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Fall 2017

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NJPAcoop.org Fall 2017 FEATURES Moving from Strategic Procurement to Supply Chain Management within Higher Ed Andrea Tung When a large university system faces drastic budget cuts along in the wake of increasing fixed costs, something extraordinary must be done. Bold projects by the University of California system provide wonderful examples of how Procurement can serve as the leader in identifying and carrying out the solution. 8 Will a Strategic Partnership with Suppliers Help Make You a Strategic Partner to Your University? Shane Boyle The NAEP Innovators Forum research paper focused on how to enhance supplier value and performance. NAEP Members should download the full report after reading this high-level summary. 12 Minority Wealth Management: A Growing MBE Opportunity Jim Roberts Until now, the primary focus for diversity and minority business opportunities has been on manufacturing and distribution. Minority representation in the LETTER services sector—especially financial advising—has been woefully weak. But with more and more non-minority FROM advisers approaching retirement, there are exciting THE CEO opportunities for a much larger minority footprint in this critical sector. 14 It’s a Small World After All Doreen Murner, CEO, NAEP ADVERTISERS Creating a culture of Index to Advertisers 29 procurement excellence. 7

DEPARTMENTS Certification: 1001 Smartest Things Ever Said Bob Ashby, C.P.M., CPCM Contents What can a bathroom and mentoring have in common? According to our columnist and super-counselor, Bob Ashby, much more than you think. Here is another inspirational offering by our good doctor of encouragement. 16 Heard on the Street: A New Name and New Ideas—Hot Topics from the NAEP Exchange Greg Macway In its continuing effort to stay vital, relevant, and ahead of the curve, NAEP leadership has rebranded its online “Forum” to the “Exchange.” The new name updates the existing and future use of the tool as the best way for NAEP Members to engage in meaningful discussions and the sharing of ideas. 19 Roamin’ with Yeoman: The Confusion of Price versus Value Brian K. Yeoman Thanks to the introduction and growth of best-value procurement, the conundrum of price versus value is fading away. Nevertheless, there is still much that needs to be accomplished in the space of procuring goods and services that are sustainable. 20 Best and Final: Learning – Within School and Out Ryan Holliday, J.D. Many of us practicing the profession of procurement within higher education are privileged to be presented with all kinds of learning opportunities. What shall we do with them? Shall we let them perish or shall we embrace them with appreciation? 25

Published by The Educational Procurement Journal is published 5950 NW First Place, Gainesville, FL 32607; quarterly by the National Association of Educational 1-800-369-6220; www.naylor.com Procurement, Inc., 8840 Stanford Blvd., Publisher: Jack Eller, Editor: Antonya English, Project Manager: David Freeman, Suite 2000, Columbia, MD 21045. Publication Director: Nicholas Manis, Marketing: Kenisha Moore, Project Support Phone: 443.543.5540; Specialist: Niki Roldan, Advertising Reps: Brian Donohoe, Jacqueline McIllwain, Fax: 443.219.9687 Jason Zawada, John Lacasale, Scott Pauquette, Layout: Rajeev Mishra Website: www.naepnet.org © 2017 Naylor, LLC. All rights reserved. The contents of this publication may not be reproduced in whole or in part without the prior written consent of the publisher. PUBLISHED AUGUST 2017/NEP-Q0317/7159

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TOOLS • SAFETY • HVAC • JANITORIAL • MAINTENANCE • LIGHTING • PLUMBING LETTER FROM THE CEO It’s a Small World After All ast month I was invited by the Australian University Purchasing Network (AUPN) to attend Doreen Murner their Procurement Leaders annual meeting in Sydney, Australia. I was honored to participate CEO, NAEP and represent NAEP. Australia has 42 universities of higher education, only two of which are private. The rest are public. Quite a difference from the United States higher education landscape, where we boast over 2,000 universities of higher education. Even though our demographics are very different, we are similar in many ways. LLike a lot of U.S. public and private universities, Australian universities struggle with significant budget cuts, small staff, undeveloped talent, minimal campus influence and a lack of appreciation or understanding from leadership. Past the most recent economic decline of 2009-2010, many of NAEP’s members are still facing year-over-year budget cuts, travel restrictions and dwindling staff resources. We are very similar to our Australian counterparts. Recognizing the challenge, like NAEP, the AUPN is working towards creating a culture of procurement excellence. Procurement individuals and organizations are going through continuous improvement assessments, gaps are identified and learning objectives are put in place. Strategies are being developed to hire or train strong procurement leaders to have a high level of influence as a business outcome enabler, rather than a compliance monitor. Process, people and technology combine to form a perfect union of opportunity where organizational strategy, competencies and effective governance work hand in hand elevating procurement’s role. Higher education procurement is global. Many U.S. universities have campuses operating globally and procurement professionals are sourcing and supporting those campuses all over the world. It would be a benefit to both the AUPN and NAEP to look for collaborative opportunities to help innovate and solve those global challenges. We are all a part of the equation: the power of a network of like-minded partners creating principles and strategies that benefit the good of the whole. Together there are professional development opportunities the AUPN and NAEP can work on. There is strength in numbers. Hopefully, you will see some of our new Australian friends at our Annual Meeting in Orlando!

Renee Funk Shane Boyle/Manager of University of Iowa Marketing & Membership [email protected] [email protected] William Lyle Melanie Freeman/Manager, Education & Training Delaware Valley University [email protected] [email protected] Annette Kirk/Journal Production Editor Gregory Macway [email protected] University of California San Francisco Ashley Kmeicik/Business Development 8840 Stanford Blvd., Suite 2000 [email protected] Columbia, MD 21045 Associate Phone: 443.543.5540 | Fax: 443.219.9687 Valerie Rhodes-Sorrelle, M.P.A., C.P.M. [email protected] Website: www.naepnet.org Grand Valley State University Toria Longo/Membership & [email protected] Outreach Coordinator 2016-2017 Editorial Board NAEP Board Liaison [email protected] Co-Chairs Ray Hsu Michael A. Chmielewski, C.P.M. Neil D. Markee/Purchasing Link, University of Washington Editor-in-Chief Law School Admission Council [email protected] [email protected] [email protected] E&I Liaison Sarah Nicewarner/Education Associate, Associate Editor Sabra Schell Burr Millsap, CPA, M.B.A. Professional Development E&I Cooperative Services [email protected] University of Oklahoma [email protected] [email protected] Mark Polakow/Manager of Technology Members NAEP Staff [email protected] Farrah Bustamante Doreen Murner/Chief Executive Officer Brian Yeoman/Director of Sustainable Colorado State University [email protected] Leadership [email protected] [email protected] Bill Alderson/Manager of Kimberly Dulaney Finance & Administration Virginia Tech [email protected] [email protected]

EDUCATIONAL PROCUREMENT JOURNAL | www.naepnet.org 7 FEATURE

by Andrea Tung, University of California

everal years ago, the In response to these pressures, the successes of P200—including the University of California campus procurement organizations “One UC” governance model by which (UC) embarked and the Office of the President all campuses have equal voting rights on an ambitious created the Procurement 200 (P200) on business cases—UC set its sights journey to transform Program, which primarily involved on an integrated supply chain. its procurement the ten campuses. Launched in 2012, SC500 aims to increase the Sservices program from a structure the P200 Program aimed to redirect, annual benefit from $200 million to of campus-by-campus siloes to a by the end of FY 2017, $200 million $500 million, by evolving the current more holistic organization, leveraging in annual benefit to the University’s procurement program into a powerful, its system-wide purchasing core missions of teaching, research, system-wide supply chain. The goal power. The UC system comprises and public service. The program is an annual target of $500 million ten independently operated significantly exceeded its benefit by July 2022. campuses, five medical centers, goals every year since inception and UC relished the idea of a and three labs. It spans 500 miles by the end of FY 2017 reached nearly transformation from procurement and is populated with more than $300 million. to supply chain. It would involve 244,000 students and 190,000 In the meantime, the offices of integrated Plan-Source-Delivery-Pay faculty and staff. The system faced the Chief Financial Officer and Chief processes; consistent approaches significant challenges, including Operating Officer were preparing their among the campuses toward state budget cuts and sequestration, 2016-2020 strategic plans. These structure, governance, and rising benefits-costs, and reduced efforts converged in a new initiative: resource expectations; and a philanthropic donations. Supply Chain 500 (SC500). Leveraging proactive project pipeline to

8 EDUCATIONAL PROCUREMENT JOURNAL | FALL 2017 establishing a project and $555 million in incremental benefits communication plan, and collecting with limited net annual investment. data from all campuses. This phase Total ROI was estimated at between enabled the creation of a baseline. 1800 percent to 6200 percent. Managing hundreds of documents in After careful analyses, UC was a little over two weeks was no easy able to determine that the target feat. Assessment team members also was realistic. The top-down analysis visited each campus to learn more reviewed current and future spend about operations, encourage candid coverage, velocity, category yields, communication, and strengthen trust. compliance, period costs, structural After absorbing the initial set of investments, and additional benefits. data and other information, the The bottoms-up analysis looked assessment team held workshops at total spend by category and with participants representing associated sourcing opportunities. various functions (e.g., procurement, It also explored opportunities for accounts payable, strategic sourcing, cost savings, revenue generation, logistics) so that all perspectives and other benefits offered by an could be heard. Each workshop integrated supply chain. served a specific purpose. The What would UC need to change first workshop asked participants to achieve this target? The answer to identify opportunities and best emerged as a familiar theme from practices. The second one dealt with P200: governance, structure, process, operating model concepts. The third technology, people, and capabilities. workshop then focused on validating Examples include implementing the resulting recommendations. a common balanced-scorecard; Another important element of this defining an asset management phase was the outreach to hesitant process; implementing contract participants. Many of them had never and supplier management been involved in this kind of process, technology; and a dedicated role for and it was important for them to proactive customer engagement. understand why their perspective Eventually UC would also need to mattered. It also served to allay consider establishing centralized their concerns. transaction centers. The assessment team then To what extent is UC ready to prioritize resource deployment. In developed and shared the workshop embrace these changes? As a whole, addition, UC could bolster its value recommendations with the Advisory it is receptive. Campus-by-campus through more robust sourcing, Group (Vice Chancellors of Planning the readiness varies. All campuses adoption, and added system-wide & Budget, and Vice Chancellors are experiencing change fatigue, to strategic sourcing, technology, and of Administration, representing all some degree. Other system-wide and administrative functions. campuses), executive stakeholders, campus-specific initiatives are already In order to make this scenario and sponsors. Their understanding in play. Their timing and impact will a reality, UC needed to address and input was critical to secure the need to be considered. three important questions: Was the campus-by-campus executive-level In compromise, the proposal $500 million target realistic? What support necessary for success. was revised to offer a more phased would UC need to change in order The final phase of the assessment approach, focus the initial work to reach this target? To what extent involved prioritizing recommendations on Procurement, provide a longer was UC ready to embrace the and developing a path forward. timeline, and adjust the estimated changes? UC started by engaging The consultants then rolled off the benefits accordingly. a consulting firm to lead a 16-week project, and UC huddled to make the Rolling out the plan will require opportunity assessment. This necessary vital decisions. balancing unique campus needs with was followed by reviews, vetting So, what did the results reveal? system-wide objectives, keeping of the recommendations, and a Was the $500 million target realistic? lines of communication open, and roadmap forward. The final business-case suggested closely monitoring the outcome of The first phase of the assessment that SC500 can achieve in the each phase. Staff will need to be fully began with identifying stakeholders, neighborhood of $371 million to Continued on page 11

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P R A R T N E Continued from page 9 engaged, serve as advocates for the as a precursor to moving all campuses program, ask questions, and apply onto a single instance. Team Andrea Tung is Communications lessons learned. members are implementing initial and Training Manager for What advice can UC offer other P2P process changes and are Procurement Services at the Higher Ed institutions that may be reviewing Strategic Sourcing University of California Office of the embarking on a similar journey? process improvements that were President. She has eleven years of • Stakeholders: Identify them early launched this summer. experience in the University system in the process. Proactively solicit Building on UC’s solid working in training, communications, input. Know their concerns and procurement platform, with continued and academic personnel. She gain individual buy-in. support and funding, future phases is a former small-business • Consultants: Establish roles, will address other substantive owner and nonprofit director. rules, and responsibilities early. changes toward achieving the Email: [email protected]. Revisit periodically. Make sure SC500 objectives by 2022. there is representation from your organization in all meetings. Translate “consultant speak” to your organization’s culture. • Data Management: Understand why data is needed. Question how it will be used and whether there are more efficient ways to achieve the same outcome. Convey Cornell University congratulates the winners of the sixth annual Supplier Recognition the purpose and benefit to those Awards for outstanding performance during fiscal year 2017 in five key categories: asked to provide it. product and service quality, pricing/cost, order fulfillment/delivery, customer • Engagement: Trust your knowledge satisfaction/support, and social responsibility. of your organization and culture. Consultants bring the subject matter expertise. You have the unique experiences to share. Be an active participant. • Time Management: Leverage existing meetings. Avoid delays. Schedule group meetings as far in advance as possible. Allow sufficient time for review. And finally, • Communicate, communicate, communicate! Check-ins and multiple messages through various channels are important when communicating to Front seated (left to right): stakeholders in all stages. In the Tammy Teitelbaum – Friedman Electric Supply Co.; Emily Dixon – VWR International LLC; absence of information, people Becky Martin – The Computing Center; Mary Stazi – The Computing Center; Michele Alphonse – Krackeler Scientific; Liza Casella – Casella Waste Management of NY Inc.; tend to assume the worse. Keep Sharon Meleca – Laboratory Products Sales Inc.; Ronnie Smith – W. W. Grainger them in the loop. Second row (left to right): At UC, key participants have vetted Charlie Feldman – Maines Paper and Food Service Inc.; Benny Teitelbaum - Friedman the recommendations. As part of Electric Supply Co.; Dan Frank - VWR International LLC; Craig Garland – W.B. Mason Co. Inc.; the phasing, Procurement Services Chris Giannetti – W. B. Mason Co. Inc.; Dan Delaney - W. B. Mason Co. Inc.; Matt Oliver – Eagle Envelope Company; Dave Martin – Eagle Envelope Company; Frank Meleca – is moving forward with the technology Laboratory Products Sales Inc.; Doug Sedgwick – Sedgwick Business Interiors LLC; Justin initiatives and some of the more Jones – Sedgwick Business Interiors LLC; Mike Lovaglia – Verizon Wireless; John Gale – limited-scope recommendations. Staff Casella Waste Management of NY Inc. members have kicked off a project to Third row (left to right): address sourcing, contracting, spend Marc Craig – Maines Paper and Food Service Inc.; Alex Mangas – VWR International LLC; Pat Doyle – Maines Paper and Food Service Inc.; Peter Trow – VWR International analytics, and supplier information LLC; Ed Hurd – Airgas; Mark Witkowski – Ricoh USA Inc.; Chris Lewis – Ricoh USA Inc.; management. Other project members Tony Krackeler – Krackeler Scientific; Jonathan Williams – CDW LLC; Robert Stokstad have initiated the effort to normalize – W.W. Grainger; Mike Makuszak – Verizon Wireless terms and data across the campuses

873519_Cornell.indd 1 EDUCATIONAL PROCUREMENT JOURNAL | www.naepnet.org7/21/1711 12:26 PM FEATURE Will a Strategic Partnership with Suppliers Help Make

You a Strategic Partner to Your University? by Shane Boyle, Manager of Membership & Marketing, NAEP

an a change in involved with this project was a experts from within and outside mindset about resounding, “Yes.” of higher education procurement keeping suppliers at This article highlights and excerpts who meet to discuss current and arms-length versus several key points from the Innovators future trends in higher education partnering with them Forum Report and is not intended and their effects on procurement. to achieve strategic to share all of the findings and The 2016 Innovators Forum brought Cgoals—both yours and theirs—lead to recommendations. The full paper together 22 panelists from both a beneficial relationship all around? can be found on the NAEP website inside and outside higher education The focus of NAEP’s 2016 Innovators and is available to NAEP members and from both the university and Forum on Enhancing Supplier in good standing. supplier perspectives to focus on Value and Performance tackled this The NAEP Innovators Forum is a Strategic Supplier Relationship issue. The consensus of the experts yearly gathering of subject-matter Management (SSRM).

12 EDUCATIONAL PROCUREMENT JOURNAL | FALL 2017 relationship with your handful of key partnership means and what metrics suppliers—and moving beyond the will be used to define success. tactical framework of enforcing and And as your vision develops and working with your contracts. SSRM your SSRM plan matures, you will helps you to extract value beyond be able to move from establishing price and builds strong relationships the basics in using your resources, that eventually turn into partnerships. managing your suppliers, and The forum panelists identified a developing efficient processes to full Strategic Supplier Relationship focusing on more complex ideas and Management framework for this jointly developed goals. All of this is complex topic, starting with the not done in a vacuum. Throughout the Procurement Vision. After guiding entire process, you must continuously the reader to gaining a clear idea of educate all of your stakeholders, what makes up the vision, the paper including your executive team, your then details the next components, procurement team, and your suppliers. including strategy, engagement, and Ready to take the deep dive into supplier performance. the framework? Download the full Adopting a vision of suppliers as Innovators Forum paper from the NAEP your strategic partners is not done website, if you are a current NAEP easily. It is traditionally at odds with Member. If you are not a Member, how procurement operates at a consider joining now to have access tactical level. But the procurement to this paper as well as to the six other professionals who excel at relationship papers in the series. Many of the topics management are realizing significant are intertwined with each other. After benefits after having made the case taking the lessons of SSRM, read the for a change in mindset, including Procurement Branding paper to help seeing process efficiencies, you market your department to all of consolidated spend, and an your stakeholders including your senior appreciation by their executive teams management, your internal customers, for the importance of this endeavor. and your supplier base, among others. Your procurement vision is the The Procurement Branding research start of the connection to your paper leads into our most recent 2017 campus leadership and involvement discussion on Customer Engagement in strategic, university-wide Management, detailing strategies to conversations. To begin, does your enhance proactive relationship building vision match with the goals and with your customers. objectives of your institution? If not, To answer our headline question, how can you realign? “Will a strategic partnership with As you plan for SSRM, it is crucial suppliers help make you a strategic to align your vision and seek input partner to your university?,” the answer from campus leadership. Your is a resounding, “Yes”—and there procurement vision should incorporate is a road map developed by higher ideas such as risk mitigation, education procurement experts to help By using the roadmap outlined best practice in customer service, you achieve that advantage. in this detailed research paper, you business-process excellence, and will access the tools and resources unique, innovative ideas to help with needed to create a successful Strategic cost management, to name just a few. Shane Boyle is Manager of Supplier Relationship Management Your procurement team has limited Membership & Marketing program that is linked to the vision of resources and you must ensure that at NAEP. Shane brings the executives on your campus. they are focused on the right strategic more than 17 years of Strategic Supplier Relationship supplier relationships that will bring association management Management is many things, but it is about the greatest returns. Your vision and marketing experience not contract management or supplier needs to include input and agreement to his roles at NAEP. performance management. It is using from your strategic suppliers to Email: [email protected]. your limited resources to build a determine what your specific

EDUCATIONAL PROCUREMENT JOURNAL | www.naepnet.org 13 FEATURE

Minority Wealth Management: A Growing MBE Opportunity

have often believed that it does services to C-suites and senior of financial advisers in the United not matter if your skin is white, executives. By developing the full States are people of color. Let that black, brown, red or yellow. spectrum of businesses, we will build sink in for a moment. In an industry There is only one color that helps a sustainable ecosystem for the MBE that provides the expertise to guide to normalize the disparities that business community. wealth management across our exist, and that color is green. As our minority businesses grow, we country, 92 percent of the investment TheI creation of generational wealth are creating wealth within the minority advisors are Caucasian. With the within minority communities will be community. However, this is where number of ethnic minority financial one of the things that helps us reach we start to encounter problems. With advisers being so low, it should racial equality. the historical emphasis on minority- be no surprise that ownership of a Over the past 35 years, we’ve seen owned, commodity-based companies, financial advisory company is rare. growth within the minority business we have created a void of minority This issue was also addressed in enterprise (MBE) community. Most of professionals in the services and the November 2014 edition of The the growth comes from commodity- intellectual property market space. Chronicle of Philanthropy in an article based MBEs. Approximately 40 years An example is the financial advisory titled, “Foundations Struggle to Show ago, an initiative was started under industry. Please consider these four Diversity in Hiring Money Managers.” the presidency of Richard Nixon key points: to encourage development of A Growing Opportunity disadvantaged minority businesses. 8 Percent The problem becomes even more Since that time, corporations have As MBEs create wealth within our relevant as we look at the changing focused most of their procurement communities, we assume there demographics of the country. In 2014, efforts on commodity-based are minority financial adviser the U.S. Census Bureau stated that companies, for a number of reasons. professionals who can help guide the 50.2 percent of all children under the While this segment of the market investments of our fellow community age of 5 were minorities. In addition, is an important part of our economy, members. However, that is not the the Census Bureau estimates that we need to develop the full spectrum case. In 2014, Financial Planning in 2043, the minority population of minority businesses, including magazine’s Charles Paikert reported, of the United States will become intellectually-based MBEs that provide surprisingly, that only 8 percent the majority. Our growing diverse

14 EDUCATIONAL PROCUREMENT JOURNAL | FALL 2017 by Jim Roberts Jim Roberts Enterprises LLC population has very few professionals and only 5 percent of advisers are property companies as well. The color to help guide the wealth being created younger than 30. This creates a green is out there; we just have to in our communities. tremendous opportunity for young expand our ideas and start making an minority professionals and students impact by using minority professionals Financial Role Models who have the skills, or are working in an underutilized area of the As people of color, we have unique on the skills, to look at a career in professional industry. cultures. Many of the current wealth management. 92 percent of the financial advisers We have the opportunity to change Jim Roberts is a financial adviser will have a hard time relating to Native the direction in which we are going, and owner of three companies; one American, Hispanic, African American, and if we can get in front of this is a registered investment advisory and Asian communities. If we are to dilemma, our children and young firm. He is a two-time winner of grow a sustainable MBE ecosystem, professionals will have great career the Michigan Minority Supplier we need many more people of color opportunities. In order to do this, the Development Council – Supplier serving as financial advisers. These minority community needs to do a of the Year (Class I); winner of the people can then serve as role models couple of things. The first is to utilize Grand Rapids Area Chamber of to help encourage our children to save, the minority financial advisers who Commerce EPIC Award – Minority invest, and grow generational wealth have pioneered the way in the financial Business of the Year; recognized for our future communities. advisory industry. Better yet, use a by Corp! Magazine as a financial advisory company that is Diversity Business Leader; and a An Aging Industry minority-owned. Michigan State University EMBA Another interesting dynamic in the Second, and more importantly, we Distinguished Alumni. Email: financial advisory market space is the need to encourage younger minority [email protected]. age of financial advisers. In an article students and young professionals to titled, “Signs of Aging May Soon Affect consider becoming financial advisers. Reprinted by permission Financial Advisers-and Brokerages,” I encourage MBEs and corporations from the 2017 Spring Issue of the Chicago Tribune reported that to look beyond the typical areas of MBE magazine. ©Enterprise over 43 percent of existing financial commodity purchases and include Publishing Inc. www.mbemag.com. advisors are over the age of 55, professional services and intellectual

EDUCATIONAL PROCUREMENT JOURNAL | www.naepnet.org 15 CERTIFICATION

Smartest Things Ever Said

keep cute little books around requires me to, (1) honor those before 1001my house for guests to peruse me by using their experience and while they get to know their words of wisdom, (2) inspire those way around, specifically the behind me so they’ll strive to catch bathroom. One cutie that gets up with their peers and, (3) challenge rave reviews is 1001 Smartest those beside me to help their fellow IThings Ever Said, compiled by NAEPers by sharing their expertise Steven D. Price. I agree with the word and experience. “smartest” because many of the Let’s see if I can bring these quotes have to do with those of us in thoughts together. Supply Management. Juvenal, a first-century Roman As my regular readers know, my satirist, said, “All wish to possess by Bob Ashby, C.P.M., CPCM passion is mentoring up-and-coming knowledge, but few, comparatively University of Nevada, Las Vegas (retired) individuals who truly want to learn speaking, are willing to pay the price.” the tricks that will help them climb In the early 1900s Economist the ladder of success. Doing this John Kenneth Galbraith observed, “The

16 EDUCATIONAL PROCUREMENT JOURNAL | FALL 2017 conventional view serves to protect us personal assistance and guidance on from the painful job of thinking.” their journey toward solid footing. At NAEP’s 2017 Annual Meeting in The viability of this approach Reno, there were many speakers and was recently brought home to me presenters who had paid, and were a number of times. After my first still paying, the price to gain, and then bout with cancer, the Leukemia share, insightful knowledge. Even more and Lymphoma Society suggested impressive, many of them were willing I attend their Support Group. I to challenge current, conventional declined, because I was handling the views and instill in the attendees situation well—I thought. They turned forward-thinking perspectives such the tables on me, though, by saying, as that offered by English playwright “Maybe you don’t need the Support George Bernard Shaw who said (and Group, but perhaps the Support whose words were later repeated by Group needs you.” And since I am a Robert F. Kennedy in 1968), “You see 70-plus-year-old survivor who runs things; and you say ‘Why?’ But marathons, indeed my presence I dream things that never were; and gives newly diagnosed patients are having on those around us, but I say ‘Why not?’” hope. So—maybe your sharing of I can assure you that it is definitely How did these presenters gain knowledge can give your peers the either positive or negative. Which one their knowledge and how do they glint of hope they are looking for. it is will be strictly up to you. then prepare to share it? First, they Recently, at a church service Benjamin Disraeli, British Prime kept up with innovations, advances, I attended, a brand-new priest Minister in the mid-1800s, famously and recent developments by reading announced he was extremely nervous said, “The fool wonders, the wise various Supply Management because it was his first mass and man asks.” Which will you be? publications such as the NAEP homily since graduating from the The one who just goes along, Journal of Educational Procurement seminary. After the mass I told him wondering why you are making no and Inside Supply Management. They that he would not reach everyone at progress in your life and career? did not sit back, as some do, thinking every mass but that, on this day, he Or the one asking how you can there is nothing new coming down the would reach at least one. And I let him help bring others to the top? pike. We only have to look at Google, know that I was that one. Many of us Contact me at Apple, Driverless Cars, and similar have wisdom to pass on but are afraid [email protected] if you’d examples to realize that the world is we won’t reach everyone in the room. like guidance and help in accepting changing, and that includes business To that I say there is someone out or offering a helping hand. I might models. The presenters realize that there waiting and needing to hear even share with you a few more of the those stuck in conventional thinking what you have to say. 1001 Smartest Things Ever Said. are going to be, well, stuck! Volunteer to present your Second, they realize that the knowledge and experience at a business world is too complex for one conference, a workshop, or via an Bob Ashby, C.P.M., CPCM, person to learn more than a fraction article in the NAEP Journal. Don’t is retired from his position as of what is known, so they have deny that person who needs to hear Director of Purchasing and sought, and still seek, the perspective what you have to offer. Contracts for the University of of others. They do this, of course, Final story. Some Little League Nevada Las Vegas, where he also by sharing their inquisitiveness with baseball kids I coached more than served as an Adjunct Professor others in our field who also realize 30 years ago have recently reached in the Management Department. that no man is an island when it out to me. Many said I was a major Bob has been active in NAEP comes to learning. influence in their development. Many since 1997. In 2006 he received Third, with all this new-found said I was the main male relationship NAEP’s Distinguished Service knowledge, these educators in their formative years. Many said Award and in 2008 he won the bring it to us at our annual I was like a dad to them. You can Mentor of the Year Award. In and regional conferences and imagine how emotional it has been for 2009 NAEP renamed the award at various workshops and me to think back on how I influenced in his honor to the Bob Ashby professional meetings. a lot of kids—some white, some Mentor of the Year Award. Email: And last, they offer to mentor those black, some Hispanic. None of us [email protected]. who need, want, and will accept may realize today what influence we

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the Exchange about asset tracking A New Name and New Ideas: solutions. Beyond RFID, Bluetooth LE (low energy) beacons are being discussed as an alternative technology that uses cell phones rather than old, bulky RFID readers. Asset management has great potential Hot to transform the procurement model in higher ed. With the proper visibility and total-cost-of-ownership (TCO) analysis, many routine Topics from the NAEP purchases related to those assets can be scheduled, or better yet, eliminated. This will be an interesting Exchange topic to follow. Alternative Contracts, Innovation and Revenue There seems to be an uptick in posts about improving the procurement by Greg Macway University of California, San Francisco/Berkeley model or generating additional revenue. Procurement departments are limitations (Banner, anyone?) are opting seeing more and more responsibility for smaller-footprint systems like in areas like stadium naming rights Unimarket. Others are going through and pouring rights. This is a departure larger ERP implementations like from contracts for consumables and Workday and are seeking advice during equipment. Some institutions are the transition. Interesting conversations asking their procurement departments AEP’s online bulletin are beginning around extending the to assist with contracts around board, The Forum, eCommerce tools to cover construction healthcare and disability insurance. has been rebranded buying. For schools with segmented Procurement is being seen as an as The NAEP responsibility between traditional integrated, critical partner for the Exchange. It is a procurement and capital procurement, operation of the institution. community tool for this is a big step toward overall The NAEP Exchange Nmembers who want to share ideas, efficiency. On the periphery of the continues to have its finger on the ask questions, and provide advice eCommerce conversation is Amazon: pulse of higher education procurement. about the procurement profession. “Who’s working with Amazon?” “What Be sure to visit, log in and check In addition to the national dialogue are you doing with Amazon?” “Are it out. www.naepnet.org/exchange. in the Main Forum, there are Amazon’s terms and conditions a opportunities to engage in regional sticking point?” These topics indicate Greg Macway is Director of forums and on specific topics like that a change in the online marketplace Strategies & Communication in supplier diversity and sustainability. may be on the horizon. Supply Chain Management at the Here are some trends and University of California, San Francisco/ themes from recent posts on Asset Management Berkeley. He is a member of the the NAEP Exchange. After 15 years of stable use in the Editorial Board for the NAEP private sector, radio frequency Educational Procurement Journal. eCommerce identification (RFID) technology is Email: [email protected]. eCommerce systems are always being re-investigated in higher ed a heavy topic on the Exchange. for asset tracking purposes. As Greg is currently serving on the Institutions are making the migration more procurement departments Program Committee for NAEP’s away from paper processes and transition to supply chain 97th Annual Meeting, being held in embracing standard workflow. Many management organizations, this April, 2018 in Orlando, Florida. are satisfied with their SciQuest broader responsibility drives the (now Jagger) solutions, but smaller need for process improvement. campuses, or those with technology Multiple topics are being posted in

EDUCATIONAL PROCUREMENT JOURNAL | www.naepnet.org 19 ROAMIN’ WITH YEOMAN

he fact that there Consider that for a while, and remains a confusion perhaps you can more clearly see of price vs. value is the difficulties inherent in believing a testament to just that, in our world, the Price vs. Value how difficult this Conundrum continually frustrates the differentiation can be. carrying out of our responsibilities. In TGranted, it is much more prevalent fact, one of the reasons procurement in the consumer economy than it departments exist in the higher is in our world of the professional education community is precisely buyer. Rest assured that it does, because there must be an end in nonetheless, exist in our world. As the chain of accountability for the an advocate for the procurement expenditure of funds. We refer to this by Brian K. Yeoman of sustainable goods and services, as executing our fiduciary duties. NAEP I am frequently amazed at how So perhaps you see the conflict. We many individuals struggle in are looked to by senior institutional their decision-making on this management—by definition of who price-versus-value issue—so much and what we are to the institution—as so, that I have heard it referred to the place where conundrums should as the “Price vs. Value Conundrum.” not exist. Thus, we find ourselves on A conundrum is “a situation the horns of a dilemma, the procuring in which there is no clear right of sustainable goods and services answer or no good solution.” often doing that for us.

20 EDUCATIONAL PROCUREMENT JOURNAL | FALL 2017 considered. The head of the central people stop buying things, but to dictation pool said, “Wait a minute.” buy less and to buy better. Simply He argued that the alkaline battery was and powerfully, this is the crux of the better value due to the extended sustainable purchasing. So, is a service life and the less time spent in 30-year sweatshirt a viable and changing. After taking the time to listen desirable goal? Apparently. The Now it is our destiny and understand, I agreed that he was company has sold 20,000 of them right. So, I avoided being pennywise in three years, repaired only 30, and and challenge to achieve and pound foolish. I wonder if similar replaced only 10. best value for our conversations take place in the The key is to use the very best lithium-vs.-alkaline world we live in cloth and employ the very best institutions—by including today, and just where a rechargeable manufacturing practices. Secondly, all costs, including would find itself. limit the product line to the basics those environmental Before you laugh too hard at to avoid fashioning out a product. that anecdote, consider: When you And finally, employ only the best costs, when we buy T-shirts and sweatshirts for craftsmen at the best factories. evaluate alternatives. every department on campus, do The company does not distribute you buy them from big discount the products to retailers. This model stores that employ sweatshop for getting sustainable products into workers? Or have you considered the public’s hands is similar to Harry’s buying a 30-year-guaranteed product razor blades and Tesla’s electric cars. for, say, $80? If you want to check out the 30-year Please don’t cast this off as some guaranteed T-shirts and sweatshirts bizarre question. It is real. Fashion go to www.tomcridland.com. We have moved as a profession and sustainability are on a headlong So, imagine the first time you into new ground with the advent of collision course. Why? Because fashion engage the athletic department, best-value procurement, life-cycle is the second-most polluting industry housing or the bookstore in the price costing methodologies, total cost on the planet, eclipsed only by oil and vs. value conversation on 30-year of ownership, and ecological natural gas. Surprised? Don’t be. Think guaranteed T-shirts and sweatshirts. footprint considerations. The federal deeply about the amount of energy it It will not be fun but it can and government led the way under takes to produce raw materials and should be done. There is no need presidents Clinton, Bush and Obama. fibers, create textiles, dye and treat for a conundrum in our world. The Many states have closely followed them, manufacture the clothing, deliver penetration of best value procurement with the adoption of statutes and the finished goods to distribution hubs, paved the way to solve many of the administrative procedures that transport to retailers, and then market issues. Now it is our destiny and mirror current federal practices, and and sell the goods to consumers. If that challenge to achieve best value for that flows down to most institutions is not enough, turn around quickly and our institutions—by including all of higher learning. repeat the cycle rapidly because a new costs, including those environmental A couple of examples—one from season is set to begin. The commonly costs, when we evaluate alternatives. more than 40 years ago and a current held belief is that to maintain the You, too, can do great things. one—may help illustrate. Forty-plus enterprise it must stay competitive and Start by considering sustainable years ago, when I was a very young profitable, never once thinking about its procurement practices on and somewhat inexperienced buyer, impact on the planet. every transaction. I received from the campus central The environmental impact of the dictation pool a requisition for a fashion industry continues to grow, Brian K. Yeoman is Director of large purchase of AAA batteries. and the notion that “fast fashion” is Sustainable Leadership at NAEP I issued a request for quote and had going to help is nonsense. If anything, and is the retired Associate Vice what I thought was a clear winner: a it will grow even worse. This is true President for Facilities Planning brand-name, carbon-zinc battery. The because the underlying premise of and Campus Development at second bidder had responded with “fast fashion” is that the clothing the University of Texas Health an alkaline battery that was 5 percent is designed to wear out before it Science Center at Houston. greater in cost. This was a no brainer fashions out. Email: [email protected]. on the surface. Price wins, and But along comes a British startup the notion of value was not seriously with the objective not to have

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24869767_SEHI.inddEDUCATIONAL 1 PROCUREMENT JOURNAL | FALL 2017 18/07/17 7:27 pm BEST AND FINAL Learning – Within School and Out offer for obtaining certifications or suppliers. Similarly, I’ve attended attending conferences is a wonderful some on-campus discussion groups gift that allows us the chance to focused on university business issues. learn and apply new skills. This They may not have a direct effect on continued educating and credentialing procurement but they do impact the is beneficial to us, not only in the departments we support. Even with positions we currently serve but as subject matter that would seem to building blocks for our careers. have no overlap with procurement, The personal benefits we there’s always the possibility of appreciate are also advantages for our serendipitous discovery—some little employers. Procurement professionals piece of information we can bring who are more knowledgeable are back and use. by Ryan Holliday, J.D. better able to serve the school. The Every bit of expanded knowledge University of Tennessee information we acquire when pursuing that we bring to the table is an s professionals working in a certification or working toward opportunity for our schools to do education procurement, another degree is information we something better or to pursue a goal many of us enjoy one of can use professionally every day. It differently. Importantly, every bit of the greatest benefits improves our own performance along learning we pursue increases our available: the constant with the procurement processes value as individuals. We are fortunate opportunity to for the school as a whole. to work for employers who support Alearn. From the formal (certifications, Another area that can improve us continuing education, and we should conferences, and continuing both personally and professionally is all take advantage when we can. education courses) to the informal participating in groups or courses that (webinars, white papers, and the don’t directly apply to procurement. like), we are offered a seemingly The payback accrued from education Ryan Holliday, J.D., is Strategic unending stream of encounters to outside procurement might not Procurement Manager for learn and expand. By capitalizing on be obvious at first, but it certainly the University of Tennessee these opportunities, we can benefit exists. For example, I’ve attended (System Administration) and an both ourselves and our schools. several industry-focused webinars, attorney licensed in Tennessee. On a personal level, I’ve found and while they don’t apply directly Ryan’s professional focus is this to be extremely worthwhile. My to my own work, they’ve certainly strategic procurement and university, like many others, allows given me a better understanding process improvement. Prior to me to take classes for credit—free. I of the constraints affecting our working for UT, Ryan practiced don’t think I need to elaborate on the law, and has a background in value of a free degree! Similarly, the technology and business. Email: support that many of our employers [email protected].

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