Tactical to Strategic – Shared Stories

1Annual MeetingApril 7 - 10, 2013Orlando, Florida

Tactical to Strategic – Shared Stories

• Lisa DealPurchasing DirectorUniversity of Florida

• Barry SwansonAssociate Vice Provost for Operations/Chief Procurement OfficerUniversity of Kansas

• Sandy HicksAssistant Vice President & Chief Procurement OfficerUniversity of Colorado

Annual MeetingApril 7 - 10, 2013Orlando, Florida

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Tactical to Strategic – Shared Stories

• Three schools• Introduction by school• Strategic – hi level discussion– Laws– Technology– Staff– Campus Engagement– Supplier Engagement

Annual MeetingApril 7 - 10, 2013Orlando, Florida

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NAEP 2012 Innovators Forum

• Calculate ROI and Communicate Procurement’s Value Proposition

• Manage Cost Savings and Revenue Generation

• Leverage Technology • Establish a Strategic Plan • Manage Supply Chain and Total Cost

of Ownership (TCO) • Move from Tactical to Strategic

Procurement • Engage Users • Prepare Staff and Develop Leadership

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Tactical to Strategic – Shared Stories

Annual MeetingApril 7 - 10, 2013Orlando, Florida

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– AAU– 5th largest University– Research expenditures: $644

million– 50,000 students– Over 11,000 staff and faculty

Purchasing– Annual expenditures over 430

million– 8 professional buying staff plus

management team– PCard: over 85 million and

374,000 transactions

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Q q1

University of Florida – a journey7

Q q1

Staffing

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Strategic Sourcing

• Consultants• Trained UF Staff• Contract adoption• Stakeholder engagement• Business reviews• Contract compliance

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Campus Engagement

• Site visits • Advisory• Selection committees• Two trade shows annually• Helpdesk

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The University of KansasMissionMission

Teaching, research & service

EducationEducation AAU research university

ResearchResearchExpenditures exceed 334,227.000 million for KU and KU Medical Center combined.

Service to KansansService to Kansans

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The University of KansasThe Procurement GoalThe Procurement Goal

Graduate from an outdated procurement model that fueled inefficiencies:– University transactions governed by state of Kansas

process and procedure– Deans & Vice Provosts operating with great autonomy – Very little enterprise collaboration or coordination– Procurement focus on process & compliance - not on

enterprise efficiencies, cost savings & results– The focus of University budgets were at the

departmental level, not at the enterprise level

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Discussion Topics

• Governance

• Benchmarking and Culture

• Technology

• The New Frontier

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Governance

• Reform Efforts Fail• Legislative Changes

» 2006- Senate Bill 52 (KSA 76-769) » 2010- House Bill 2433

• Phase I - Policy and Procedure Development» Extensive Research of Peer Institutions for Best

Practices

• Phase II –Pilot Project» Flexibility With Good Internal Controls» Results Oriented

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Benchmarking and Culture

• Phase III- Purchasing Goes Strategic

• Implement a new way of thinking– Focus on developing strategic business partnerships– Implement methodology and approaches to capture more

savings:• Encourage Supplier Competition • Replace Old Item Specific Contracts with New Strategic

Business Partnership Style Contracts

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• Data Driven

• Measurement Analyses – Baseline Development– Projected Savings Estimate– Actual Savings Achieved

Benchmarking and Culture

The Role of Technology

• Automate Business Processes • Use Best in Class Tools• Make the Best Way the Easiest Way• Build Toolbox for Campus Customers

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The New Frontier

• Organization

• Technology

• Spend Analytics Data

• Collaboration

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Organization

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Technology

• PeopleSoft 9.0

• SciQuest

• IonWave Technologies

• Result– KUPPS – KU Procure to Pay System

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Spend Analytics Data

• Spend Compass– Use VTR’s to build initial site– Proactive versus Reactive

• Buyer’s use data to identify contract opportunities, vendor selection and use peer benchmark data as contracts are negotiated.

– Departments use data to identify cost saving opportunities and compliance with departmental policy.

– Advisory Board performs off-line contract price compliance analysis and identifies cost recovery opportunities.

– Data will eventually flow from KUPPS

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Collaboration

• Advisory Board Training and Best Practices

• Spend Compass Comparative Data

• Advisory Board Provided Data Analysis

• Campus Advisory Groups

• Regent’s Purchasing Council

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University of ColoradoUniversity of Colorado

Procurement Rules/Legislative Freedom

Technology Adoption

Human Resource Development

Human Resources Strategy

Campus Engagement

Supplier Relationship Management

SUPPLIER BREAKFAST WITH PRESIDENT BENSON AS THE

GUEST SPEAKER

CU Program Success

Learning along the journey

• Look for opportunity • Be prepared• Be persistent

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• Don’t be afraid• Luck counts• Have fun!

Tactical to Strategic – Shared Stories

32Annual MeetingApril 7 - 10, 2013Orlando, Florida