Analyzing Spend and Leveraging Procurement
Immediate and Long Term Opportunities for Savings
Strategic sourcing is an enterprise-wide approach to use Spend Analytics to leverage total “addressable spend” to maximize the value and benefits of every dollar of funding. Addressable spend is the proportion of institutional expenditures that are available for additional savings by negotiating, bidding, rebidding, or modifying contracts for a particular commodity or service.
Strategic sourcing includes the analysis of currently purchased commodities and services to determine bidding and contracting priorities. It also evaluates current contracts for under-utilization to bring the correct number and mix of contracts to the CSU campuses. Strategic sourcing standardizes the method of research to determine priority or sequence of work to obtain the greatest benefit to the CSU. The Common Financial System has made it easier access and analyze the university’s expenditure, enabling a more strategic approach to systemwide contracting.
Additionally, current Strategic Sourcing activities are intended to be immediately and broadly communicated and implemented. It will enable savings in the current period as well as prepare the university and its vendors for implementation of the eProcurement/electronic catalogue environment anticipated by the Procure-to-Pay Initiative.
Recent efforts could save the CSU millions annually:
- Systemwide Data Enriched Spend Analysis – July 2011
- Office Supplies Generic Substitution – September 2012
- Personal Computer Standardized Configuration – February 2013