Budget and Finance Excellence is one of the six portfolios launched to support the ambitious goals of OF&S' strategic plan. The Budget & Finance team recently introduced their latest program, the Resource Optimization Initiative. As part of this initiative, the Strategic Sourcing and Procurement team, led by Jon Wyand, has launched the Strategic Sourcing program designed to streamline operations, enhance customer service, and maximize value, ensuring that the organization not only meets but exceeds its financial goals.
Overview of Strategic Sourcing
Strategic Sourcing is a purposeful approach to the procurement of goods and services. It involves a comprehensive analysis of the organization’s needs, collecting market insights, researching potential suppliers, developing go-to-market strategies, negotiating contracts, and managing supplier relationships, all driven by data and analytics. The goal is not just to save money but also to ensure that the products and services purchased are of high quality, delivered on time, and meet the organization’s specific requirements. This approach helps organizations operate more efficiently, reduce costs, and build strong partnerships with suppliers.
Strategic sourcing emphasizes long-term benefits and the total cost of ownership rather than just immediate savings. By considering factors such as supplier reliability, innovation, sustainability, speed to market, performance, and aftermarket support, organizations can evaluate what matters most and make well-informed decisions that maximize overall value. Focusing on these aspects helps Rice University create a more resilient and adaptable supply chain that supports its overall goals and objectives.
Recent Accomplishments
The Strategic Sourcing program launched earlier this fiscal year and has already achieved savings in excess of $1 million. Below are a couple of recent accomplishments:
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Renegotiated Agreement with Major IT Supplier to Achieve 20% Cost Reduction: The team leveraged benchmarks, buying power, and scope rationalization to renegotiate a renewal agreement with a major IT supplier, resulting in a 20% cost reduction. This achievement underscores a focus on cost efficiency while maintaining high-quality standards.
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Assisted Customer with Supplier Delivery Issues: The team assisted a customer in resolving supplier delivery issues, leading to improved delivery times, reduced costs, and an extended warranty period. This intervention highlights a proactive approach to supplier management and problem-solving.
Working Together
While the team is hard at work, campus customers play a critical role in its success. The greatest achievements of the program have come from customers who proactively engage with the team, bringing new projects, supplier opportunities, and innovative ideas to the table. By working together, we can unlock even greater value for the entire campus community. If you have ideas, potential opportunities, supplier challenges, or need more information, please contact the Strategic Sourcing team to discuss how they can assist you. You are also invited to attend the Procurement & Payment Power Hour which meets the last Wednesday of the month from 10-11am.