom do we serve?
  • What basic purposes do we serve, and why do we
    exist?
  • What basic accomplishments are we established to
    accomplish?

25
43
PLANNING ELEMENTS
  • What is unique about our purpose/vision/mission?
  • Is the mission/vision/purpose in harmony with the
    jurisdictions enabling legislation?

26
SMART
  • Specific
  • Measurable
  • Assignable
  • Realistic
  • Time Related

27
EXERCISE
  • Robbery

28
AGENDA FOR PLANNING
51
  • What
  • How

29
Who Are Stakeholders?
54 57
  • Management Personnel their particular strengths
    and weaknesses
  • Political council, commission, state level
    support and threats across governments

30
SWOT
56
  • Strength
  • Weakness
  • Opportunity
  • Threats

31
EXERCISE
  • SWOT

32
54 57
Who Are Stakeholders?
  • Economic tax structure limitations, user fees,
    future changes
  • Citizens their needs, perceptions,
    expectations
  • Ethical mostly internal values and standards

33
54 57
Who Are Stakeholders?
  • Technological resources, opportunities and
    limitations
  • Private/Joint what have others done,
    opportunities, and limitations and
  • Demographic citizens served, businesses served,
    future growth potential.

34
EVALUATION FEEDBACK
66
1 Review Strategic Plan
2 Create a Study Team or Task Force to Develop
Evaluation Plan
3 Prepare Evaluation Plan
35
66
EVALUATION FEEDBACK
Clear Statement of Purpose
Evaluation Concepts
Constraints
36
66
EVALUATION FEEDBACK
Methods/Techniques
Resources Needed
Timeline
37
66
EVALUATION FEEDBACK
4 Gather Data
5 Analyze Data
6 Write the Report
7 Follow-Up
38
MORE DETAILS
  • Projecting Procurement Spend
  • Monitor Measure
  • Budgets
  • Public Sector Budget Cycle
  • Good Budget

39
MORE DETAILS
  • Procurement Planning
  • Model
  • Departmental Plan
  • Analyze Options
  • Positioning
  • Key Supplier Impact
  • Departmental Capacities

40
TYPES OF BUDGETS
110 117
  • Line Item
  • Performance
  • Program
  • Zero Based
  • Results Orientated

41
BUDGET NEEDS
118
  • Budget Approach
  • Preparing an Operating Budget
  • Service Needs
  • Staffing Needs
  • Operating Needs

42
ADMINISTER/AUDIT BUDGET
123
  • Financial and compliance audits are performed by
    an independent accounting firm with the main
    purpose of detecting of fraud. The Internal
    Audit group or Inspector General section can do
    these audits internally.

43
123
ADMINISTER/AUDIT BUDGET
  • Economy and efficiency audits are management or
    operational audits. These audits examine a
    governmental units managerial and administrative
    practices for economy and cost efficiency and
    strive to identify the cause of any cost
    inefficiencies.

44
123
ADMINISTER/AUDIT BUDGET
  • Program audits or evaluations monitor results to
    determine the extent to which a governmental unit
    has achieved program objectives. They also
    evaluate the cost effectiveness of the
    alternatives that were employed.

45
123
ADMINISTER/AUDIT BUDGET
  • Performance audits review all the operations of a
    governmental unit and encompass all three types
    of audits financial, economy, efficiency, and
    program results.

46
123
ADMINISTER/AUDIT BUDGET
  • Performance audits are an increasingly common
    means of ensuring that those entrusted with
    management of public services and programs are
    held accountable.

47
RISK MANAGEMENT
125
  • Identification of exposures
  • Evaluation of loss potential
  • Selection of a method of loss control

48
RISK MANAGEMENT
126
  • Implementation
  • Monitoring of results and
  • Modification of programs based on results.

49
LOSS CONTROL
127
  • Risk Retention
  • Risk Transfer

50
STRATEGIES
51
NEEDS
133
  • Coordinating with user agencies
  • Recognition of the need
  • Description of the need
  • Budget analysis

52
133
NEEDS
  • Creation of market studies for important
    materials and
  • Discussion with sales representative.

53
BUYING PLANS ANALYZING
139 141
  • VA
  • Forecasting
  • Spot
  • Term
  • Inventory Forecast

54
METHOD OF SOLICITATION
144 145
  • Method of Solicitation
  • Market Conditions

55
PLANNING STEPS
151
1 Receive Request
2 Discuss with User
3 Understand Use
4 Analyze Past Usage
5 Include Revisions
56
154
PLANNING STEPS
6 Evaluate Performance
7 Assess Market
8 Determine Method
9 Schedule Process
10 Select Offerors
57
SPECIFICATIONS
58
154
SOURCES
59
CONTENT
158
  • Identify minimum requirements
  • Allow for competition
  • Describe testing methods, if applicable
  • Result in an equitable award to the lowest
    responsible bidder

60
158
CONTENT
  • Be simple, concise, and avoid loopholes that
    would allow the bidder to offer a product below
    the stated quality level
  • Be common to at least two manufacturers and

61
158
CONTENT
  • Identify measurable physical, functional and
    quality characteristics that meet the
    requirements, including basic design, physical
    dimensions, weights, percentages and types of
    ingredients, and types of grades of materials.

62
TYPE OF SPECIFICAITON
159 162
  • Design
  • Performance
  • Combination
  • Brand

63
QUALIFIED PRODUCT LIST
164
  • QPL

64
STANDARDIZATION PROCESS
167
  • Issuing and maintaining all standard
    specifications for supplies, services, and
    construction needed by the organization
  • Revising all standard specifications

65
167
STANDARDIZATION PROCESS
  • Establishing guidelines for drafting these
    specifications
  • Establishing standards for materials and
    products and
  • Evaluating the products for the Qualified
    Products Lists.

66
STANDARDIZATION PROCESS
168
  • Purchasing of fewer items in larger quantities
    and at a lower cost is made easier.
  • Purchasing is simplified, and time needed to
    complete transactions is shorter.

67
168
STANDARDIZATION PROCESS
  • Processing and stocking of fewer items is
    possible.
  • Control of inventories is simplified and less
    costly.
  • Overall operating costs can be reduced more
    quickly while retaining a high efficiency level.

68
MORE
  • Prior Strategies
  • Competition
  • Seller Pricing
  • Vendor Selection

69
PRICING STRATEGIES
175
  • Price
  • Cost
  • Life Cycle Cost


70
POST TEST
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