TO: University Purchasers
FROM: Maureen Beal, Associate Vice Chancellor for Financial Operations
DATE: May 31, 2011 (Distributed June 06, 2011)
SUBJECT: Scientific Suppliers Consolidation Initiative
The Office of the Chief Financial Officer is pleased to announce the official launch of a cost saving Scientific Supplier Consolidation Initiative effective July 1, 2011.
As you may recall last year, Art Ramicone, Chief Financial Officer, introduced Fisher Scientific as the designated preferred provider of scientific supplies, equipment and instrumentation. This designation allowed Fisher Scientific to streamline purchases of the top 700 most frequently used items for a projected savings to the University of $7 million over the next five years.
The Scientific Supplier Consolidation Initiative is a next step in our efforts to maximize cost savings through Fisher Scientific’s market position. We have identified approximately 90 key scientific suppliers comprising $9.7 million of annual spending that will provide substantial benefits to the University by consolidating their purchases through the University’s Fisher Scientific channel. By utilizing Fisher Scientific’s larger volume discounts and streamlined ordering and distribution systems, this new consolidation effort will allow the University to realize an additional $500,000 to $750,000 of annual product cost savings.
What does this mean to University Purchasers?
In order to streamline the purchasing process and benefit from this cost savings initiative, effective July 1, 2011, approximately 90 suppliers of scientific supplies, equipment, and instrumentation will be consolidated and will no longer have direct supplier accounts in PRISM. Instead, purchasers will be able to acquire these same products from Fisher at improved discounts by using a one-stop-shopping experience in the PantherExpress System. These suppliers and their respective products are still available to University purchasers, but they have been streamlined through the Fisher Scientific consolidated purchasing channel.
What do Purchasers Need to Do?
Purchasers should be PantherExpress System ready by July 1, 2011. Please refer to the Scientific Supplier Consolidation Initiative website for a full directory of information including a list of participating suppliers, training requirements, frequently asked questions, contact information, and copies of past announcements.
How does consolidation increase efficiency?
The Scientific Supplier Consolidation Initiative increases efficiency in the following ways:
- By streamlining the purchasing process from electronic order placement to electronic invoicing.
- By decreasing processing time.
- By providing a one-stop-shopping experience.
Is it appropriate to contact a supplier directly to place an order?
University purchasers may directly contact suppliers for quotes and information on products that require specific supplier expertise. However, the purchase must ultimately be placed through the Fisher Scientific punchout in the PantherExpress System.
In these challenging economic times, we appreciate your cooperation in achieving the full benefits of this initiative. Thank you.
cc: Arthur G. Ramicone, Chief Financial Officer
Strategic Sourcing & PantherBuy Solutions