1. 90 th Annual Meeting & Exposition April 3 – 6, 2011 Memphis, Tennessee STRATEGIC VALUE OF PROCUREMENT – PART II How DO WE get there? The Sequel to: They told us where to go! Presented by:Nancy Brooks, MPA, Iowa State University

2. 90 th Annual Meeting & Exposition April 3 – 6, 2011 Memphis, Tennessee Strategic Value of Procurement – Part II Overview Challenges in Higher Education o Current economic conditions State underfunding of many public institutions Endowment losses Federal research dollars threatened by federal deficits Drop in median income levels increasing need for student aid Giving to colleges and universities, first to go, last to return

3. 90 th Annual Meeting & Exposition April 3 – 6, 2011 Memphis, Tennessee Strategic Value of Procurement – Part II Overview Challenges in Higher Education o Fundamental Shifts in environment Brick & mortar competing with online delivery More emphasis on global involvement Public scrutiny on tuition increases and endowment spending Institutions are forced to keep up with technology demands (and costs) of their students

4. 90 th Annual Meeting & Exposition April 3 – 6, 2011 Memphis, Tennessee Strategic Value of Procurement – Part II Expectations of Procurement To meet these challenges senior administrators expect Procurement to dramatically drive down costs by: o Increasing the amount of spend under management o Reducing procurement processing time and costs o Deploying new procurement technology o Maintaining regulatory compliance o Enhancing customer service levels o Generating year-over-year efficiency gains

5. 90 th Annual Meeting & Exposition April 3 – 6, 2011 Memphis, Tennessee Strategic Value of Procurement – Part II Institutional Strategic Plans What is important to our institution? o Student recruitment & retention o Faculty & staff recruitment & retention o Excellence in research o Excellence in academic programs o Economic impact of community o Global perspective o Diversity o Sustainability

6. 90 th Annual Meeting & Exposition April 3 – 6, 2011 Memphis, Tennessee Strategic Value of Procurement – Part II Where do we fit into the Strategic Plan? Sound stewardship of resources

7. 90 th Annual Meeting & Exposition April 3 – 6, 2011 Memphis, Tennessee Strategic Value of Procurement – Part II Expectations of Procurement To meet these challenges senior administrators expect Procurement to dramatically drive down costs by: o Increasing the amount of spend under management o Reducing procurement processing time and costs o Deploying new procurement technology o Maintaining regulatory compliance o Enhancing customer service levels o Generating year-over-year efficiency gains

8. 90 th Annual Meeting & Exposition April 3 – 6, 2011 Memphis, Tennessee Strategic Value of Procurement – Part II Reposition Procurement Develop Strategic Partners on Campus Buy Solutions Reinvent Supplier Relationships Aware & alert to institutional risks Measure performance

9. 90 th Annual Meeting & Exposition April 3 – 6, 2011 Memphis, Tennessee Strategic Value of Procurement – Part II Develop Strategic Partners Student Recruitment & Retention o Admissions o Student Affairs o Student Financial Aid o Student Health Center o Student Health Insurance o Residence & Dining o Study Abroad Programs

10. 90 th Annual Meeting & Exposition April 3 – 6, 2011 Memphis, Tennessee Strategic Value of Procurement - Part II Develop Strategic Partners Research o Resource for suppliers & new technology o Utilize technology o Customer Service/Communication o Compliance COI Human & Animal Subjects

11. 90 th Annual Meeting & Exposition April 3 – 6, 2011 Memphis, Tennessee Strategic Value of Procurement – Part II Develop Strategic Partners Academic Programs o Guest lecture in Business College o Internships for students

12. 90 th Annual Meeting & Exposition April 3 – 6, 2011 Memphis, Tennessee Strategic Value of Procurement – Part II Develop Strategic Partners Faculty & Staff Recruitment & Retention o Competitive compensation package o Improve facilities & support for research o Utilize technology (user-friendly) o Create solutions not processes

13. 90 th Annual Meeting & Exposition April 3 – 6, 2011 Memphis, Tennessee Strategic Value of Procurement – Part II Develop Strategic Partners Globalization o Support Study Abroad Programs Contracting in foreign countries P-card support o Global Procurement

14. 90 th Annual Meeting & Exposition April 3 – 6, 2011 Memphis, Tennessee Strategic Value of Procurement – Part II Reinvent Supplier Relationships Positioning o How strategic are you to your supplier? o How strategic is your supplier to you? o What is happening within the industry?

15. 90 th Annual Meeting & Exposition April 3 – 6, 2011 Memphis, Tennessee Strategic Value of Procurement – Part II Reinvent Supplier Relationships Build Trust o Mutual Commitment o Fairness o Implement Contract Administration Process o Relationship Management

16. 90 th Annual Meeting & Exposition April 3 – 6, 2011 Memphis, Tennessee Strategic Value of Procurement – Part II Reinvent Supplier Relationships Collaborate to find new solutions or opportunities to further institutional goals o Internships o Sponsorships o Research o Sustainability

17. 90 th Annual Meeting & Exposition April 3 – 6, 2011 Memphis, Tennessee Strategic Value of Procurement – Part II Practical Approaches Summary Become a strategic partner with campus Create beneficial/strategic supplier relationships Minimize administrative burden through technology Implement best practices in procurement Provide value in non-traditional ways – expand your utility/value

18. 90 th Annual Meeting & Exposition April 3 – 6, 2011 Memphis, Tennessee Strategic Value of Procurement – Part II Measure Outcomes Cost Savings Increased Revenue Efficiencies o Cost of process $1 spend o Return on Investment (ROI) Amount of Spend Under Management Economic Impact on Community/State Satisfaction

19. 90 th Annual Meeting & Exposition April 3 – 6, 2011 Memphis, Tennessee Strategic Value of Procurement – Part II Report Performance Metrics Significant Impact Project Involvement E-procurement Efficiencies (from campus perspective) Professional Development of Staff Campus & Committee Involvement

20. 90 th Annual Meeting & Exposition April 3 – 6, 2011 Memphis, Tennessee Strategic Value of Procurement – Part II Summary Understand your institution’s strategic plan Align goals Support research & academic programs Innovate Reinvent relationships Establish strategic partners on campus Measure Report your successes

21. 90 th Annual Meeting & Exposition April 3 – 6, 2011 Memphis, Tennessee Strategic Value of Procurement – Part II HOW DO WE GET THERE? THANK YOU Questions?