Strategic Procurement

The benefits of a strategic procurement operation can be significant and far-reaching. Here’s are 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 eprocurement 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-topay 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 School 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

  • Midland ISD Starts Construction on Two New High Schools

    The Midland Independent School District recently announced that it will break ground on two new high schools in Midland, Texas, according to a news release. The district is partnering with Pfluger Architects, Lee Lewis Construction, and Satterfield & Pontikes to create a total of over 1.5 million square feet for 8,400 students in grades 9–12.

  • K12 Tutoring Earns Every Student Succeeds Act Level II Validation

    Personalized online tutoring service K12 Tutoring recently announced that it has received Level II validation underneath the Every Student Succeeds Act (ESSA), according to a news release. The independently validated study provides evidence of K12 Tutoring’s role in creating positive student outcomes through effective academic intervention and research-based solutions.

  • University of Kentucky Sees Positive Results from Energy Efficiency Program

    The University of Kentucky in Lexington, Ky., recently announced the results of its Energy Program in Facilities Management, put into place eight years ago, according to a news release. Between the fiscal years of 2017 and 2025, the university’s campus grew by 13.6% while the energy use per square foot dropped by 19.2%.

  • 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.

Digital Edition