P200: Strategic Procurement

Sponsor's Corner

I would expect that many within and outside the UC mistakenly view the core strategy of the P200 Program, “One UC Procurement,” as merely a matter of leveraging the collective buying power of all UC campuses to achieve higher pricing discounts; “The Power of Ten.” But the simple fact is, one cannot leverage what one cannot collect, making greatly enhanced collaboration and the commitment of systemwide spend essential to achieving this strategy. Furthermore, P200/One UC is not all about implementing systemwide agreements, as we estimate that benefit contribution through local procurement activities represents 40% of our $200 million goal. This enhanced local benefit contribution is facilitated by the fact that systemwide contracting carried out by category Centers of Excellence frees campus procurement resources to focus on local savings opportunities by collaborating with academic and administrative clients early in the acquisition process of goods and services. Both strategies working in consort are necessary for our ultimate success.

Clearly, the true “Power of Ten” is reflected in systemwide as well as campus specific activities, and can only be harnessed and activated through structured and continuous collaboration. Wikipedia defines Collaboration as “working with others to do a task and to achieve shared goals. It is a recursive process where two or more people or organizations work together to realize shared goals, (this is more than the intersection of common goals seen in co-operative ventures, but a deep, collective determination to reach an identical objective)…” So one could rightfully describe the core strategy of our program as “structured and continuous collaboration” with the shared goals of optimizing value for the teaching, research and public service missions of the UC.

The latest edition of the Brag Book (soon to be renamed) provides a number of distinctive examples of programmed collaborations including all campuses, multiple campuses, as well as within and across departments on a single campus. The various case studies highlight the category expertise, problem solving, and overall collaboration required to deliver these significant examples of enhanced client service, sustainability, and cost reduction; locally and systemwide.

I believe it most appropriate that I close my comments with a preview of one of the most significant achievements achieved thus far in our strategic sourcing program. As a result of our new prime vendor contracting approach for General Laboratory Supplies, I have just signed a three year agreement with Fisher Scientific resulting in an estimated annual benefit in excess of $12 million. This momentous achievement was accomplished through the active and effective collaboration of 40 individuals representing all ten campuses and UCOP. This primary award, creating the “Fisher First” program, is the first in a series of agreements in our Life Sciences category that will provide our research community with lower pricing within a competitive e-commerce environment while leaving the selection of scientific products with the scientists.

 

This is what the “Power of Ten” looks like and how it is achieved!

 

William “Bill” Cooper
Associate Vice President and Chief Procurement Officer