91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California “UC Bay Area” Procurement Center of Excellence.

91st Annual Meeting & ExpositionApril 1 – 4, 2012

Anaheim, California

“UC Bay Area” Procurement Center of Excellence


Anaheim, California

Introductions

• Jim Hine Assistant Vice Chancellor/Chief Procurement Officer

• Rich Taylor Director Procurement Strategies• Vanessa Wong Operations Director• Dave Kolsom Procurement Director• Justin Sullivan Strategic Sourcing Director


Anaheim, California

Operation Excellence• Both Campuses were under funded / staffed• Executive Leaders at Both Campuses had

expectations on what value Procurement should provide

• Big Gap between the Executive Leaders expectations and what could actually be done

• Look at how integrating / combining Procurement Operations can address this gap


Anaheim, California

State of California

• Massive State Budget Deficits

• State Funding at UCSF and UCB2001 --- 11% to 18%2012 --- 5% to 11%


Anaheim, California

California HE’s “Perfect Storm” has only gotten worse

5

Huge State Budget Cuts Rising Benefits Costs

Potential Research Dollars Freeze

Reduced Philanthropy$


Anaheim, California


Anaheim, California

What if the two Bay Area UC campuses could pool their efforts into an integrated Co-operative

Procurement and Sourcing Center of Excellence?

Combined Annual Spend >$1Billion

Opportunity


Anaheim, California


Anaheim, California

Combined ForcesDrivers/Impact

* and other enabling Source-to-Pay technologies such as reporting (CalAnswers), e-sourcing and contract mgt


Anaheim, California


Anaheim, California

Integrated UC Bay Area Organization

S tra te g ic S o urc ingJu s tin S u llivan

M a rch 20 11

O p e ra tio ns /T ech no lo gyV a ne ssa W o ng

D e c. 20 11

P ro cu re m e ntR ich T a ylo rJu ly 2 0 12

F a c ilit ie sD a ve K o lsom

Ju ly 2 0 12

A ss is tan t V ice C h an ce llo rC h ie f P ro cu re m e n t O ff ice r

J im H ine

Capabilities/Orgs:•Data analytics, benefits tracking, collection•Supplier relationshipmanagement•Commodity expertise

• IT• Life Sciences

•IT COE: Berkeley, UCSF Campus and MC•Outreach

Capabilities/Orgs:•eProcurement Operation•Customer Outreach•SciQuest/BearBuy and PeopleSoft•Projects•Research and Resolution•Training (joint)•Supplier Diversity•Admin

Capabilities/Orgs:•Central Campus Buyers @ bothcampuses•Dept. Buyers•Training (joint)•Policy

Capabilities/Orgs:•Maintenance, RepairOperations•Facilities•Construction

• Products• Services


Anaheim, California


Anaheim, California

What has occurred to Date?

• BearBuy (Joint SciQuest Full Suite Implementation)

• Strategic Sourcing• Operations and Technology• Procurement / Buyers• Business Process and Training


Anaheim, California


Anaheim, California

BearBuy

• Parallel Implementations• UCSF November 2011 “Big Bang”• UCB Rolling Implementation January 2012• Common Set of Catalog Suppliers

o Unified spend under single agreemento Directing spend through BearBuy

• Working on Common Set of Forms• Current Variance in Workflow


Anaheim, California

UC Berkeley Project Timeline

Deployment Activities

Cohort #1

Cohort #2

Support

Deployment ActivitiesVision/Scope

Support

Cohort #3

Operations and Support

Operations and Support


Support Ops & Support


Support

PILOT

On Schedule!


Anaheim, California

SciQuest Implementation

BearBuy Shows ‘Continuous Improvement’ in Action Current rollout incorporates campus feedback, learns from the pastInstilling a culture of continuous improvement is a key goal of Operational Excellence (OE). ..

BearBuy postersOE website – banner and article


Anaheim, California


Anaheim, California

Operations and Technology

• Consolidated Operations• Developing Common Organizational

Structureo Integrated Research and Resolution group

• Sharing Training Resources


Anaheim, California


Anaheim, California

Business Process and Training

• Develop Common set of Business Processes• Provide Training of Policies, Procedures, and

Certification• Develop Staff so they can work on

Transactions and Support Issues at both campuses


Anaheim, California

BearBuy on the UCSF Campus

“Just want to share with you that BearBuy is much easier to navigate than the old system.”

“Congratulations all! I can’t think of another example of pulling off a cross campus effort of this magnitude so quickly. I’ve been hearing a lot of positive anticipation for the roll out too.”

“I am really impressed by the turn around in BearBuy support – this is my second question answered within a 24 hour period. Impressive. And while I am doling out complements, I am also impressed with BearBuy and the various pieces of training documentation that are available”

“Some of our department buyers (new Shoppers) have already expressed positive feedback to me about the new application.”

“MUCH better, the purchasing steps are much easier.”

“So far so good for my group.” – Posted in ABOG through LinkedIn

User feedback


Anaheim, California


Anaheim, California

Strategic Sourcing• Consolidated Commodity, Contract and Analytics

Operations• Increased commodity focused shared specialists

cross both campuseso IT Procurement/Sourcing mini-Center of

Excellence (UCB, UCSF Campus & Med Center)o Maintenance Repair and Operations (MRO): UCB,

UCSF and additional collaboration with UC Daviso General Lab Supplies/Life Sciences

• Joint Sourcing Programso Administrative Computer Standards (JACS)


Anaheim, California


Anaheim, California

Data Analytics and Reporting

• Integrated Data Analytics Groups• UCB New Reporting Tool “CalAnswers”

(Oracle Business Intelligence Software) • UCSF is monitoring UCB for lessons learned• UCOP Selects a System-Wide Spend Classifier


Anaheim, California


Anaheim, California

Academic Support for JACS


Anaheim, California


Anaheim, California

What is Next?• Additional Procure to Pay integration?

o APo Construction

• Additional Regional Collaboration?o UC Daviso UC Santa Cruz

• Integrated Procurement Card Program?• Common Technology Platforms?

o SciQuesto PeopleSoft


Anaheim, California


Anaheim, California

Card Programs

• UCB Robust Program • Managed by Procurement

• UCSF Minimal Program• Managed by Disbursements


Anaheim, California


Anaheim, California

Single Instance of PeopleSoft?

• One Instance of PeopleSoft UCB & UCSF• Use Business Unit Functionality• Reduce License Fees• Reduce Costs to Maintain PeopleSoft• Develop Common Business Processes• Opportunity for Expanding Shared Resources

Beyond Procurement (a single IT group?)


Anaheim, California


Anaheim, California

Common Technology Platforms at UC

•E-Procurement (7 of 10 campuses SciQuest)•E-Sourcing•Contract Authoring and Management•Total Supplier Management•Spend Analytics


Anaheim, California

Our Target: $90 million over 7 fiscal years…

23

We’re halfway through the 1st year of a long journey with a steep climb…

Procurement/Sourcing Benefits Revenue, Cost Avoidance, UCOP Agreement and Local Agreement and Program Savings

We’re over 60%of the Year 1 target after 2 quarters.


Anaheim, California


Anaheim, California

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Questions and Comments

91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California “UC Bay Area” Procurement Center of Excellence.

Documents

annual meeting exposition

combined annual

training slide

opportunity slide

value procurement

contract mgt slide

bay area uc campuses

sourcing center of excellence