IT Purchasing The Strategic Alliance Olga Bookas Creating

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IT & Purchasing The Strategic Alliance Olga Bookas

IT & Purchasing The Strategic Alliance Olga Bookas

Creating Smart Procurement Impact Procurement is a key strategic lever to improve profitability, generate

Creating Smart Procurement Impact Procurement is a key strategic lever to improve profitability, generate revenue, drive savings, and optimize working capital, while also accessing innovation, and mitigating risk.

Why is Negotiation Important? § To create value for the department is critical §

Why is Negotiation Important? § To create value for the department is critical § To successfully compete for resources and opportunities § To ensure quality products and services § To build and strengthen partnerships with vendors

What Makes a Successful Negotiation? § Allow for plenty of lead-time ~ Do not

What Makes a Successful Negotiation? § Allow for plenty of lead-time ~ Do not be rushed § Keep bids/pricing confidential at all times § Never appear to be desperate or in a hurry § Understand the other party's need/interest

Key Aspects to Consider § Cost § Delivery time § Payment conditions § After-care

Key Aspects to Consider § Cost § Delivery time § Payment conditions § After-care and maintenance terms § Quality standards § Projected cost of each product/service § Use your institution’s T&Cs

Know the Common Terms § Indemnification & Limitation of Liability § Intellectual Property Rights

Know the Common Terms § Indemnification & Limitation of Liability § Intellectual Property Rights § Warranty § Insurance § Venue and Arbitration

Avoid Assumptions § About the services/products § Do not accept everything the supplier states

Avoid Assumptions § About the services/products § Do not accept everything the supplier states ØAlways do your own research on products/services § Research supplier

Selecting the Right Vendor § Get at least 3 bids § Ask for and

Selecting the Right Vendor § Get at least 3 bids § Ask for and only accept “best and final offers” § Be persistent with negotiations even if the supplier says no

Give & Take Aim high with demands to enable concessions Concede in small increments;

Give & Take Aim high with demands to enable concessions Concede in small increments; get something back for all you give § Reward efficient and prompt service § Price protection not to exceed X % § If price is non-negotiable, ask for additional value added services

Use the “KRUNCH” Tactics § “You’ve got to do better than that!” § Encourages

Use the “KRUNCH” Tactics § “You’ve got to do better than that!” § Encourages the seller for better pricing

Request for Proposal § Be specific! Provide specific details about the service/product ØThe more

Request for Proposal § Be specific! Provide specific details about the service/product ØThe more specific you are, the more time you can save § Avoids misunderstandings and potential conflicts § Ask for reference Ø Especially for long-term use services/products such as software

Promote the Organization § Increase Your Visibility on Campus § Participate in your Sustainability

Promote the Organization § Increase Your Visibility on Campus § Participate in your Sustainability Committee, Wellness Program § Host a local meeting of purchasing professionals at your school § Collaborate with other schools § Sponsor a ‘Supplier’ show for your faculty and staff § Highlight Successes

The Value Of Collaboration & Communication § IT & Procurement collaborate and communicate to

The Value Of Collaboration & Communication § IT & Procurement collaborate and communicate to discuss what exactly their needs and wants are § Engage Procurement early in the process § Build trust and teamwork: One team, One voice § Collaboration will help align the vision

Be Prepared: Know How & What § What = Goals/objectives Ø Must have Ø

Be Prepared: Know How & What § What = Goals/objectives Ø Must have Ø Would like § How = How will we achieve our goals?

Moving Forward… § Be a great Procurement Leader: innovate, demonstrate, motivate § Become a

Moving Forward… § Be a great Procurement Leader: innovate, demonstrate, motivate § Become a trusted advisor to ITS § Listen, Anticipate, Respond § Be consistent, enthusiastic and confident § Dual roll is Procurement’s agility and speed § Assign a dedicated an IT-Purchasing liaison

Summary § Understand one’s role at the institution § Prepare the Team § Challenge

Summary § Understand one’s role at the institution § Prepare the Team § Challenge the myths § Openly offer your services § Start small but deliver large

Thank You!

Thank You!

Olga Bookas Director of Procurement Wesleyan University obookas@wesleyan. edu (860) 685 -2122 Contact Information

Olga Bookas Director of Procurement Wesleyan University [email protected] edu (860) 685 -2122 Contact Information