Tag: procurement

  • Beyond efficiency: Building procurement agility in higher education

    Beyond efficiency: Building procurement agility in higher education

    Higher education leaders face a constant balancing act. Shifting enrollment, tightening budgets, and rapidly evolving technology create pressure to stay nimble while maintaining operational excellence. In this environment, procurement teams are playing a new strategic role, moving beyond cost-cutting to become enablers of institutional agility.

    The most agile institutions understand that procurement agility isn’t just about faster purchasing. It means building systems that anticipate needs, optimize every dollar in real time, and empower campus-wide decision-making. When procurement teams can redirect spending toward emerging priorities while maintaining compliance and transparency, they create institutional resilience: the ability to respond confidently to whatever comes next.

    Closing higher ed’s agility gap

    Traditional procurement creates bottlenecks precisely when agility is needed most: lengthy approval cycles that delay critical purchases, fragmented systems that prevent comprehensive spend analysis, and limited visibility that leaves leaders making decisions without complete financial data.

    The stakes are significant. With 25% of operating budgets flowing through procurement—possibly more for institutions with extensive outsourcing—efficiency directly impacts your ability to respond quickly to changing circumstances.[1]

    There’s encouraging momentum, though. In a survey of nearly 3,500 procurement and organizational leaders, 24% of senior leaders identified “becoming more agile or resilient” as a priority above reducing spend (19%).[2] This signals growing recognition that adaptability drives long-term institutional success more than cost-cutting alone.

    Five pillars of agile procurement

    So how can institutions actually close this agility gap? Many procurement leaders are turning to technology solutions, and for good reason. The right tools can magnify agility across campus operations, but only when they address the right fundamentals. These five pillars provide a framework for building procurement systems that enhance rather than hinder institutional responsiveness:

    Unified systems: Consolidated purchasing transforms how campuses operate, improving user experience, spend transparency, and analytics. Administrators should be able to track campus-wide purchasing patterns, identify savings opportunities, and make data-driven decisions across all departments. When the University of Washington (UW) consolidated purchasing across its numerous academic departments through a single master account, it gained the visibility and simplified management that had previously been impossible.

    Streamlined interfaces: A centralized purchasing interface removes manual work and complexity, allowing staff to focus on higher-impact activities while maintaining oversight. Ray Hsu, executive director of procurement services at the University of Washington, explains: “Imagine you’re managing the drama department and your scene shop needs to find ten different things to outfit your next production. Imagine how many different sources you visit to find costumes, supplies, and other items for that use case. Centralize that.”

    Aligned purchasing: The right tools enable alignment with shifting institutional priorities—sustainability goals, minority-owned businesses, compliance requirements—through preferred vendor selection in a way that’s frictionless for buyers. Hsu describes how this works at UW: “When people search for items, they don’t even know they’re searching for a sustainable product. It just comes up in their search results, supporting our policy without them having to be mindful of it.”

    Smart comparison: Pricing, delivery, and vendor comparison mechanisms help buyers to easily identify their most cost-effective options without searching multiple sources or juggling spreadsheets. Time saved on research translates to faster response when priorities shift.

    Real-time monitoring: Proactive systems flag overspending or policy compliance issues before they become problems, giving administrators the breathing room to focus on strategic opportunities.

    Real-world impact

    The University of Washington example illustrates how these pillars work together in practice. Beyond the streamlined purchasing process described earlier, the transformation also revealed deeper lessons about building sustainable agility.

    When UW decided to modernize its procurement, it faced a familiar challenge: staff were already purchasing from multiple vendors without central oversight. Instead of changing staff behavior, the university introduced a centralized system that preserved the flexibility departments valued while adding the visibility and control the university needed.

    “There’s a saying, ‘I want an Amazon-like experience.’ We thought, let’s just go get the real thing and bring Amazon to our campus,” Hsu recalls.[3]

    The shift delivered more than operational efficiency. “With Amazon Business Analytics, I can visualize information on an intuitive dashboard and have a conversation with my boss: ‘Here’s how we’re doing at a glance,’” says Hsu. That visibility changes how procurement conversations happen, moving from reactive problem-solving to proactive strategic discussions.

    Perhaps most importantly, UW discovered that agility doesn’t require forcing behavior change. When the right systems build compliance and best practices into everyday workflows, adoption happens naturally. The drama department gets what it needs faster. Sustainability goals are met through preferred policies. And procurement leaders gain the strategic insights they need to guide institutional priorities.

    Building sustainable agility

    Building more agility into your procurement operations starts with a few key fundamentals:

    Start with visibility into spend. Understand where your money goes. With 25% of operating budgets spent on goods and services, visibility is essential for agile resource allocation.[4]

    Centralize for control. As Hsu notes, “Chances are your internal customers are already buying from Amazon in a decentralized and unmanaged fashion. My suggestion is to centralize that management into a unified system.”

    Simplify user experience. Make compliance and best practices seamless. “Make it easy so it’s not a conscious decision—just part of their everyday buying experience,” advises Hsu.

    Focus on consolidation. Look for opportunities to consolidate processes. Listen to solution providers who are experts in this area and implement their suggestions when they make sense to your organization, Hsu adds.

    Agility as an institutional advantage

    Agile procurement enables both resource optimization and faster response to opportunities. The goal isn’t just efficient purchasing, but procurement that enhances decision-making.

    When procurement teams can redirect resources quickly, spot savings in real time, and adhere to campus purchasing policies, they free their institutions to focus on mission and seize opportunities as they arise.

    ▷ Learn how your peers are using Amazon Business to build procurement agility: business.amazon.com/education

    Source link

  • Simplicity as strategy: The future of higher ed procurement

    Simplicity as strategy: The future of higher ed procurement

    Procurement in higher education has come a long way from its back-office roots. Today’s procurement leaders juggle a dizzying array of demands: shrinking budgets, responsible purchasing goals, compliance issues and more — all while navigating persistent supply chain disruptions. 

    The solution to this mounting complexity isn’t more complexity — it’s thoughtful simplification. Forward-thinking institutions are discovering that streamlined, user-friendly procurement processes aren’t just nice to have; they’re essential in an era where procurement teams are expected to deliver far more than just cost savings.

    Simplification as a strategic imperative

    Procurement professionals manage competing priorities, endless spreadsheets, documentation hiccups and disconnected technologies that don’t “talk” to each other. It’s like trying to conduct an orchestra where musicians practice in isolation, playing from different sheets of music.

    Beyond cost control, today’s procurement teams are expected to simultaneously deliver on quality, speed and responsible purchasing goals, while mitigating risks, innovating and more — often with fewer resources. Despite best intentions, attempts to work around complexity might simplify one step in the short run while adding more steps down the road. Like adding another lane to an already congested highway, workarounds may shift the bottleneck elsewhere.

    There’s a better way: To crack procurement complexity, leaders must “bake” user-friendly simplicity into every stage of their workflows, creating processes that feel intuitive rather than burdensome. 

    What makes a process truly simple? According to KPMG’s research, simple procurement workflows share four traits:

    • The job is easier to do with the workflow than without it.
    • The workflow is easy to understand and follow.
    • There are no gaps or ambiguities in the process.
    • The workflow covers even rare scenarios.

    Simplification doesn’t mean cutting corners. Rather, it means creating visibility across the entire procurement lifecycle, centralizing information and generating actionable data insights to enable smarter decisions. When done right, simplification enhances control while reducing frustration.

    The shift to AI: Making simple feel sophisticated

    In a report for Procurement Magazine, Libby Hargreaves, editor of Supply Chain Digital, predicts AI use cases in procurement will explode in the coming months, as past hesitation or playful experimentation gives way to full integration. Thanks to AI advancements, self-service can now feel like full-service, with interactions that are proactive, intelligent, helpful, efficient and frictionless, KPMG writes.

    In procurement, emerging automations can range from contract management to supplier discovery, proposal customization, compliance documentation, vendor communications, spend analytics and more. As Forrester describes it, savvy procurement executives will find that investment in AI and automation tools frees up their teams from mundane tasks, prioritizes actions needing closer human attention and optimizes decisions. 

    Greg Muller, director of strategic sourcing and campus partnerships at UC San Diego, shares that vision. “Basic procurement functions need to be easy and automated for our users. We don’t want a Nobel Laureate wasting time looking for a good pair of gloves when they could be curing cancer,” Muller quips. 

    Sharon Loosman, director of procurement and business services at North Carolina State University, can relate. With one procurement team serving 12 colleges and 150 departments, Loosman aimed to create systems that would allow colleges to operate independently as experts of their own needs, while making policy-compliant purchases. Notably, Loosman noticed that faculty and staff often sidestepped the university’s official procurement channels to shop on Amazon, drawn by the wider selection, better pricing and faster delivery. Her team then set out to centralize and simplify processes without “breaking anything” or incurring implementation costs, while accessing better reporting. 

    To make that possible, procurement teams at UC San Diego and North Carolina State have adopted Amazon Business solutions, expanding access for internal customers across the organization. In doing so, the two institutions have integrated purchasing across departments, enabling buyers to access a vast, pre-vetted supplier network and robust functionality: custom approval workflows, deep spend analytics, preferred pricing, enhanced delivery options, Guided Buying policies and more. 

    Leaning into experimentation, procurement transformation

    Looking ahead, procurement teams looking to innovate should embrace experimentation. “My advice is to take the blinders off, get outside your box and explore what else is out there that you haven’t thought about yet,” Loosman advises. 

    Muller echoes the sentiment: “We’re focused on a broader perspective,” he shares, engaging internal customers to understand their needs beyond one-off transactions and leaning on peers at other institutions to identify strategies already proven successful elsewhere. 

    “Sometimes we, as procurement leaders, get stuck in the way we’ve always done it,” Loosman concludes. “Let’s raise the bar. Let’s go find solutions and partners who are willing to work with you to make changes that move you forward.”

    ▷ Learn how Amazon Business can help accelerate your procurement goals: business.amazon.com/education

    Source link