Atlanta June 8, 2001 Although most brick-and-mortar businesses still have a long way to go before truly becoming e-businesses, the trend appears to be set. But the trend is catching on elsewhere. More frequently now, the e-procurement facet of the supply chain e-revolution seems to be spreading to government and educational institutions.
Although only a small percentage of schools and universities have moved their procurement online at present, Gartner Dataquest expects that by 2002, 80 percent of higher education institutions and virtually all institutions with enrollments more than 3,000 will have implemented at least a partial e-procurement solution.
The latest university to preen its tech-savvy feathers is the University of Pennsylvania (Penn), announcing today that it has signed a contract with Procuri, an e-procurement platform provider. By using the system to streamline its quotation requesting, bidding and invoice processes, the university hopes to reduce its $300 million goods and services spend.
We plan to apply Procuri's tools to competitive bidding events wherever and whenever possible, said Vira Homick, Penn's acquisition services e-procurement manager. The university has already saved in excess of $58 million through innovative cost reduction programs, Homick estimates, and expects to accelerate annual cost savings through use of Procuri's technology. Our goal is to be the premier procurement organization in higher education, and Procuri's e-procurement technology will compliment Penn's existing eCommerce and cost reduction initiatives, said Homick.
After an extensive evaluation of e-procurement systems, Homick and her associates selected Procuri based on functionality and ease of use. We were impressed with the rating system and the intuitive way Procuri handles RFQs [request for quotes] and supplier bidding, Homick commented. It was clear to us that procurement professionals were instrumental in the development of Procuri's procurement solution.
Institutions of higher learning are turning to cost-saving e-procurement solutions to help them meet tough financial pressures, said Mark Morel, Sr., Procuri's president and CEO. Penn has been a pioneer in applying technology to procurement, so we're honored that they selected Procuri as the springboard to advancing their long-term goals.