{"id":2686,"date":"2009-05-26T18:13:00","date_gmt":"2009-05-26T18:13:00","guid":{"rendered":"https:\/\/www.certitrek.com\/nlpa\/2009\/05\/26\/shouldnt-charities-have-good-procurement-too\/"},"modified":"2021-07-19T05:03:13","modified_gmt":"2021-07-19T09:03:13","slug":"shouldnt-charities-have-good-procurement-too","status":"publish","type":"post","link":"https:\/\/www.certitrek.com\/nlpa\/blog\/shouldnt-charities-have-good-procurement-too\/","title":{"rendered":"Shouldn’t Charities Have Good Procurement, Too?"},"content":{"rendered":"

Sometimes, I can\u2019t turn my procurement brain off.<\/p>\n

Don\u2019t miss updates on Procurement & Supply Chain, Subscribe here!<\/p>\n

Such was the case a few weeks back when waiting to pay for my family\u2019s meal at Denny\u2019s. At that time, I saw this solicitation for donations to MDA\u2026<\/p>\n

\n

And I started to think\u2026\u201dHmmm. I\u2019ve seen flu shots for a lot less expensive than $25. And one minute of research for $85? That\u2019s $5,100 per hour!\u201d<\/p>\n

Despite considering myself a philanthropic guy, there was something inside me that hesitated about making a donation. I felt that perhaps through less-than-world-class procurement, this charity was not making the most effective use of its donors\u2019 dollars.<\/p>\n

Of course, I don\u2019t know that for sure. They may indeed have an effective procurement department and these represent better-than-market costs.<\/p>\n

But it was enough to make me question it.<\/p>\n

When it comes to charitable organizations, every dollar saved is a dollar that can be put directly to the mission of the organization. To me, it would make sense for larger charities to focus on procurement as a core competency. The ROI would be worth it.<\/p>\n

After all, negotiating a 5% discount on that research (assuming that it doesn\u2019t compromise quality or efficiency) would allow the organization to sponsor more research, leading to new cures or treatments faster, right in line with the mission of the organization.<\/p>\n<\/div>\n

<\/div>\n
What I\u2019d like to see this type of charity\u2019s procurement team do is enumerate its savings in a similar way, reporting things like the amount of money Procurement saved enabled our organization to provide:<\/div>\n
<\/div>\n
<\/div>\n
\u201cX\u201d more flu shots<\/div>\n
<\/div>\n
<\/div>\n
\u201cY\u201d more minutes of research<\/div>\n
<\/div>\n
<\/div>\n
\u201cZ\u201d more support group sessions<\/div>\n
<\/div>\n
<\/div>\n
etc.<\/div>\n
\n

Just something to think about (as I can\u2019t help but do)\u2026<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Sometimes, I can\u2019t turn my procurement brain off. 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