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UO Strategic Purchasing

UO Strategic Purchasing. Alex Cardinaux Eileen Cole John Inglish Douglas Park Amanda Smith Lauren Townsend. What is Strategic Purchasing?. “Strategic purchasing is the concept that through planning, scheduling, and group buying, the institution is able to obtain significant cost savings.” .

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UO Strategic Purchasing

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  1. UO Strategic Purchasing Alex Cardinaux Eileen Cole John Inglish Douglas Park Amanda Smith Lauren Townsend

  2. What is Strategic Purchasing? “Strategic purchasing is the concept that through planning, scheduling, and group buying, the institution is able to obtain significant cost savings.”

  3. Sponsored by UO Purchasing & Contracting Our Task • Research one or more of the following concepts: • How to facilitate greater group purchasing on campus. • Whether centralized purchasing could provide greater benefit. • Better data sources for collecting, analyzing, and reporting on purchasing activities to support strategic analysis. • Based on the research above, recommend specific methods to increase strategic purchasing on campus. • Assess direct cost savings, administrative costs, as well as any other cost or benefit information you deem appropriate.

  4. What are the Suggested Strategic Purchasing opportunities at UO? • Copiers • Computers • Office Supplies • Paper

  5. Paper Purchasing at UO Present Centralized Paper was purchased by Printing & Mailing and distributed to departments. (1) .50 FTE employee = $18,283/year not including OPE Storage = $19,080 - $25,440/year Decentralized Paper is purchased by each department separately. Paper is delivered to and stored by each department separately. Past

  6. Comparison to OtherPAC-12 Schools • Arizona - Centralized • Common supplies stored in inventory on campus, called UA Stores, and can be delivered or picked up. • 4 staff members • Arizona State – Decentralized • Cal – Decentralized • Colorado– Decentralized • UCLA– Decentralized • USC– Decentralized • Utah- Centralized • Common supplies stored in inventory on campus, called General Stores, and can be delivered the next business day. • 18 staff members • Oregon State – Decentralized • Stanford– Decentralized • Washington– Decentralized • Washington State– Decentralized

  7. Comparison to OtherOUS Institutions • Eastern Oregon University – Decentralized • Oregon Institute of Technology – Centralized • Oregon State – Decentralized • Portland State – Decentralized • Southern Oregon– Decentralized • Western Oregon University– Decentralized

  8. Top 3 Paper Vendors • WestCoast Paper • Used almost exclusively by Printing & Mailing. • Office Max • Most used vendor by departments. • Unisource • Used almost exclusively by the School of Law.

  9. Paper Purchasing Trend

  10. Cost Comparison Between Top Vendors

  11. Bulk Purchasing Options • Truckload = 880 cartons • Pallets would be dropped off at one central location. • Paper would be delivered to departments by a designated employee. Unisource = $35.00/carton Savings of $9.29/carton. No savings over OfficeMax. OfficeMax = $26.47/carton Savings of $0.45/carton

  12. Bulk Purchasing Options Pros Cons • Cost Savings (OfficeMax) = $398/truckload. • Due to paper being stored on-site, departments would get same-day delivery. • Minimal cost savings. • Pallets would be dropped off in one location only. • Paper would be stored on campus, using valuable square footage. • Pallets would need to be unloaded by UO employees. • Would require at least (1) .50 FTE employee to deliver paper to departments. • Would require additional staff FTE to manage stock and delivery logistics. • Potential damage to paper stock while in storage.

  13. Recommendations • Any departments that are not purchasing off of the state contract with OfficeMax should do an analysis of their current vendor versus OfficeMax, as there is the potential of cost savings. • Data is not easily accessible and is difficult to interpret due to the coding inconsistencies between departments. We recommend further training for employees inputting information into Banner on the importance of commodity codes.

  14. Conclusion • With our decreasing trend in paper purchasing, combined with the limited cost savings, centralized paper purchasing does not appear to be sustainable at this time. • Strategic purchasing initiatives need to take into account all factors, including both cost and sustainability. Sometimes, the cost savings are not high enough to make up for the loss in productivity.

  15. Questions?

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