Miami is undertaking a strategic purchasing initiative in response to some Strategic Priorities Task Force recommendations.
Over the summer Miami hired Accenture to perform a six-week assessment of the university’s spending patterns with the goal of identifying opportunities for improvement. Accenture compiled data from the Buyway system, the purchasing card, and Banner to develop a comprehensive portrait of the Miami’s purchasing patterns, to analyze the “addressable” portion of the total procurement, and to identify strategic sourcing opportunities.
Based on Accenture’s study, Miami has prioritized the following strategic sourcing opportunities to pursue initially. We have re-engaged Accenture to assist us with these initiatives over the next five months. (Related PDF below.)
1. construction, architects and engineering
2. prompt payment terms
3. printing services
4. Maintenance Repair and Operations (MRO) services
5. MRO materials
8. wireless telecom
Miami anticipates almost $2 million in annualized savings from these targeted opportunities through a likely combination of new contracts, improved current contracts, and process improvements.
“We will not be able to accomplish this without support throughout the entire campus community,” said David Creamer, vice president for finance and business services. “To achieve our targeted outcomes, we request your assistance in two main areas: identifying business needs and standards, and implementation acceptance.”
Identification of Business Needs and Standards
The purchasing office has requested participation from the divisions that make up the majority of each category’s expenses to ensure that your business needs are understood and addressed in the outcomes of each project. Campus leadership will be critical in helping to develop specifications that consider consistent product standards and targeted suppliers to delivering the targeted savings.
Bill Shawver, director of purchasing, has worked with the appropriate division contacts to request that key individuals serve on the teams that will be working on each project.
It is likely that many of the projects will result in selecting preferred suppliers for each category of expense and implementing the supplier contracts through Buyway catalogs. Preferred supplier arrangements can often reduce costs by assuring the vendor of a certain volume of purchases.
“In order to implement these contracts we will need the support and compliance of the entire Miami community,” said Shawver. “We request your support as we embark on these initiatives.”