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’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

  • Rhode Island Boarding School Completes Student Dorm Renovations

    St. George’s School in Middletown, R.I., recently announced the completion of a $26-million renovation project on Arden-Diman-Eccles Dormitory, according to a news release. The school partnered with Voith & Mactavish Architects (VMA) on the new space, which places a new focus on collaborative community spaces open to both boarding students and day students.

  • nursing students talk while studying in a hallway

    Elsevier Launches VR Simulation Solution for Nursing Students

    Elsevier has introduced Shadow Health Lab with Virtual Reality, a simulation platform that allows nursing students to interact with virtual patients and build clinical judgment skills in a safe, realistic environment.

  • Arizona District Breaks Ground on Community Training, Learning Center

    The Tolleson Union High School District (TUHSD) in Tolleson, Ariz., recently broke ground on a new Training & Learning Center (TLC) for both district professionals and the community at large, according to a news release. The 90,000-square-foot facility has an estimated completion date of spring 2027.

  • Deferred Maintenance Issues Growing at Universities, Gordian Reports

    U.S. colleges and universities are falling increasingly behind on facilities maintenance and repair, according to Gordian’s 13th annual State of Facilities in Higher Education report. The deferred capital renewal burden has reached $156 per gross square foot, an 8% increase over the previous year.