1 / 18

Engineering Success into your sourcing initiatives

Engineering Success into your sourcing initiatives. Results you can count on!. Green = 10% savings. Green = 6% savings. Adoption = 90% +. UC Procurement UCSF/B. UC’s Annual Budget = $22.5 Billion 1. Iceland. Afghanistan. Honduras. UC. 1. Source: 2011/12 budget data from UCOP website.

jerzy
Download Presentation

Engineering Success into your sourcing initiatives

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Engineering Success into your sourcing initiatives

  2. Results you can count on! Green = 10% savings Green = 6% savings Adoption = 90% +

  3. UC Procurement UCSF/B UC’s Annual Budget = $22.5 Billion1 Iceland Afghanistan Honduras UC 1. Source: 2011/12 budget data from UCOP website.

  4. UCSF/B Procurement $1.2 Billon in Annual Expenditure 100 Employees 5 Units 2 SciQuest Instances 1 awesome team!

  5. Strategic Sourcing @ UCSF/B • 4 Commodity Managers • Set strategy and provide leadership/experience • Identify the right problems we should solve • 4 Analysts • Provide situational awareness for the Commodity Managers • Solve problems • Andrew • Stays out of the way and tries not to mess it all up!

  6. Our Mentality You’re at the bottom of 2 hills deciding which to climb. Which do you choose the one on the left or one on the right?

  7. Today’s Agenda Analysis, Visibility, Superior Knowledge

  8. Project Selection • How do you choose what to work on? • How do you know what’s out there? • Do you have the ability to say No?

  9. Project Selection at UCSF/B • Rule #1: Avoid time waster really hard projects and ill scoped projects as best you can. • Rule #2: Your people’s projects are better than your bosses project or even your project. • Rule #3: Work your project to expand the scope to the greatest extent possible (Take advantage of your fixed costs).

  10. Project Selection at UCSF/B • Variable Manufacturers • Variable Distribution Channels • Variable Products • Variable Needs If I don’t have at least 1, I don’t have a bid.

  11. Discovery Do you even spend time in Discovery? How do you identify the scope of the project?

  12. Discovery at UCSF/B • Don’t find experts; become expert • Use your supply base to help you • Find a strategy for the commodity early • Really… Very early! • Good strategy trumps almost EVERYTHING • Use bids to setup the bid you really want to run.

  13. Discovery at UCSF/B • Chemicals • Knew we had to buy solvents at UCSF or Berkeley. • Didn’t exactly know which or how much exactly. • Only understood 25 of the most basic solvents. • Bid those 25 and quickly expand with winning supplier. • In 2-3 years run a much bigger bid. • Kits • 10-15 different kit types, 2 types of technology, uoms! • Miniprep is standard and common • Auction miniprep kits and use winner to grow understanding • In 2-3 years run a much bigger bid.

  14. Implementation • How do you implement? • What length do you go through for adoption?

  15. Implementation at UCSF/B • ePro is everything • Hosted catalog environment for goods • Punchout for configurable goods and services only • Help your people by “shopping for them” • If you really have the best value, then why let anything else compete with it. • Remove unnecessary and low value content • Rig search results to show your “preferred product” • The goal is 100% adoption (unless we have something better to do).

  16. Analytics • What does your analytics capability look like?

  17. Analytics at UCSF/B Stuff Happens on Campus We Measure We Observe We Take Action

  18. How we do it • Hire Smart Analysts • HIV Researcher from a UCSF Lab • BS Level Math Major from UCSD • Auto Insurance regulatory analyst • MS Industrial Engineer • BS Operations Research Analyst • Make it a goal to gain capability • Find 4 opportunities for savings generating initiatives • Empower analysts • You find it, you get credit for the bid, you get the savings! Hellerstein et al. – MAD Skills. http://db.cs.berkeley.edu/jmh/papers/madskills-032009.pdf

More Related