Market Volatility Improve Procurement Efficacy

byLeveraging Industry Expertise

Presented by the NIGP Business CouncilAugust 2019

NIGP’s Business Council is comprised of two representatives from each company participating in the Institute’s Enterprise Sponsor Program. __________________________

Enterprise Sponsors are leaders in their respective industries and have demonstrated a shared commitment to NIGP’s values: Accountability, Ethics, Impartiality, Professionalism, Service, and Transparency.

NIGP Business Council: Who We Are

3

The NIGP Business

Council Mission

Serve the NIGP membership and procurement profession through the sharing of resources and expertise in support of NIGP’s educational, research and advocacy mission.

Market Volatility

Topics of Conversation

Market Volatility• Economic• Employment

Market Volatility

Discover and share examples of how today’s market is impacting our economy and workforce

Share collective best practices for navigating the market shifts

Economic

Economic

Product Sourcing • Grey Market & Counterfeit

Products • Manufactured Goods & Raw

Materials • Pricing/Tariffs

Grey Market Definition

“Trade of a commodity through distribution channels that are legal but unintended by the original manufacturer or trade mark proprietor”

Grey Market & Counterfeit Goods

Checklist

Buyer Beware

3rd Party Websites

“Too good to be true” pricing

Counterfeit products Suspicious messaging

Best Practices

Manufacturer or Authorized Reseller Direct

When in doubt let the manufacturer

Ensure package & branding align to OEM

Contract language

Manufactured Goods & Raw Materials

As a practitioner, you may not purchase raw materials

Market shifts may influence the final price you pay

Manufactured Goods & Raw Materials

Oil ProductionFuel Plastics

Wood PulpCut Sheet PapersLumber

Copper/SteelConstructionElectronics

Tariffs impact the cost price of select imported materials & goods.

Creates challenges in contracting, contract management & budgeting

Pricing &

Tariffs

Economic Strategies

Supplier allies

Contracts & products

Alternatives

Demand management

Risk mitigation

Strategic action plan

Resource: Global Trade Magazine

EmploymentWorkplace Evolution

Workplace Evolution

Evolution or Revolution?

Workplace Evolution

Planning for changeStaffing practices

Succession planningLeveraging the supplier community

Best (practices) of both worlds

Workplace Evolution

Succession PlanningPractitioner needs Resources

Procurement code & regulations Internal training (NIGP)

Category intelligence Suppliers & Procurement SME’s

Knowledge transfer/training Leadership & peer groups

Contracting solutions Suppliers & Cooperative Orgs.

Procurement systems (ERP) Tech – eProcurement

Recruitment NIGP / Peer groups

Workplace Evolution

• Leveraging the supplier community• Category

• Supplier meetings• RFI• Reverse trade shows

• Contracting solutions• Cooperative• RFP/Bid• Practitioner meet-ups

Workplace Evolution

I can’t change the direction of the wind, but I can adjust my sails to always reach my

destination.

Jimmy Dean

Appendix Resources

NIGP Business Council White Papers2013 - 2017

23