University Procurement And Supply Chain Officers Share Purchasing Best Practices In New JPMorgan Chase Report
New York, NY - JPMorgan Chase today issued a report titled “Purchasing Card Best Practices for University Procurement” in which some of the nation’s leading educational institutions share cost- and time-saving steps that they have taken to strengthen their procure-to-pay processes. JPMorgan Chase surveyed dozens of its customers to gather and share procurement case studies and best practices as universities continue to institute new purchasing card programs or enhance existing ones. Participants in the survey included procurement and supply chain leaders from Arizona State University, Drexel University, George Washington University, University of Arizona, University of Michigan, University of Pennsylvania and Yale University, among others.
Higher educational institutions of all sizes are being asked to do more with less. With enrollments skyrocketing, state schools are fighting the impact of state budget gaps, while private institutions face shrinking endowments. The result is staff reductions and hiring freezes that must be offset by increased efficiency. As boards of trustees increase budget scrutiny, every possibility must be examined to reduce expenses, while maintaining the highest levels of academic achievement.
As a result of implementing a purchasing card program, department heads are spending less time authorizing, tracking and processing purchase data. Financial administrators are able to reduce overhead significantly; minimize administrative tasks and allow staff to focus on other responsibilities; improve payment flexibility; and make purchasing more efficient at all levels of an institution.
“Much like traditional corporations, the universities and colleges that we surveyed see the procurement process as an effective area to target for cost savings opportunities,” said Frank Dombroski, vice president, Commercial Card Solutions, JPMorgan Chase. “Purchasing card and other procure-to-pay programs simplify existing purchasing processes with an effective complement to any institution’s procurement strategy. The best practices shared by our survey participants can be utilized by any procurement department.”
Some of the best practices highlighted in the report include the following:
* Secure buy-in and involvement from upper management
* Engage key influencers for your program rollout and continued expansion
* Increase visibility into spend with online payment management tools
* Use technology to help better leverage vendor discounts and then mandate usage of certain vendors
* Seek best-in-class technologies that enable integration of all purchasing activity
* Partner with a card issuer that takes a consultative approach to ramping up and growing your program
* Establish effective controls and business rules
* Mandate training for cardholders and card managers before a purchasing card is released
* Build a strong Web presence for your card program administration
* Communicate with cardholders effectively by using different channels
* Establish ghost card programs with high-volume vendors
* Use purchasing cards for other niche-supplier payments
* Network with other purchasing professionals to gain insight into their challenges, successes and learning experiences
For a free copy of the report, visit www.jpmorganchase.com/visit/universitypurchasing.
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