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

  • Hawaii Elementary School Reopens Following $25M Campus Modernization

    Haʻaheo Elementary School in Hilo, Hawaii, has reopened to students following a three-year, $25-million campus modernization and expansion project that significantly increases the school's instructional space while preserving one of the island's oldest educational institutions, according to local news.

  • Texas A&M Opens First Building at Fort Worth Campus, Breaks Ground on Research Facility

    The Texas A&M University System marked a major milestone in the development of its Fort Worth campus by opening its first completed academic building and breaking ground on a second facility designed to expand research and industry collaboration.

  • 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.

  • Johns Hopkins Starts Construction on New Residence Hall, Dining Facility

    The Homewood Campus of Johns Hopkins University in Baltimore, Md., recently began construction on a new residence hall and dining facility, according to university news. The work involves demolishing the existing Alumni Memorial Residence Hall I, which was built in 1923, to make room for the new facility.