Why Avoiding Sourcing Events Costs More Than It Saves

Understanding the financial, operational, and compliance impacts of bypassing structured procurement.

Across Minnesota State, campuses sometimes hesitate to issue a Request for Proposal (RFP) or Request for Bid (RFB) or adopt a new system. The reasons are understandable: concern about timelines, complexity, unclear requirements, or prior negative experiences. In an effort to avoid perceived risk, departments may attempt to extend existing contracts, rely on informal quotes, or proceed without structured procurement support.

While this approach may feel safer in the short term, avoiding a formal sourcing process often creates larger challenges: financially, operationally, and from a compliance standpoint.

Limited Competition and Higher Costs

Without competition, vendors have little incentive to provide their most competitive pricing or strongest contractual terms. Over time, this results in higher total cost of ownership and missed opportunities for innovation.

Misaligned Solutions

Quick decisions made outside a structured process can lead to systems or services that do not fully meet institutional needs. What appears efficient initially can become a long-term constraint if scalability, integration, or support capabilities are insufficient.

Compliance and Audit Exposure

Public-sector procurement policies exist to protect the institution. Skipping sourcing steps increases audit risk, weakens documentation defensibility, and can create reputational harm if decisions are challenged.

Sourcing Assistance Is a Strategic Advantage

Procurement teams are not barriers to progress. They are partners in risk mitigation, market analysis, RFP development, vendor evaluation, and contract negotiation. Engaging procurement early allows departments to:

• Clarify requirements before they become constraints.
• Understand pricing benchmarks and market options.
• Build realistic timelines and expectations.
• Share the workload of complex sourcing efforts.

Consider Master and Cooperative Contracts

In many cases, campuses may not need to conduct their own sourcing event. Minnesota State master contracts and cooperative contracts have already been competitively solicited and vetted.

Black-Owned Businesses That Changed How America Buys

Innovation born from exclusion helped redefine modern procurement practices.

Long before “procurement strategy” and “supplier diversity” became common terminology, Black entrepreneurs were building sophisticated supply chains out of necessity. Excluded from traditional purchasing networks, financing systems, and distribution channels, they developed alternative models that reshaped how goods and services move across the United States.

Madam C.J. Walker

Often recognized as the first self-made female millionaire in the United States, Madam C.J. Walker built a fully vertically integrated enterprise in the early 1900s. Facing barriers in traditional manufacturing and distribution, she controlled production, packaging, distribution, and sales through a national network of more than 20,000 agents.

Her direct-to-consumer model mirrors decentralized sales and distribution strategies used in modern procurement environments today. What began as a response to exclusion became a scalable supply chain model studied decades later. Listen to Madam C.M. Walker’s story

Reginald Lewis

In 1987, Reginald Lewis led one of the largest leveraged buyouts of the decade, acquiring Beatrice Foods’ international operations. This placed a Black-owned company at the center of a global procurement and manufacturing network, challenging assumptions about scale, supplier capability, and executive leadership in corporate sourcing. Watch Reginald Lewis’ story

Jesse Russell

Telecommunications pioneer Jesse Russell helped lay the foundation for modern digital cellular networks. Holding more than 80 patents, his innovations enabled the wireless infrastructure that powers real-time procurement, logistics tracking, mobile ordering, and global supplier connectivity. Wireless Communication Base Station

Technologies derived from his work are embedded in the mobile devices and wireless systems procurement professionals rely on every day.

Supplier diversity is not about adding risk. It is about recognizing proven innovation that has been shaping procurement and supply chain strategy for more than a century.

Adjusting Notification Preferences in JAGGAER

Whether you are a power user or only log into JAGGAER occasionally, reviewing your notification settings can significantly reduce unnecessary email traffic.

Step 1: Access Your Profile

In the top-right corner of JAGGAER, select your user profile. Within your profile settings, expand Notification Preferences on the left-hand side. From there, select the notification category you wish to review (for example, Contract Notifications). MODAL1

Important Caution

Selecting “None” will stop all notifications for that event type. Currently, JAGGAER does not allow notifications to be filtered by campus. Turning notifications off entirely may prevent important updates from reaching you.

Recommended Best Practice

Instead of choosing “Email & Notification,” consider switching to “Notification” only. This keeps alerts visible within JAGGAER (via the notification bell in the top-right corner) for the most recent 30 days, while reducing inbox volume. MODAL2

Using Outlook Rules for Targeted Filtering

One of the most effective ways to manage JAGGAER emails is through Microsoft Outlook rules.

If you are receiving notifications related to other institutions’ contracts, consider the following configuration:

• Condition: Sender is SciQuest Support or support@sciquest.com.
• Action: Move messages to a designated JAGGAER folder.
• Exception: Do not move the message if your institution code appears in the subject or body.

If you need assistance configuring notification preferences or setting up Outlook rules, please submit a ticket through the Procurement Service Desk.

Minnesota State Professional Development

Mark your calendar and register today.

These sessions are designed to strengthen system alignment, reduce uncertainty, and provide practical guidance for campus procurement professionals.

External Professional Development

Ongoing professional development strengthens compliance knowledge, sourcing effectiveness, and strategic procurement capability across Minnesota State. Investing time in learning directly supports stronger outcomes for our campuses and the communities we serve.

Questions or Ideas? Email us at procurement@minnstate.edu .

Resource Hub: Access policies, templates, and training materials on our Procurement Community Site (internal employee access only).

Suggest a Topic: What would you like to see in future editions? Share your feedback at procurement@minnstate.edu .

Thank you for being part of Minnesota State’s procurement community. Together, we are building a more efficient, equitable, and resilient supply chain that reflects the diversity of our students and communities. Stay tuned for our next edition on January 08, 2026!