How to Grow Your Business at the University of Pennsylvania

Supplier Participation in the Penn Marketplace

Presentation Agenda

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Opening Comments & Introductions Penn Purchasing Overview Purchasing Business Objectives The Penn Marketplace Benefits for Faculty, Staff & Suppliers Participation in the Penn Marketplace Penn’s Partnership with Fisher Scientific Next Steps Q & A

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Penn Purchasing Overview

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Purchasing Services is responsible for compliance, supply chain contracting and sourcing, and purchasing related technologies Decentralized point-of-demand purchasing environment Purchasing system used by 1,700 faculty and staff in 12 schools and 20 business units Customers responsible for what to buy, Purchasing responsible for how to buy

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Purchasing Business Objectives

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Enhance the efficiency of the purchasing process:

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Delegate requisition creation to the point-of demand

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Reduce time and effort related to requisition creation

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Provide easy access to supplier content Enhance the effectiveness of the central purchasing organization:

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Shift focus of purchase activity to “preferred suppliers”

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Enhance supply chain management initiatives and reduce maverick buying

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Reduce cost of products and services

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The Penn Marketplace

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Recognized as the leading eProcurement initiative in higher education Private online exchange for most commonly ordered products and services Contains over 550,000 products from 31 suppliers representing 2,800 manufacturers with Penn contract pricing Provides focused internal marketing opportunity to all participating suppliers 54% of all purchase orders processed since January 2002 were issued to the 31 Penn Marketplace suppliers

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Benefits to Penn Faculty & Staff

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Reduces time and effort related to purchase order creation Provides easy access to commonly ordered items Provides up-to-date information on supplier’s products, promotions and related information Offers item selection and order creation capability to appropriate staff in labs and departments Dramatically reduces order cycle time resulting in increased customer satisfaction and utilization

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Benefits to Penn Suppliers

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Reduces administrative cost related to processing Penn purchase orders and invoices Accurate purchase order data eliminates invoicing problems and improves cash flow “Preferred contract supplier” status provides opportunity for significant growth in business volume Annual growth rate of 8 to 42% for Penn Marketplace suppliers in 2002 Focuses purchasing attention on preferred suppliers and manufacturers

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Participation in the Penn Marketplace

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Purchasing Services is actively recruiting new suppliers and manufacturers Participation is available on a direct basis or through Penn’s partnership with Fisher Scientific Suppliers may provide Penn specific content or their entire product offering Content can be updated on a regular update cycle Participating suppliers and manufacturers may choose to participate in Penn’s Supplier Promotion Module

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Partnership with Fisher Scientific

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Penn’s prime research product distributor Provides logistics and technology in support of Penn’s eProcurement initiative Enables content development for suppliers interested in participating in the Penn Marketplace on a third party basis Provides EDI services for purchase orders and invoices creating transaction efficiencies in Accounts payable Enhances supplier marketing effort with dedicated Penn marketing team

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Conclusion

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Demo of the Penn Marketplace & Supplier Promotion Module Q & A with Fisher Scientific Next Steps Thank you from the Purchasing Services organization

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