P200: Strategic Procurement

June 2013 Sponsor's Corner

Photo of Bill CooperI am pleased to announce the appointment of Accenture as our partner in developing and implementing two of our P200 projects: strategic sourcing and performance management. Both projects officially kicked off this week and, as mentioned last month, will require considerable time and effort from many procurement staff at the campuses as well as UCOP.

We have a strong team from Accenture with recent experience at the University of Texas and State of New York. Accenture will support us in:

  • Pursuing sourcing opportunities that are the best value for the University System
  • Running Procurement as an integrated business
  • Leveraging existing campus expertise and capability
  • Maximizing our investment in sourcing technology

The first 60 days will be used to conduct a strategic sourcing opportunity analysis, validate and design the implementation of a strategic sourcing operating model, and develop standard definitions for addressable spend, savings and key performance indicators.

I want to emphasize how vitally important the work we all are doing is, not only to the University of California but to higher education institutions throughout the nation. Universities across country are tracking our progress in hopes of adopting a model that will significantly alleviate the serious financial challenges caused by increasing costs and dwindling revenues. We are now entering into a critical phase in the evolution of that very strategic procurement model.  Over the next 12-18 months we will transition from developing our technology and organizational infrastructure to deploying and making operational the strategies that will redirect $200mm per year from the acquisition of goods and services to our core mission of research, teaching and public service.

We should all be extremely thankful for our exceptionally supportive executive leadership which has so heavily invested in us by affording the funds necessary to carry out this transformational effort. They have done so because of the tremendous and critically needed return on investment (ROI) P200 promises. Now it is imperative that we just as heavily invest in ourselves, through the cooperation and commitment required to deliver the expected ROI. As I see it, to be successful, there are two fundamental conditions we must strive for and hold close as we move forward.  First is assimilation; not as the joining of mindless cyborgs in a Star Trek episode, but in the sense of optimizing our individual talents and strengths by becoming part of something far greater. As part of that “greater something” we may then find it more natural to act in unity, a state of continuity with singleness and constancy of purpose.

Functioning as an assimilated and unified body we no doubt will reach our P200 goals while also establishing a new benchmark by which higher education procurement programs nationwide will be measured.

Bill Cooper

Associate Vice President and Chief Procurement Officer