P200: Strategic Procurement

Sponsor's Corner

We continue to establish our framework for success as we, supported by our consultant partners Accenture, progress in structuring our Strategic Sourcing and Commodity Management Program.  The following provides an overview of the deliverables expected after the first 60 days of this engagement.

First and foremost, we must establish a clear vision and mission for our Procurement organization. For us to function as an assimilated and unified body we need a common understanding of how we will work together, with our clients and with our suppliers to reach our collective goal of redirecting $200mm per year currently expended on goods and services to research, teaching and public service imperatives. The Procurement Leadership Council (PLC), comprised of the procurement leaders of all ten campuses and UCOP, is collaboratively drafting new vision and mission statements which will shape how we develop and operate UC’s system wide procurement organization. We are close to finalizing these statements and will share them with you shortly.

Concurrently we are identifying where our strategic sourcing opportunities lie and setting a course to prioritize and direct resources to get the most out of these opportunities. Acting on these opportunities is the focus of the strategic sourcing operating model, established to bring together the expertise to source and manage identified system-wide commodity categories. I encourage you to read a more detailed update on the strategic sourcing operating model here.

Finally, we have made solid inroads to defining what comprises addressable spend and how we calculate savings. Once these definitions have been agreed to by the PLC, we will be able to accurately identify and consistently report verifiable savings associated with P200. Additionally we are building key indicators that allow us to accurately track our performance.

From an operational perspective, I am pleased to report that Diane Yoder, formally of Lawrence Berkeley National Laboratory, will fill the position of Commodity Team Manager overseeing IT and MRO, Facilities, Carpets, Janitorial and Fleet. Diane will start with us August 12. The search panel for the Director of Strategic Sourcing has selected finalists for my review and I hope to make a selection within the next week. The Spend Analytics Manager position is in the process of panel interviews and the IT Commodity Manager position remains open.

I am pleased with the progress that the extended P200 team is making in not only these initiatives, but all our P200 projects. I acknowledge the challenges we are facing balancing our system-wide priorities with our campus responsibilities and continue to believe that through optimizing and investing in the talents and strengths from across the UC system we will become something far greater than can be achieved by any single location working independently.

 

Bill Cooper

Associate Vice President and Chief Procurement Officer