Driving Value and Savings in FY25

Infographic of the procurement numbers
UC Procurement

Driving Value and Impact Across UC

UC Procurement closed the year with a big win—delivering benefits equal to 4% of addressable spend, for the second year in a row! More than just a number, this was an ambitious target that reflects months of teamwork, smart planning, and a shift toward doing procurement differently.

How did we get there? By leaning into data, engaging suppliers early, and working closely with campus partners to spot opportunities. From strategic sourcing and contract improvements to smarter demand management, the team found ways to capture value without compromising service or long-term goals.

This milestone also marks a cultural shift. Procurement has moved beyond chasing savings alone, focusing instead on total value—like reducing risk, improving service levels, building stronger supplier relationships, sustainability and economic and community impact.

Google Cloud logo
Systemwide

Savvy Negotiation Strategy Secures Major Wins

SWP’s IT Strategic Sourcing team, with UC Legal and IT partners, secured better discounts, new benefits, and a stronger partnership with Google through a thoughtful and strategic renegotiation. By aligning goals early and positioning UC as a partner—not just a customer—UC improved terms for Google Cloud services while setting the stage for future collaboration and innovation. This success shows how Procurement delivers broad strategic value and long-term benefits to the UC system.

Spooky abstract image of a ship approaching with a world map as a background
Systemwide

Systemwide Procurement Leads the Way on Tariff Education & Mitigation

As tariffs continue to reshape global trade this year, UC’s Systemwide Procurement (SWP) stepped up with a proactive strategy to educate, inform and protect the UC community. Our Procurement Exchange three-part webinar series, Turning Tariff Turbulence into Strategy, helped colleagues understand tariff dynamics, supplier negotiation strategies, and compliance tools. 

Along with education, SWP launched the UC Tariff Impact Tracker, a live dashboard that tracks proposed versus actual tariff effects on spend across the Facilities, IT, and Life Sciences categories. These efforts help empower campuses to prepare, negotiate, and minimize the cost of unexpected trade shifts. Thanks to this coordinated strategy, UC limited tariff impacts to less than 0.2% of annual spend – a strong demonstration of Procurement’s role in protecting UC’s financial resources.

Road signs identifying a crossroads at the corner of "work" and "smarter"
Systemwide

Working Smarter in IT Procurement

As part of its commitment to smarter purchasing and better outcomes, Systemwide Procurement IT Strategic Sourcing conducted the Networking Value-Added Resellers (VAR) RFP, a major effort to expand UC’s access to VARs essential networking infrastructure. This project’s aim was to provide a choice of more VARs, more competitive pricing, and support UC’s broader goals around greater economic and community impact. The team evaluated bids on best value, including service capabilities, innovation potential, and alignment with UC’s mission. The result? A project that reshaped how UC does business in this space.

Photo of a dormitory lounge
Systemwide

Dorm Furniture Procurement Made Easy

The logistical and operational challenges of furnishing a rapidly growing campus like UC San Diego have pushed its procurement teams to explore more efficient solutions. Lynn Anderson, an interior designer with years of experience at UCSD, shares how cooperative purchasing, through partners like OMNIA Partners and Sustainable Furniture, has transformed their procurement process and ensured project success.

A hand holding a credit card
UC San Francisco

UCSF Credit Card Programs Garner Accolades

UCSF Supply Chain Management (SCM) earned top honors at the 2024 University of California Best-in-Class awards for their outstanding work with UCSF-issued credit cards and the PaymentPlus program. These programs have seen remarkable growth, with card transactions up by nearly $35 million and a 40 percent increase in supplier enrollments, highlighting SCM's commitment to efficiency and innovation.

UC Santa Cruz

Record-Breaking Benefit Bank Savings at UCSC

In FY25, UC Santa Cruz Procurement delivered a record $10.47M in Benefit Bank savings—44% above target and the highest in campus history! 

Benefit Bank measures savings from sourcing strategies like cost reductions, price avoidance, and supplier incentives, with each entry audited by UCOP. This milestone showcases UCSC Procurement’s expertise and underscores its vital role in strengthening the university’s financial health.

$10,470,394 in Benefit Bank savings—the highest total in campus history and 44% above the annual target!

Strategic Priorities

UC Procurement is committed to the five strategic priorities below. Through dedication to these priorities, we strive to empower our campuses, foster innovation, and shape a more sustainable and equitable future. This Annual Report is organized by these five priorities – click any card to delve into our progress in these areas:

Econ & Social Impact

Economic and Community Impact

As stewards of public funds, we aim to enhance economic opportunity and advance sustainable supply chain solutions.
Partnerships

Strategic Partnerships

We form collaborative and mutually beneficial supplier relationships that leverage strengths, resources, and expertise to create exponential value.
Drive value

Drive Value and Savings

UC uses best value sourcing to ensure the most advantageous balance between cost, quality, and performance over the lifecycle of a product or service.
Continuous Improvement

Continuous Improvement

Our ongoing efforts to enhance processes, products, and services via incremental changes to increase efficiency, quality, and effectiveness.
Caution

Risk Management

Our supply chain, legal, and policy strategies minimize risk to safeguard UC against financial, operational, and reputational damage.

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