Procurement & Contract Services sourcing initiatives to leverage the University's buying power and cost containment opportunities
Benefits of strategic sourcing initiatives
- Total Costs are important
It's not just about price, but quality, service, delivery and all the aspects that make up the total cost or value.
- Analytically rigorous
Our buyers do extensive research to determine the optimum type and quantity of product or service needed, the marketplace pricing and service benchmarks, and the competitive advantages offered by all potential suppliers, not just the incumbent supplier.
- Broad-based input
The decision to award a supplier relationship is not by Procurement & Contracting Services alone. Strategic sourcing teams are often cross functional, so suppliers must meet with a group that's armed with facts and looking at more than price.
How our strategic sourcing initiatives work
- Purchasing profiles & prioritizing
The strategic sourcing teams gather as much information as possible about what, when and how the institution should purchase the desired products or services. This involves internal interviews, in-house surveys, as well as marketplace surveys.
- Identify strategic sourcing products
Next is developing specifications for products and equipment to be acquired. This can be very detailed, identifying exactly how a product is used and which features are most and least important.
- Solicit bids and proposals
Once the sourcing team understands what users need, it identifies the "universe" of potential suppliers, big and small. A detailed Request for Proposal (RFP) is usually issued outlining exactly what information is needed from potential bidders, including incumbent suppliers.