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91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California.

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Presentation on theme: "91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California."— Presentation transcript:

1 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California

2 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 1.What is Opportunity a Look at Definitions and Concepts 2.Organizational Practices that May Inhibit Taking Advantage of Opportunities 3.Why Purchasing Departments are Well Suited to Take Advantage of Opportunities 4.Opportunities in Contracting 5.Making the Best of a Bad Situation 6.Do it Yourself and Save 7.Build it and They Will Come 8.Opportunities in Philanthropy 9.You can lead a horse to water but you cant make it drink 10. Disclaimer And of course there will be sagely advise from the ages liberally applied throughout the presentation.

3 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California A favorable or advantageous combination of circumstances (American Heritage Dictionary) A favorable juncture of circumstances (Merriam Webster Dictionary) Quick witted; resourcefulness; occasion (From the Chinese Mandarin word for opportunity jīhuì )

4 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Luck is what happens when preparation meets opportunity. Lucius Annaeus Seneca

5 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California It is wise to turn circumstances to good account. Aesop From the Bat and the Weasel

6 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Whos There! Opportunity! Cant be! What??!! Opportunity only knocks once! Knock!

7 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Opportunity is missed by most people because it is dressed in overalls and looks like work. Thomas Edison

8 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Specialization – Staff highly focused in one area Insulation – Units physically or organizationally remote from business activity Culture – Personal conduct shaped by corporate morals Job Classifications – Limit what personnel can do

9 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Chinese proverb

10 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Interacts with almost all areas of business activity. The 10,000 ft. view Has perceived or real authority to act. Ability to close the deal Has the ability to perform objective analysis to assess the value proposition of the opportunity. Looks the gift horse in the mouth Has specialized knowledge to complete a deal. Insures that taking advantage of the opportunity is appropriate and legal and can create the appropriate contract

11 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California

12 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Why Coitenly! Nuk Nuk Nuk! Curly Howard If Opportunity is in deed related to circumstances, then it stands to reason that circumstances can be altered in such a manner as to precipitate favorable opportunities. If opportunity doesn't knock, build a door. Milton Berle

13 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Always carry a flagon of whiskey in case of snake bite … also carry a small snake. WC Fields

14 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Immediately identify a major stakeholder and enlist their support. This is the person(s) who will have the most to gain Translate the opportunity into terms approvers can understand. Not everyone may understand or care about the issue(s) Make sure the value of the proposition is clearly identified. Value may not always equate to dollars, but a $ helps

15 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California A wise man will make more opportunities than he finds. Francis Bacon

16 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California From The Royal Society for the Prevention of Accidents

17 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California The Supply Contract bid Dilemma Lab Casework Change Order Fiasco The Tired Sales Person

18 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Issues: Annual bids based on previous years buy Administration time was excessive Products outside of bid offers range were not discounted Results: Multiyear contracts Pricing based on list less discount structure All products discounted at some level Invoiced monthly Savings – Approximately $500, 000 Annually

19 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Issues: Change orders for casework in construction projects were taking months to process Approvals had to be obtained for the architect, project manger, general contractor, etc. The University Architect requested help in making the process simpler Results: Multiyear contracts direct with the casework manufacturer Pricing based on discount structure so all changes could be budgeted Project cost dropped dramatically, changes orders processed in weeks Savings – Approached $1,000, 000 Annually

20 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Slide image provided by Fisher-Hamilton

21 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Issues: ISU requires demonstration of major research equipment Demo inventories were tight required extra work for sales rep to bid Equipment hauled around in cars took time to set up Equipment did not always work correctly for demonstrations after being moved Results: Multi year contracts required demonstration equipment remain on site All products offered on discount structures ISU Modified the lab space and now maintains the equipment Free casework provided through another contract Demo equipment can be used for teaching as well as research Savings – Approximately $700,000 lease cost, $100,000 Annually in product savings

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23 Primary Contract Holder Lab - View 1

24 Primary Contract Holder Lab - View 2

25 Secondary Contract Holder Lab - View 1

26 Secondary Contract Holder Lab - View 2

27 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California

28 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Issues: A half million dollar electron microscope is left open with circuit boards exposed Repairman stated that the company no longer supports the unit (purchased only a year earlier) then left in frustration Major research grant is depended on this instrument Results: Dispute resolution negotiated over dinner with Japanese Vice President Next day company offered a model upgrade as compensation Warranty was also extended for a year Happy research team recommended agent for professional service award Savings – Approximately $150, 000 over original unit

29 Electron microscope provided to ISU as settlement offer

30 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Nuclear Reactor Decommissioning

31 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Issues: ISU was preparing to decommission its NRC teaching reactor in 1999. Typical scenario would be to hire consultants to define project, prepare and evaluate RFP. Consultants estimated $1 million in fees and $1 million in decommissioning cost. The University did not have $2 million on hand, the money would come from other programs. Results: I convinced the University to utilize our Engineering staff in lieu of hiring consultants. Awarded contractor stated it was one of the best RFPs they had seen, they bid $875,000. Project was finished on time and on budget, an industry first according to our contractor. Savings – Approximately $1,125,000 over original estimates This scenario was repeated successfully on two other nuclear clean up projects

32 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California ISUs reactor casing was so well constructed that an automated jackhammer could not break it up. Hydraulic fracturing was utilized to break apart the casing. This technique was first documented by Roman historian Livy as being used by Hannibals engineers in 218 BC when crossing the Alps. Before with fracture holes drilled After fracturing technique was applied

33 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California A Request for Assistance A Better Way to Hatch Butterflies

34 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Issues: 1995 - The Iowa Department of Economic Development and the Iowa Business Council created the Iowa Biotechnology Association. The problem then became how to fund it. Iowa State was asked to develop a sustainable funding model for the new association. Results: Successful supply contracts were managed through the IBA as a consortia procurement effort. A one percent management fee was charged on the consortium contracts. Funding, primarily from three major contracts, has kept the association viable with approximately 60 organization participating. Savings – ISU receives several hundred thousand dollars in incremental savings using IBA consortium contracts.

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36 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Issues: ISU was building a new garden center which would incorporate a butterfly garden as its main attraction. Typical installations used display cases to hatch butterfly pupae but hatching success is limited for tropical species, could be as low as 50%. How to increase hatch rates and still allow the public to witness the hatching process. Results: After initial consultation the project architect, facilities manager and a local growth chamber company engineer were called by Purchasing to meet at the installation site. Designs based on the purchasing agents experience with growth chambers were laid out an a legal pad and then tweaked by the team. The growth chamber company offered to build three prototype units incorporating heating and cooling, humidity control and glass front door and rear panel. The cost would the same as for a standard growth chamber. Hatch rates increased to as high as 95%. Savings – Thousands of pupae were saved annually at a cost of $2-$4 each. On the PR side - the growth chamber company, an Iowa firm, had developed a new product they could market.

37 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California

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39 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Paraphrase from Matthew 7:7

40 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California The most efficient purchasing agent will acquire goods at zero cost. Some mission critical gifts may require a purchasing component. Purchasing may be aware of users interested in potential donations others may not be aware of. Fund raising efforts at times may conflict with procurement initiatives, so good communications with fund raising organizations is essential. At ISU donations initiated through Purchasing allow credit to be taken by the fund raising entity as well, creating a win-win scenario.

41 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California English Proverb

42 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Publilius Syrus

43 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California The Rejected Accelerator The Grant Equipment Conflict New Aircraft Electronics

44 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Issues: A university had rejected a new linear accelerator for failing to perform. The unit was identical to a unit owned by Iowa State. ISU had not rejected their accelerator and could use components from this unit. Purchasing was asked to acquire the rejected accelerator at minimum cost. The manufacturer knew ISU and was not willing to sell cheap. Results: I negotiated the unit as a gift from the accelerator manufacturers parent company. The requirement was ISU had to remove the unit within two weeks. Removal and transportation cost around $20,000. The gifted unit provided ISU with spare parts for 5 years. Savings – The donation was independently appraised at 1.4 million dollars

45 ISU Research Accelerator

46 ISU Research Accelerator Power Supply and Control Room

47 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Issues: The University received a grant in which the equipment must be used for both undergraduate teaching and advanced research. Our experience had shown students would not maintain the equipment to a level it could be used for the advanced research projects. Both purposes had to be served or the grant money returned. Results: Our dilemma was stated in a proposal request for vendors to solve. The successful bidder offered two suites of equipment one discounted system purchased on grant funds the other donated to the university. The donated system would be used or a one day training course each year for clients of the donor if requested. Savings – The donation and discounts amounted to over $250,000

48 Materials Testing Equipment Donated for Undergraduate Teaching

49 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Issues: The University was in the process of bidding equipment upgrades and paint for its executive aircraft. A local electronics manufacturer saw the RFP and asked if ISU would be willing to test a new product. The new electronics would provided safety equivalent to a commercial airliner. The Universitys pilots were very interested in testing a new system. Results: Because ISU was still going to purchase some items the bid was reissued based on the new electronics requirements. The electronics manufacture bid dealer cost and offered a new collision avoidance system and upgraded radar, winning the bid easily. ISU had successfully tested the first collision avoidance system designed for small aircraft. Savings – Discounts and donations approached $300,000

50 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California ISUs upgraded and newly painted executive aircraft

51 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Take time to listen to the needs of vendors and staff even if the comments are not related to what you are working on. They will give you the circumstances you need Promote your client by describing research activities in your bid documents. Vendors look for particular research to support Never say no on the first pass. Think about it first, you may be the key ingredient to make something workout Dont be afraid to ask, nicely, all they can say is no. My success rate is about one in twenty five, but the one hit usually has real value No donation is too small to be worth the effort. If the donor feels you appreciate the gift it may lead to bigger opportunities

52 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Without promotion something terrible happens... Nothing! P T Barnum

53 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Old English Saying

54 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California The Unwanted Casework

55 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Issues: The University spends significant money remodeling labs, often as soon as five years after a building is built. The designers would like way to reduce long term costs but prefer oak casework which is not easily removed. Modular casework was available but only in steel construction. Results: On a bet, I challenged our casework contractor to make me a modular steel cabinet with wood doors and drawers. About six months later the salesman delivered the cabinet to my office. The new design would cost 25% more that traditional wood but would allow for easier remodeling. The cabinet design was rejected for cost and the fact it still has a steel structure. Moral: Though not accepted by ISU the design became one of the companys top selling products. Any positive effort helps someone.

56 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Wood on Steel Casework Originally Designed at ISUs Request

57 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Everything has beauty, but not everyone sees it. Confucius

58 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California When one door closes, another opens; but we often look so long and so regretfully upon the closed door that we do not see the one which has opened for us. Alexander Graham Bell

59 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California This presentation is not intended to be a primer on how to seize opportunity but merely relays information about opportunity for your edification. Attempting to create or seize opportunity under the wrong circumstances can be hazardous to your health or professional career. If you elect to try some of the tactics conveyed in this presentation your results may vary. Failing to take advantage of known opportunities may result in the loss of protection described in slide 9. The author does not condone the use of whiskey to create opportunity. All images use in this presentation have been taken from sites like the Library of Congress or Wikipedia and are known to be in the public domain. Additional images have been taken by the author and are free to replicate. Gifs are from free use sites. If for any reason any image is not in the public domain the author declares fair use under U.S. Copyright law for illustrative purposes related to non-commercial use.

60 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California The pessimist sees difficulty in every opportunity. The optimist sees the opportunity in every difficulty. Winston Churchill

61 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Thank you for allowing me the opportunity to share this presentation with you today!


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