Managing supply chain strategies
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LAU: transformation in the education sector WRITTEN BY
SEAN GALEA-PACE PRODUCED BY
ALEX BARRON
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LEBANESE AMERICAN UNIVERSITY
Khalil Feghali, Senior Procurement Associate/Assistant Director of Procurement at LAU, discusses the supply chain strategies his organisation is implementing in order to achieve and sustain its success in Lebanon’s education sector
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s a leading private higher education institution in Lebanon, Lebanese American University (LAU) is an organisation with
a rich past in the teaching of the next generation. With seven schools and 20 centres and institutes 04
between its campuses in Beirut and Byblos, LAU welcomes more than 8,500 students from 78 different nationalities through its doors. Khalil Feghali, Senior Procurement Associate/Assistant Director of Procurement at LAU, believes his organisation has evolved significantly through the launch of its new buildings since he joined the Beirut campus in 2009. “The university has grown considerably since I first came on board; we’ve had four major capstone projects built, and our office has purchased all the furniture, furnishings and equipment for each of these buildings,” says Feghali. “In 2010, we introduced Frem Civic Centre in Byblos; 2013 saw the Gilbert and Rose-Marie Chagoury Health Sciences Centre open, in 2017, we unveiled the Engineering Laboratories and Research Centre and last year, the new Library
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LEBANESE AMERICAN UNIVERSITY
“ We have to stay at the top of our game and try to make the best use of the existing technology” — Khalil Feghali, Senior Procurement Associate/Assistant Director of Procurement of LAU
building, which is really a landmark building in terms of architecture and the environment, opened its doors for the first time too. The latest addition to Byblos campus is the new Central Administration building which is in its final stages towards completion.” The university partnered with 39 pharmacies and 24 hospitals in Lebanon, including the Houston Methodist Hospital and four Walgreens sites in the US, in a bid to provide learning and experimental education opportunities to pharmacy students.
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As such, the university maintains
CLICK TO WATCH : ‘WHY CHOOSE LAU’ 07 partnerships with industry leaders and
he explains. “Now, having undergone
other sponsors as well as increasing
a rigorous procurement policy and
students’ educational and training
well-designed procurement procedures,
opportunities while opening up research
as well as the integrity and the exemplary
collaboration options for faculty
work ethic of its procurement staff, have
members. LAU operates with an
all enabled a significant contribution.
ambitious roadmap, aiming to position
Our reputation has accelerated as an
itself as the leading regional institution of
equal opportunity buyer that treats all
higher learning across the Middle East
bidders for supply contracts fairly and
and North Africa region. Feghali points
equally throughout the years.”
to the impact his organisation has had
With procurement vital to the growth of
on Lebanon’s education sector overall.
companies worldwide, Feghali observes
“A 2017 study showed that LAU
how procurement has become an
contributed $897mn into the country’s
important strategic function that
economy for the fiscal year 2015-2016,”
stands at the forefront of operations. w w w.l a u . ed u . lb
LEBANESE AMERICAN UNIVERSITY
08 “Our goals have been to contribute to
“Supply chain transformation
the achievement of the university’s
impacts all aspects of our procurement
objectives through three things,”
operations such as the degree of
affirms Feghali. “Firstly, we must get
cooperation and coordination with
the most in terms of value from the
internal customers, the quality of our
acquisition of goods and services.
relationships with suppliers, and the
Next, we must streamline the acquisi-
aligning of the employees behind the
tion process itself, which will enable
vision and ensuring they work collabo-
the reduction of costs and the opportu-
ratively to develop the critical role
nities for errors in it. Finally, we must
of partner with internal customers,”
control the expenditure of funds
he says. “The organisation has to
through ensuring compliance with the
continue evolving in order to improve
university’s procurement policy and
efficiency, achieve standardisation, and
procedures, with the budget and
for succession planning. Finally, process
with record keeping requirements.”
improvements will have to be imple-
mented to enforce standardisation,
“Since we began using the system
achieve data integrity, facilitate perfor-
three years ago, lots of lessons have
mance measurement and communicate
been learned and we’ve consistently
the results, thereby enabling us to get
reviewed how we can make our
the most from the technology in place.”
services better,” says Feghali. “We could
Due to the way digital transforma-
improve the collection of data for the
tion is defining how all organisations
purpose of automating commodity
the world over conduct operations,
segmentation and portfolio analysis for
there has been a competitive drive
the goods and services we purchase.”
from a range of companies globally
Although leveraging new technol-
to introduce new technology quicker
ogy is largely considered a positive
than the competition. In the case of
change by businesses, the impor-
LAU, the university has implemented
tance of introducing software and
systems such as the Oracle iProcure-
processes that enhance its current
ment modules over the past few years.
offering can’t be overlooked.
E XE CU T I VE PRO FI LE
Khalil Feghali, Senior Procurement Associate / Assistant Director of Procurement Holder of an engineering degree, a MBA and ISM’s C.P.M.® (Certified Purchasing Manager) and CPSM® (Certified Professional in Supply Management) designations, Khalil Feghali has over 20 years of professional experience in procurement management in several industrial sectors including manufacturing, construction, oil & gas and higher education, both in Lebanon and abroad.
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LEBANESE AMERICAN UNIVERSITY
“ The recruitment of a director of procurement for both campuses is expected to give us a boost” 10
— Khalil Feghali, Senior Procurement Associate/Assistant Director of Procurement of LAU
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“ Supply chain transformation impacts all aspects of our procurement operations” — Khalil Feghali, Senior Procurement Associate/Assistant Director of Procurement of LAU
“We’re delaying any introduction of new technology, in terms of spend analysis tools or contract management systems, because there’s a lot more we can do with the existing system,” explains Feghali. “Until we feel comfortable that we’ve achieved as much as we can with our current model, we can hold off on alternative options until later on. It’s important to work with internal customers to help change their perception of the procurement function here at LAU and convince them of the new value proposition that the procurement office can deliver.” With innovation considered an important priority at LAU, the university launched the LAU Fouad Makhzoumi Innovation Centre, inaugurated in April 2019, with two pillars – entrepreneurship and academia – to be the hub for entrepreneurial innovation. The Centre will serve as an accelerator, and to enhance educational and training activities through regular international conferences, lecture series, scholarly workshops and international research to foster creativity and innovation. “The university places huge importance on the training of its employees and values their continuous development w w w.l a u . ed u . lb
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LEBANESE AMERICAN UNIVERSITY
and the upgrading of their skills,” says Feghali. “In 2017, a study indicated that, from 2011 to 2015, the amount spent on learning or training for employees was in the $30 millions figure. It’s vital to us.” Looking to the future, Feghali has clear ideas of how procurement at LAU can continue to be successful in the future. “We have to stay at the top of our game and try to make the best use of the existing technology,” he says. “The recruitment of a director of procurement for both campuses is expected to give us a boost in terms 14
of implementing the direction that we want to go in and which consists of laying the groundwork for the future transformation of the procurement function into a more strategic supply management operation. This starts with the implementation of processes for measuring and quantifying the existing situation so as to enable the devising of a departmental strategic plan for the subsequent period.”
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1924
Year founded
637
Full-time staff members
318
Full-time faculty
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Mme Curie Street P.O. Box 13-5053 Chouran Beirut 1102 2801, Lebanon T +961-1-786456 www.lau.edu.lb