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’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

  • University of Utah Launches Utah 360 App

    The University of Utah in Salt Lake City, Utah, recently announced that it has partnered with digital engagement hub Pathify to launch a new app for the university community, according to a news release.

  • Empowering People Through Smart, Sustainable Campuses

    Sustainability is facing increasing scrutiny, with some questioning its costs and priorities. Yet for universities, it remains an essential driver of resilience, operational efficiency and long-term competitiveness. At the same time, there is a growing recognition that sustainable transformation is not just about reducing energy consumption and emissions to comply with tightening regulations ‒ it’s about creating vibrant, comfortable environments where people can thrive, innovate and connect. For university leadership, this is a complex balancing act, with rising energy costs and limited budgets only adding to the challenge.

  • FAU Starts Construction on Holocaust and Jewish Studies Building

    Florida Atlantic University recently began construction on a new academic building for its campus in Boca Raton, Fla., according to university news. The Kurt and Marilyn Wallach Holocaust and Jewish Studies Building will stand two stories, measure in at 22,000 square feet, and play home to the university’s Holocaust education and Jewish studies programs.

  • Uvalde Schools Receive AI Security Technology through Grant Program

    AI-powered gun detection and emergency response technology solutions provider Omnilert recently launched the Save Haven Grant program, according to a news release. The first recipient of the grant, aimed specifically at schools that have faced gun violence, will be the Uvalde Consolidated Independent School District (Uvalde CISD) in Uvalde, Texas.

Digital Edition