ITEM NO:     6a_supp 
MEETING DATE: February 9, 2016 
Procurement Excellence 

Nora Huey 
Director, CPO

Why Procurement Excellence? 
Procurement is a key driver of financial stewardship and
achieving Century Agenda Goals: 
Creating jobs 
Increasing small business participation 
Improving environmental purchasing practices 
Current Situation 
Annual spend >$280M spend (2015 est.) 
Large Capital Program 
Complicating Factors 
Proprietary System and Incumbency Limits Competition 
Lack of Spend Data and Analytics 
Procurement excellence will better support the organization and region. 
2

Develop new approach 
& change culture 
Key Questions 
Best approach 
Value potential 
Which capabilities have sustainable value 

Outside assessment will identify opportunities for improving
performance and capability resulting in a comprehensive
improvement roadmap. 

Improved procurement effectiveness & efficiency is good for business. 
3

Procurement Excellence = A New Way of Working 
Streamlined Processes 
Faster end-to-end deliveries 
Optimized Structure 
Cross functional team lead by CPO to drive strategy and spend 
A New Way of Working Spend Analytics 
Improved negotiations 
Highly Trained Personnel 
Building in house competency in key areas 
Category Management 
Granular approach to where we spend the $s and opportunities for
savings 
Financial Stewardship 
Cost Savings and Avoidance             Century Agenda Goals 
$20M - $30M annual savings              Small Business Goals (incl. WMBE) 
2% YOY reduction on ongoing spend          Environmental Goals 
This represents the future impact of procurement by the Port. 
4

Port needs an approach that builds capability AND value delivery 
Future State 
Preferred
Position 
Integrated Approach 
Makes required changes
and improvement 
actions tangible 
Value                                      Maximizes probability of
transformational success 



Capability 
A combined value-capability approach maximizes benefits to the Port. 
5

Phased Approach 
1. Diagnostic Assessment 
2. Implementation Phase 
Seek Commission authorization to move into
implementation phase. 


Decision to invest in implementation phase ensures alignment of Port Goals. 
6

Results 
Improve our partnerships 
Increase contracting opportunities for small
businesses 
Improve environmental purchasing 
Improved contractor performance 
Speed up procurement time 
Anticipate 5 times return 
Procurement Excellence will lead to improved delivery (speed) and results. 
7

Thank you! 
Questions? 
8