How Loyola University of Chicago Partners with Suppliers to Control Indirect Spend and Deliver Corporate Services

Transcription

1 How Loyola University of Chicago Partners with Suppliers to Control Indirect Spend and Deliver Corporate Services Loyola University Chicago Brian Slavinskas Director - Procurement Canon Business Process Services Hayden Heath Senior Area Manager

2 How Loyola University Chicago Partners with Suppliers to Control Indirect Spend and Deliver Corporate Services Hayden Heath Senior Area Manager Canon Business Process Services Brian R. Slavinskas Director, Special Projects Loyola University Chicago

3 About the Speakers Brian R. Slavinskas Brian has been with Loyola for the past 24 years and has enjoyed many challenges across both Higher Education and Healthcare in the areas of Procurement, Accounts Payable, Corporate Card Services, Payroll Services, Inventory Control, Fixed Assets, and Financial Analysis. Brian has spent the last 2 years as the Director of Special Projects with areas of responsibility including Purchasing, Contracts, Shipping, Receiving, and Mailroom Operations among others. Brian has been married to his wife Dina for 19 years and they have two boys Jason (14) and Nathan (9). Hayden R. Heath Hayden has 29 years of Outsourcing, Operational Management and Analytical experience (21 years with Canon Business Process Services). He currently has management responsibility for 20 accounts and 29 client sites in a variety of industry segments. His responsibilities include service delivery, P&L, client relations, employee development, client satisfaction, and service level performance. His primary geographic area is Illinois and Wisconsin with reach into California for some of his clients.

4 About Loyola Founded in 1870 as St Ignatius College, is one of the nations largest Jesuit, Catholic Universities 4 Campuses: Lake Shore, Water Tower, Health Sciences and John Felice Rome Center Other Course Locations: Beijing, China; Saigon-Ho Minh City, Vietnam; Cuneo Mansion & Gardens and the Retreat and Ecology Campus in Illinois

5 About Loyola Total enrolment: 15, undergraduate majors and 80+ minors 140+ graduate, professional, and graduatelevel certificate programs More than 4,000 faculty and staff members 14:1 Undergraduate student/faculty ratio 150,000 alumni; 85,000 in Chicago

6 About Loyola Loyola Mission: We are Chicago s Jesuit, Catholic University a Diverse community seeking God in all things and working to expand knowledge in the service of humanity through learning, justice and faith. Loyola Promise: Preparing people to lead extraordinary lives.

7 About Canon Business Process Services a Canon Group Company Services BPO: AP, Document Processing, Student Financial Aid, Claims Processing DPO: Imaging, records management, print, mail Office Services: Reception, hospitality, A/V ediscovery: Physical and Digital collection, Coding, edd Technology 5,000 people Service delivery: On-site, off-site, off-shore processing center Six-sigma process excellence based methodology Customized, technology enabled IAOP Top 100 Global Outsourcing Leader 2007 to 2015

8 Mission Challenge Understanding our identity and purpose Providing quality services at the best possible cost How do we embrace our network Ability to stay ahead of the curve and avoid complacency Supporting our community, supporting each other Transparency through education and partnership

9 Corporate Service Types Areas where we have been able to leverage our existing partnerships to achieve common goals: Mailroom Operations Receiving and Delivery (RAD) Furnishings and Interior Design Office Supplies Contract Management Food and Beverage Services Vending Services

10 Procurement Connection Partnership and collaboration Financial liaison to the University community Continuing education through proactive efforts Help people understand our value while understanding the value they provide the organization

11 Outsource Goal Find a partner in mission Implement a more proven and technically sound support staff Service recovery (internal and external) Improves accountability Leverage provider expertise and technologies Improve the student experience

12 Continuous Value Improvement Static Operation Continuous Value Improvement Value of Relationship Point of Failure Value of Relationship Customer Expectation for Performance Client Expectation for Performance Time Time Erosion and Loss: Declining profit margins Declining revenue 100% account loss rate over time Breakthrough Performance: Continuous value recognition Account Retention Organic growth

13 Mailroom Prior to 1999 dedicated Loyola staffing compliment for out lakeside mail operations Significant customer service issues (students and parents) Inability to effectively communicate with internal and external constituents Difficulty in postage chargeback and expense recognition

14 Transition Canon Business Process Services (f.k.a. OCE) Large mailroom space complete with individual student mail boxes Approximately 5000 square feet Regular mail put in mailboxes and all other packages picked up at counter Significant improvement in customer service Reduction in staffing costs Improved parcel tracking through use of vendor technologies

15 Mailroom Challenge Mailroom relocated in January of 2013 Smaller footprint: approximately 2000 square feet New influx in packages due to on-line book orders, etc. Immediate plan of action proved ineffective Students had to wait in lines out side the door in single digit temperatures Many write-ups in the student newspaper How do we accommodate new challenges

16 Mailroom Solution Make more effective use of the space Embraced our network University of Alabama model Introduction of new strategies and technologies Attention to customer service and the re-establishment of service as a value to the student experience Improved customer service as a whole

17 Mailroom Cost Savings: Staffing 14% Annual %-age Cost Savings Staffing % 11.97% 10% 9.33% 8% 6% 6.61% 4% 3.81% 2% 0% 0.92% Year 1 Year 2 Year 3 Year 4 Year 5

18 Mailroom Cost Savings: Staffing Annual %-age Cost Savings Staffing Forecast 20% 18% 16% 14% 13.79% 16.30% 18.74% 12% 11.21% 10% 8% 8.54% 6% 4% 2% 0% Year 6 Year 7 Year 8 Year 9 Year 10

19 Receiving and Delivery (RAD) RAD Operation was a shared services with Loyola University Health System Loyola sold the Health System to Trinity Health Systems in 2011 Continued shared systems and accounting Dissolution of the shared services and systems in June 2014

20 RAD Transition and Challenge Minimize new costs of operation Unknown volumes vs actual volumes Establish stand alone RAD operation for all Health Sciences Operations Development of new and existing technologies Establish new levels of expectation and accountability

21 RAD Solution Worked closely with provider to develop the entire area for the operation Implemented incumbent technologies Development of expectations and accountabilities through transparent representation Streamlined approach to receipt recognition and document management

22 RAD Cost Savings: Staffing Annual %-age Cost Savings Staffing Forcast 60% 50% 48.98% 50.46% 51.90% 53.31% 40% 30% 30.46% 20% 10% 0% Year 1 Year 2 Year 3 Year 4 Year 5

23 The Provider View Operational Excellence Program Qualitative Strategic alignment Voice of the customer Process observation Quantitative Process mapping Measurement & reporting Analysis OPERATIONAL AWARENESS SERVICE DELIVERY Delivery Methods Just do it improvements 5S Events Kaizen LSS Projects New Services Verify and Inspire Results validation Employee recognition Case study RECOGNITION PERFORMANCE REPORTING Outcome Assurance Continuity management Scheduling & budget management Results against benchmark

24 Leveraging the Partnership Identify the potential areas of opportunity Define the scope and limitations of existing and defined relationships Regardless of the customer, by partnering our organization with Suppliers and Service Providers that align well with our Mission, we are better able to prove the service and support necessary to allow for Students and Professors to concentrate on what is most important: Expand knowledge in the service of humanity through learning, justice and faith.

25 QUESTIONS Brian R. Slavinskas Director - Special Projects Loyola University Chicago O bslavin@luc.edu Hayden Heath Senior Area Manager Canon Business Process Services O hheath@cbps.canon.com

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27 Session #15 How Loyola University of Chicago Partners with Suppliers to Control Indirect Spend and Deliver Corporate Services Speakers: Brian Slavinskas Loyola University Chicago Hayden Heath Canon Business Process Services bit.ly/downloadameliaapp Tweet using: #SIGspring15