Skip to main content
Add as a preferred source on Google

Six Steps to Procurement Optimization

  • By Tom Fitzgerald
  • 01/01/16

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

  • Kimball International Releases Curated Design Support Program

    Commercial furnishings company Kimball International recently announced the launch of a new end-to-end design support program, DesignSuite. According to a news release, its goal is to guide architecture & design professionals and dealer partners through the process from vision to specification.

  • Ohio State University Opens 26-Story Hospital

    The Ohio State University Wexner Medical Center recently opened in Columbus, Ohio, standing 26 stories and covering 1.9 million square feet, according to a university news release. The project marks ten years of effort and is the university’s largest single-facility construction project ever.

  • College of the Desert Hits Construction Milestone on New Campus

    College of the Desert recently announced that the construction of its new Palm Springs Campus in Palm Springs, Calif., recently reached a major construction milestone, according to a news release. The college is partnering with general contractor C.W. Driver Companies, which recently “topped out” the facility by placing the final beam in its structure.

  • University of Arizona Approves New Residence Hall

    The Arizona Board of Regents recently approved plans for a new residence hall at the University of Arizona in Tucson, Ariz., according to a news release. The new facility is scheduled to open in fall 2028 and have the capacity for more than 1,200 students, enforcing a new university expectation that all first-year students live on campus.