Author: Nick Rallo

Last year, spending on finance administration at SMU was 70% more than at our peer institutions, due largely to duplication of work and systematic inefficiencies. To help the University save up to $6 million annually, the Finance Initiative committee began their work on December 19.

The primary work of this team will be to reorient finance from a functional processing unit, focused on transactions like expense reimbursement, to an operation more concerned with strategic activity like forecasting and budgeting. To that end, they will explore ways to automate and digitize processes to make transactions more efficient.

After conducting a thorough diagnostic analysis that included campus interviews and focus groups, conversations with contract administrators at other universities and an in-depth look at data provided by the Office of Legal Affairs, the Contract Administration Initiative committee found opportunities for improvement in the following areas:

The OE2C Travel initiative is exploring travel management companies (TMCs) to ensure that SMU realizes the maximum amount of savings and efficiency possible in the travel booking process. The new travel software solution, Concur, requires integration with a TMC, which will be the company responsible for issuing tickets on behalf of the airlines, hotels and rental car companies booked through Concur; providing live assistance for travel booking; and assisting with changes to itineraries. The Travel committee plans to recommend a TMC to the OE2C Executive Committee before the winter break.

In fiscal year 2013, SMU spent $150 million on recurring goods and services such as business services, food and office supplies. To help the University maximize savings in major spending categories identified in the OE2C diagnostic phase, the Procurement initiative began its work on November 6. The Procurement initiative team aims to help the University realize $11-15 million in annual savings by both delivering quick savings in a few specific spending categories and designing a high performing purchasing organization. Savings identified in this initiative will not just be deducted from the bottom line, but will combine with funds saved through other OE2C initiatives to be invested in new academic projects that support our core mission.