Can we get labor costs down this much further? Procurement costs, in capital markets, it's bid-ask spreads.And in international trade it's, how low are the tariffs?
I'm just having fun. reverse procurement . Nothing in it is illegal in any countries that you mentioned.
They are illuminated by the spotlights. Their procurement officer is generally the person who purchases it.
Even recognition and photo descriptions and things like that is great. Government procurement -- I think government does the best job that it can, but it's not like there are a ton of options for most solutions sets.
today over 60% of US government programs are carried out not by US government employees but by outside contractors US Government procurement running at $600 billion makes the US government the largest buyer of goods and services in the economy and the way we buy those goods and services is is is using what I call a rubber screwdriver it doesn't work
I'm old so I really like this new postage stamp um so there are four ways to solve the problem funding organization procurement and people in the book I end with recommendations for the future increase the amount of money we spent one of the points that I I make is that um you know the book is called investing entrepreneurship for for for
It can base government contracts which are very important in every country not on who's the best company or not on some kind of blind procurement process but on who's your friend you know or or who's donated to your political party or who's in the case of the United States who's invested in your company. So one of the
I didn't even know this until I started reading up on it. The head of procurement was very clear that NASA wouldn't even know how to write the terms of reference with all the different companies that it partnered with, whether it was Honeywell, Motorola, General Electric.
Right. And it still didn't make their top 35 or 40. Lowest cost of procurement , all else being equal, easiest, not best.
Australia to my people. I am now inputted my feet into the river beds and reconnected to Mother Earth and connected to Onda people through procurement to create better opportunities for minority companies. Eso I'm heavily involved in that in my my post career life, spotting
And g0V, which Tina just briefly mentioned, played a really large part in what we call reverse procurement . In traditional procurement , the government determines what to do, what to develop, and the private sector implements it. Now, in reverse procurement , a Google developer group in Tainan, that's a southern city in Taiwan, determined what to do as a society.
European Union just passed a similar law. China has the same procurement law in the makings. So out of 146 countries in the world who signed the UN Convention on the Rights of People with Disabilities, which was established in 2006,
How do you source that stuff? Is there a procurement office? We couldn't bring the water as one of our main features in this show.
that I interviewed for the book and I interviewed people at 50 or 60 different companies around the world professional salespeople and professional buyers by the way professional procurement people because I figure who better to tell you what sales stories work and which ones don't than the buyers right in fact I'm convinced now that I learned more from the buyers than I did the sellers tell me a little bit about how you did all
is Open Standards another thing is knowledge sharing of various sorts in the book I talk about how historically uh government procurement was often played a key role in this and so you people talk about the the role of government in for instance fostering the development of semiconductors of the computer of the internet and an
In the recent years, every company in the industry see the strong procurement language inserted into a procurement policy. Our enterprise customers want to know that when they purchase our products, they want to be reassured that when they purchase our product,
And we found out about this through a team who was working with the city and county of San Francisco on this problem of Churn in food stamps. the authority on procurement is the Office of Federal Procurement Policy.
It happened in the 1960s. They're called procurement laws.
Someone in procurement was, yes, 10,000 swabs, 50,000 needles, 2 palettes of Guinness.
So the first one-- procurement and certificate of conformance.
internet-based Innovation procurement defense entitlement programs T collection election law
a priority on regional procurement so that is what we're pushing for. I can tell you I don't believe we'll get it. There's not a lot of people only asking for 35 cents but
But what if I'm in a procurement department?
militaries are configured in a way where procurement is very, very difficult.
And at a time when procurement spans multiple years, and you have a technology like AI which is maturing so quickly, and competitors
When I went on my first procurement , I was really nervous, because I did feel like we were like vultures going to take pieces
Especially when it comes to business procurement or institutional procurement -- where they have a minimum bid requirement to where they have to get multiple vendors
And we found out about this through a team who was working with the city and county of San Francisco on this problem of Churn in food stamps. Because the Office of Federal Procurement Policy, that manages Federal Acquisition Regulation,
And we found out about this through a team who was working with the city and county of San Francisco on this problem of Churn in food stamps. work in the field of procurement , why this is legal, how to do it, and make sure they're very clear that at the end of the day,
But we work super hard at procurement .
My early read was that procurement remains a significant problem in government.
We didn't have time for a procurement .
It happened in the 1960s. And we were discussing the problems of procurement and why it's so hard to get good products at a good price
It happened in the 1960s. He gives speeches to hundreds of procurement officials, saying, please use your judgment.
be used flexibly for local procurement of food, which is a huge change in-- its a better, more efficient use of our tax dollars, but it's also a huge investment in
We're going through multi-year procurements for half a million dollar websites where your niece and nephews who are 12 and 13 over the weekends are doing them for free.
But what NASA did so brilliantly was, again, being very, very ambitious and inspirational in the outcome. And then it redesigned the tools on the ground like procurement , which I've already mentioned, to really foster as much innovation as possible across the whole economy.
Well, what efficient procurement does is that it enables those company's resources to achieve most bang for the buck, and therefore, allows these resources
And Dave had also connected me with the head of procurement to work with me on it.
In traditional procurement , the government determines what to do, what to develop, and the private sector implements it. Now, in reverse procurement , a Google developer group in Tainan, that's a southern city in Taiwan, determined what to do as a society. And Google supports it with Google Maps API access, and it demands that National Health Insurance Agency, NHIA,
I'm just having fun. And so this is what I call reverse procurement .
now that you know what I'm looking for who do you think I should talk to and that of course turns out oh Bob in accounting or Jane in sales or you know Sally the procurement you got to talk to her you know so I end up getting more of my interviews that way um but yeah so the the the process the research of course I I typically read all the other
mechanisms for for for smaller entrepreneurial companies to at least get a tow hold in working in this space if there's any place that we're going to innovate procurement and Contracting what better place to innovate than in the category of innovation so that seems to me to be a good place to start and the last thing which is kind of self-serving is that people like you and
And one of the things that just kills me is procurement .
It happened in the 1960s. But they haven't fixed it for big procurement .
you want to pick price and quality for your procurements , so why do you have a big firm?
public-private partnership and the mutualistic symbiotic public-private partnership which NASA was going after has, I think, been weakened. And there is a term that Ernest Brackett used-- he was the head of procurement at NASA. He said, "if we don't invest in our own capabilities-- what I call dynamic capabilities of the public sector-- we're going to get captured by brochuremanship."
I happened to notice around that time a problem with the sample procurement process across all the labs.
But on the upside, the sample procurement effort I led saved the company $1.3 million in the first six months of operation,
And yet the Pentagon, when it does a procurement process, it usually comes back really late, hugely over budget, and not really what the soldiers on the ground need.