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The Daily Tar Heel

Buy into cost savings

UNC should stick to PeopleSoft program for buying

Unless SciQuest can demonstrate that it is a superior system, UNC should move forward with using PeopleSoft for electronic procurement.

The University is debating which of the two platforms to use after much of the UNC system committed to using SciQuest — while UNC owns a license to use PeopleSoft.

Procurement refers to the process through which departments on campus buy important supplies, from staplers to lab equipment.

Currently, UNC has not implemented PeopleSoft and has a relatively unsophisticated system for procurement. Departments order what they need — but the information collected is limited.

Roger Patterson, associate vice chancellor for finance, said this system became outdated several years ago when UNC gained the ability to negotiate its own prices with vendors. Previously, UNC was required to use prices negotiated by the state.

But with the change, collecting more sophisticated data on the products, the quantities and the prices of purchased goods became more important to negotiate vendor contracts.

This is where PeopleSoft and SciQuest come in. These services can be a huge help for procurement. They collect more precise purchasing data from departments and centralize a specific catalog of goods for all vendors.

Patterson noted the main difference between PeopleSoft and SciQuest is that SciQuest does its own price negotiation with vendors.

But it is unclear whether this could provide more savings. Patterson has heard that many institutions have negotiated their own prices at levels as good or better than SciQuest’s.

Patterson said he intends to meet with SciQuest in the coming weeks. If the company cannot demonstrate a significant cost savings over its competitor, then it makes little sense to not utilize the PeopleSoft license the University already owns for its procurement service.

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