Spend Analysis Summary
- 1. Spend Analysis Summary Prepared by Matt Gibbs
- 2. Exercise Objectives Determination of where the University currently stands in regards to addressable spend Obtain visibility into University Spend Derive logical category plans Design go-forward strategies
- 3. Transaction Analysis Analysis of FY 08 spend: Pcard & PO spend combine Tens of thousands of line items analyzed at a line item level Each line item tagged by commodity
- 4. IT Category Breakdown Commodity Name FY Spend Notes A/V $562,219 push to IUC contracts & CDW-G, Govconnect Cabling $87,946 Move to CDW-G & Govconnect Hardware $4,942,044 move spend to CDW-G and Govconnect (1.7 mill of this spend is with Dell and Apple, not likely to move) Media $16,419 move to office supply contract Printers $182,223 consolidate and move to 1 or 2 vendors, work to get to standards configs Software $3,412,585 move to IUC broad scope software contract (2 mill is Oracle and Microsoft, will not move) Electronic Supplies $19,129 possible IUC scale Mousser or similar catalog Total $9,222,566
- 5. IT Top Vendors Supplier Name FY Spend # of Transactions Ave $ per Transaction Accessed by: Catalog Item Notes Payment Accepted SHI $495,521 43 $11,524 UN-044 x Microsoft Reseller would like to move to catalog would make GREAT IUC wide catalog, should make tracking sweet Po/PC MCPC $166,120 47 $3,534 STS will be moved to AT&T Cisco changeover to Juniper Po/PC Lenovo $322,164 345 $934 UN-198 x will be moved to CDW-G / Govconnect or may move to IUC catalog Po/PC GovConnection $164,376 455 $361 E&I / UN-198 x Key Vendor for Sciquest, negotiate better pricing in light of massive market share shift Po/PC Dell $849,017 969 $876 UN-198 x Key PC supplier, would like to add Blades to catalog for SysOps Po/PC CDWG $367,270 797 $461 NJPA x Key Vendor for Sciquest Implementation Po/PC Bradford Supply $269,341 48 $5,611 Adobe Reseller x move to broad scope software reseller IUC catalog Po/PC BlackBoard $109,035 24 $4,543 non contract mainly support / maintenance PO Apple $918,993 799 $1,150 sts x Will be a SciQuest Catalog Po/PC Oracle $1,576,167 8 $197,021 OU bids mainly support / maintenance PO Siruis (IBM) $400,852 1 $400,852 STS mainly Blade & Pseries hardware PO NewEgg $163,512 1132 $144 non contract x will be moved to CDW-G / GovConnect PC HP $122,188 90 $1,358 UN-198 x will move to GovConnect as they act as channel partner for Ohio Schools providing delivery from Wilmington Ohio Po/PC NetData $175,401 38 $4,616 UN-005 x will be moved to HP by means ofCDW-G / GovConnect or it will move to Dell Po/PC MPC / GATEWAY $579,122 267 $2,169 UN-005 x will be moved to HP by means ofCDW-G / GovConnect or it will move to Dell Po/PC Amazon $32,377 295 $110 non contract x will be moved to CDW-G / GovConnect PC Best Buy $9,438 75 $126 non contract x will be moved to CDW-G / GovConnect PC Buy.com $22,333 138 $162 non contract x will be moved to CDW-G / Govconnect PC officemax $17,268 123 $140 non contract x will be moved to CDW-G / Govconnect Po/PC Staples $35,875 355 $101 non contract x will be moved to CDW-G / Govconnect Po/PC Tigerdirect $18,562 189 $98 non contract x will be moved to CDW-G / Govconnect PC -Over $700K in PC market share will move to DELL, Lenovo and HP due to demise of Gateway and standardization of hardware -Over $300K in rouge IT hardware spend will move to CDW-G and Govconnect -74% of Category spend is covered by addressing these vendors key notes:
- 6. Sci / Med Category Breakdown Commodity Name FY Spend Notes Live Animals $1,654 non catalog items, spend too low to work on Lab Chemicals $250,300 majority to be handled by IUC/E&I Catalogs & Sciquest Sci package Lab Equipment $1,769,784 majority to be handled by IUC/E&I Catalogs & Sciquest Sci package Lab Glass $21,773 majority to be handled by IUC/E&I Catalogs & Sciquest Sci package Lab Supplies $1,943,850 majority to be handled by IUC/E&I Catalogs & Sciquest Sci package Medical Equipment $136,527 majority to be handled by IUC/E&I Catalogs & Sciquest Sci package Medical Supplies $168,957 majority to be handled by IUC/E&I Catalogs & Sciquest Sci package Total $4,292,844
- 7. Sci / Med Top Vendors Vendor Name FY 08 Spend FY 09 Spend Number of Transactions Avg $ Per Transaction Accessed by: Catalog Item Notes Payment Method Applied Biosystems $125,381 $70,455 78 $1,607 $95K was one time equipment purchase PO/PC LAERDAL MEDICAL $95,296 $102,761 75 $1,271 $37K was system purchases PO/PC Alfa Aesar $23,480 $15,753 127 $185 PO/PC Bio Rad $57,205 $70,898 196 $292 UN-036 x catalog item for Sciquest PO/PC GE Healthcare $12,099 $6,251 78 $155 PO/PC INTEGRATED DNA TECH INC $11,743 $8,930 136 $86 PO/PC INVITROGEN $65,369 $64,262 185 $353 x catalog item for Sciquest PO/PC NEW ENGLAND BIOLABS $15,834 $14,377 96 $165 PO/PC QIAGEN $34,446 $17,839 97 $355 PO/PC SIGMA ALDRICH $106,917 $113,222 1164 $92 x catalog item for Sciquest PO/PC WARDS NATURAL SCIENCE $29,641 $8,036 116 $256 PO/PC PO/PC Fisher $319,972 $234,195 2698 $119 UN-040 x catalog item for Sciquest PO/PC VWR $356,949 $236,373 2577 $139 UN-040 x catalog item for Sciquest PO/PC CAROLINA BIOLOGICAL $25,647 $26,785 103 $249 x should move to fisher / VWR PO/PC COLEPARMER $9,681 $24,744 100 $97 x should move to fisher / VWR PO/PC DENVILLE SCIENTIFIC $35,100 $20,130 100 $351 x should move to fisher / VWR PO/PC MCKESSON MEDICAL $74,702 $43,791 271 $276 STS x should move to fisher / VWR PO/PC MEDCO SUPPLY $11,094 $39,175 86 $129 x should move to fisher / VWR PO/PC McMaster Carr $33,534 $0 507 $66 x PO/PC MSC INDUSTRIAL SUPPLY $17,868 $22,488 160 $112 x PO/PC PO/PC ANTON PAAR USA, INC $183,100 $0 one time equipment purchases will hit buying center, must be reviewed by Category Manager PO AMERICAN MEDICAL INDUSTRIAL SYSTEMS INC $46,788 $0 PO AMERICAN MEDICAL INDUSTRIAL SYSTEMS INC $46,788 $0 PO SHIMADZU SCIENTIFIC INSTRUMENTS $46,196 $0 PO LI-COR INC $38,463 $1,040 PO BOUND TREE MEDICAL LLC $35,980 $3,506 PO THERMO ELECTRON NORTH AMERICA LLC $30,807 $426 PO CONSOLIDATED STILLS & STERILIZERS $27,520 $0 PO INSTRON CORP $24,800 $0 PO BECKMAN COULTER INC $24,739 $12,441 Key Notes: PO 46% of Category spend is covered by addressing these vendors Well over $200K will be moved to Fisher & VWR with the implementation of the Sciquest tool
- 8. Sci / Med Top Vendors (cont)
- 9. Office Category Breakdown Commodity Name FY Spend Notes Furniture $1,970,958 I would like to see some standard furniture in a catalog, such as, chairs, filing cabinets, etc. For obvious reasons larger orders that are being designed and configured would not be conducive to a catalog. Office Supplies $900,951 Office Supplies, Paper and Toner are to be viewed as one group. This was the format that was presented on the RFP for Office Supplies with the IUC's Premier Contract for office supplies which OU will be joining when negotiations are complete. Paper $576,249 Toner $600,758 Promotional $479,820 A sourcing event will take place for promotional items. Appropriate items from Awards, Trophies and Gifts will be included also. good candidate for MBE contract Awards, Trophies, Gifts $449,213 Ads $435,928 I would like to research ads to see what possibilities are out there for ad placements. This is a large spend and a sourcing event might be appropriate. Books $349,888 The largest spend in textbooks was to EdMap, who we already have a contracted relationship with (RFP #09-015). Current contract signed May 2009 and runs for 3 years. As part of this agreement, OU will receive a 10% commission rate on all books sold through this agreement. Uniforms $183,070 The current RFP #07-039 will expire on June 30, 2010. We use one local vendor and one based out of Circleville. vendor conducts the fittings and organizes each order according to each individual receiving uniforms. Instructional Supplies $170,597 Instructional Supplies are not specific enough to warrant an sourcing event Art Supplies $103,862 My analysis of art supplies would not recommend a sourcing event Printing Supplies $57,605 These commodity totals do not warrant a contract. Signage $42,320 Musical Instruments $21,908 Theater $10,068 Equine (Horse Park ) $9,485 Total $6,362,680
- 10. Office Category Top Vendors Vendor Name FY 08 Spend FY 09 Spend Number of Transactions Avg $ Per Transaction Catalog Item Accessed by: Notes Payment Accepted OfficeMax 971216 1090044 18186 51 x OU #06-047 Current contract, OU #06-047, will join IUC contract for Office Supplies when negotiations are complete PO/PC Loth 443881 628857 136 5589 OSU #5 Pricing confirmed through Ohio State #5 contract PO/PC Clara I Brown 327136 411385 33 9913 OSU #5 Pricing confirmed through Ohio State #5 contract PO/PC Worden 224432 292048 1 56108 E&I Pricing confirmed with E&I. This represents 1 purchase order PO University Sleep Prod 208982 152681 5 26123 IUC 07-002 Pricing confirmed with STS. This represents 4 purchase order PO Xpedx 192193 175974 353 542 OU #09-005 RFP process administered every 6 months. This is the most that vendors will commit pricing. PO/PC Staples 183044 205782 6506 27.23 x No Contract will be moved to IUC Vendor PO/PC Kaeser & Blair 88707 240694 245 362 x No Contract Printing Services has created this relation for promotional items. Procurement will capture this spend through the RFP process for Promotional Items. Possible set aside commodity PO/PC EdMap 88637 81101 12 6818 OU #03-004 Current contract, #OU 09-015, contract signed May 2009. Runs for 3 years. PO/PC Marketeers 88204 157526 142 730 x No Contract No contracts currently, this vendor will be included in the RFP for promotional items. PO/PC total 2816432 These Vendors account for 44% of Category Spend
- 11. MRO Category Summary Commodity Name FY Spend Notes Auto Parts $264,519 Sourcing event needed, three vendors account for 27% of spend one vendor over bid limit Batteries $12,658 Catalogs could cover most of this commodity Carpenter Shop $196,544 Electrical Supplies $106,923 Catalogs could cover most of this commodity HVAC Parts $55,623 Hardware Supplies $106,923 Catalogs could cover most of this commodity Light Bulbs $70,652 Catalogs could cover most of this commodity Misc Food Supplies $56,869 Misc Supplies $1,521,892 Needs additional Research, too much spend in this area to be this vague Misc Maintenance $79,852 Mower Parts $50,871 Painting Supplies $59,000 Plumbing Supplies $118,097 Catalogs could cover most of this commodity Spec. Gases $95,207 Sourcing event possibility Water Treatment $120,116 Sourcing event possibility Coal and 3rd Party Gas $3,599,387 Total $6,515,133
- 12. MRO Category Top Vendors Vendor Name FY 08 Spend FY 09 Spend Number of Transactions Avg $ Per Transaction Accessed by: Catalog Item Notes Payment Method Sherwin Williams $71,000 $36,080 1254 $57 sts x STS 778635A PO/PC Airgas Mid American $86,000 $136,517 1134 $76 x Move to E&I PO/PC Kroger $20,000 $94,110 450 $44 PO/PC J A Sexauer $27,673 $35,104 300 $92 sts x Moving Purchases to Direct Resources (Minority) PO/PC State Electric $206,000 $98,543 1218 $169 Term Contract x Term Contract that expires June 30, 2010. Will be meeting with Facilities for future needs. PO/PC Economy Supply $20,331 $25,000 420 $48 PO/PC Crescent Sprague $221,645 $319,070 4727 $47 Term Contract x June 30, 2010, also will be meeting about this one. PO/PC Classic Solutions $677,614 $835,900 6842 $99 Term contract x Contract expires June 30 2010. Meeting now about rebidding PO/PC Lowes $166,828 $167,000 4583 $36 PO/PC McMaster Carr $39,500 $107,500 1128 $35 x Needs addressed both in terms of contract and catalog PO/PC C & E Hardware $25,000 $28,697 1131 $22 PO/PC NAPA $15,669 $18,538 400 $39 ? RFP/ Catalog possibilities PO/PC Murray's Auto Parts $8,400 $7,138 300 $28 ? RFP/ Catalog possibilities PO/PC Aqua Science $120,116 $120,116 12 $10,010 Term Contract The Contract expires June 30, 2015 PO/PC W W Grainger $481,697 $321,171 910 $529 sts x STS 774511A / E&I CNR0115 PO/PC Architectural Interior Prod $88,031 $29,000 164 $537 PO/PC Professional Auto Parts $47,225 $29,973 788 $60 ? RFP/ Catalog possibilities PO/PC Electric Motor Service $31,187 $22,857 41 $761 PO/PC Kone Elevator $412,053 $439,081 12 $34,338 Term Contract Contract expires J'une 30, 2012 PO Pioneer Coal & Gas $3,599,387 $4,099,364 12 $299,949 Term Contract This contract will run through June 30 2010. We will need to rebid at that time. PO Total $6,365,356 Notes: This category has a huge amount of transactions, catalogs greatly needed These vendors account for 97% of spend in this Category
- 13. MRO Category Top Vendors (Cont)
- 14. Portfolio Summary Management of the following vendor list (vendor consolidation and sourcing activities) will result in the consolidation of a minimum of 36 vendors to 17 catalog vendors covering over 57,000 transactions and $8.5 million, please note that this is the extremely low hanging fruit, much opportunity exists beyond this initial evaluation Catalog Description Vendor $ # of Transactions Office Supplies Catalog OfficeMax $971,216 18186 Staples $183,044 6506 Sherwin Williams $71,000 1254 Airgas Mid American $86,000 1134 State Electric $206,000 1218 Crescent Sprague $221,645 4727 Classic Solutions $677,614 6842 McMaster Carr $73,034 1635 Auto Parts Catalog / Contract NAPA $15,669 400 Murray's Auto Parts $8,400 300 Professional Auto Parts $47,225 788 W W Grainger $481,697 910 SIGMA ALDRICH $106,917 1164 Fisher & VWR Catalogs Fisher $319,972 2698 VWR $356,949 2577 CAROLINA BIOLOGICAL $25,647 103 COLEPARMER $9,681 100 DENVILLE SCIENTIFIC $35,100 100 MCKESSON MEDICAL $74,702 271 MEDCO SUPPLY $11,094 86 SHI $495,521 43 Bradford Supply $269,341 48 Apple $918,993 799 GovConnect / Dell Catalogs Lenovo $322,164 345 HP $122,188 90 NetData $175,401 38 MPC / GATEWAY $579,122 267 Dell $849,017 969 CDWG & GovConnect Catalogs NewEgg $163,512 1132 Amazon $32,377 295 Best Buy $9,438 75 Buy.com $22,333 138 OfficeMax $17,268 123 Staples $35,875 355 Tiger direct $18,562 189 CDWG $367,270 797 GovConnection $164,376 455
- 15. The End