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Профессиональный Документы
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Private Sector
Primary Fiduciary Responsibility is to Shareholders Cost Management is Focused on Bottom Line Strategic Alliances and Supply Chain Management Value Propositions evaluated using Best Value Analysis
Private Sector
Corporate Business Plan Risk and Incentives often Drive Policy Performance is Driven by the Bottom Line Risk and Profitability Drive Spending
Leveraged Purchasing
Commit Total Spend in Exchange for Deep Long-Term Discounts (Commitments Contract) Seek Standardization Adjust Requirements to Create a Market Integrate Order-Delivery-Payment Systems Jointly Attack Other Cost Drivers
E-Commerce Issues
Cost Back-Filling the Requisition Function Matching Rules, Tolerances, & Returns The Need for EDI Content Management Keeping Up with Innovation
=
Net Income Capital Employed
=
Revenue
=
Total Expenses Working Capital
=
Cost of Goods Sold
Fixed Assets
Other Expenses
=
Accounts Receivable
=
Overhead
Inventory
Accounts Payable
Materials
=
Net Income To Increase By $1M Capital Employed $10M
=
Revenue $15M Either Increase By $1M Cost of Goods Sold $9M
=
Total Expenses $14M Or Decrease By $1M Working Capital $1M
= +
Other Expenses $5M
=
Accounts Receivable $3M
=
Overhead $2M
Inventory $2M
Materials $7M
=
Net Income To Increase By $1M Capital Employed $10M
=
Revenue $15M Either Increase By $1M Cost of Goods Sold $9M
=
Total Expenses $14M Or Decrease By $1M Working Capital $1M
= +
Other Expenses $5M
=
Accounts Receivable $3M
=
Overhead $2M
Inventory $2M
Materials $7M
=
Net Income To Increase By $1M Capital Employed $10M
=
Revenue $15M Either Increase By $1M Cost of Goods Sold $9M
=
Total Expenses $14M Or Decrease By $1M Working Capital $1M
= +
Other Expenses $5M
= +
Inventory $2M
=
Overhead $2M
Materials $7M
ROCE Example
Labor $700,000
Operating Cost Elements
Sales $5,000,000
Minus
Materials $2,300,000
Profit Margin
8%
Overhead $800,000
Sales $5,000,000
Multiply
Inventories
$500,000
Accounts Receivable $300,000 Cash $300,000 Current Assets $1,100,000
Plus
Sales $5,000,000
Divided By
Assets
Sales $5,000,000
Minus
Net Income
Materials
-5% $2,185,000
Overhead $800,000
$515,000
Divided By
$3,685,000
Plus
Profit Margin
10.3%
Sales $5,000,000
Multiply
Return On Investment
Inventories 5%
13%
Sales $5,000,000 Current Assets
$475,000
Accounts Receivable $300,000 Cash $300,000
$1,075,000
Plus
Divided By
Assets
Total Assets
$3,975,000
Fixed Assets $2,900,000
1.26
A systematic process to reduce the total cost of purchased products and services by fully leveraging the Universitys combined purchasing power, without compromising quality or service. Up to 41 Business Units 10 Campuses 5 Medical Centers 3 National Laboratories 23 California State Universities
Total Cost
Transaction / Admin Cost
Delivery, Freight, Handling, Set-Up Implementation Cost Communication/Marketing Training Cost of Non-Conformance (Quality) Maintenance, Warranty, Parts
Strategic Sourcing
Focus on process performance
Alignment with stakeholders Proactive Total cost framework
Determine UC Requirements
Negotiate Agreements
Analyze total spend by Category and Location and determine percent that is sourceable Document historical purchases Develop current TCO for each Location Quick Hits identified
Complete pre-bid industry analysis RFI developed / distributed (if needed) Supplier responses to RFI evaluated Final market analysis published
RFP developed / distributed RFP responses evaluated and scored Short list of finalists selected
Implementation team assigned Implementation plan finalized Implementation completed Ongoing SRM plan created and implemented
Channeling
VWR Implementation YTD January to July 2005
Campus Berkeley Los Angeles San Diego YTD 2005 $ 581,295 $1,628,382 $ 993,908 YTD 2004 $ 418,962 $1,088,067 $ 723,884 % 38.7% 49.7% 37.3%
Automate Payment
UCSF processes ~ million vouchers
Federal Express: 27,815 Arrowhead: 6,256 Verizon: 8,983
ROCE Example
Labor $700,000
Operating Cost Elements
Sales $5,000,000
Minus
Materials $2,300,000
Profit Margin
8%
Overhead $800,000
Sales $5,000,000
Multiply
Inventories
$500,000
Accounts Receivable $300,000 Cash $300,000 Current Assets $1,100,000
Plus
Sales $5,000,000
Divided By
Assets