Six Steps to Procurement Optimization

There’s an obvious connection between supply chain efficiency and financial sustainability. Here are six areas critical to helping colleges and universities optimize P2P operations:

1. Information/Insight/Intelligence
It all begins with data. Make sure you have a solid handle on analytics/data across the entire enterprise. Quality data is the foundation for any successful procurement organization.

2. Strategy/Policy
A defined policy must be established to ensure your procurement organization is strategic in its sourcing efforts. This policy must be adopted cross-functionally across the entire organization.

3. People/Culture
Are you staffed adequately and do you have the right people in the right positions? It’s important to review staff expertise levels and conduct a skill-level assessment to identify gaps or overlaps in these resources.

4. Process/Organization
Look closely at the operational design and organizational structure of the procurement function. All things must be aligned so that people, process and technology are optimized toward efficiency.

5. Technology Adoption
This includes p-card utilization, P2P automation and e-commerce initiatives. An effective e-procurement system can significantly improve process efficiencies by eliminating paperwork, expediting contract fulfillment and controlling compliance.

6. Monitoring and Controls
Institutions must identify ways to monitor and measure these efforts in order to determine ROI. This ROI should be benchmarked against business objectives to drive cost containment, revenue enhancement and performance metrics management.

This article originally appeared in the issue of .

About the Author

Tom Fitzgerald is CEO of E&I Cooperative Services, the nation's premier purchasing cooperative serving the needs of education. He can be reached at [email protected].

Featured

  • Zurn Releases New Ductile Iron Frame Trench Drain System

    Zurn Elkay Water Solutions recently released the newest addition to its Train Drench portfolio, the Ductile Iron Frame Trench Drain System, according to a news release. The product is designed for heavy-duty applications like airports, military, universities, and more.

  • Pfluger Architects Announces Promotions of Seven Staff Members

    Texas-based architecture firm Pfluger Architects recently announced that it has promoted seven staff members to senior-level positions. One of the promotions is that of Dallas-based Senior Project Architect Chad Martin to Principal, according to a news release.

  • Kraus-Anderson Continues Work in Minnesota School District

    Maple River Schools in Mapleton, Minn., recently began construction on another project included in a district long-range facilities plan. Construction management firm Kraus-Anderson recently began work on two new classrooms and an outdoor track and field facility, according to a news release.

  • Design Firm Populous Acquires Fentress Architects

    Design firm Populous, which specializes in sports and entertainment venues, recently announced its acquisition of Fentress Architects, based in Denver, Colo., according to a news release. Fentress’ primary focus is aviation projects and public buildings like museums, convention centers, and government facilities

Digital Edition