School Of Medicine Spend Analysis Power Point Presentation Updated Daves Presentation Copy
- 1. Executive Summary For School of Medicine Spend Analysis Project Presented by David A. Staskin, C.P.M. Strategic Sourcing Manager For Research and Life Sciences November 12, 2009 January 29, 2015
- 2. January 29, 2015 Agenda  Summary on Spend Data and Comparison To Last Spend Analysis  Analysis and Recommendations Relative to PO, P Card and C Form Spend  Analysis and Recommendations Relative to Equipment Maintenance Agreements  UPS vs Fed-Ex Utilization-Analysis and Recommendations  Specific Contracting Opportunities Completed Since Last Spend Analysis  New Specific Potential Contracting Opportunities:  Additional Avenues for Specific Contracting/Cost Savings Opportunities:  Conclusion-Questions, Discussion, Next Steps
- 3. January 29, 2015 Comparison FY07 vs FY09 FY 2007 SOM  FY 2007 UPenn Baseline Totals Trans. Total $ % of Total Avg $/Trans Trans. Total $ % of Total Avg $/Trans PO's Invoiced 94,401  $ 117,102,351 87.46% $  1,240.48  178,926  $      543,260,723 85.59% $  3,036.23 P-Card 12,462  $      2,237,416 1.67% $     179.54  124,947  $        22,792,568 3.59% $     182.42 C-Form 4,781  $     14,552,328 10.87% $  3,043.78  26,919  $        68,696,221 10.82% $  2,551.96       Total = 111,644 $ 133,892,095 100% $  1,199.28  330,792 $ 634,749,512 100% $  5,770.61       Purchase Order Spend Summary  Purchase Order Spend Summary       Contract Suppliers 73,536  $     51,918,306 44.34% $     706.03  124,648  $      168,950,457 31.10% $  1,355.42 NonContract Suppliers     20,865   $     65,184,045 55.66% $  3,124.09  54,278  $      374,310,266 68.90% $  6,896.17       FY 2009 SOM  FY 2009 UPenn Baseline Totals Trans. Total $ % of Total Avg $/Trans Trans. Total $ % of Total Avg $/Trans PO's Invoiced 127,899  $ 137,303,943 78.59% $  1,073.53  281,367  $      515,008,049 44.98% $  1,830.38 P-Card 11,876  $      2,145,784 1.23% $     180.68  109,194  $        20,868,960 1.82% $     191.12 C-Form 8,146  $     35,255,416 20.18% $  4,327.94  41,792  $      609,025,891 53.19% $ 14,572.79       Total = 147,921 $ 174,705,143 100% $  1,181.07  432,353 $ 1,144,902,900 100% $ 16,594.28       Purchase Order Spend Summary  Purchase Order Spend Summary       Contract Suppliers 100,267  $     65,524,931 47.72% $     653.50  196,676  $      180,967,622 35.14% $     920.13 NonContract Suppliers     27,632   $     71,779,012 52.28% $  2,597.68  84,691  $      334,040,427 64.86% $  3,944.23Â
- 4. January 29, 2015 PO, P Card + C Form Activity Comparison, FY 07
- 5. January 29, 2015 PO, P Card + C Form Activity Comparison, FY 09
- 6. January 29, 2015 C Form Review And Summary Points  C Form spend for SOM increased by 10% between FY 07 and FY 09  SOM C Form spend for UPENN contracted suppliers was $862,000 in FY 09  Recommendation: Utilize Purchase Orders instead of C Forms for UPENN contracted suppliers
- 7. Contract Suppliers $51,918 44% Non Contract Suppliers $65,184 56% January 29, 2015 Contract versus Non-Contract Supplier Utilization, FY 07 School of Medicine (In Thousands)
- 8. Contract Suppliers $65,524 48% Non Contract Suppliers $71,779 52% January 29, 2015 Contract versus Non-Contract Supplier Utilization, FY 09 School of Medicine (In Thousands)
- 9. January 29, 2015 Equipment Maintenance Program  The Specialty Underwriters Equipment Maintenance Program (EMP) was launched in March 2006  A new and innovative business model that continues to provide opportunities for the School of Medicine to:  Continue to utilize current service providers while reducing annual equipment maintenance costs on average by 25%  Since SOM began using Specialty Underwriters in 2006:  Cost savings-$645,818  # of contracts-669  Missed opportunities for additional savings-$191,355
- 10. January 29, 2015 Equipment Maintenance Analysis
- 11. January 29, 2015 Specific Contracting Opportunities Completed Through Collaborative Efforts Between Purchasing Services and School of Medicine  R&D Systems-11/27/07-($143,951 Annual Savings)  Stericycle-7/1/08-New Pricing-($215,422 Annual Savings)  Source One Healthcare-11/7/08-($18,824 Annual Savings)  Gemini Bioproducts-11/7/08-($9,881 Annual Savings)  T&N Van Service-11/21/08-($20,000 Annual Savings)  Specialty Underwriters Agreements ($645,818 Savings over 3 years)  TOTAL Collaborative Savings to Date: $1,053,986
- 12. January 29, 2015 FY10 Year-To-Date Contract Awards and University Cost Savings Projections  Rainin Instruments Company ($87,757)  Novus Biologicals ($ 5,000)  G& K Services (Uniforms)($84,877)  Total MRO, LLC (Personal Protective Equip) ($241,000)  Tri-State Biomedical ($54,650)  Genscript Corporation ($18,400)
- 13. January 29, 2015 Potential Contracting Opportunities Supplier Name # of PO’ s Annual Spend PTC Therapeutics 12 $ 3,146,270 Chesapeake Pearl, Inc 9 $ 449,717 Bioqual, Inc 14 $ 300,379 Caliper Life Sciences 9 $ 294,460 Bruker Optics, Inc. 3 $ 292,025 Lonza Walkersville, Inc 297 $ 266,517 Cordis Corporation 8 $ 252,669 Bracco Diagnostics 9 $ 216,380 Rigaku Americas Corporation 5 $ 183,030
- 14. January 29, 2015 Potential Contracting Opportunities Supplier Name # of POs Annual Spend Licor Biosciences 73 $ 182,078 Spectra Gases 11 $ 180,244 Stat Pathology Center 16 $ 158,437 Glaxo Smith Kline Consumer Healthcare 105 $ 111,700 Mediatech, Inc. 69 $ 111,249 Atlanta Biologicals 28 $ 96,908 ABX Advanced Bio Compounds 18 $ 97,138 Amaxa-Part of Lonza Walkersville 49 $ 95,933 USB Corporation 227 $ 77,623
- 15. January 29, 2015 Laboratory Animal Competitive Bidding Focus Group  Currently a collaborative effort between Purchasing Services and:  Matthew J Ryan Hospital  New Bolton Center  ULAR  EHRS  School of Medicine Has Numerous Lab Animal Research Labs and Would Benefit from Participating In This Group  Will Collaborate with School of Medicine Designated Personnel To Have Key Members Join and Be Part of the Group  Additional Info: www.purchasing.upenn.edu/supply-chain/bidding-lab-
- 16. January 29, 2015 UPENN Partnerships With Group Purchasing Organizations  Novation  Med Assets  Educational and Institutional Cooperative  Philadelphia Area Collegiate Cooperative
- 17. January 29, 2015 IASTA RFP Tool-  An electronic RFP/Reverse Auction tool that can maximize overall spend and provide measurable cost savings  Provides detailed, real-time RFP solicitation, communication and reporting capabilities on spend and potential cost saving scenarios.  Purchasing Services would collaborate with key School and Center contacts at School of Medicine on specific RFP’s utilizing this tool
- 18. January 29, 2015 Conclusion-Questions, Discussion, Next Steps
Editor's Notes
- This is a summary of the comparisons between this fiscal year’s Spend Analysis and the last Spend Analysis, which was in FY 2007. Key areas reviewed include: Purchase order utilization and spend P card utilization and spend C form utilization and spend Utilization of contract v non-contract suppliers Comparing all data between fiscal years Recommendations
- Overall Analyses: FY07 School of Medicine spend using BEN PO’s was 87% University Average was 86%
- Overall Analyses: FY09 School of Medicine spend using BEN PO’s dropped from 87% to 79% University Average was 45% FY 09 School of Medicine PO Spend was 79% University Baseline PO Spend was 45% School of Medicine spend using P Card was 1.23% University average was 1.82% Analysis: SOM use of P Card is consistent with UPENN baseline totals. The C form FY 2009 University baseline totals are now inclusive of ALL C form transactions-This is due to Markview upgrade in November or 2008-Approximately $400 million was not previously counted in calculations. Use sheet showing those specific vendors. Overall Analyses: School of Medicine spend using C Forms was 20%, up 10% from previous spend analysis University average was 53%, but included well over $400 million in payments such as medical coverage for employees, insurances energy costs, et al
- Contracted Suppliers in which C Forms were used include: Cintas Corporation Fisher Scientific Sigma-Aldrich Invitrogen Charles River Laboratories
- SOM Contract utilization for FY 07 was 44% versus the University baseline of 31% SOM non-contract utilization for FY 07 was 56% versus the University baseline of 69% SOM contract utilization for FY 09 was 48% versus the University baseline of 35% SOM non-contract utilization for FY 09 was 52% versus the University baseline of 65%
- SOM Contract utilization for FY 07 was 44% versus the University baseline of 31% SOM non-contract utilization for FY 07 was 56% versus the University baseline of 69% SOM contract utilization for FY 09 was 48% versus the University baseline of 35% SOM non-contract utilization for FY 09 was 52% versus the University baseline of 65%
- Missed opportunities-BD Hank Pletcher
- Overall savings to the SOM since 2006 with SU is $646,000-Usage has steadily increased over the last 3+ years However, there was lost opportunities totalling $191,000 during the last 2 fiscal years; SU now has a rep that can visit PI’s and others at any time to discuss issues
- Total Dollar Amount of Potential Contracting Opportunities $7,328,228