Overview of Strategic Sourcing
Strategic Sourcing is an approach PSDS uses to consolidate and leverage the purchasing power of the university’s commonly used supplies, equipment, and services to negotiate more favorable prices, process efficiencies, and better service. It is a continuous process of information gathering, analysis and monitoring:
- Assess Current Spend- What is bought, where, at what price?
- Assess Supply Market- Who offers what?
- Total Cost Analysis- How much does it cost to provide goods/services?
- Identify Suitable Suppliers
- Develop Sourcing Strategy- Where to purchase, while minimizing risk and cost?
- Negotiate with Suppliers- Products, service levels, prices, payment terms, etc.
- Implement New Supply Structure
- Monitor and Track Performance- Use Vendor Scorecards and Department Dashboards
Our approach to Strategic Sourcing seeks to better balance the University’s requirements for flexibility and savings by focusing on a small number of contracts that best meet the University’s needs as a whole. We use Strategic Sourcing best practices to better leverage the University’s purchasing power. We then work to develop better supplier relationships in order to ensure that the University receives the highest level of service and innovation from its strategic vendors.
Why Use Strategic Contracts?
PSDS uses historical purchasing data to negotiate the best pricing on the items the University purchases most often. Our ability to leverage our purchasing volume increases as the usage of our strategic contracts increases, creating the opportunity to:
- negotiate further discounts
- enhance levels of customer service provided to University customers, and
- demonstrate to competitors the value of the contracts for the next cycle of strategic sourcing
Strategic Sourcing Projects