Spend Analysis

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

Key Accomplishments

The following is a summary of documented cost savings achieved by fiscal year as a result of the Spend Analysis initiative.

Note: These savings are part of the total Cost Containment statistics.