A Consortium of Leading Universities Saves $3M Through Strategic Supplier Partnership Management

In an increasingly competitive cost environment, a consortium of the nation’s most prominent universities sought to enhance their financial and operational performance. These educational institutions faced significant pressure to improve cost structures while maintaining academic excellence. To address this, the consortium engaged Metasys to evaluate their supplier partnership contracts and generate additional value. The consortium specifically asked Metasys to assess their lab supply contracts to identify potential cost savings and improve contract management. The goal was to deliver both tangible value in terms of cost reductions and intangible value through improved contract and program management.

Metasys implemented a comprehensive five-step spend management process to drive value for the consortium:

1. Baseline Audit of Current Spend: Metasys conducted an in-depth analysis of all lab supply contracts, including pricing terms, growth incentives, rebates, and an audit of existing invoices.
2. Identification of Category-Based Opportunities: Working closely with the consortium, Metasys identified the most promising categories for generating maximum returns, considering both feasibility and impact.
3. Targeted Plan for Value Creation: After identifying the opportunity set, Metasys developed a detailed action plan to capture the identified savings and improve contract efficiencies.
4. Continual Process Improvement: Metasys set up a structured review cadence with the consortium to assess and improve processes, including pricing, ordering, delivery, and payment practices.
5. Metrics-Based Scorecard: To ensure continuous alignment with clear key performance indicators (KPIs), Metasys developed a comprehensive scorecard to measure the program’s success and provide a 360-degree review of contract efficacy.

Metasys successfully helped the consortium realize over $3M in cost savings, out of a total managed supplier spend of $31M. This included an immediate $60,000 in savings identified through invoice audits above and beyond the contract terms. In addition to these tangible savings, Metasys laid out a robust framework that allows the consortium to achieve ongoing cost reductions and supplier rationalization. The program has become a critical part of the consortium’s strategy to optimize financial performance while maintaining operational efficiency across member institutions.