JUMPSTART YOUR
STRATEGIC SOURCING INITIATIVE!
Three major tools developed by UVa Procurement & Supplier Diversity Services that any University can
use to jumpstart its strategic sourcing initiative:
• Three-Year Strategic Plan • Departmental Spend Dashboard • Vendor Scorecard
2. Departmental Expenditure
Dashboard
1. Opportunity
Analysis &
Strategic Plan
Develop a plan based on
analysis of key commodities
3. Vendor
Scorecard
Bring your analyses to your customers in order to build
internal relationships, prove your value, and develop
procurement solutions to meet their needs
Customers rank vendor
quality & performance to
drive improvement
Strategic Sourcing Procurement Schedule - Phase 1
Spend Category Time to
Release of RFP
Time from RFP to Agreement
Potential Savings
Strategic Value to
Institution
Total Spend (FY14)
Suppliers Representing 80% of Spend
Comments
Inbound Freight 0 1 20%-40% 1 $XXX 2 Historically unaddressed category.
Office Furniture 1 3 3%-10% 2 $XXX 3 VCE requirements add significant hurdles to strategic process.
Housekeeping Supplies 1 3 5%-20% 2 $X-$XX 3
Travel Expense Management 2 2 N/A 4 N/A N/A Ongoing project is reviewing current and potential systems for managing expense payment processing. Final recommendation will include significant streamlining and efficiency gains.
Travel - Booking 2 2 2%-3% 4 $X-$XX N/A
Total travel-related spend is $XXX per year. In combination with Expense Management solution, PSDS is investigating a travel booking solution which could save 2-3% on air and hotel bookings.
Promotional Products 3 2 10%-24% 1 $XXX 7
Gift Cards 3 2 5% 2 $XXX N/A Historically unaddressed category. Potential spend with Human Subject Payments, Honoraria, Gifts, and Awards is $XXX.
Computer Hardware & Peripherals
3 3 5%-13% 2 $X-$XX 8 Spend data is still being analyzed.
Equipment Repair & Maintenance
4 1 15-30% 2 $X-$XX 38 Anticipate a short time to agreement, but equipment standardization could require a lengthy implementation period.
Lab Supplies 4 4 3%-7% 4 $XXX 97 Sequestration and reduced NIH funding will affect total spend amount. Will be addressed in Phase 2.
Projects Planned for Phase 2 Implementation High Strategic Value but recently-competed
and require a proven track record
Legend Timing / Value
Computers Low 0
Multi-function Devices 1
Lab Supplies Medium 2
3
High 4
Department Example: Expenditure Dashboard University School or Unit, May 2013-April 2014
Quick Facts
Total Expenditures:
$20,000,000, of which:
$10,000,000 (50%) Personal
Services
$10,000,000 (50%) OTPS (Other
Than Personal Services)
Major Procurement Activity:
Bulk Fuel (RFP)
Service Maintenance (RFP)
Office Supplies (RFP)
Opportunities for Savings
1) Spend with contract vendors is 9% of OTPS spend. PSDS can work with high-dollar and/or high-volume vendors to negotiate better value.
Examples: Parts (Currently using 12 vendors. Issuing 1 contract and leveraging spend could result in cost, freight and time savings), Vendor Two Services (P-Card Use would reduce administrative duties), Vendor 3 (Work with Company to become SWaM-certified, establish contract)
P-Card usage is 2.8% of OTPS spend and total reimbursements are 0.4% of OTPS spend. 2) Office Supply spend is $100k, or 1.0 % of OTPS spend. PSDS is working on a new office supply RFP with a goal of saving 15-20% off of current contract pricing. 3) Other potential opportunities: Consolidate Promotional/Apparel vendors (total spend: $107,152); Rent/Buy equipment (total spend: $66,370)
Top Inter-University Payments by Spend Vendor Spend OTPS
1. Facilities Mgmt. $3,000,000000
30%
2. Parking & Transportation $1,200,000 12%
3. Medical $33,000 0.3%
4. ITS $32,000 0.3%
5. Travel Reimbursements $25,000 0.3%
Total Top Inter-University Payments:
$4,322,250 43.2%