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eSchoolMall Best Practices in e-Procurement
Put money back in the classroom and increase available staff time
by implementing eSchoolMall Procurement Automation Solutions
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eSchoolMall has sponsored research into Best Practices in Electronic Procurement, the use of Procurement Process Automation to return money to the classroom. Our research
shows that the goal of Procurement Process Automation is to overcome the six “Points of Pain” that traditional systems (including those that incorporate online shopping) inflict upon their users.
These “Points of Pain” relentlessly and inexorably deplete the funds, resources, energy and morale of a school district. These factors can prevent an organization from truly achieving the promise of electronic procurement solutions.
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Why you need Procurement Process Automation
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1. Transaction Costs — It’s estimated that labor-intensive, paper-excessive procurement processes can cost schools more than $100 per order in time and resources—a figure that’s often higher than what the ordered item costs!
2. Wasted Effort — Paper-based requisition, purchase and approval processes cause redundancy of effort, promote errors, and inevitably result in costly, frustrating delays.
3. Inefficient Management — Because they lack real-time data, administrators have no way of accurately budgeting and auditing their resources. Nor can they implement an effective overall purchasing strategy.
4. Lost Savings Opportunities — Traditional procurement environments are a breeding ground for “maverick” or “rogue” buying which, according to one study, can account for a 30 to 45 percent increase in overall procurement costs. The purchase of unnecessary or non-contract items in violation of state and district contracts occurs routinely, sabotaging whatever efforts have been taken to save money through volume discounts, preferred vendor lists, and vendor bidding. It’s also difficult for school districts to leverage standard operating procedures for state contract utilization. And manual warehouse inventory, because it’s not clearly visible, is never fully exploited, nor can it be easily adjusted to meet the school district’s needs.
5. Misallocation of Resources — The costs are impossible to quantify, but no one doubts that the time and energy teachers spend procuring supplies would ideally be better spent with students. In our study, author Max McKeown defines the goal of procurement automation with almost the same words we might use to define education. The goal, he says, is to allow people “to grow strong and independent in pursuit of the fulfillment that comes from serving other people.”
6. Depletion of Energy and Morale — Bogged down by requisitioning paperwork, teachers, administrators and business managers who find themselves performing redundant, distracting and potentially demoralizing work can eventually fall prey to resignation—an emotional if not physical leave-taking—characterized by lack of vitality, even apathy.
Download our free White Paper:
Best Practices in Electronic Procurement
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Best Practices in e-Procurement
