Strategic Procurement

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

  • Fellowes Launches New 3D Modular, Product Configurators

    Contract interiors and architectural solutions provider Fellowes recently announced the launch of new 3D modular and product configurators for several of its product lines, according to a news release. The new products offer SIF file integration and pricing for the Volo, Markerboards, Sena, and Rising product lines in connection with 3D Cloud, which provides 3D product visualization and 3D digital asset management.

  • cutaway view of a modern school building, showing various rooms and zones

    Layering AI into HVAC Systems Shows Reduction in Carbon Emissions

    Heating and cooling systems are just one of the many new ways that AI can be integrated into schools. According to a new study from Schneider Electric's Sustainability Research Institute, AI-powered HVAC systems in schools can lead to significant carbon emissions savings.

  • Longwood University Selects Builder for $73M Performing Arts Center

    Longwood University in Farmville, Va., recently announced that it has selected Swedish construction company Skanska as the builder of its new performing arts center, according to online news. The project involves the demolition of the current building and constructing a new, 64,500-square-foot facility.

  • Three U.S. Universities Install Acre Security Access Control Platform

    Cloud-native physical and digital security solutions company Acre Security recently announced that it has deployed its access control platform at three major universities in the U.S., according to a news release. Acre partnered with Atrium Campus to provide coverage for more than 69,000 students at the University of Virginia (UVA), George Mason University, and Rockhurst University.

Digital Edition