Business Essay

2208 Words Nov 21st, 2014 9 Pages
Case 4

The ARMS Procurement System at Tustin State University1

Christina Abrams angrily pushed the purchasing audit reports to the back of her desk. As director of purchasing for Tustin State University’s purchasing department, she knew she could not avoid studying the reports. But for a moment she needed to cool off before she had a meltdown. Walking across the campus, she remembered how, for the past two years, the consultants told her that the new Administrative Resource Management System (ARMS) procurement system would solve her procurement concerns.
The ARMS procurement system went live at the beginning of May 2009. Since then, many problems have come to light from the various departments using the system.
BACKGROUND
With the
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In cooperation with Andersen Consulting, a conceptual design was developed for an integrated purchasing system. For the next year, a team was set up to study, review, and make changes to the newly designed integrated purchasing system. The team developed two major interrelated forms of purchasing—the ARMS system and the procurement card—to solve the procurement problems at TSU.
THE OLD PROCUREMENT SYSTEM
Order Processing
The ordering process under the old procurement system contained several steps. The first step was for each department to identify a need. This would be accomplished through at least eight different sources, including vendor catalogs, shopping trips, sales representatives, knowledge from past usage, yellow pages, colleagues, magazines, and newspapers. The method used varied by department and was based on individual preference. The next step was to identify the issuance method. There are seven different methods available. One such method is the paper 1303, which is a requisition for materials from outside vendors. An alternative to the paper 1303 is the online 1303, which is essentially the same. The third option available is the paper 100W. The paper 100W is for internal orders from inventory. The comparable alternative to the paper 100W is the online 100W. The next choice available is a low-dollar-amount purchase order, or LOPO. This is used for purchases of $400 or less. Another option is through

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