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

  • 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.

  • Architectural Power for the Modern Campus Landscape

    For generations, an outdoor classroom only required a textbook and a patch of grass. Today, not only has the laptop replaced the printed pages, the rise of agile learning has turned campuses into study halls with students listening to lectures and researching topics from quads, gardens, and plazas. The challenge for architects and facility managers is to provide connectivity without cluttering the landscape with visual eyesores or creating safety hazards with extension cords.

  • USC Launches Major AI Initiative After $200M Gift

    The University of Southern California in Los Angeles, Calif., recently announced that it has launched a “transformational” new AI initiative thanks to a $200M gift, according to a news release. The project will leverage AI toward breakthroughs and innovations in subjects like the health sciences, business, security, and the arts.

  • UCF Modernizes College of Hospitality Management

    The University of Central Florida in Orlando, Fla., recently completed a major renovation effort for the Rosen College of Hospitality Management, according to a news release. The project modernized 77,600 square feet worth of academic classrooms, teaching labs, and collaborative spaces to support both students and faculty.