University Procurement Hub Initiative February 2016

What we are going to talk about today Introduction to the Concept Objectives Partners, Our Spend and Categories Implementation Strategy Timelines

Australian University’s Involvement 4 of 5 ATN Universities 6 of the G08 Universities 4 WA Universities Australian Catholic University Southern Cross University (NSW) Australian National University (ACT) - G08 Swinburne University (VIC) Charles Stuart University University of Adelaide (SA) - G08 Curtin University (WA) - ATN University of Canberra (ACT) Edith Cowan University (WA) University of New South Wales (NSW) -G08 Federation University (VIC) University of Queensland (QLD) - G08 James Cook University (Townsville, QLD) University of South Australia (SA) - ATN Macquarie University (NSW) University of Sydney (NSW) - G08 Murdoch University (WA) University of Technology Sydney (NSW) - ATN New England University (Armidale,NSW) University of Western Australia (WA) - G08 RMIT (VIC) - ATN

Expected Outcomes / Benefits

UPH – Services Provided by ACCENTURE Commercial Framework UPH – Services Provided by ACCENTURE Negotiates, on behalf of Universities, price, terms and conditions for category goods/services as requested Requests category procurement for goods/services, provides relevant spend data and specific requirements Suppliers Universities Procurement off established contracts

Sourcing Categories 13 Top level Categories & 67 sub Categories Books & Periodicals Lab & Medical Consumables Marketing & Advertising Equipment Office Expenditure Facilities Professional Services Fleet Travel & Entertainment Human Resources Utilities IT & Telecommunications

Wave Concept Wave 1 0 - 6 months Wave 2 6 – 15 months Wave 3

UPH Addressable Spend ($M) Wave 1 Preferences Category UPH Addressable Spend ($M) Inclusions Computer supplies 11.7 Computing equipment and accessories (not standard pc's and notebooks) Fleet 12.2 Vehicle fleet leasing, financing and program management and fuel cards Furniture 22.9 Office furniture, repairs and maintenance General Consumables 15.5 Electrical, Industrial, Janitorial and Safety supplies Laboratory Consumables 20.3 Small equipment or consumables used for scientific research and teaching MFD, Managed Print 28.6 Multi function devices, maintenance & provision of consumables (may include paper and toners) Stationery 16.5 General office stationery, paper and toners * Travel - Accommodation 39.3 Domestic and International, serviced apartment, Airbnb 167.0

Curtin Predicted Savings – Wave 1 Wave1 Categories Sum of Addressable $M Computer Supplies 0.5 Fleet Management Furniture 2.5 General Consumables 1.0 Laboratory Consumables 0.9 MFD, Managed Print 1.7 Office Stationery 0.8 Travel - Accommodation 2.1 Total 10.1 Predicted savings for Curtin = $1M pa (based on savings 8% - 12%)

What will it really look like from an area perspective? This depends on the category and the area, in general terms: Centralised buying groups will be asked to participate in the sourcing processes for each category, a category by category approach will need to be adopted Should make it easier to buy over the long term (categories and technology), level local admin sourcing and buying. Sometimes just the price will change and nothing else. We should get information on spend that may be useful. Sometimes a new way of buying will be implemented and sometimes nothing will change.

Commitment Points Curtin is looking to sign up to the run phase of the project by the end of February Approval is being sought through the Operations and Effectiveness Committee and SET Curtin would be signing up to a five year project (2016 -2021) Wave 1 would commence in April 2016   The wave system would provide a ramping up of work within the project, wave 1 would cover up to eight categories. Wave’s 2 to 4 would have significantly more categories within them. Overall the project would be looking to put contracts in place for seventy categories.

Three tiers to the governance structure of the University Procurement Hub Tier 1 – Executive Board all Universities would have a member on the board The executive board would set the strategy for the UPH and ensure that the overall performance of the UPH is in line with the objectives for the program.   Tier 2 – Program Committee would consist of 8 to 10 members. The members would come from the 21 Universities and Accenture . The Program Committee reports to the Executive Board. It would have the ultimate sign-off responsibility on the categories for each wave. Tier 3 – Category Councils would consist of 6 to 8 members. The members would come from the 21 Universities with support from Accenture. Each category or group of categories would have a council. The Category Councils would monitor day to day performance of the UPH in relation to the project at a category level. Governance Structure

  At any one point in time Curtin could have members sitting on multiple councils. If Curtin is not on a particular council, then its views would be represented by the WA University sitting on that council. Curtin would need to determine who is best suited to sit on particular category councils. It is likely that Category Council members would be drawn from Strategic Procurement and subject matter experts from around the University as each category starts its Procurement process. This could be YOU, we know who you are and we would be looking for your involvement when required. Category Committee

Questions Who determines which categories are being used? What happens if we already have a contract in place for one of the selected categories? How are you going to see what savings have been made?

Want More Information? Philip Thomas, Director Financial Operations Mark Watson, Strategic Procurement Manager Debbie Parker, Reporting & Analysis Manager Strategic Procurement website – http://procurement.curtin.edu.au/