Bulletin: Fisher Scientific Strategic Sourcing Agreement (Posted August 2, 2011)
Bill Cooper, Associate Vice President and Chief Procurement Officer, is leading a shift in Stanford's procurement management in order to yield additional revenue for schools and departments. This shift toward strategic vendor partnerships, away from simply managing transactions, aims to return resources, in the form of time and budgetary dollars, back to the University in support of its programs.
The newest partnership negotiated by Cooper and his team with Fisher Scientific exemplifies the advantages of strategic sourcing in support of mission critical research.
According to Ben Moreno, Director of Strategic Purchasing, "Spend management is at the core of strategic sourcing. Careful spend analysis and consideration of total cost of acquisition can direct the pursuit of strategic vendor agreements which result in product and processing cost savings--savings that can be returned to the University's primary activities and initiatives."
The five-year agreement allows faculty and staff to order the same products they do currently at a significantly better overall value. Key Incentives in the contract include competitive pricing on all products and additional reductions on a Hot List of products sold through Fisher Scientific in Smart Mart, Stanford's online catalog. Significant savings will also be realized as Fisher Scientific will absorb all freight and transportation costs.
In keeping with Stanford Policy, Fisher Scientific will work with Small Business and Diversity Owned Business in sourcing and delivery of products purchased by Stanford. The contract also includes volume incentives paid back to Stanford based on volume targets.
Endorsed by President Hennessy, Vice President of Business Affairs and CFO Randy Livingston and Sr. Associate Vice President of Financial Management Services Susan Calandra, Bill Cooper explains that "Through this five year strategic partnership agreement with Fisher Scientific we are able to maximize research dollars while still providing superior product support. Purchase of products offered by Fisher Scientific through SmartMart is an excellent demonstration of the economic potential of strategic procurement."