Strategic Procurement Transformation (SPT) Project
The focus of the Strategic Procurement Transformation project is to implement procurement solutions that apply proven supply chain management processes and operations across the University. Implementing these solutions will enable the University to achieve approximately $45 million in annual cost-savings and further leverage SIMBA, the University's new financial management tool.
The Strategic Procurement Transformation project will implement the following recommendations, as identified in the recent external studies done by Huron Consulting and the procurement consulting agency AArete:
- Create a centralized procurement model and office that will increase synergy and collaboration over University contracts and purchases.
- Implement category managers to build a relationship management standard of practice connecting suppliers to end-users and to negotiate the best possible pricing strategies.
- Add specialists in communication, compliance, and data management to better manage and support each category strategy.
- The category management approach will route the majority of significant spend dollars through Central Procurement, creating less reliance on Purchasing Cards and Non-PO Invoice Payments (formerly known as SRFCs), which are the least cost-effective measures for purchasing.
Four working groups were created to help implement the above recommendations:
Organizational Alignment Working Group
This group aims to create an office to better centrally manage strategic procurement practices that will increase the University's buying power and generate cohesiveness for University contracts and purchases. Organizational realignment within the University and organizational analysis and development within the unit will ensure proper skill and job classification to carry out the work.
Category Management Working Group
With the organizational realignment of Central Procurement, this group will define and develop a category management infrastructure that creates experts responsible for specific purchasing categories. These changes will allow singular points of contact to form long-standing relationships and negotiate for best-in-class contracts based on their expertise.
Policy & Guideline Updates Working Group
This working group is responsible for revising existing and developing new policies and guidelines that modernize the strategic purchasing processes and enable the central procurement office to support the University’s cost savings goals.
Compliance and Business Intelligence/Analytics Working Group
This working group's primary purpose will be to determine best business practices for analyzing spending data and utilizing business intelligence to make data-driven decisions on strategic vendors and compliance efforts to maximize departmental performance and savings.
Key Performance Indicators
Key Performance Indicators (KPIs) are a quantifiable measure used to evaluate the progress, effectiveness, or success of an objective over time.
Percent Spend Off Strategic Supplier Contracts
Return On Investment of Negotiated Savings
Non-compliant Spending through Non-PO Invoice Payments
Dr. Nicholas Jones, Provost and Executive Vice President
Dr. Sara Thorndike, Senior Vice President for Finance and Business/Treasurer
Duane Elmore, Director of Procurement Services
Executive Steering Committee
Jason Bush, Director of Business and Finance at the Fayette and New Kensington Campuses
Joe Doncsecz, Corporate Controller
Jim Dromazos, Grants and Contracts Manager
Mary Lou Ortiz, University Budget Officer
John Papazoglou, Associate Vice President of Auxillary and Business Services
Richard Roush, Dean of the College of Agricultural Sciences
Steve Tracey, Executive Director of Center for Supply Chain Research
Lora Weiss, Senior Vice President for Research
Don Welch, Vice President for Information Technology and Chief Information Officer
Project Management Team
Jeremy Bean, Organizational Change Consultant
Kera Kollman, Financial Officer
Jeff VanHorn, Project Manager
Toni Vollano, Marketing Communications Specialist