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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.
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