Penn Purchasing Services
University of Pennsylvania
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Supply Chain
>> About Supply Management

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>> Performance Metrics
>> Cost Containment

· Fuel Surcharges
>> Return on Investment
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Return on Investment

The success of the Purchasing Services organization is measured by its performance against annual and multi-year business objectives that are in alignment with the goals of the University's President and Executive Vice President. Our Strategic Business Plan supports the institution's procure-to-pay business objectives, facilitates the pursuit of significant financial Return-on-Investment (ROI), and provides a blueprint for the future success of the organization.

Upon completion of the Procurement Enhancement Initiative and campus wide implementation of BEN Financials in July 1996, a formal Cost Containment program was launched to reduce the overall cost of products and services purchased each year by the institution. Since that time, financial ROI has been determined by the combination of documented product and service cost savings and purchasing related revenue versus the organization's annual operating budget.

Between July 1996 and June 2006, cost containment initiatives have generated $88.7 million in documented financial ROI. Based on the department's aggregate annual operating budget of $9 Million over the ten year period, the cost containment accomplishment translates to a 9:1 ROI ratio for the ten year period. In June 2006, Purchasing Services launched a new four year $50 Million cost containment initiative that will build upon the success of the past decade and produce even greater financial ROI.

The use of innovative supply chain business strategies during the past ten years has transformed Purchasing Services to a leadership position in supply management, enabling the organization to achieve numerous awards and recognition in the industry.

Return-on-Investment Ratio

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