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

  • Thomas F. Frist, Jr. College of Medicine

    Established in 1999, the Education Design Showcase is a vehicle for showing off innovative — yet practical — solutions in planning, design, architecture, and construction. Thomas F. Frist, Jr. College of Medicine has been recognized with an EDS 2025 Project of Distinction award in the category of New Construction.

  • California District Starts Construction on New Robotics Facility

    The Fremont Union High School District (FUHSD) near Silicon Valley, Calif., recently announced that construction has begun on a new Robotics Facility on the campus of Cupertino High School, according to a news release. The 14,500-square-foot facility will serve students at high schools across the entire district, providing purpose-built spaces for student creativity and collaboration.

  • Tufts University Breaks Ground on Two New Residence Halls

    Tufts University in Medford, Mass., recently broke ground on two new residence halls with a total capacity of 664 beds, according to local news. The project’s ultimate goal is to expand on-campus housing and reduce pressure on the local housing market.

  • Mesa West Capital Provides Loan to Refinance University of Georgia Residence Complex

    Mesa West Capital recently announced that it has provided a $133.9-million, short-term, first mortgage loan to developer LV Collective (“LV”) to refinance a student housing complex near the University of Georgia, according to a news release. Rambler Athens, a 750-bed residence hall adjacent to the campus, was completed in August 2024.

Digital Edition