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

  • EPA to Provide $26M in Grants to Protect School, Child Care Drinking Water

    The Environmental Protection Agency (EPA) recently announced that it will award $26 million in grant funding to test and fix lead-contaminated water at U.S. schools and childcare centers, according to local news.

  • Abstract colorful arrows in front of a contemporary university building

    Spaces4Learning 2025 Trends in Higher Education

    With 2025 well underway, it’s time to take a look at some broader trends submitted by you, our Spaces4Learning readership. We asked for your thoughts on topics like classroom design, health & safety, materials & construction, and technology in both K–12 and higher-education environments. Below is a roundup of 2025 trends in higher education from the experts in the trenches.

  • S4L Launches 2025 Facilities and Construction Brief Survey

    Spaces4Learning recently launched its 2025 Facilities and Construction Brief Survey, which gathers information on K–12 and higher education construction projects nationwide from the previous year. The data we get from you, our readers, forms an industry report offering an overview of current trends in school facilities.

  • Boosting Student Wellness and Safety Through Indoor-Outdoor School Spaces

    Engaging students through facilities designed for indoor and outdoor learning and activities reflects a growing awareness of how children learn and thrive, with educators recognizing the importance of getting outside and disconnecting from technology. And, as today’s youth grapple with the urgent mental health crisis of increased anxiety and loneliness fueled by both the pandemic and technology, along with a related crisis in youth physical health, the wellness benefits of getting outside have never been so palpable.

Digital Edition