Achieving strategic procurement
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Achieving Strategic Procurement. University of Hawaii System Discussion and Demonstration May 22, 2008. Introductions. University of Hawaii Attendees SciQuest Attendees Mark Garvella - Account Executive Dan Traub - Lead Solutions Engineer John Fabris - Vice President of Higher Education.

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Achieving Strategic Procurement

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Achieving strategic procurement

Achieving Strategic Procurement

University of Hawaii System

Discussion and Demonstration

May 22, 2008



University of Hawaii Attendees

SciQuest Attendees

  • Mark Garvella - Account Executive

  • Dan Traub - Lead Solutions Engineer

  • John Fabris - Vice President of Higher Education

Today s agenda

Today’s Agenda

  • 8:30 – 8:45 Introduction & Brief SciQuest Overview

  • 8:45 – 9:10 Trends, Observations & Results

  • 9:10 – 9:30 SciQuest Solution Overview

  • 9:30 – 11:00 Demonstration

  • 11:00 – 11:15 Building the Business Case

  • 11:15 – 11:30 Final Questions

Sciquest background

SciQuest Background

About sciquest

Connect to your suppliers

About SciQuest

Capture more transactions

Control your spend

SciQuest is the global leader in helping academic and research-centric organizations realize the potential of strategic procurement.

Our specialized knowledge, on-demand software and service-first approach empower organizations to manage spend, drive ROI and advance their critical missions.

What we do:

  • Improve existing procurement systems

  • Add value to planned procurement implementations

  • Provide end-to-end procurement solutions

    How we do it:

  • Combination of software and services

  • Web-based, Software-as-a-Service model

  • Integrations into any existing systems, including Kuali, Banner, SAP, Oracle, PeopleSoft and more

The sciquest difference

The SciQuest Difference

  • Higher Education focus and experience

    • Recognized leader in academic and research-centric organizations

    • 70+academic and research universities

    • Extensive relationships with Higher Education suppliers

    • Community-driven development approach

  • One stop supplier enablement

    • Critical mass of supplier catalogs

    • Local suppliers, diversity suppliers

    • Automated transaction processing: order delivery and electronic invoicing

    • Research supplier catalog and research specific search tools

  • Proven Return On Investment (ROI)

    • Strategic spend and supplier reporting

    • Aggregate and leverage spend across campuses

    • ROI achieved within one year

    • Client reference cases and results

Sample sciquest higher education clients

Sample SciQuest Higher Education Clients

  • University of Michigan

  • Indiana University

  • Pennsylvania State University

  • University of Illinois (system)

  • University of Texas Health and Sciences Center

  • University of Missouri - System

  • Clemson University

  • University of California Berkeley

  • University of Virginia

  • University of New Mexico

  • University of Louisville

  • Cornell University

  • Rockefeller University

  • Colorado State University

  • Virginia Polytechnic Institute

  • University of Louisville

  • University of Florida

  • Florida State University

  • Iowa State University

  • University of Pennsylvania

  • California Inst. of Technology

  • Yale University

  • Arizona State University

  • University of Notre Dame

  • University of Arizona

  • University California Santa Cruz

  • University of California San Diego

  • University of California Riverside

  • East Carolina University

  • University of Pittsburgh

  • University of Vermont

  • M.I.T

  • Dartmouth College

  • Harvard University

  • West Virginia University

  • Tennessee Board of Regents

  • Joint SciQuest/Kuali KFS Clients

Trends and observations

Trends and Observations

Higher education priorities

Higher Education Priorities

  • Build accountability into purchasing process

  • Leverage buying power across campus and across systems

  • Promote consortium contracts, diversity suppliers

  • Decentralize execution, but centralize sourcing expertise

  • Re-focus procurement staff on strategic priorities

    • Strategic sourcing / analysis

    • Contract management

    • Customer service

    • Risk mitigation

The evolution of strategic procurement

Traditional Procurement

Strategic Procurement









‘The Chasm’

Reduction in

process costs


Reduction of

“maverick spend”

Lower Cost of Goods

Aggregate actionable data

Complete and integrate the SearchPO process

Create a single online managed marketplace

Enable a critical mass of suppliers & content

The Evolution of Strategic Procurement



  • Inadequate Front End

  • “Shopping” Experience

  • SearchReq

  • No single platform

  • Poor search process

  • Content = too lean

  • Suppliers = too few

  • Confused, frustrated, and time-pressured end-users go around the system


Increase in end-user adoption

(More spend under management)

Opportunity to direct end-users to preferred suppliers

Ability to capture uniform, detailed spend data

Strategic supplier management

Strategic Supplier Management



  • Purchase Order

  • Advanced Ship Notification

  • Invoicing

  • Receipt notification

  • Contract data

  • Payment data

  • Supplier connectivity

  • Extensive product taxonomy

  • Centralized eCatalog

  • Price/content management

  • Transaction integrity

  • Transaction tracking

  • Customer support

SciQuest Procurement Hub

Sciquest supplier network

SciQuest Supplier Network

* This is a partial list. The full list is available upon request.

Real results

Real Results

University of missouri sample savings

University of Missouri Sample Savings

“We expect to achieve as much as $17.9 million annually at full system maturation. What other “back-office” function at a university can create such a financial impact?”

-- Bill Cooper, AVP Management Services and Chief Procurement Officer

  • E-Procurement Objectives

    • One Stop Shopping, Greater visibility into Spend, Capitalize on ERP Investment, University wide cost savings and process efficiencies, Supports Strategic

  • Where the University of Missouri is Today

    • LIVE in Pilot Phase as of October 1, 2007: 175 users

    • 80% catalog purchases going thru SciQuest

    • Renegotiated contracts with top 18 suppliers resulting in savings of 3%-37% per contract

    • Annualized estimated cost savings for 18 vendors is $6,719,715

    • Realized cost savings to-date: $2,300,000

Real results university of new mexico

Real Results – University of New Mexico

  • About University of New Mexico

    • Research-extensive university

    • 20,000+ employees; 33,000+ enrolled

    • Process ~$180M per year in purchases

  • Goals

    • Streamline purchasing process

    • Improve contract compliance

    • Enhance and improve administrative efficiency

    • Direct spend to preferred suppliers

    • Improve efficiency and compliance with budgetary and policy guidelines

  • Results

    • Time to process a purchasing request reduced from 2-3 weeks to 2-3 minutes

    • Greater accounting control and compliance

    • Finance staff can focus on the strategic instead of clerical work

    • Real-time data integration between SciQuest and SunGard Banner

"We have been able to leverage our buying power with more suppliers. We process about $180 million a year in purchases, ranging from pencils to natural gas to health insurance. SciQuest's HigherMarkets solution allows us to monitor purchases more closely, reduce maverick buying, and also monitor contract compliance. Ultimately, it allows us to manage our money better."

Bruce Cherrin, Director of Purchasing, University of New Mexico

Real results uthsc

Real Results – UTHSC

  • About University of Texas Health Science Center

    • Oldest school of public health in TX

    • National reputation as a leader in education and research

    • 5,000+ faculty and staff; 3500+ enrolled

  • Goals

    • Ensure consistent and accurate pricing

    • Consolidate spending across the university

    • Obtain high user adoption

    • Achieve better pricing, discounts, and turnaround through aggregated suppliers and automated payment

  • Results

    • Increased on-contract spending and spend visibility

    • User adoption increased by 10%

    • 15 suppliers enabled in 45 days

    • Reduced internal catalog and punch-out costs

“SciQuest's solutions have allowed our institution to build strong relationships with our key suppliers, increasing our spend visibility and positively impacting our bottom line.”

Jerry Fuller, Assistant VP for Procurement, UTHSC

Real results university of pennsylvania

Real Results – University of Pennsylvania

  • About UPenn

    • One of the U.S.’s oldest research universities

    • 12,000 employees; 22,000+ enrolled

    • $4.4B operating budget

  • Goals

    • Achieve higher returns from Oracle implementation

    • Enable a critical mass of suppliers

    • Increase campus-wide compliance with financial policies and preferred contract suppliers

    • Reduce the cost of products

    • Eliminate maverick spending

  • Results

    • 484% increase in contract compliance*

    • $77.4 million in total product cost savings*

    • More than 70% of campus spend under management

    • Average cycle time reduced from 18 days to less than one

    • ROI realized in 4 months

“Spend Director is a breakthrough solution that will take purchasing at The University of Pennsylvania to the next level. We expect Spend Director to further streamline the buying experience for faculty and staff and increase the utilization of our targeted suppliers resulting in measurable cost savings.”

Ralph Maier, Chief Procurement Officer, University of Pennsylvania

* From Aberdeen’s Best Practices in e-Procurement, 2006

The sciquest solution

The SciQuest Solution

Sciquest strategic procurement

SciQuest Strategic Procurement

Elements of a private marketplace

Punchout Catalogs

E&I, UHC, Provista

Hosted Catalogs

Elements of a Private Marketplace

Science Catalog

Diversity Suppliers

E&I, UHC, Provista

Services Forms

On-site Inventory

Internal Requests

Personal Assistance

Order Status

Contract Details

Procurement Policies/Info

Highermarkets integration scenario

HigherMarkets Integration Scenario



Create PO


















Send Via:








Log In






















Interface /


Validate &







Create PO






Encumber Funds

Outbound Sync: Suppliers, Chart of Accounts, Ship To, Commodity

Product demonstration

Product Demonstration

Roi and building a business case

ROI and Building a Business Case

Roi business case components

ROI - Business Case Components

  • Savings Drivers:

    • Contract compliance savings

    • Strategic sourcing savings

    • Process savings

    • Supplier savings

    • Payment savings

    • On demand savings

  • Stakeholder Efficiency

    • Researcher

    • Procurement

    • Grant Administrators

  • Risk / Compliance Improvements

Please contact mark garvella account executive 916 315 8747 mgarvella@sciquest com

Please Contact:Mark GarvellaAccount [email protected]

Thank You !

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