|
|
Continuing the university administration's mandate to redirect funds from administration to strategic initiatives, Cornell's Workforce Planning initiative is now being focused on its first nonpersonnel-related review. Led by Joanne DeStefano, vice president for financial affairs and university controller, the new focus, started in August 2003, is on Cornell's procurement operations, with the expectation of saving at least $5 million. But DeStefano emphasizes: "The quality of goods and services that Cornell acquires will not be sacrificed for price."
The greatest area of non-personnel expenditure at the Ithaca campus is on "supplies and general expenses," which includes scientific supplies, books and subscription services, IT (information technology) hardware, telecommunications, and furniture and office supplies. In fiscal year 2003, this category amounts to $213 million. Another area of particular interest to the review team is procurement card purchases, which, while amounting to $35 million, do not routinely take advantage of favorable terms from approved vendors.
Consultants from the Huron Consulting Group are analyzing the university's spending patterns by a strategic sourcing review. "Cornell's examination of its sourcing practices and opportunities is one of the most comprehensive performed to date in higher education," DeStefano said.
"In addition to savings through better sourcing, the review will focus on the procurement process itself and will clarify roles and accountabilities in value-added activities," DeStefano continued. Also part of the initiative is a five-year strategic procurement plan that will address competitive pricing models, benchmarks, and tools to ensure the best pricing and quality of goods and services.
The current stage of baseline gathering should be completed by the end of this calendar year, and implementation of early recommendations will begin in early 2004. Phase I of the review is expected to conclude next fall.
Guiding the procurement review is a steering committee, chaired by DeStefano, which includes faculty and staff representatives from the School of Hotel Administration, the College of Agriculture and Life Sciences, the School of Industrial and Labor Relations, the Division of Budget and Planning and the University of Rochester. In addition, there are three subcommittees:
·The Baseline Financial Sub-Committee is chaired by Eric Ludewig of the Division of Financial Affairs (DFA) Office for Purchasing Services. This subcommittee includes representatives from the Campus Store, Campus Life, the School of Chemical Engineering, University Libraries, and the Department of Molecular Biology and Genetics.
·The Roles and Responsibilities Sub-Committee is chaired by Anne Shapiro, DFA associate controller, supported by representatives of Wilson Laboratory, the Department of Chemistry and Chemical Biology, and the School of Electrical and Computer Engineering.
·The Strategic Planning Sub-Committee is chaired by Vince Patriarco, DFA purchasing director, and includes representatives from Campus Life, Facilities, the College of Human Ecology, Cornell Information Technologies, the Treasurer's Office, and Campus and Business Services.