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Spend Analysis
Purchasing Services is charged with producing financial
Return-on-Investment (ROI) by leveraging the University's buying power
through best-in-class supply chain management, increasing compliance with approved buying
methods and strategic suppliers, and reducing the cost of required products and services.
Leveraging University spend is traditionally achieved by utilizing sourcing initiatives to
target specific commodities and suppliers. The Spend Analysis initiative promotes on a more
strategic and collaborative analysis of purchase data by enabling a designated Purchasing
Services sourcing team to conduct a formal review of an organization's 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 polices
and procedures.
The primary objective of this initiative is to transform School and Center specific purchase
data into increased efficiency and cost containment opportunities for the organization.
Purchasing Services will initiative a project by meeting with School and Center
representatives, discuss their goals related to streamlining the procurement process and
improving spend management, and identify specific process improvement and cost containment
objectives.
We will focus on:
- What the Organization buys
- How the Organization buys
- Who the Organization buys from
The sourcing team will asses purchase activity,
supplier relationships, and potential cost savings opportunities.
We will:
- 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
Upon completion of each Spend Analysis initiative, Purchasing Services will submit a final
report to the School or Center senior administration outlining a full and accurate picture
of the organization's purchasing spend and supplier base required to help deliver the best
products and/or services at least total cost to the institution. Thereafter, follow-up
Spend Analysis reviews will be conducted on an annual basis to ensure continued best-in-class
procurement, identify any changes to purchase spend patterns or requirements, and target
new contracting/cost containment opportunities.
School Initiatives
Center Initiatives
Key Accomplishments
The following is a summary of key accomplishments and cost savings resulting from
the School of Medicine Spend Analysis initiative.
Total Spend Analysis Project Cost Savings by Fiscal Year
|
Fiscal Year |
Reported Cost Savings |
| FY2009 (YTD) |
$163,779 |
| FY2008 |
$1,787,572 |
| FY2007 |
$977,859 |
| FY2006 |
$238,571 |
| Total Project Cost Savings: |
$3,167,781 |
Note: These savings are part of the total
Cost Containment statistics.
Please direct all questions related to this cost containment initiative to
Ralph Maier in Purchasing Services.
|
