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Supply Chain

About Supply Management

·	Supply Management Web Site

Strategic Business Plan

Supply Chain Overview

Business Strategies

·	Spend Analysis
·	Strategic Sourcing
·	Contract Management
·	Tier 1 Manufacturers
·	Project Management
·	Compliance

Collaborative Buying

·	E&I Cooperative
·	US Communities
·	Novation
·	PA COSTARS
·	PACC
·	Ivy League

Purchasing Bid Board

·	Electronic Sourcing

Supplier Alliances

·	Alliance Partners

Performance Management

·	Benchmarking
·	Best Practices

Performance Metrics

Cost Containment

·	Cost Containment Goal
·	Savings Opportunities
·	Rising Fuel Costs

Return on Investment

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Performance Metrics

Procure-to-pay performance metrics are used by Purchasing Services to quantify results of specific business objectives in our Strategic Business Plan that demonstrates our value and produces significant financial Return-on-Investment (ROI) for the University.

The following are several of the supply chain initiatives we use to achieve the annual performance goals listed below:

Spend Analysis
Strategic review of School and Center specific spend data across all purchase and payment 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.
Collaborative Buying
Utilize local, regional and national collaborative buying business partners to further leverage our buying power.
Compliance
Promote 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.

Purchasing Services has identified a number of key annual performance metrics that are used to determine the overall value of the orgainzation and annual performance of the staff.

Purchasing Services Metrics

Metric Category		Metric Overview
Financial
·	Return-on-Investment (ROI)	Total cost containment versus department operating budget
·	Total Cost Containment	Combination of cost savings and supply chain revenue
Contracting
·	Contracting Summary	Number of new preferred discount contracts
·	Contract Utilization	Spend with preferred contract suppliers
·	Collaborative Buying	Spend with collaborative buying contract suppliers
·	Electronic Sourcing	Number of online competitive bidding events
·	Supplier Rationalization	Number of strategic sourcing related deactivated suppliers
Compliance
·	Purchase Order Spend	BEN Buys purchase order spend
·	Managed Spend	Spend through managed supplier relationships
Penn Marketplace
·	Supplier Enablement	Direct and third party supplier enablement
·	Supplier Spend	Purchase activity of Penn Marketplace suppliers
·	Supplier Utilization	Utilization of Penn Marketplace suppliers
Green Purchasing
·	Green Purchasing Spend	Purchase spend on green products
eMarketing
·	Purchasing Website	Summary of unique visitors to the Purchasing Services Website
·	Supplier Showcase	Summary of unique visitors to the Supplier Showcase
Operations
·	Customer Satisfaction	Percentage of customers very satisfied in bi-annual survey
·	Purchase Order Contracts	Sourcing Manager approved purchase order contracts
·	BEN Buys Approval Hierarchy	School and Center BEN Buys approval hierarchy changes
·	BEN Buys Supplier Questionnaires	Requests for new BEN Buys approved supplier questionnaires
Economic Inclusion
·	Local Community Supplier Spend	Purchase spend with local community based suppliers
·	Diversity Supplier Spend	Purchase spend with all diversity owned suppliers
·	African American Supplier Spend	Purchase spend with all African American owned suppliers
·	Diversity Supplier Enablement	Diversity suppliers enabled in the Penn Marketplace

Travel & Card Services Metrics

Metric Category		Metric Overview
Purchasing Card
·	Purchasing Card Spend	Purchasing and Fleet Card spend
·	Purchasing Card Commodity Compliance	Non-compliance with commodity restrictions
·	Purchasing Card Supplier Compliance	Non-compliance with supplier restrictions
Financial
·	Travel Cost Savings	Negotiated travel services cost savings
·	Travel Revenue	Travel related revenue
Contracting
·	Contracting Summary	Number of new preferred discount contracts

Accounts Payable Metrics

Metric Category		Metric Overview
Process Efficiencies
·	Electronic Invoicing	Percentage of electronic purchase order invoices
·	EDI Process Exceptions	Effectiveness of the electronic invoice business process
·	EDI Invoice Rejections	Number of electronic purchase order invoices rejected due to data error
·	Payment Within Terms	Percentage of supplier invoices paid within terms
·	Clearing Matching Holds	Clearing invoice matching holds to ensure timely payment of supplier invoices
·	Invoice Processing Efficiency	Number of supplier invoices not entered into BEN Financials within 15 days
·	Library Feeder Transactions	University Library transactions transmitted electronically to Accounts Payable
·	Electronic Funds Transfer	Eletronic transfer of funds process used for payment to suppliers
Exception Processing
·	After-the-Fact Transactions	Number of after-the-fact purchase orders approved after the invoice date
·	Internal Disbursement Forms	Number of invoices processed via C-Form
Transactions
·	C-Form Transactions	Internal disbursement forms (C-Form) processed in Accounts Payable

All questions regarding the Procure-to-Pay Performance Metrics are to be directed to Ralph Maier in Purchasing Services.