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 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

  • Benson Polytechnic High School in Portland, OR

    Preserving Legacy, Designing for the Future

    As historic academic buildings age, institutions face a difficult decision: preserve and adapt or demolish and rebuild. How do we honor the legacy of these spaces while adapting them to meet the needs of modern learners?

  • UNL Kiewit Hall

    Designing for Engineering Excellence: Integrating Sustainability and Wellness at UNLs Kiewit Hall

    Kiewit Hall at the University of Nebraska-Lincoln exemplifies how academic institutions can integrate sustainability and wellness into modern learning environments. With an integrated and collaborative team approach, Kiewit Hall addresses enhanced learning and creativity, physical health, and mental wellness, and fosters a sense of community through innovative design, operations, and policy solutions.

  • Different Starting Points, Same End Goal

    Higher education campuses can enhance student experience by implementing mobile credentials to streamline building access, on-campus payments, and access to other amenities. This enables students to connect to their campuses through the technology they use most: their mobile devices.

  • Illinois State University Breaks Ground on College of Fine Arts Transformation

    Illinois State University in Normal, Ill., recently held a groundbreaking ceremony for the Wonsook Kim College of Fine Arts transformation project, according to university news. The series of new constructions and renovations will upgrade spaces in Centennial East, the Center for the Visual Arts, and the Center for the Performing Arts, as well as replace the existing Centennial West facility with a new Commons Building.

Digital Edition