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Strategic sourcing

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Strategic sourcing - A System-wide, Collaborative Purchasing Process

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Strategic sourcing

  1. 1. STRATEGIC SOURCING A System-wide, Collaborative Purchasing Process
  2. 2. Strategic Sourcing To develop and implement an effective system-wide, collaborative purchasing process designed to maintain or increase customer satisfaction (by enhancing product quality and service levels) and significantly lowering total cost by coordinating and leveraging common purchases across the UC system. MISSION
  3. 3. Strategic Sourcing Complete Customer Satisfaction. Continuous Improvement of Internal Service Levels and Product Quality. Process Excellence.  Significant Total Cost Reduction (5%-15% Target). Goals
  4. 4. Strategic Sourcing  Visible, Active Executive Sponsorship – A Single Vision – Internal Cooperation and Participation  End User Focus and Involvement – Clear Understanding of User Requirements – Use of Cross Functional/Departmental Teams  Data Integrity – Rigorous Analysis – Fact Based Decisions  Appropriate Use Of Technology – Internet Enabled E-Procurement – Solid, Reliable System Infrastructure  Continuous Process Improvement – Establish Best Practices/ Key Performance Indicators – Constantly Measure Results and Implement Improvements CRITICAL SUCCESS FACTORS
  5. 5. Road Map INCREASED CUSTOMER SATISFACTION and SIGNIFICANT COST REDUCTIONS Technology Implementation of Best Practices Identify/Prioritize Opportunities Establish User requirements Execute RFP Process/Select Supplier Develop Timely and Accurate View of Spending Data Simplify and Stream-line Processing (P-Card) E-Procurement Development Strategic Sourcing Products and Services Processes Rationalize Current Specifications Evaluate New/Alternative Products Identify Non-Value Activities Best Practices Analysis Business Process Analysis Implement Continuous Improvement Practices/Metrics Conduct Spend Diagnostic Launch Cross Functional/Divisional Teams MISSION STRATEGIES TACTICS Monitor Compliance Collaborative Purchasing Process
  6. 6. Current Teams  Purchasing Card (P-Card)  Office Products ($25mm)  UC Press ($10mm)  Fed X ($10mm)  Fitness Equipment ($3mm)  Lab Supplies ($120mm)  Appliances (under evaluation)  Dormitory Furniture (under evaluation)
  7. 7. Commodity Groups  Athletic & Recreational Supplies  Auto Rental  Business Equipment  Computer Equipment & Maintenance  Computer Supplies  Computer Software  Departmental Stores  Entertainment Services  Environmental Services  Explosives and Firearms  Food Services  Freight and Shipping Service & Supplies  Furniture (office and housing)  Laboratory Supplies & Equipment  Pharmaceuticals  Printing Services  Maintenance/Repair/Operations  Medical Equipment  Medical Services  Medical Supplies  Miscellaneous Equipment  Miscellaneous Services  Miscellaneous Supplies  Multimedia Supplies  Office Supplies  Professional Services  Security  Site Maintenance  Telecommunications Equipment  Temporary Services  Theater Supplies  Travel  Utilities
  8. 8. Major Commodity Relationship Groups  Professional Services – Professional Services – Temporary Services  Miscellaneous – Utilities – Misc. Equipment – Printing Services and Supplies – Furniture – Business Equipment – Freight & Shipping Supplies – Misc. Other, Includes: • Athletic & Rec. Supplies • Auto Rental • Collections • Departmental Stores • Explosives & Firearms • Literary Services • Medical Equipment • Misc. Supplies • Site Maintenance • Theater Supplies  Services – Medical Services – Food Services – Entertainment Services – Travel – Misc. Services – Security – Environmental Services  Supplies – Laboratory Supplies – Maintenance/Repair/Operations – Medical Supplies – Multimedia Supplies – Office Supplies – Pharmaceuticals  Telecommunications/Computer – Computer Equipment – Computer Supplies/Software – Telecommunications Equipment/ Services

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