Purchasing Services

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Purchasing Services

• Strategic Supplier Program Mstores
• On-line Ordering
• M-Marketsite Grainger

Bonny Webber, Mgr Strategic Supplier
Program Lynette Wright, Mgr Service Level
Agreements Purchasing University of Michigan
Facilities User Network Meeting October 23, 2003
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• Todays Presentation
• Purchasing Services Overview
• M-Marketsite On-line Demo
• Grainger On-line Ordering Demo
• Questions Answers

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• Purchasing Services- Goals
• Obtain Quality Products
• Lower Cost of Materials
• Reduce Transaction Processing Costs
• - Shortcodes SUB/SOA
• Reduce Departmental On-hand Inventories
• Reduce Investment in Equipment
• Be self-funding

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• Purchasing Services- Principles
• Target strategic suppliers
• Involve Departments Focus Groups
• Provide facts usage history
• Leverage buying power
• Communicate
• Continue to strategize

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ANALYSIS OF PROCUREMENT OPTIONS USING ABC
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STRATEGIC SUPPLIER PROGRAMPrice and Process
Savings FY02
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Strategic Supplier ProgramCurrent Contracts

• Lab Supplies
• Local Courier Delivery Service
• Microscopes
• Office Supplies
• Oligos
• Temporary Office General Labor
• Travel Nurses
• Warehousing
• Coming Soon
• Document Management
• Moving Storage

• Advertising UM Logo
• Beverages Bottled Water
• Cell Phones Pagers
• Chemicals
• Coffee Service
• Dry Ice
• Express Delivery
• Furniture
• Guard Services
• Lab Equipment
• Lab Gases

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• NEW EQUIPMENT PROGRAM
• Equipment up to 25,000 can be purchased through
  the Strategic Supplier Program from approved
  suppliers
• Aven Tools, DOT, EMD, Fisher, and VWR
• Process on Strategic Procurement Web Pages see
  handout

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• WHY CHANGE THE NAME FROM PRIME TO STRATEGIC?
• Need to alter the perception that only 1
  supplier per product or service is available.
• Strategic is more representative of our new
  direction and supplier relationships.
• Prepares the way for supplier negotiations.

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eProcurement ImplementationHigherMarkets
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e-PROCUREMENT PROJECT STATUS

• Project
• U of M / SciQuest Team kick off January 2003
• Presentations to suppliers March 2003
• Pilot go-live May 22, 2003 (25-30 targeted
  users)
• Extended pilot phase September-October 2003
• Campus wide roll out Remainder of 2003
• Stats as of September 26, 2003
• Number of orders placed 1,396
• Total dollars of orders placed 317,868.50
• Number of pilot users 38
• Number of suppliers in the M-marketsite 13

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e-PROCUREMENT PROJECT Current Suppliers
Fisher Scientific
Sigma-Aldrich
Continental Laboratory Products
Cryogenic Gases
Boise Office Solutions
Boise Office Solutions Furniture
Calbiochem
VWR
Novabiochem
Novagen Inc.
Oncogene Research Products
University of Michigan Biomedical Research Store
DOT Scientific
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PROJECTED STRATEGIC M-MARKETSITE SUPPLIERS

• Aven Tool- Lab
• BD Biosciences Clontech Lab
• Bio-Rad Laboratories - Lab
• HE Lennon Inc. - Lab
• Haworth - Furniture
• HermanMiller - Furniture
• ISC BioExpress - Lab

• Invitrogen - Lab
• KI - Furniture
• Kendro - Lab
• Knoll - Furniture
• Qiagen - Lab
• Steelcase Furniture
• Thermoforma - Lab

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• WHAT IS NEXT?
• Continuing to negotiate new contracts
• Reduce non-value added purchase orders and
  purchasing card transactions
• Enable suppliers in M-marketsite
• Continue to look for technology to assist in
  meeting critical initiatives and goals

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General Information

• Training
• Strategic Supplier Program offers both hands-on
  training and self-study training options
• Contact Information for Site Access, User
  Support, Training and Feedback
• Email marketsite.help_at_umich.edu

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On-line Ordering

• www.mstores.umich.edu/catalog/