Tactical to
Strategic –
Shared Stories
Annual Meeting
April 7 - 10, 2013
Orlando, Florida
1
Tactical to Strategic – Shared Stories
• Lisa Deal
Purchasing Director
University of Florida
• Barry Swanson
Associate Vice Provost for Operations/
Chief Procurement Officer
University of Kansas
• Sandy Hicks
Assistant Vice President &
Chief Procurement Officer
University of Colorado
Annual Meeting
April 7 - 10, 2013
Orlando, Florida
2
Tactical to Strategic – Shared Stories
• Three schools
• Introduction by school
• Strategic – hi level discussion
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Laws
Technology
Staff
Campus Engagement
Supplier Engagement
Annual Meeting
April 7 - 10, 2013
Orlando, Florida
3
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
4
Tactical to Strategic – Shared Stories
Annual Meeting
April 7 - 10, 2013
Orlando, Florida
5
– 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
6
Context of
the journey
(2004 present)
• Seat at the
table
• Consolidation
Technology
Journey
• ERP
Implementation
• Consultant
driven
• Blankets
Q
Opportunity
• eCatalogs
• Workflow
• Helpdesk
Future
q1
University of Florida – a journey
7
Staffing
Who we
were - then
• State
employee
• Wages
• Skill sets
• Routine
Now
Future
• Change agents
• Contract
Manager
Q
q1
8
Strategic Sourcing
•
•
•
•
•
•
Consultants
Trained UF Staff
Contract adoption
Stakeholder engagement
Business reviews
Contract compliance
9
Campus Engagement
•
•
•
•
•
Site visits
Advisory
Selection committees
Two trade shows annually
Helpdesk
10
The University of Kansas
Mission
Teaching, research & service
Education
AAU research university
Research
Expenditures exceed 334,227.000 million for KU and KU Medical Center
combined.
Service to Kansans
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The University of Kansas
The 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Graduate from an outdated procurement model that fueled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
12
Discussion Topics
• Governance
• Benchmarking and Culture
• Technology
• The New Frontier
13
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
14
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
15
Benchmarking and Culture
• Data Driven
• Measurement Analyses
– Baseline Development
– Projected Savings Estimate
– Actual Savings Achieved
16
The Role of Technology
•
•
•
•
Automate Business Processes
Use Best in Class Tools
Make the Best Way the Easiest Way
Build Toolbox for Campus Customers
17
The New Frontier
• Organization
• Technology
• Spend Analytics Data
• Collaboration
18
Organization
19
Technology
• PeopleSoft 9.0
• SciQuest
• IonWave Technologies
• Result
– KUPPS – KU Procure to Pay System
20
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
21
Collaboration
• Advisory Board Training and Best Practices
• Spend Compass Comparative Data
• Advisory Board Provided Data Analysis
• Campus Advisory Groups
• Regent’s Purchasing Council
22
University of Colorado
Procurement Rules/Legislative Freedom
HB 04-1009 Opt-out of State Procurement
Rules
University of Colorado Procurement Rules
effective 7/1/05
SB 10-003 Flexibility Legislation
University of Colorado Fiscal Procedures
effective 7/1/10
Technology Adoption
CU Marketplace - SciQuest
Concur Travel & Expense
Spikes Cavell Spend Analytics
Perceptive Software – Image Now
Human Resource Development
Supplier
Relationship
Manager/Specialist
Business Analyst
Director of Travel &
Commercial Card
Director of
Procurement
Operations
Supplier
Enablement
Analyst
Travel Coordinator
Director of
Strategic
Procurement
Procurement
Systems Analyst
Director of
Procurement
Systems & Payable
Services
Human Resources Strategy
Internal PSC Candidates
Student Employees
Internal University Candidates
External Higher Ed Candidates
External Industry Candidates
Campus Engagement
Supplier Showcases
Procurement Month Open Houses
Townhall Meetings
Surveys
Department Outreach
Supplier Relationship Management
Supplier Segmentation
Quarterly Business Reviews
Dedicated Staff
Suppliers View CU as a Top Customer
CU Program Success
SUPPLIER BREAKFAST WITH
PRESIDENT BENSON AS THE
GUEST SPEAKER
Learning along the journey
• Look for opportunity
• Be prepared
• Be persistent
• Don’t be afraid
• Luck counts
• Have fun!
31
Tactical to
Strategic –
Shared Stories
Annual Meeting
April 7 - 10, 2013
Orlando, Florida
32