Transcript Slide 1

Achieving Operational Excellence
Through Shared Services
1,300
advertising vendors used
annually
438
industrial equipment vendors
used annually
9,800
unused licenses for one
software program
Shared Services in
Higher Education
•SUNY is one of
the institutions
leading colleges
and universities
in the planning
and launching
shared services
•SUNY is one of
very few systems
attempting a
comprehensive
University-wide
shared services
program
Shared Services Initiative
• SUNY-wide, regional, multi-campus and campus
to campus projects, systems, and adoption of best
practices.
• Lead by Shared Services Steering Committee
– Jim Malatras, Chair
– Represented Constituencies
• Campus Leadership: President, Provost, and Business
Officer from every sector
• Shared Governance Leadership: Faculty, Student, and
Trustee
• Other Stakeholder Groups: Information Technology, Human
Resources, Training and Organizational Development
SUNY’s Progress
Goal: Reinvesting $100M in savings from shared
services and efficiencies into instruction and direct
student support.
$60.00
$47.70
$50.00
$40.00
$26.10
$30.00
$21.40
$20.00
$14.90
$13
$13.10
$11.40
$10.00
$0.00
2012
2013
Identified savings
2014
Implemented savings
Total
Key categories for savings:
• Savings from reduction in energy
use
• Savings from reductions in back
office and administrative functions:
-IT Transformation
-Procurement/Strategic Sourcing
-Other administrative services
Savings from efficiencies will
be reinvested into the
academic enterprise.
Questions?
Strategic Sourcing
The “Buzz” about Strategic Sourcing
Strategic Sourcing
“A collaborative, structured process of critically
analyzing an organization’s spending and using
this information to make business decisions about
acquiring commodities and services more
effectively and efficiently.”
http://www.acq.osd.mil/dpap/ss/
Strategic Sourcing
What it is:
 An improvement approach that focuses on all dimensions of procurement;
 A program with the objective for “bottom line” financial results and

sustainable procurement excellence;
A balance of focus on both long-term and short-term objectives.
What it is not:
Just about sourcing or a collaborative buy
program;
A short-term, project based initiative;
Purely a cost reduction measure.
Steps to
Success
Profile the category:
• Strategic Sourcing begins with robust data
analysis.
• Understand everything about the category by
analyzing historical spending and conducting
surveys to determine:
o Who are the users and stakeholders?
o What are the procurement processes currently
used?
o Within a category, define sub-categories of like
service/commodities.
Supply Market Analysis:
• Identify current and potential suppliers;
• Issue Request for Information (RFI), if applicable;
• Go to Subject Matter Experts (SMEs) for
information on:
o industry landscape;
o supplier specific information; and
o changing technologies;
Develop the Strategy:
• Are there opportunities to standardize
commodities/services?
• Are there alternatives to current
suppliers?
• Are there alternatives to current
commodities/services?
 Essential to include stakeholders in the
development of a category strategy.
Select the Sourcing Process(es):
•
•
•
•
Renegotiate the current contract?
Consolidate multiple existing contracts?
Issue a solicitation?
Piggyback of an eligible existing
contract?
Manage the Contract & Supplier:
• Managing the contract:
o
o
o
o
Monitor usage.
Verify pricing.
Ensure adherence to T’s & C’s.
Evaluate performance.
• Managing the supplier relationship:
o
o
o
Try to understand their perspective (e.g., what make a good
client, are there other opportunities to enhance the
contract?)
Do they have other contracts already in place (e.g.,
cooperatives, consortia) that might be useful?
Share current/future initiatives, direction of the organization
Advertising vendors used
annually
Step 1: Profiling SUNY Advertising
• An analysis of spending initiated as part of New
York State’s strategic sourcing efforts showed
SUNY wide advertising spend of ~$23M over a
two year period.
• Vendors were categorized (bucketed) into types.
o PR marketing firms;
o Newspapers;
o radio;
o outdoor ads;
o etc.
Results:
SUNY Spending in Advertising
is very fragmented
Profiling SUNY Advertising
• SUNY advertising spend is fragmented in multiple ways.
• Fragmentation within category of ~1,300 vendors:
o
o
o
o
o
21 PR Marketing Firms
54 Newspapers/Periodical Vendors (non-specialized)
73 Promotional Product Vendors
84 Radio Advertisers
99 Specialty Publications (i.e., Science Magazines, college specific
magazines, journals etc.)
• Fragmented across various media outlets
o Expenditures were with 35 different types of vendors including:





direct mail and e-mail,
internet, television telemarketing, radio,
newspapers, yellow pages,
Movie Theatres, Billboards, Misc. Local Ads, Billboards, Subways, Buses,
PR/Marketing Firms, and promotional products.
Profiling SUNY Advertising
•
Fragmentation within campus (# of vendors in each
category):
•
Some fragmentation is acceptable for SUNY in the
advertising category because of the diverse audience and
need for local advertising.
Next Steps
• Category Profile:
o Detail spending information needs to be gathered
from each campus to complete SUNY’s advertising
category profile.
• Central accounting system does not have detail needed to
determine actual services procured and detailed costs.
o Campuses will be surveyed to gather more detailed
spend data and information such as various
procurement processes utilized, category stakeholders,
future needs.
When we get to “Selecting the
Sourcing Process(es):”
• Category profile may show a need for multiple
procurements.
o Example: SUNY PR/Firm needs may be grouped
together for a single RFP.
o Newspaper Ads may be regionally or locally
procured.
o Buying power may be maximized at a local level by
looking at the possibility of reducing types of
advertising and/or number of vendors.
Strategies ASCs Might Employ
• Do collaborative procurements (could be
regional or State –wide).
• When possible, utilize SUNY U-wide contracts.
• Ask to “piggyback” off existing contracts.
o Enter into an agreement with another ASC to use
their contract; otherwise
o Because ASCs and contracting for or on behalf of
the State (SUNY) may have to follow Office of
General Services’ (OGS) procedure.
Strategies ASCs Might Employ
• Consider buying cooperatives or consortia:
Graham Smeilus
Member Relations Executive
E&I Cooperative Services
(973) 663-5573
[email protected]
www.eandi.org
Contact Information
Thomas J. Hippchen, Ph.D.
Director of University-Wide Procurement
518-320-1341
[email protected]
SUNY Means Business on SUNY.edu
Questions?