Schools and universities typically spend between 25% and 35% of their operating budget on goods and services.
At E&I, we consider this addressable spend, and our core mission is to help our members drive cost savings within that spend, accomplishing much more with much less.
Our Structured Approach
E&I has developed a strategic and consultative approach to help members rationalize and streamline their sourcing and spend activities. We accomplish this using our unique Strategic Spend Assessment (SSA), a structured and repeatable process in which we review and analyze your spend data for opportunities to reduce costs, bring more spend under contract, and maximize spend control and efficiencies.
How Does it Work?
We begin by looking at your high-level spend data to identify where your portfolio currently aligns with E&I contracts and potential areas of synergy and strategic opportunity. Typically, this comprises 12-month spend data that is readily accessible in your Accounts Payable and P-Card systems. An SSA will typically cover the following pillars of strategic opportunity – click each one for a brief overview:
We look at your existing commodity spend and determine if you could achieve cost savings by bringing it under contract. If you already have a contract with a supplier, this also provides an opportunity to compare the strength of that offering to E&I’s comparable contract.
Schools and universities often have many suppliers for a specific commodity or category. This can spiral over time, resulting in a scenario where the institution is managing more suppliers than necessary, leading to inefficiencies, higher costs, and lost leverage opportunities. Through supplier consolidation we will review your spend data, identify opportunities to reduce your supplier base, and redirect spend toward your best available option.
We identify future alignment opportunities for cost savings and supplier consolidation through E&I, using both our existing contracts and upcoming RFPs. This allows you to plan ahead and determine where you can take advantage of our NIGP-validated RFP process. This can free up your team’s efforts to focus on other strategic activities that create value for your institution.
Many of E&I’s contracted suppliers offer rebates and incentives that kick in from dollar one. These programs can often serve as a revenue generator for your school.
E&I is committed to supporting your diversity spend initiatives by providing you with opportunities to work with suppliers that qualify as minority-owned, women-owned, disadvantaged, and local business enterprises. In addition to our direct relationships, many of our suppliers partner with third-party diversity suppliers to help satisfy your diversity goals.
Commitment & Timeframes
When you decide to conduct an SSA with E&I, all you need to do is provide your high-level spend data. We take care of the rest. Each E&I SSA is assigned its own dedicated Sourcing Consultant and Strategic Sourcing Analyst.
The results of the SSA are presented in the form of a written report which outlines opportunities identified in each of the five categories. We also include a section to help with COVID-19 responsiveness. The SSA process typically takes approximately ten business days, after which we will provide you with your customized final report which will facilitate a strategic conversation about your contract portfolio. We will then work with you to optimize your sourcing strategy.
Interested in learning more about an E&I SSA? Please fill out the form below to let your E&I Member Representative know.