JUMPSTART YOUR

STRATEGIC SOURCING INITIATIVE!

Three major tools developed by UVa Procurement & Supplier Diversity Services that any University can

use to jumpstart its strategic sourcing initiative:

• Three-Year Strategic Plan • Departmental Spend Dashboard • Vendor Scorecard

2. Departmental Expenditure

Dashboard

1. Opportunity

Analysis &

Strategic Plan

Develop a plan based on

analysis of key commodities

3. Vendor

Scorecard

Bring your analyses to your customers in order to build

internal relationships, prove your value, and develop

procurement solutions to meet their needs

Customers rank vendor

quality & performance to

drive improvement

Strategic Sourcing Procurement Schedule - Phase 1

Spend Category Time to

Release of RFP

Time from RFP to Agreement

Potential Savings

Strategic Value to

Institution

Total Spend (FY14)

Suppliers Representing 80% of Spend

Comments

Inbound Freight 0 1 20%-40% 1 $XXX 2 Historically unaddressed category.

Office Furniture 1 3 3%-10% 2 $XXX 3 VCE requirements add significant hurdles to strategic process.

Housekeeping Supplies 1 3 5%-20% 2 $X-$XX 3

Travel Expense Management 2 2 N/A 4 N/A N/A Ongoing project is reviewing current and potential systems for managing expense payment processing. Final recommendation will include significant streamlining and efficiency gains.

Travel - Booking 2 2 2%-3% 4 $X-$XX N/A

Total travel-related spend is $XXX per year. In combination with Expense Management solution, PSDS is investigating a travel booking solution which could save 2-3% on air and hotel bookings.

Promotional Products 3 2 10%-24% 1 $XXX 7

Gift Cards 3 2 5% 2 $XXX N/A Historically unaddressed category. Potential spend with Human Subject Payments, Honoraria, Gifts, and Awards is $XXX.

Computer Hardware & Peripherals

3 3 5%-13% 2 $X-$XX 8 Spend data is still being analyzed.

Equipment Repair & Maintenance

4 1 15-30% 2 $X-$XX 38 Anticipate a short time to agreement, but equipment standardization could require a lengthy implementation period.

Lab Supplies 4 4 3%-7% 4 $XXX 97 Sequestration and reduced NIH funding will affect total spend amount. Will be addressed in Phase 2.

Projects Planned for Phase 2 Implementation High Strategic Value but recently-competed

and require a proven track record

Legend Timing / Value

Computers Low 0

Multi-function Devices 1

Lab Supplies Medium 2

3

High 4

Department Example: Expenditure Dashboard University School or Unit, May 2013-April 2014

Quick Facts

Total Expenditures:

$20,000,000, of which:

$10,000,000 (50%) Personal

Services

$10,000,000 (50%) OTPS (Other

Than Personal Services)

Major Procurement Activity:

Bulk Fuel (RFP)

Service Maintenance (RFP)

Office Supplies (RFP)

Opportunities for Savings

1) Spend with contract vendors is 9% of OTPS spend. PSDS can work with high-dollar and/or high-volume vendors to negotiate better value.

Examples: Parts (Currently using 12 vendors. Issuing 1 contract and leveraging spend could result in cost, freight and time savings), Vendor Two Services (P-Card Use would reduce administrative duties), Vendor 3 (Work with Company to become SWaM-certified, establish contract)

P-Card usage is 2.8% of OTPS spend and total reimbursements are 0.4% of OTPS spend. 2) Office Supply spend is $100k, or 1.0 % of OTPS spend. PSDS is working on a new office supply RFP with a goal of saving 15-20% off of current contract pricing. 3) Other potential opportunities: Consolidate Promotional/Apparel vendors (total spend: $107,152); Rent/Buy equipment (total spend: $66,370)

Top Inter-University Payments by Spend Vendor Spend OTPS

1. Facilities Mgmt. $3,000,000000

30%

2. Parking & Transportation $1,200,000 12%

3. Medical $33,000 0.3%

4. ITS $32,000 0.3%

5. Travel Reimbursements $25,000 0.3%

Total Top Inter-University Payments:

$4,322,250 43.2%