The second annual USA Agreement Utilization Analysis (AUA) kicked off in late November. The goal of this process is to increase awareness and optimize use of our USA Agreements at each of the member sites and to identify best practices and ideas for improvement. The AUA is executed entirely online using data generated through quarterly spend and savings reports. A separate record is created for each agreement and for each member site and sent to the Supply Chain Team Manager for review and completion. The SCM Manager completes the form with information such as the total amount spent on the category of goods or services covered by the agreement under review, and the reason(s) for less than 100% utilization of the USA Agreement (if applicable). Upon completion, the record is sent to USA Supply Chain for review with a built-in electronic process that provides for asking questions and getting clarification of the information submitted. Once finalized, the system assigns a utilization score based on spend on the USA Agreement as a percentage of total spend for the category. All of the results are then rolled up into a single report, by station, that is discussed with the Supply Managers, Site Reps and CNOs during various meeting at the Executive Summit. While this is just our second iteration of the AUA, we’re pleased with the results thus far and hopeful that it will be an effective tool to drive additional savings and continuous improvement, as well as provide helpful information to share with our supplier-partners during the Key Supplier Meeting process.
Questions? Please contact Jim Kitchens.