What if the two Bay Area UC campuses could pool their efforts into an integrated Co-operative Procurement and Sourcing Center of Excellence? Combined.

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

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AT&T: good example of power of collective UCB/UCSF spend

Note: UC Berkeley spends ~$600K with Comcast annually for Internet servicesSource: UC Berkeley BFS A/P database, UCB Telephony Manager, UCSF procurement spend data

Segment Area UCSF Campus Annual

UCSF Med Center Annual

UCSF Annual Spend

UCB Annual Spend

Combined Annual Spend

1) Voice landlines

$1,741,763 $637,075 $2,378,838 $4,400,000 $6,778,838

2) Data/ network $4,376,970 $1,584,780 $5,961,750 $52,300 $6,014,050

3) Wireless $1,578,652 $546,000 $2,124,652 $898,562 $3,023,214

4) Other equipment, services

$3,040,307 $119,942 $3,160,249 $526,926 $3,687,175

GRAND TOTAL -ANNUAL PAYMENTS TO AT&T

$10,737,692 $2,887,797 $13,625,489 $5,877,789 $19,503,277

4100817-UJ2-Procurement-COE discussion vshare

Common Systems Enable User Benefits

Major additional benefit: proof of concept for regional centers of excellence

  Key elementOppty.

sizeImple.

difficulty

Benefit type Benefit

Effective-ness

Effi-ciency

UCB UCSF UC

Sourcing • Improve terms/pricing from consolidated UCB/UCSF volumes to system-wide vendors

Med X Med Med High

• Regional agreements with joint vendors Med X High High High

Procurement 

• Increased “strategic procurement” RFPs, negotiated agreements for transactional procurement

High X High High Med

• Expansion/extension of specialty programs (e.g., EMI, equipment DB, incoming freight, warehouse, auctions)

Low X High Med High

Ops/ Tech

• Consolidated catalog management Med \ X Med High High

• Common systems (e.g., BearBuy e-pro, PeopleSoft) High \ X High High High

Organization 

• Streamlined/Shared management Med X X High Low Med

• Bridge resources gaps Med X X High Med Med

Although P2P adoption is over 65%, we needed to move to SciQuest Full Suite to address critical unmet needs

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Addressed by SciQuest Full Suite Solution

Who is SciQuest?For more than a decade, SciQuest has focused on helping academic, healthcare and research-centric organizations of all sizes streamline their procurement and supplier management processes. This concentrated focus has deepened their industry-specific expertise and supplier relationships - and led to a 98% customer satisfaction rate.

Sampling of public and research universities using this solution:

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Aligns us with broader UC direction

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UC SciQuest ConsortiumCentralized Catalog/Contract Mgt.

UCSC UCR UCSD UCB

Irvine

Merced

UCLA

UCSB

UCD

UCOP

Legacy systems, option for P-card Accessto SciQuest under investigation

Currently has legacy version of Perfect behind the firewall ,

ERP project in process, SciQuest a consideration

UCSF

Benefits of the Solution• Efficiencies

– 24/7 access via the internet– Auto approval abilities to a certain

dollar threshold for individuals – Shopper role eliminates duplicate

entry

• Ease of Use– Shoppable content with UCSF

discount pricing– Catalog and non-catalog orders in

same page

• Visibility– Online history: all information in one

spot – Download capability

• Speed– Orders are electronically sent to the

supplier as soon as approval workflow step is complete

– Orders dispatched to vendors 24/7

• Cost Savings– On contract spend– Increased spend visibility will lead to

better supplier pricing

• Compliance– Policy: built in the system, eliminating

the need to train/reinforce with users – Approval levels based on $ limits,

commodity

Procure-to-Pay Cycle

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BearBuy Roles

Shopper

• Find items and create Shopping Cart(s)

• Punch-out and Hosted catalogs available

• Forms used to procure Non-Catalog and Specialty Items

Requester

• Can also shop in the Marketplace and create Shopping Cart(s)

• Enters ChartFields • Submits Shopping

Cart(s) as Requisition for approval

• Ability to purchase without approval on assigned thresholds

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Approver

• Reviews Requisition Details

• Financial Approval based on ChartFields

• Controlled Substance Approval

• Commodity Approval• Central Buyer Approval

NEW ROLE

Simple Approval Workflow

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Shopper Requester

• A Requester will automatically have Shopper Role

• Can be the same person

Procurement Dept Code

Approver(s)

Non-Catalog order $5,000

and over

Controlled Substance or

Restricted item

Equipment or unit price

over $5,000

Independent Consultant Agreement

Campus Procurement

Non-Catalog Order under

$5,000

PO to Vendor

Single Sign-On Thru MyAccess

You can search the Catalog, or Hosted

Content to add items to your Shopping Cart.

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Catalog Search Results

Product searches return a range of items with UCSF

negotiated pricing.

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FILTER

Item Details

Many catalog items have rich content and images provided by the supplier.

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Shopping Cart

All of the items in a cart are shown, and Shoppers can add account details

and comments for Approvers to review.

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Approval Workflow

The Requisition workflow is dependent on several factors, including dollar

amount, item type, department, etc.

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• When a change initiative fails, it is usually:– NOT design or technology issues– NOT a lack of vision or understanding of the program

• It IS often a lack of effective change management.

Lessons learned from P2P: End User involvement and change management are key

If the MSO had just been more public in his or her support.

If the MSO had just been more public in his or her support. I was undermined by other managers who felt

threatened by this change and did not understand where we were going.

I was undermined by other managers who felt threatened by this change and did not

understand where we were going.

People aren’t using the new tool and processes as I expected.

People aren’t using the new tool and processes as I expected.

I should have communicated better.

I should have communicated better.

Next time I will involve more people.

Next time I will involve more people.

Department User Engaged Sessions• Prototyping 1 and 2: Gathered business requirements• Focus Group 1: Validate and refine business requirements• Participating departments in Prototyping and focus groups:

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Anesthesia Ophthalmology School of Dentistry Dean's OfcBiochemistry & Biophyics Orthopedics Dent-Oral & Max SurgeryBioE & Therapeutic Sciences Otolaryngology School of Nursing Dean's OfcCancer Center Pediatrics Department of Clinical PharmacyCell Culture Physiology Pharmaceutical ChemistryCVRI Radiology School of Pharmacy Dean's OfcDiabetes Center SFGH Citywide Case Mgt Audit Management ServicesFamily & Community Medicine School of Medicine Dean's Ofc Campus Life ServicesInst. Neurodegen Diseases Dentistry Clinic Facility ManagementMicrobiology & Immunology Orofacial Sciences FAS: Finance Service CenterNeurology Cell Tissue Biology Risk Mgt & Insurance Svcs

User Intensive Project Plan

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Design Build Validate Test UATGo

Live

Prototyping 1

Prototyping 2

Focus Group 1

Focus Group 2

End User Acceptance

Testing

~~Business Process Transformation~~Communication, Town Hall, Ongoing Business Process & System Training

Q4 2011Q3 2011Q2 2011Q1 Calendar 2011

Q & A• Contact Information:

– [email protected]– [email protected]– [email protected]

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