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If you have any suggestions, would like to see any additional content, or have any cost-reduction ideas, please e-mail us.
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Procurement Initiative Update |
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The Procurement Initiative consists of two phases. The first phase, with a goal of $7.5 million in savings by June 2011, called for achieving savings with minimal impact to the campus community. The Office for Supply Management Services (SMS) was actually able to achieve $8.4 million in savings, primarily through renegotiation with existing preferred suppliers, contract negotiation with new suppliers, and utilization of new tools, such as reverse auctions.
The second phase of the initiative, with a goal of an additional $22.5 - $30 million in savings by June 2015, will require a new strategic course to achieve ongoing, sustainable savings. To complete this phase, we in SMS will examine supplier partnerships, distribution channels, and supplier performance to ensure successful business relationships. In addition, we will be requesting more participation from our campus partners in awarding preferred supplier agreements and supporting the resulting agreements. You may be asked to participate in a cross-functional team to define needs, evaluate potential suppliers’ offerings, and select the preferred suppliers based on established criteria. Our Strategic Sourcing team will continue to work with units to analyze spending patterns and seek opportunities for collaborative cost savings projects. As a campus community, we must work together for the best interest of the university to achieve these significant, non-salary dollar savings.
For more information about the initiative, see the Administrative Streamlining Program Web site. |
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Reverse Auctions Prove Successful in Achieving Savings |
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Reverse auctions were held in June for copy paper, bulk paper (i.e., over 40 boxes per pallet), and toner. As you may recall, a reverse auction is a competitive electronic bidding process in which suppliers compete to obtain business, and the suppliers’ prices decrease during the course of the auction. The auctions were very successful with substantial savings for the university. We are pleased to announce three new preferred suppliers:
Please visit e-SHOP to place your orders for these products.
Including these reverse auctions, we had nine in fiscal year 2011, with a total savings of more than $370,000. Other reverse auctions were held for electrical supplies, telephone peripherals, HVAC filters, and UV disinfection equipment. Campus participation in the auction events has been excellent, with numerous departments participating in the various auctions. Supplier participation has also been very good with over 25 suppliers participating.
In fiscal year 2012, we will evaluate conducting reverse auctions for several additional commodities. |
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Office Supplies Minimum Order Size Pilot Delivered on Expectations |
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The pilot effort, announced in February, to place office supply orders only when your purchase amounts to $50 or more has been very successful. Based on these results, the university can now make this minimum dollar threshold a requirement, which will yield even greater savings from Staples and OfficeMax. Read more... |
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“Strategic Preferred Suppliers” Provide Multiyear Savings and More |
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The concept of strategic sourcing for Cornell University is yielding such effective partnerships with vendors that SMS has created a new designation called “strategic preferred supplier.” The previous designations, for contract and preferred suppliers, will continue and are as vital a recognition as ever of suppliers who are supporting the university’s administrative cost savings efforts. The first vendor to receive the designation of strategic preferred supplier is VWR International. Read more... |
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Verizon Wireless Increases Savings for Cornell |
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New Verizon Wireless contracts provide further discounts for wireless equipment (including smartphones, iPads/tablets) for business purposes, as well as for the employee personal account plan. A strategy for pooling minutes will provide considerable savings to Cornell. Read more... |
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| Progress on Procurement Initiative |
- Phase I: Achieved $8.4 million in savings, surpassing goal of $7.5 million
- Phase II: Beginning now; goal is to implement ongoing, sustainable savings projects, which will require collaboration, participation, and support from campus
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- Surpassed the goal of 100,000 transactions through e-SHOP by reaching 109,067 transactions in fiscal year 2011
- Formed the e-Business Advisory Council and hosted monthly meetings
- Added 34 new suppliers to e-SHOP in fiscal year 2011
- Integrated with the Kuali Financial System (KFS), developed KFS
e-SHOP user training, and updated the User Quick Guide (PDF)
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| Marketing and Communications |
- Redesigned the SMS Web site
- Launched the Procurement Update quarterly newsletter
- Continued the e-SHOP newsletter
- Provided the Procurement Countdown to KFS newsletters
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- Provided new tool and training to campus users
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- Hired a Director of Strategic Sourcing
- Reorganized to align with the university’s savings objectives
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| Streamlining Policy and Processes |
- Developed new standard operating procedures to support KFS
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