University Business - September 2011 - (Page 50)

Spotlight on Procurement These days, the procurement head is also more likely to hear cries for help. As Jack D. Zencheck, who has been at Yeshiva University (N.Y.) for 23 years, the last four as CPO, puts it, “All presidents are panicking and procurement is becoming more and more important.” His own president has been known to ease budgetary fears around campus with these soothing words: “Don’t worry, Procurement will handle it.” Here’s a look at how CPOs and procurement directors are handling their evolving roles and gaining greater respect from colleagues across campus. functions reporting to him. For the University of Missouri, the evolution to more strategic procurement meant unifying four campuses that previously had independent purchasing offices, creating the CPO position, and negotiating some systemwide contracts, Cooper says, adding that officials “recognized that was where they needed to go.” As for the common belief that procurement is a compliance-only function, with procurement police trying to catch buyers who aren’t following the rules, he quips, “to be an effective policeman you’ve got to be able to arrest somebody.” While corporate-style mandates don’t work well in the academic environment, procurement leaders can still exert influence and “guide our academic brothers on why it’s Getting to Here In the not-so-distant past, the same supplier could be seen walk- in their best interest to use this contract,” he offers as an example. One indication of the elevated reputation of procurement can be ing the halls around campus for 20 years or more, presenting their wares, recalls Johnson. Campus staff would place orders and seen at the University of Colorado. During open town hall meet“someone in my role was focused on making sure transactions ings, the president now talks about procurement, says Sandy Hicks. She’s had her current title—assistant vice president and CPO— went through.” “It seemed we were always playing catch up,” says Maggie Cam- since 2008. Initially, she reported to the controller, who reported to a VP, but after that controller left, the VP sucstra, who works under the CFO as purchascessfully broached the idea of Hicks reporting ing and auxiliary service manager at Central ‘Creativeness that directly to her. “When procurement reports to Ohio Technical College and The Ohio State can come from allow- the financial end of things, you can’t operate University at Newark, which share a campus. as much as a business,” Hicks explains. “We’re “There was a lot of struggle just to push the ing entrepreneurial not just the numbers. We’re the contracting, paper along.” the negotiations, the service.” The nature of the academic environment, thinking is taking While Murner says the CPO title is not Johnson adds, “allows a lot of freedom, and hold. A lot more very common, it is cropping up. “I suspect that’s a good thing. But it can be a painful thing. There are people who resent our funccolleges are allowing you’ll start to see it more and more as we work our way through the economy of the times tion and still think they can do it better than those conversations and get higher ed back on track.” What she we can.” As Zencheck notes, people across is seeing: “Creativeness that can come from campus did not trust procurement. “They to happen.’ allowing entrepreneurial thinking is taking were negotiating their own deals and purchas—Doreen Murner, NAEP hold. A lot more colleges are allowing those ing their own orders.” In that environment, conversations to happen.” the purchasing experts can well be the last to know about purchases. Johnson, who previously worked for Sony Corp., estimates it was Tech Tools five to 10 years ago that corporate executives “started realizing pro- A big factor allowing more strategic procurement to happen is techcurement actually contributed to the bottom line. That transition is nology. Back when Zencheck was handling every transaction, he dehappening in higher education right now”—only cost savings aren’t scribes the situation as “everyone running around like maniacs.” about profit, but about saving programs, staff, and research dollars. Many of today’s tools, including online requisitions and approvWhen the president calls on purchasing, it’s no longer about als, procurement cards, and data extraction and analysis software, needing a new cell phone or a better office cleaning service, have allowed “purchasing agents to spend more time doing strateZencheck says. Instead, he’s being consulted on potential actions gic sourcing as opposed to line-item data entry,” says Camstra, who such as buying a new building and the costs of making it sustainable. recently purchased Unimarket’s eBid package, which allows sister For the past four years, Zencheck has been in a role that fulfills an institutions to input information specific to them into the bid. The incoming CFO’s vision of procurement services, with the accounts collaborative effort ultimately allows for better pricing, she explains. payable, purchasing, e-commerce, and energy and sustainability The tool will eventually integrate into her institution’s Datatel 50 | September 2011 universitybusiness.com http://www.universitybusiness.com

Table of Contents for the Digital Edition of University Business - September 2011

University Business - September 2011
Contents
Editor's Note
College Index
Ad Index
Behind the News
Viewpoint
Financial Aid
Money Matters
Internet Technology
Shared Governance
Acknowledging Achievement
Looking Back
Spotlight on Procurement
EduComm 2011
End Note

University Business - September 2011