P200: Strategic Procurement

Sponsor's Corner- June 2016

WE DID IT!! Four years ago, the ten campus procurement offices and the OP procurement office came together and embarked on a most ambitious initiative. The aim being to leverage our combined buying power, talent and technology to recapture $200 million annually lost to sub-optimal procurement practices; making that revenue available for redirection to teaching, research and public service. The plan was to reach this lofty goal by FY16-17. Well, not only have we achieved the goal, we have exceeded the goal, having recorded $244.3 million to date; and having done so a year early! But possibly even more important, we have validated the efficacy of an organizational model that speaks volumes about the power of “unified diversity.” Those eleven previously “different” and autonomous offices now operate as “One UC Procurement Services”, based in eleven locations. It is this realization that provides the foundation for us to take our already “World Class” program to the next level.

Building on the successes of the P200 program, we are now positioned to focus on the next chapter- Supply Chain 500 or “SC500”, which would aim to reach an annual benefit target of $500 million by July 2021. We aim to achieve this by leveraging the successful Centers of Excellence and cross-campus governance models, integrating Procurement and payable systems, breaking through organizational barriers that impede cost effectiveness and revenue generation, consolidating program benefits and continuously improving processes involving purchasing, payment, asset management and logistical services.

With sponsorship from the Office of the Chief Financial Officer and the Office of the Chief Operating Officer, consulting firm ATKearney will begin assessing UC’s ability to move from Procurement to Supply Chain. By October, we expect to have clarified our vision, determined our readiness, and defined a roadmap of execution to optimize the Supply Chain.

Project Manager Nik Neu and Analyst Sara Kayser have been assigned to oversee and support this project. They have begun engaging Supply Chain departments across campuses to identify key stakeholders, collect baseline data, and schedule workshops and interviews. This internal pre-work will ensure that ATKearney has a strong foundation of information early in their engagement and that our overall project costs are contained. We request your full support and participation as we begin this new venture.

Our achievements to date, and in the future, are predicated on the talents, perseverance, and commitment of our staff. In this issue, you will read about the winners of the Starlight Awards. These team members are a representation of excellent achievement in collaboration, innovation, leadership on an initiative, early commitment to the Procurement mission and making a long-lasting impact systemwide. Congratulations to all the winners!

Sincerely,

Bill Cooper

Associate Vice President & Chief Procurement Officer