Strategic Sourcing The Wave of the Future.ppt

《Strategic Sourcing The Wave of the Future.ppt》由会员分享，可在线阅读，更多相关《Strategic Sourcing The Wave of the Future.ppt（24页珍藏版）》请在淘文阁 - 分享文档赚钱的网站上搜索。

1、What is it?MyFloridaMarketPlace- eProcurement 66,000 Registered Vendors 21,000 Minority & Women Vendors 194, 000 Annual Purchase Orders $1.3 Billion Annual Spend 32 Executive Agencies on the SystemFlorida One Initiative Equity in Contracting Environmental Considerations Certification of Drug Free Wo

2、rkplace RESPECT PRIDE75-State Term ContractsMandatory use by Executive AgenciesOptional use for all other government entities (OEUs)Eliminated over 100 State Term ContractsApproved Cooperative Contract Sources- WSCA- HIRE- MMCAP- US Communities- OtherSpend Management MFMP-Analysis Tool State Account

3、ing System P-Card Vendor Sales Information User Data$250MM in Contract Savings for Waves 1 and 2Potential Strategic Sourcing Events for Wave 3State Governmentn 171 Agencies/Institutions of Higher Educationn Central oversight of state contractsn Variety of systems, including 44 Enterprise Resource Pl

4、anning (Financial) Systemsn Approximately $5 billion annual spend Local Governmentn 350+ Cities, Counties & Townsn Plus Public Schools, Airports, Districts, Authorities and Commissionsn Use state contractsn Variety of systemsn Approximately $5 billion annual spend Vendorsn 20-30,000 for state govern

5、mentn Mix of local vendors versus statewide vendorsn 20% get 80% of the orders (Approximately 6,000) Virginia equals a Fortune 300 Corporation Profile Spend & BaselineFacilitiesGeneral Equipment & ConsumablesIndustrial Equipment & SuppliesMaterialsTechnologyIndustrial ServicesLogisticsPersonnel Serv

6、icesProfessional ServicesUtilitiesFurniture & FurnishingsOffice EquipmentOffice SuppliesPackaging & Storage Materials(Containers, Corrugated, Pallets, Tape)Paper, StationeryBuilding MaintenanceEnvironmental ServicesEquipment MaintenanceIndustrial Cleaning Services Infrastructure SupportSecurity Guar

7、d ServicesWaste Disposal ServicesBenefitsContract LaborDomestic ServicesRelocationTemporary StaffingTrainingTravel & EntertainmentElectricityTelecommunicationsUtility Billing ServicesAccountingAdvertising & MarketingCommercial PrintComputer ServicesFleet ManagementInsuranceIT ConsultingLegalReal Est

8、ateCargo Transport (Air, Rail & Road)Courier/MessengerExpress DeliveryPostageWarehousing & StorageHardwareSoftwareTelecom EquipmentJanitorial SuppliesMRO SuppliesSafety Equipment & SuppliesSecurity EquipmentSpare PartsVehicle Parts and AccessoriesBuilding MaterialsHVACLighting, Fixtures & Accessorie

9、sPipes, Valves & FittingsGoodsServicesAreaCategorySavings Results$150 Million in Contract Savings Created Selected Target Categories and Percent Savings Computer Hardware 12% Janitorial Supplies 11% Lab Supplies 13% Office Supplies & Paper 18% Computer Software 8% Off-Road Equipment 6% Enterprise St

10、orage Devices 15% Temporary Services 32% Uniforms 17% Hotels 31% Heavy Trucks 20% Storage Media 30% School Buses 3% Printers and Accessories 15% Maintenance, Repair, and Operating Supplies (MRO) 13%n Ultimately saved over $150M in 2 separate “waves” of strategic sourcingn Leveraged purchases across

11、200+ state agencies, institutions of higher education and other public entities Goals Save $200+ million in two years Organizational transformation Standardize/streamline processes Improve transparency and increase vendor participation Build capabilities/knowledge management systemExamples -ProjectS

12、trategySavingsFoodProduct substitution, bulk purchasing,$6.3 millionelimination of unnecessary itemsCan LinersChange in specifications, renegotiation$737,000Cleaning SuppliesCombined multiple contracts, extended term$182,000PCs/Laptops/MonitorsDemand management$1.8 millionEmissions TestingRenegotiat

13、ion$10.2 millionUtilities/ElectricityChanged rate plans to best suit state facilities$3.0 millionconsumption patterns.Paper and EnvelopesCombined multiple contracts, extended term$715,000Family Case MgmntEnhanced federal reimbursement$24.2 million $216 million in validated savings Created new center

14、-led organization to better manage procurements statewide and identify sourcing opportunities Implemented 5-step procurement approach Streamlined processes eliminated unnecessary and/or redundant steps Implemented procurement business case system to ensure all purchases are justified and to identify

15、 opportunities for savings Implemented a toll-free call center to assist agencies and vendors ensures consistent responses and that caller gets to appropriate person Created comprehensive Knowledge Management system - an electronic reference library and communications system Greatly improved transpa

16、rency into the process more detailed publications of procurement notices, supplier workshops, enhanced documentation of how decisions are made, published procurement opportunity reports Increased opportunities for small and diverse businesses CATEGORIZING PURCHASED EXPENSEFiscal Year 2003 Spending$

17、BillionsGovernment ServicesInterest The State purchased $1.62 billion of goods and services from vendors in fiscal year 2003, $1.35 billion of which is on purchases that are potentially “source-able” The initial Opportunity Assessment (conducted in October-December 2003) evaluated spending in the la

18、rgest spending categories where there was significant cross-agency leverage 65% of the States spending is with vendors who serve only one agencyNote:Purchased expenses exclude interagency transfersSource: State financial systems (SFMA, ODOT, Lottery; Corrections, p-card); Silver Oak Solutions analys

19、isKEY OBSERVATIONSPRIMARY SELECTION CRITERIACategory Selection CriteriaBy evaluating top-spending areas with joint leverage opportunities in a number of areas, two waves of spending categories were identified.SCREENING MATRIXSavings OpportunityHighLowLowEase of CaptureHigh PC Hardware/Peripherals IT

20、PS Office Supplies TCPERS Telecom LD/Data Express Mail Tires Telecom Cellular Copiers SoftwareLab Supplies Hot Mix Food Janitorial Supplies Blade Server/MainframesPostage MetersEmulsionsHARD DOLLAR IMPACT 1 BREAKDOWN By Completed Category$ Thousands$48,861$10,215$9,132$47,59718%Identified hard dolla

21、r impact is projected to be $9.1 million per year (or 18% of baseline spend) and will accrue to the State over many years.1 Includes spend reduction savings, rebates and increase in VCAF (Vendor Collected Administrative Fee), due to fee increase in some Smart Buy price agreements2 Contracts vary in

22、length by category from 2 6 years, and savings are expected to accrue over the lives of these contracts3 Defined as (Annual Run-Rate Savings/Annual Spend)4 Information gathered as of February 2, 2005SOURCES OF SAVINGS AND SERVICE IMPROVEMENTSBy Category- Reduction in the Number of Overall Awards- Be

23、st value vs. best price- Changes in the RFP process, i.e., reverse auction- Total cost of ownership- More purchasing options, i.e., lease vs. buy- Data-driving decision making- More RFPs and multi-step bids- Understanding of the industrycontract staff has increased knowledge of supply chains & costs- Uniform Price Card- Length of Contracts- Performance Management: Data driven vendor performance, i.e., automated and electronic tracking systems- Improving Relationships with Suppliers: More communication, face-to-face meetings (quarterly review sessions)