Implementing OneAdvanced Purchasing at James Cook University

Background

James Cook University (JCU) is unique among Australian universities, woven into the intellectual, economic and social fabric of local communities and set amid irreplaceable ecosystems and cultures.

To support its global position as a world-class research university, JCU capitalises on existing strengths and expertise and focuses its investment on emerging challenges and opportunities for the region, the Tropics, and beyond.

Its four campuses in Brisbane, Cairns, Townsville, and Singapore are supported by a network of study centres, clinical schools and field stations in rural areas of Queensland and the Tropics.
 
What we needed
JCU had to improve efficiency for its buyers of low-value, high-transactional items such as laboratory consumables, including gloves, glasses and aprons. These items are purchased from suppliers across Australia, and the University has to factor in costs, such as shipping, when evaluating the value for money of a specific order.

Before this point, the University had a rudimentary procurement system in place but no system to streamline the procurement process for high-volume transactional items, and buyers were continually required to request multiple quotes.

The challenge was finding a solution that was both efficient for buyers and supported robust procurement rules. A solution enabling its buyers to make their own purchasing decisions from an online catalogue of approved suppliers would bring both spending under control and eliminate non-compliant purchasing.

In mid-2022, the decision was made to find a procurement solution to help introduce efficiencies, provide visibility about purchasing volume and value, and improve communications and relationships with its key suppliers.

Finding a solution
Due to its dispersed physical footprint across Queensland, JCU required a cloud-based marketplace solution. The solution needed fully managed catalogues and a transaction hub that could be integrated with the University's finance system.

After carefully considering the procurement solutions available, JCU selected OneAdvanced Purchasing. This online shopping cart-style solution enables JCU staff to purchase high-volume, low-value goods more efficiently.

The implementation
The implementation of JCU's OneAdvanced Purchasing was completed in September 2023, and the system went live successfully with only minimal teething issues.

The strong relationship built between JCU and OneAdvanced during the implementation has been recognised as an immense benefit for both parties. According to JCU, the OneAdvanced support team is in the optimal time zone by being based in Australia, and as a result, they have experienced a quick turnaround with any resolutions or issues.

Regarding user training, JCU's Strategic Procurement Manager, Lisa James, believes the system is incredibly intuitive and easy to use. "It requires little to no training, and I often tell new users that if they can do online shopping, they can use OneAdvanced Purchasing easily," Ms James said.

Realising the benefits
The most significant benefits JCU has identified since implementing OneAdvanced Purchasing is the improvement in visibility regarding the amount the University saves, improved efficiencies, and reduction in the administrative overhead of processing quotes, purchase orders and invoices.

The electronic requisitioning module within OneAdvanced Purchasing means buyers no longer need to request quotes, which can be exceptionally time-consuming. Buyers can also leverage the existing and extensive supplier network to trade electronically and manage spending effectively.

Looking at the cost of implementation versus the savings received, the rate of return of investing in OneAdvanced Purchasing exceeded JCU's expectations.

The savings made after nine months were over $90,000, equating to a cost reduction of 16%.  

From September 2023 to June 2024, JCU spent over $500,000 through its OneAdvanced Purchasing catalogue. Over 1,000 requisitions were raised, resulting in over 600 purchase orders placed. Buyers using the platform made more than 1,500 product searches.

Having a purchasing system with pre-approved materials means the University now has much better buying power and can negotiate more favourable deals. The purchasing system also assists with ensuring procurement compliance with JCU policies.

Another key benefit of the purchasing platform for JCU was the extensive range of suppliers and products. There are many more suppliers than they previously used, and its OneAdvanced Purchasing system facilitates communications with these suppliers, significantly improving relationships.

"The OneAdvanced Purchasing solution has significantly enhanced our supplier relationship management, specifically with key suppliers like Merck, which supplies us with a range of lab consumables we use for teaching and research initiatives. Before it was introduced, we had not engaged with our suppliers much at all," Ms James said.

OneAdvanced Purchasing encourages everyone to look for value for money because it enables buyers to compare suppliers of the same items they are buying. This ensures JCU's buyers are confident they get the best unit price. Another key benefit is the access to multiple suppliers in one transaction.

"We can even factor in the shipping as part of the full cost of purchasing items," Ms James said.

The key benefits of OneAdvanced Purchasing for JCU are:

• Ease of use
• Demonstrated cost savings
• Improved efficiencies
• Improved compliance with policies and procedures.

Looking forward
The procurement department wants to increase the system's usage over time. Internal communication and information sharing are required to ensure that all University buyers are supported in using OneAdvanced Purchasing for low-value transactional purchases.