In June 2018 we published an article entitled “5 Trends Higher Ed. Procurement Officers Need to Succeed”. The world has been through a lot of changes since then and procurement is no longer a back-office function. It is an issue that university leadership needs to address — and the Office of the CFO in particular.
Institutions learned to adapt during the pandemic, for example. Those that had made progress in digital transformation found themselves better-placed to meet the challenges. More recently, many institutions have come under financial strain as a result of cuts to federal and state grants and a reduction in the number of foreign students.
Moreover, given the rapid evolution of procurement practices and technologies, it is worth assessing how the priorities have changed over time. Here is an evaluation of each trend discussed in the article, as seen through the eyes of the CFO:
1. Technology Optimization:
- 2018 Perspective: The focus was on adopting eProcurement systems, electronic sourcing, contract management, and total supply management to automate functions and create efficiencies.
- 2025 Update: While technology optimization remains crucial, the landscape has advanced significantly. Modern procurement now leverages artificial intelligence (AI), machine learning (ML), blockchain, and advanced analytics to enhance decision-making, predict market trends, and manage supplier risks. Institutions should focus on integrating these advanced technologies to increase process efficiencies, improve end-user satisfaction, reduce costs, and stay competitive even when their funding is increasingly uncertain.
2. Talent Management:
- 2018 Perspective: Emphasis was on acquiring and retaining skilled professionals capable of navigating complex procurement environments.
- 2025 Update: The talent landscape has evolved, with a growing need for professionals proficient in digital tools, data analytics, financial analytics, risk management, and sustainability. Continuous learning and development programs are essential to keep teams updated with the latest procurement technologies and strategies.
3. Value Generation:
- 2018 Perspective: Procurement was seen as a strategic partner, focused on cost savings, and contributing to the institution’s overall value.
- 2025 Update: The approach to value generation has expanded to include a broader range of financial metrics such as net revenue per student, operating surplus, contribution margin per program etc., as well as non-financial metrics such as sustainability, innovation, and supplier diversification. Value generation now encompasses not only cost efficiency but also social and environmental impact, aligning with broader institutional goals such as community outreach.
4. Data Analytics:
- 2018 Perspective: We highlighted the use of data to gain insights into spending patterns and supplier performance.
- 2025 Update: Real-time data integration and analysis are now standard practices in many institutions. Meanwhile data analytics has evolved, becoming more sophisticated. Leading practitioners are employing predictive and prescriptive analytics to forecast trends and inform strategic decisions.
5. Customer Engagement:
- 2018 Perspective: Looking at this from the specialized perspective of procurement, we emphasized the importance of engaging stakeholders to understand their needs and ensuring procurement processes align with those needs.
- 2025 Update: Customer engagement is a more strategic concern for a university’s leadership. Our understanding of it has deepened with the use of collaborative platforms and tools that facilitate seamless communication between finance, procurement, faculty, and other stakeholders. Personalized procurement experiences and stakeholder-centric approaches are now pivotal in meeting diverse institutional requirements.
Conclusion: While the foundational principles outlined in the 2018 blog post remain relevant, the procurement landscape in higher education has undergone significant transformations in institutions at the forefront of procurement best practices. It has the attention of the CFO as a driver of value as well as cost savings and process efficiencies. Institutions will continue to embrace advanced technologies, including artificial intelligence, foster continuous talent development, and adopt holistic value generation strategies to navigate the complexities of modern procurement effectively.
