About Strategic Sourcing
Strategic Sourcing employs sound and tested business methodologies to establish enterprise contracts that result in:
- increased quality and service;
- reduced total cost of goods and services;
- improved relationships with contracted vendors;
- simplification of the requisition-through-payment process.
Progress-to-date
Spearheaded by Comptroller Susan Combs, the Strategic Sourcing initiative began as a collaborative initiative between state purchasing entities to apply industry best practices to procurement by Texas state government.
Five purchasing categories were selected to represent the first wave of the Comptroller of Public Accounts' (CPA) strategic sourcing efforts. These first categories were highly successful, creating millions of dollars in savings while streamlining purchasing processes.
To expand on that initial success, CPA officially formed the Strategic Sourcing Division. The new division’s role is designed to implement recommendations published in the Legislative Budget Board (LBB) 2007 Texas State Government Effectiveness and Efficiency report including:
- improving the State’s procurement practices to maximize the State’s buying power; and
- implementing strategic sourcing initiatives to ensure best value procurement.
CPA began the spend analysis process by reviewing fiscal 2007 accounts payable data to isolate purchased goods and services. Total Spend for Texas in fiscal 2007 totaled $99 billion. Of this, $21 billion was for the purchase of addressable goods and services. Key findings of initial analysis showed that although the Comptroller’s office administered $1.2 billion of these goods and services purchased, the vast majority of spending had still not been fully leveraged. These are the areas that the Strategic Sourcing Division is focusing on to find additional efficiencies and cost savings.
In fiscal 2010, CPA conducted an even more comprehensive analysis of statewide procurement data. In total, $134 billion of fiscal 2009 state expenditure was reviewed, of which $3.5 billion was identified as addressable goods and services. Through fiscal 2013, the Strategic Sourcing Division will continue to refine this analysis and prioritize the portions of this expenditure with the most impact.
Our Analytical Approach
| STRATEGIC SOURCING PROCESS FLOW |
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| 1. Identify the Opportunity | 2. Talk to Our Customers | 3. Talk to the Vendors |
4. Award and Monitor the Contract |
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