Catagory Management Plan And Saving For Fy09
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Overview of Catagory Management Plan including savings at Ohio University
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Catagory Management Plan And Saving For Fy09
- 1. Strategic Procurement FY09 Summary Prepared by Frank Corris
- 2. FY 08 Objectives Obtain granular visibility into University spend Review and select a common eProcurement system across HighEd in Ohio Reorganized the department Derive logical category management plans Build go-forward strategies for each category and with collaboration with internal departments
- 4. Pcard & PO spend combined
- 5. Analyzed at the line item level
- 9. MRO Top Supplier Breakdown
- 11. MRO Top Supplier FY 08-09 Comparison Significant changes in spend were not the result of a procurement strategy.
- 13. Total expenses decreased by 19%
- 14. Net improvement over FY08 57%
- 15. Net loss of $41,943 for FY09Coal Purchase coal futures at 25% under market price Cost avoidance of $750,00 over two years A $2.5M annual set-aside for a Minority Business Enterprise (MBE)
- 17. Over $225M in collective annual spend
- 18. $34M/year is Ohio University spend
- 20. Miami and Akron Universities were collaborators on this project
- 21. $2.0M/year is Ohio University spend
- 25. Over $10M in collective annual spend
- 26. $1.3M/year is Ohio University spend
- 27. Saving of 12% or $156,000/year for Ohio University starting FY09
- 29. FY 08 Projects Total New Savings for FY09 for Ohio University $2,653,531
- 31. Department ReorganizationMove to Strategic Sourcing Model Potential Projects Auto Parts Promotional Items Outsourced Print (may include a bilateral agreement with Ohio State University) MRO Supplies
- 32. The End
Editor's Notes
- The following five cards show the basis of a Category Plan. The example is our Analysis of the Maintenance, Repair & Operations Category. Please note that we have this information for EVERY Category.
- This card shows the commodity breakdown of spend under the Maintenance, Repair and Operations Category along with notations by the manager in regard to each commodity.
- This card depicts the last spreadsheet in a graphical format. This visual makes it very clear where the money is being spent in a category.
- This spread sheet sums up the details on each of the category’s top suppliers. Key information is the number of transactions and the spend for FY 08 and 09. Knowing the number of transactions points us to where catalogs are needed for the Sciquest Implementation. As we gather data on more years, knowing the total spend per vendor will allow us to trend where we are going.
- This deck depicts the top supplier spreadsheet in a graphical format. Note that it makes it very clear what vendors have the most spend.
- This chart shows the change in spend on the top vendors from FY 08 to FY 09 and quickly shows where changes are happening within the vendor base. As we gather more years of data these charts will become much more useful. Using this chart in concert with all of the other data allows for the manager to create a category plan:Managers can decide what vendors should have catalogs in the Sciquest system by understanding where the spend is and where the volume of transaction are locatedManagers can see where to apply their expertise by seeing where the large spend is located thus concentrating on projects in order of benefit to the UniversityManager can now see trends in spend so they now know to investigate what is causing the changesManagers can now understand where rouge spend is, and channel it into our preferred suppliersAgain, this is just an example, we currently have this information for every category.
- Note that this does not include savings from contracted spend, construction or several smaller sourcing events that have been held.