Purchasing Resource Services is responsible for strategically sourcing on behalf of the University.
Strategic sourcing is the process of analyzing the University’s spend, going through a formal and structured bid/negotiation to identify a preferred vendor(s), and managing the vendor relationship. Strategic sourcing is about leveraging the University’s overall spend with fewer vendors, going through the process of establishing contracts as a university, as opposed to every department and school having to go through the process themselves. The ultimate goal is to save departments and schools money and time.
There are two primary components of strategic sourcing:
- Analyze spend (dollars/number of transactions)
- Talk to departments and schools
- Establish evaluation committee
- Issue formal Invitation to Bid (using templates created by PRS)
- Evaluate proposals
- Conduct best and final offer/final negotiation
- Enter into formal negotiation with sole source vendors
- Award contract/agreement based on a best-value decision
- Consider price, delivery capabilities, quality, past performance, training, reporting, compliance with specifications/requirements, customer service, financial stability, etc.
- Monitor vendor performance and service levels
- Solicit feedback from departments and schools
- Change and update product offerings to better meet needs
- Validate that prices being charged are correct and consistent
- Monitor industry information/NU spend information and negotiate improved pricing, when appropriate
- Meet with contractors and analyze data in order to continually improve contracts