University of Sheffield identifies £4.4m of savings

University of Sheffield identifies £4.4m of savings

University of Sheffield identifies £4.4m of savings

 

Top 100 world-wide leader, the University of Sheffield, has identified £4.4m of savings and areas for functional improvement after completing an Opportunity Assessment with Procura.  The University was looking to achieve two key outputs:

  1. Visibility of all non-pay spend
  2. An assessment to identify which categories or spend areas should be targeted as part of a new category management approach to procurement.

 

Gearing up for Category Management

The scope covered all non-pay expenditure at the University including Revenue, Capex and Grant monies. A thorough spend analysis was completed using ProcHE categorisation. This was validated with the University.

Procura conducted interviews with the procurement team to gather context, assessed procurement capability and processes and completed a comprehensive opportunity assessment.

 

Striking findings

The spend analysis and opportunity assessment process had a number of key deliverables for the University:

They were:

1. Spend Analysis providing complete transparency of non-pay spend  in terms of spend, categories and suppliers. The spend analysis also highlighted significant areas of spend not currently influenced by procurement

2. Opportunity Assessment highlighting 16 category initiatives for the function to target as part of it’s new category management approach. This included outline strategies and a prioritised workplan to deliver up to £4.4m of savings

3. Capability Assessment against Procura Standards of Procurement which highlighted a number of improvement areas across 6 key “enablers” of procurement. Procura left the University with two headline recommendations: complete a Procurement Cost Reduction Programme to deliver up to £4.4m of savings and a Procurement Transformation to address key enablers such as strategy, sourcing skills and the P-2-P process.