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Purchasing Services is the organization responsible for managing external supplier
business relationships for the effective and efficient procurement of construction,
equipment, supplies, and services necessary to support the education and research
mission of the institution.
The effective management of supplier business relationships enables Purchasing Services
to leverage and maximize the value of each dollar of funding. At Penn,
the cost of construction, equipment, supplies and services required to support
the institution's education and research mission can represent up to 23 percent of the
University's annual operating budget. Our supply chain strategies provides
the organization with a better understanding of total university-wide purchases,
the scale of our approved supplier base, and supplier performance in order to make
better strategic sourcing decisions. Using this initiative, Purchasing Services can
reduce enterprise spend, consolidate and prioritize suppliers, reduce supplier risk
and align procurement strategies with institutional goals. These initiatives delivers
supplier intelligence through data management and spend analytics to leverage all
aspects of supplier data and purchasing history, thereby optimizing strategic sourcing
and achieving significant cost savings.
Consisting of four fully integrated components, supply chain strategies enables
Purchasing Services to maintain the flexibility needed to focus on existing business
opportunities while expanding into other areas of value-added professional procurement
services:
- Spend Analysis
Strategic review of School and Center specific spend data across all buying methods
to increase compliance and identify new organization specific contracting and cost
containment opportunities.
- Strategic Sourcing
Innovative supply base management initiatives to leverage the institution's buying
power and maximize the value of strategic supplier business relationships.
- Contract Management
Development and implementation of university-wide best-in-class contract pricing
agreements that provide the University community with "least total cost"
for products and services required from external suppliers.
- Tier 1 Manufacturers
Strategic sourcing initiative that is designed to leverage contracting and cost
savings opportunities with the University's high volume spend manufacturers.
- Project Management
Commodity, construction, and technology projects facilitated by Purchasing Services
to further enhance the procure-to-pay process and support the strategic business
goals of the organization.
- Compliance
Promoting faculty and staff compliance with procurement and disbursement financial
policies and related procedures as well as utilization of University authorized
buying methods and contract suppliers.
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