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University of California E-Procurement Initiative

Page 1. Overview. Introduction Current State Summary Recommended e-procurement Solution and Architecture E-Procurement Benefits Estimated Costs and Potential Benefits Considerations Go Forward Plan. Page 2. Introduction. The University of California (UC") engaged KPMG t

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University of California E-Procurement Initiative

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    1. University of California E-Procurement Initiative EXECUTIVE OVERVIEW PRESENTATION JUNE 29nd, 2001

    2. Page 1 Overview Introduction Current State Summary Recommended e-procurement Solution and Architecture E-Procurement Benefits Estimated Costs and Potential Benefits Considerations Go Forward Plan

    3. Page 2 Introduction The University of California (“UC”) engaged KPMG to advise the University on a strategy for e-procurement, including opportunities to reduce the costs of goods and services through aggregating purchasing volume and to further streamline purchasing procedures. The engagement also requested input on whether the recommended solution incorporate the national laboratories, medical centers and campuses all as part of one implementation. This report presents UC’s current procurement environment, the recommended e-procurement solution and architecture, benefits and costs of the recommended e-procurement solution, considerations (obstacles) to implementation, and a plan to go forward with the recommended e-procurement solution.

    4. Page 3 Current State Summary Expenditures and Commodities UC System spends $2.8 billion in purchasing dollars annually Institutional expenditures range between $38 million to $670 million Transactional volume ranges from 34,000 to over 200,000 per year Based on 3 sample campuses, LVP (under $2,500) expenditures represent 26% of total campus purchasing expenditures and 86% of campus purchasing transactions

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