Procurement Modernization – you need it, now make it happen.
The need for procurement reform is on the rise as out-dated, paper-heavy procurement processes continue to leave money on the table. Old school systems are being replaced with integrated, efficient and automated functionality. While procurement modernization drives significant bottom line savings, some public entities struggle to initiate reform. The biggest obstacle to modernization is often acquiring approval from political leadership.
Periscope Holdings has found that politics and procurement can work hand-in-hand to achieve success.
The following are proven steps to gain political approval:
- Establish a project leader who maintains ethical principles and demonstrates enthusiasm and persistence to spearhead project approval
- Research policy initiatives and goals that politicians are working towards. Communicate how procurement modernization directly fits into their vision and how it will help efficiently achieve their goals. Policy initiatives could include: e-verify; small, minority and woman owned business; veteran preferences; set-aside programs and local preference laws
- Create a strong business case with solid transformation benefits that include transparency, purchasing visibility and unity across all agencies, decrease cycle times, re-direct staff time, reduce off contract spend, track results needed to make strategic purchasing decisions, etc.
- Build a funding model that is practical with depleted budgets
- Illustrate tangible return on investment
- Gain support of the information technology and accounting departments
- Reference the success other states, counties, and cities have experienced (aka – the State of Arizona)
- Communicate with appointed and elected officials often to establish and maintain support
Don’t let politics stand in the way of bettering your procurement processes. Establish a plan where politics and procurement complement one another to achieve success. If presented properly, it will be difficult for executives and leadership to deny the value of procurement modernization. The need is there, now make it happen.
As we endure tight economic times, public sector leaders across the board face tough budget decisions. Government agencies are becoming more creative as they build solutions that help avoid cutting jobs, evade raising taxes, sustain citizen services and save money. One solution gaining popularity is reverse auction solicitation.
Reverse auctions are a form of strategic sourcing in which the roles of buyers and sellers are reversed; therefore, prices decrease as auctions progress. With Periscope’s eProcurement solution BuySpeed reverse auctions are conducted online in real-time enabling suppliers to track and bid down against competitors. This process ensures the best possible price and lowest cost to government agencies. Reverse auctions are a growing procurement trend because lower costs on goods and commodities free up funds to be used elsewhere, helping burdened budgets.
Many of our clients including Knox County, Tennessee and multiple Arizona State Departments recently conducted reverse auctions, and in each case savings resulted from using this technique. For more details on their success see “BuySpeed eProcurement Solution – Reverse Auctions Prove Measurable Savings”.
Whether purchasing vehicles or chainsaws reverse auctions can help create savings for your entity. To learn more about how to make reverse auctions work for your agency contact Periscope Holding Inc. at info@periscopeholdings.com or (877) 472-9062.
Each year, the Center for Digital Government and Government Technology surveys cities to measure the use of information technology. The 2010 results have been published, and it is no surprise Periscope customers have been awarded. Alexandria, VA; Fort Worth, TX; and Tucson, AZ, all BuySpeed clients, achieved top ten rankings. The survey recognized municipalities that successfully incorporated information technology into operations in order to better serve constituents and business.
According to Government Technology’s article, “2010 Digital Cities Survey Winners Announced,” this year’s survey focused more on measurable achievements. Many of the jurisdictions that scored well could quantify their improvements, and some took advantage of data analytics for those calculations. “I think we’ll see more of that going forward, because the economy is going to remain tight,” said Todd Sander, the director of the Digital Communities program.
BuySpeed’s e-procurement helped secure these top rankings by providing tools to accomplish operational objectives despite financial challenges. BuySpeed allows cities to maximize dollars and strategically spend. Showing hard-dollar returns is no longer an option, it is an expectation.
Why is it that some governmental entities have data files that are in disarray and resolving issues is neither quick nor easy, while other entities have no such problems? The answer lies in the management of master data. John Walters explores this topic in the August 2010 issue of GoPro magazine. http://govpro.com/mag/nigp-master-data-management-201008-09/index.html
Periscope is proud to be a Silver Sponsor of the 2010 How to Market to State Governments Meeting of the National Association of State Procurement Officials (NASPO). The April 18-20 conference in San Francisco is a great opportunity to learn more about how Periscope is helping states like Alaska, Arizona, Louisiana and New Jersey save money through eProcurement optimization. Stop by booth 232 to visit with us!
