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Strategic Tech Purchasing
10/23/2006
Multi-System Solutions
Rather than an all-or-none solution, many schools have a variety of procurement programs in place, all of which work together. At Wayne State University in Detroit, for example, there are three programs, according to John Camp, WSU’s CIO.
First, like Drexel, the school issues a procurement card (the Visa ProCard) to WSU employees who have spending authority, empowering them to make online purchases. Monthly statements are available online and by e-mail. Controls are in place to prevent excess spending or unauthorized purchasing.
Second, WSU’s Purchasing department has set up a direct online order system with select vendors such as Apple, Dell, and Gateway, each of which has a contract (with established pricing schedules) with the university. That speeds up turnaround time and reduces paperwork.
Third, when open bids are solicited, WSU uses an electronic bid process, in which requests for proposals (RFPs) and requests for quotes (RFQs) are posted on the purchasing department’s Web site, to foster competition among vendors. Camp says that WSU’s purchasing department has considered third-party solutions such as SunGard Higher Education’s HigherMarkets for Banner eProcurement system, but there’s no current move to review or deploy one.
One obvious way to save on tech purchasing costs is through volume purchasing, and according to WSU’s Camp, there are a number of techniques administrators can use to negotiate the best prices for volume deals. First, he suggests, look for purchasing consortiums that have already done the pricing legwork for you. Then, compare their prices to your offers in hand. If you’ve narrowed product selection down to a specific vendor, educate yourself about the different sales channels the vendor offers. At WSU, Camp says, “we’ve found that the government/education price is not always the lowest price.”
Also, be aware of deals being offered elsewhere at your institution before engaging in any negotiation, Camp says. That ensures that you’re informed about the potential size of the volume-purchase deal before engaging in any negotiation. Be aware, too, that bulk deals offer opportunities for creativity. For a better price, Camp suggests agreeing to serve as a reference site or success story for the vendor, if either is in your best interests.
Buying any item in bulk can have a hidden benefit as well, says CDW-G’s Sartin. Beyond the obvious savings up front (because of the volume buy), he points out that there is a second benefit, often even more significant over the long term: the back-end cost savings inherent in managing a single software application, computer platform, or other item.
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