Benchmarking Supplier Operations. William Watson
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1 Benchmarking Supplier Operations William Watson
2 Overview What is Procurement? Motivation for the Project Past Projects Current Project Results Conclusion
3 Procurement Services Procurement Services purchases almost all goods and services used on campus Uses bidding process to negotiate and determine large purchases UCOP - Procurement Services at UCOP partners with systemwide UC procurement teams to standardize agreements and procedures
4 Supply Chains Supply Chain - sequence of processes involved in production and distribution of a commodity
5 Supply Chains Source: com/2014/07/120- sustainability-reportinfographics.html
6 Supply Chain Management Supply Chain Management- managing the flow of goods and services, primarily to reduce operational cost and risk Do not have data for purchased goods and services or waste generated
7 Why is scope 3 important? Travel emissions are a problem, but embedded emissions is a large problem as well Scope 3 emissions are not included in UC Carbon Neutrality Initiative Largest interregional fluxes of emissions embodied in trade (Mt CO2 y 1) from dominant net exporting countries (blue) to the dominant net importing countries (red). Steven J. Davis, and Ken Caldeira PNAS 2010;107:
8 Motivation to Change Campus and Systemwide Goals Limited leverage of unified purchasing power UCOP Sustainable Policy Campus Sustainability Plan
9 UCOP Sustainability Policy the University will... maximize its procurement of environmentally preferable purchasing products and services leverage the University s purchasing power and market presence to develop sustainable choices integrate sustainability requirements into its practices for competitive bidding in materiel and services procurement require all strategically sourced suppliers to present their organization s continuous improvement with the development of sustainable products and operational practices require all strategically sourced suppliers, and eventually all suppliers, to report annually on the qualitative aspects of their business operations
10 Challenges Incorporating Sustainability into Procurement We have policies in place but they are not being enforced Suppliers and buyers may not have a clear understanding of policy Inconsistencies among campuses on how they are implementing sustainability into their procurement operations (sometimes leads to duplication of effort) Individual product level information varies by categories Limited unity of UC purchasing power
11 Campus Sustainability Plan Increase EPP purchases, Educate Campus, and Engage suppliers to develop sustainable practices and measure to standards
12 CSP Goal#3 Roadblocks Supplier engagement Transparency and visibility into our supply chain Benchmarking and engaging Suppliers are the first steps to instituting policies achieving UCOP Sustainability Policy Goals Used SupplyShift Platform to benchmark UCSD and UCSC suppliers
13 SupplyShift
14 UCSD pilot project
15 UCSC Procurement Sustainability Carpet not being Recycled Past projects by Procurement Services PSI interns: Increase EPP purchases and Benchmarking supplier operations
16 UCSC Project Scope: 46 total suppliers across MRO, ITS, and Life Sciences categories 22 UC wide suppliers that incorporate sustainability reporting currently 20 UCSD Life Science suppliers (building trending data from UCSD pilot) 4 additional suppliers (supplier selected from last years project, new food supplier, UPS, and Mission Linen Supply)
17 UCSC Project Objectives: Built upon UCSD pilot and past PSI project Increase awareness and visibility to supply chain impacts across MRO, ITS, and Life Sciences categories Increase supplier participation in transparency projects and create collaborative partnerships with suppliers to achieve UC system goals
18 Built off Past Projects
19 Results
20 Results
21 Results
22 Results
23 Results
24 Results
25 Benefits Benchmarked more supplier operations Two campuses leading change in sustainable procurement pressures UCOP to support and incorporate change as well Have data to look into best practice suppliers and make recommendations to areas identified
26 Internal Challenges Engaging suppliers Focus transitioned to benchmarking versus making change
27 Indirect Supplier Feedback Inefficient project timeline (yearlong internship not aligning with Supplier public reporting) Information needed from multiple departments (time and labor intensive)
28 Future Changes Keep creating change at the forefront of the project vision Different benchmarking platform Look at more local suppliers Utilize UCOP to integrate tool
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