Executive Summary For

School of Medicine

Spend Analysis Project

Executive Summary For

School of Medicine

Spend Analysis Project

Presented byDavid A. Staskin, C.P.M.

Strategic Sourcing Manager For Research and Life Sciences

November 12, 2009

Presented byDavid A. Staskin, C.P.M.

Strategic Sourcing Manager For Research and Life Sciences

November 12, 2009

April 15, 2023

April 15, 2023

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

April 15, 2023

Comparison FY07 vs FY09FY 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% $ 3,944.23

April 15, 2023

PO, P Card + C Form Activity Comparison, FY 07

April 15, 2023

PO, P Card + C Form Activity Comparison, FY 09

April 15, 2023

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

Contract Suppliers $51,918

44%

Non Contract Suppliers $65,184

56%

April 15, 2023

Contract versus Non-Contract Supplier Utilization, FY 07

School of Medicine (In Thousands)

Contract Suppliers $65,524

48%

Non Contract Suppliers $71,779

52%

April 15, 2023

Contract versus Non-Contract Supplier Utilization, FY 09

School of Medicine (In Thousands)

April 15, 2023

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

April 15, 2023

Equipment Maintenance Analysis

April 15, 2023

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

April 15, 2023

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)

April 15, 2023

Potential Contracting OpportunitiesSupplier Name #

of PO’s

AnnualSpend

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

April 15, 2023

Potential Contracting OpportunitiesSupplier Name #

of POs

AnnualSpend

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

April 15, 2023

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-animal.php

April 15, 2023

UPENN Partnerships With Group Purchasing Organizations

NovationMed AssetsEducational and Institutional CooperativePhiladelphia Area Collegiate Cooperative

April 15, 2023

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

April 15, 2023

Conclusion-Questions, Discussion, Next Steps