HARVARD GAZETTE ARCHIVES

New Partnership To Aid Purchasing of Supplies

By Ken Gewertz

Gazette Staff

Beginning May 1, Harvard researchers will find it cheaper, quicker, and easier to purchase scientific equipment, thanks to a new partnership with VWR Scientific Products (VWRSP).

Developed through a collaborative effort of the faculties and the Central Administration, the partnership will guarantee Harvard customers exceptional prices on commonly used lab items.

"By reducing the number of vendors we've been able to channel the University's buying power, and as a result we'll see some rather startling savings," said William Hoyt, director of procurement.

The partnership with VWRSP is part of a general effort by the Procurement Management Department to apply new business concepts and technology to simplify the buying process, provide better services and faster response time from vendors, and to save the University money.

Several programs developed along these lines are now firmly in place: a partnership with Staples Business Advantage for office supplies which includes the DeskTop Superstore, a paperless ordering and payment system; an on-site Travel Office in cooperation with American Express; and a program with Federal Express featuring electronic payment of invoices.

"These partnerships represent a relatively new concept in the purchasing area," said Sandi Newton, lab buyer in the Procurement Management Department. "Relations between vendors and buyers have traditionally been adversarial. Now the focus is on making a commitment to one another. It's a win-win situation."

According to Hoyt, the key to such strategic purchasing initiatives is to narrow down the University's purchasing to vendors that provide the highest quality products and the most dependable service at the best price. To accomplish this goal, Procurement initiates discussions among faculties and departments to determine their requirements and identify the vendor best suited to meet their needs.

After a suitable vendor-partner is selected, Procurement Management continues to monitor the process to make sure the program continues to operate smoothly and that prices stay low and service high.

Unlike many other colleges and universities where orders for supplies and equipment are submitted to a central purchasing department, Harvard authorizes virtually all its faculty and administrative staff to do their own purchasing. The resulting process is quick and highly individualized, but it also has some drawbacks.

"The University's buying power never gets fully leveraged," Newton said. "We spend roughly $9 million each year on general lab supplies, and what we've been doing is taking that $9 million and splitting it many different ways."

Currently, individual purchasers are responsible for finding the best prices, a task that is extremely time-consuming. Under the new strategic partnership, buyers are assured that they will receive the best prices on the most frequently purchased items. According to Hoyt, such a guarantee is extremely valuable since it assures long-term savings.

Although the strategic partnership with VWRSP is new, the company has been providing the University with laboratory supplies for the last 30 years. Based in Bridgeport, N.J., with a local branch office in Marlborough, Mass., VWRSP has already established similar partnerships with M.I.T., Stanford, and the Massachusetts Biotechnology Council.