Strategic Sourcing Summary and Process Achievements
"Learn about the strategic sourcing initiatives undertaken by the UW Procurement Team in collaboration with Huron, resulting in significant cost savings across scientific supplies, office products, and laptops/desktops. Explore the methodology, current status, and estimated savings achieved. Confidential supplier relationships and finalized contracts contribute to savings totaling $2.7M over three years."
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Presentation Transcript
STRATEGIC SOURCING SUMMARY PROJECT SCOPE & DETAILS BEGINNING IN DECEMBER 2016, THE UW PROCUREMENT TEAM HAS BEEN WORKING WITH HURON TO OBTAIN COST SAVINGS FOR THREE COMMODITY CATEGORIES THROUGH A FULL-CYCLE STRATEGIC SOURCING PROCESS. THE SOURCING INITIATIVES HAVE COVERED THE FOLLOWING CATEGORIES: - SCIENTIFIC SUPPLIES - OFFICE RELATED PRODUCTS - DESKTOPS AND LAPTOPS
STRATEGIC SOURCING PROCESS BY WORKING COLLABORATIVELY WITH HURON, THE UW PROCUREMENT TEAM ALONG WITH COMMITTEES COMPRISED OF CAMPUS MEMBERS HAVE ENGAGED IN THE BELOW STRATEGIC SOURCING METHODOLOGY FOR EACH OF THE CATEGORIES. CURRENT STATE PROCESS MAPPING, BENCHMARKING EXERCISES, AND SOURCING EXECUTION FACILITATION HAVE BEEN CONDUCTED TO GENERATE COST SAVINGS THROUGH COMPETITIVE ESTABLISHMENT OF PREFERRED SUPPLIER CONTRACTS AND THROUGH DEMAND MANAGEMENT ACTIVITIES ACROSS THE UNIVERSITY. THE SCIENTIFIC SUPPLIES STRATEGIC SOURCING RFP HAS ALSO INCLUDED AN ASSESSMENT OF UW S SCIENTIFIC SUPPLIES PURCHASE, DELIVERY, AND TRACKING PROCESSES.
STRATEGIC SOURCING PROCESS TO-DATE STATUS & ESTIMATED SAVINGS TOGETHER, THE UW PROCUREMENT AND HURON TEAM WERE ABLE TO ACHIEVE ~$1M IN SAVINGS FOR YEAR 1 AND ~$2.7M IN SAVINGS OVER 3 YEARS. AS PREFERRED SUPPLIER RELATIONSHIPS ARE CONFIDENTIAL UNTIL CONTRACT FINALIZATION, AWARDED SUPPLIERS CANNOT BE ANNOUNCED AT THIS TIME Laptops / Desktops Finalizing MOT document with preferred supplier preferred supplier Scientific Supplies Negotiations with supplier on-going ; Letter of Intent has been provided to preferred supplier $3,175K+ Category Office Supplies MRO* TOTAL Finalizing MOT document with Key stakeholder interviews completed; Collecting supplier transactional data TBD Current Status N/A $705K+ $965K+ $4,845K+ Est. Annual Spend Est. Annual Recurring Savings $161,700 $108,600 $538,770 TBD $809,070 ~11% savings at 55% standard models adoption N/A Annl. Recurring Savings % ~23% ~16% TBD ~15% $200,000 $75,000 TBD $275,000 Signing Bonus Negotiated Est. Total Year 1 Savings + Signing Bonus Est. Total 3-Year Contract Savings $361,700 $108,600 $613,770 TBD $1,084,070 $685,100 $325,800 $1,691,310 TBD $2,702,210
