‘Chronicle of Higher Education’ Features Strategic Sourcing Initiative at Ithaca College
Efforts to reduce spending at Ithaca College were featured in a recent article about strategic sourcing and procurement in the “Chronicle of Higher Education,” a signature publication for news and topics related to colleges and universities.
The article featured quotes from President Thomas Rochon and Robert Cree, associate vice president for business, and highlighted efforts the college is undertaking to reduce purchasing costs by $3 million over the next three years.
Strategic sourcing is when a business or institution centralizes the process of buying items used widely across the organization — such as office supplies, paper products, hand tools used in maintenance, mulch for the grounds, etc. — in order to find the best prices available and ensure it receives the best discounts for bulk purchases.
It’s commonly believed that letting individual offices or departments shop around for the best bargain is the surest way to ensure cost savings across an institution. But those individual purchases may be made at multiple retailers, and each purchase is only for a that department’s specific need and use. Any benefit in savings is lost to the college as a whole.
“I always thought competition was good. Strategic sourcing flips that upside down,” Cree said.
Read the full article “Colleges See Big Savings in Centralized Buying” at Chronicle.com (note: a subscription to The Chronicle of Higher Education is required to view).