Skip to main content
Add as a preferred source on Google

Strategic Procurement

  • By Gary D. Link
  • 02/01/18

The benefits of a strategic procurement operation can be significant and far-reaching. Here are some tips to consider when attempting to become more strategic.

Align the goals of your strategic sourcing and procurement function with the institution goals. This is one of the most important things to consider.

Ensure you have a solid Spend Analytics program in place. Understanding, analyzing, and managing your institutional spend is a key component to success.

Develop a strategic sourcing plan. Use your spend data to develop a strategic sourcing plan that determines where you’re going to get the biggest ROI.

Establish the right competitive solicitation thresholds. If these thresholds, contract terms, and limits are too low, it restricts the ability of a procurement function to be truly strategic.

Make sure you have an effective e-procurement system or solution. This can significantly improve process efficiencies.

Leverage cooperative contracts and other group purchasing opportunities. Cooperative and/or group purchasing contracts provide significant time savings and financial incentives.

Continue to utilize emerging tools, such as reverse auctions. Reverse auctions bring transparency, savings, and speed to the bidding process, while ensuring that you receive the best value available.

Review and manage your payment services and processes. An e-payables solution is critical to the success of any procure-to-pay organization process.

Monitor your contract utilization and compliance. You may have great contracts in place, but if there is too much maverick spend and people are not using those contracts, or if your suppliers are not complying with those contracts, then you’re leaving money on the table.

This article originally appeared in the College Planning & Management February 2018 issue of Spaces4Learning.

About the Author

Gary D. Link, C.P.M., is senior vice president of E&I Consulting Group & Contracts. He can be reached at [email protected].

Featured

  • California District Debuts New High-School CTE Center

    The West Sonoma County Union High School District (WSCUHSD) in Sebastopol, Calif., recently held a ribbon-cutting ceremony for the new CTE Center at Analy High School, according to a news release. The district partnered with Quattrocchi Kwok Architects (QKA) for the facility’s design and GCCI for its construction, and funding came from local Measure A bond funds.

  • nursing students talk while studying in a hallway

    Elsevier Launches VR Simulation Solution for Nursing Students

    Elsevier has introduced Shadow Health Lab with Virtual Reality, a simulation platform that allows nursing students to interact with virtual patients and build clinical judgment skills in a safe, realistic environment.

  • Washington State University Debuts New Engineering Hall

    Washington State University recently celebrated a dedication ceremony for the new Schweitzer Engineering Hall on its Pullman campus in Pullman, Wash., according to university news. The facility measures 66,288 square feet, and its completion marks the first milestone in a larger university effort to modernize the engineering and design district.

  • Building Beyond Simulation: Creating Immersive Ecosystems for Healthcare Education

    Health sciences education is one of the fastest-growing facility types in colleges and universities. The demand for medical, nursing, and allied health professionals is driving the creation and renovation of medical simulation training facilities that provide students with real-world experience through advanced simulation-based learning.