Supply Chain >
A Collaborative Contracting and Cost Containment Initiative
with Schools and Centers
The Spend Analysis initiative promotes a strategic and collaborative analysis
of School and Center purchase data across all buying methods to determine the
appropriateness of buying decisions, use of approved buying methods and sources
of supply, and compliance with University procurement policies and procedures.
About the Process
Purchasing Services assigns a specific Sourcing Manager who will meet with
School and Center senior financial officer, discuss their goals related to streamlining
the procurement process and improving spend management, and identify specific process
improvement and cost containment objectives.
The Sourcing Manager utilizes a
Spend Analysis business plan to determine:
- What the Organization buys
- How the Organization buys
- Who the Organization buys from
A sourcing team will analyze the purchase data, specific supplier activity,
and potential cost savings opportunities.
The Sourcing Manager will then:
- Collect and analyze all spend data throughout the organization
- Submit a formal spend analysis business plan
- Identify potential opportunities to leverage spend
- Negotiate with targeted suppliers for cost containment opportunities
- Submit periodic progress reports to the School or Center liaison assigned to the sourcing team
Purchasing Services will submit a final report to the School or Center senior
financial officer outlining a comprehensive picture of the organization's purchasing
spend and supplier base required to help deliver the best products and services at
least total cost to the institution. Thereafter, follow-up Spend Analysis reviews
will be conducted on a periodic basis to ensure continued best-in-class procurement,
identify any changes in the organization's purchase spend patterns or requirements,
and pursue new contracting and cost containment opportunities.
Active School & Center Initiatives
The following is a summary of documented cost savings achieved by fiscal year
as a result of the Spend Analysis initiative.
Reported Cost Savings
|Total Project Cost Savings:
Note: These savings are part of the total
Cost Containment statistics.