Strategic Procurement

The benefits of a strategic procurement operation can be significant and far-reaching. Here are some 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 e-procurement 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-to-pay 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 College 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

  • New Jersey PreK–12 School Breaks Ground on New STEM Building

    Saddle River Day School (SRDS) in Saddle River, N.J., recently announced that it has broken ground on the new Dr. Kristen Walsh Hall of Science & Entrepreneurship, according to a news release. The school partnered with DIGroup Architecture for the design of the new facility, which will provide the school with space to expand its STEM and business education classes.

  • Rice University to Build New Student Life Complex

    Rice University in Houston, Texas, recently announced that a groundbreaking ceremony for the upcoming Moody Center Complex for Student Life (MCCSL) will take place on May 8, 2025, according to a university news release. The 75,000-square-foot facility was designed by architecture firm Olson Kundig with Page serving as executive architect, and it has an estimated completion date of fall 2027.

  • Pangram Secures Funding for AI Detection Technology

    Pangram, which provides technology that detects AI-generated text, recently announced that it has secured nearly $4 million in pre-seed and seed funding, according to a news release. The most recent round of investments, totaling $2.7 million, come on top of the pre-existing seed fund of $1.25 million.

  • old university building with visible aging signs, overlaid with digital data graphics like thermal maps, charts, and system icons

    Modernizing Higher Education Infrastructure: Why Smarter Facility Management Is Essential to Protecting Aging Schools

    Schools now have the opportunity to adopt smarter, more strategic approaches to futureproof operations and enhance the on-campus experience.

Digital Edition