Implementing procurement processes and operations solutions to save approximately $45 million annually.
Annual Key Performance Indicators
Spend on existing strategic supplier contracts
Noncompliant payment spend
Huron Consulting and AArete, a procurement consulting agency, identified the following supply chain and SIMBA improvements:
- Increase synergy and collaboration over University contracts and purchases by creating a centralized procurement model and office.
- Connect suppliers to end-users to negotiate the best possible pricing strategies by implementing category managers to build a relationship management standard of practice.
- Hire communication, compliance, and data management specialists to manage better and support each category strategy.
- Route the majority of spend dollars through Central Procurement's category management, reducing Purchasing Cards and non-PO invoice payments, the least cost-effective purchasing measures.
- Realign procurement from Auxiliary and Business Services to Finance and Business.
- Create new positions, including the Chief Procurement Officer.
- Identify organizational structure with category management teams.
- Create a Strategic Procurement Leadership Council.
- Develop a comprehensive staff training program that leverages Smeal College of Business Executive Programs and Human Resources Talent Management.
- Develop eight goods and services categories by analyzing nearly $400 million in University spend.
- Guide procurement experts with category playbooks.
- Form long-standing category relationships to negotiate best-in-class contracts.
Policy and Guidelines
- Modernize existing policies and guidelines to enable Central Procurement to support the University’s cost savings goals.
- Develop sustainable purchasing, diversity, equity, and inclusion policies and guidelines.
Compliance and Business Intelligence/Analytics
- Determine best business practices for analyzing spending data.
- Maximize departmental performance and savings by utilizing business intelligence to make data-driven decisions on strategic vendors and compliance.
Technology Insertion Working Group
- Evaluate and drive technology efficiencies in Cental Procurement.
- Dr. Justin Schwartz, Provost and Executive Vice President
- Dr. Sara Thorndike, Senior Vice President for Finance and Business/Treasurer
- Duane Elmore, Chief Procurement Officer
Executive Steering Committee
- Jason Bush, Director of Business and Finance at the Fayette and New Kensington Campuses
- Joe Doncsecz, Associate Vice President for Finance and Corporate Controller
- Jody Heckman, Academic Budget Director
- Virginia Teachey, Associate Vice President for Finance
- David Snyder, Associate Vice President of Auxillary and Business Services
- Richard Roush, Dean of the College of Agricultural Sciences
- Steve Tracey, Executive Director of Center for Supply Chain Research
- Lora Weiss, Senior Vice President for Research
- Keith Brautigam, Interim Vice President for Information Technology and Chief Information Officer
- Jeremy Bean, Director of Change Management & Organizational Excellence
- Amanda Karl, Organizational Change Management Consultant, Enterprise Projects & Initiatives
- Matt Gourley, Project Manager, Enterprise Projects & Initiatives
Strategic Procurement Leadership Council
- Duane Elmore, Chief Procurement Officer
- Standing Members
- Central Procurement: Vacant, Assistant Director Central Procurement
- Corporate Controllers Office: Kim Fisher, Assistant Controller and Director of Financial Officers
- Office of Physical Plant: Todd Webber, Construction and Contract Specialist for OPP
- Housing and Food Services: John Mondock, Director of Purchasing for Housing & Food Services
- University Libraries: Courtney Dillon, Business Manager
- Applied Research Lab: Melisa Peck, Associate Director of Purchasing
- Penn State Health: Vacant
- Rotational Members (2 Year Cycle)
- College Dean: Tracy Langkilde, Dean, Eberly College of Science
- Faculty Senate: Christina Grozinger, Ph.D., College of Agricultural Sciences
- Dan Heckman, Director of Institutes of Energy and the Environment
- Commonwealth Campus: Randy Geering, Director of Business Services, Penn State Erie