UMass spends an average of $1 billion per year with third-party suppliers, making efficiency and effectiveness critical to ensuring we deliver value to our students, staff, and local community, who have put the stewardship of their purchases in our hands. On average, every procurement process in which we engage our vendors or suppliers saw an increase in transaction volume from UMass FY20 to FY24, ranging from 16% to 727% for invoices processed and contracts executed, respectively. This reflects UMass’ focus on operating as one while leveraging technology and automation. It is worth noting that efficiency and effectiveness did not suffer due to this vision of coming together to bring value to UMass, our communities, and our suppliers because we observed a minimum of 13% improvement on major processes we interact with suppliers on.
Some foundational activities driving effectiveness and efficiency for our suppliers include:
• Harmonization of UMass Procurement Policy.
• Process harmonization and automation driven by a “single” approved procurement policy.
• Routing of all procurement transactions through one single system.
• Centralization of the invoice submission process for all suppliers.
• Centralize contract processing with stakeholders (Legal, Risk, etc.) into one system.
• Leveraged robotics (RPA) to speed up supplier onboarding.
• Continuous improvement focus.
Transaction Volume Review (FY20 to FY24)
On average, every procurement process saw an increase in transaction volume from FY20 to FY24, ranging from 16% to 727%.
| Transaction | Total (FY2020-FY2024) | F2020 | FY2024 | % Change (FY20 vs. FY24) |
|---|---|---|---|---|
| Purchase Requisitions Reviewed | 624,706 | 141,744 | 166,825 | 18% increase |
| Invoices Received and Paid | 1,013,562 | 231,591 | 269,578 | 16% increase |
| Contracts Executed with Suppliers | 8,704 | 233 | 1,926 | 727% increase |
| Suppliers Added & Profile Updated | 31,481 | 5,972 | 8,990 | 51% increase |
| Support Requests Processed & Resolved | 106,750 | 16,643 | 31,069 | 87% increase |
| Sourcing/Bid Events Completed | 940 | 58 | 234 | 303% increase |
The surge in transaction volume underscores the growing reliance on UPST’s services, but growth alone is not our only measure of success. Equally important is our ability to maintain and improve efficiency while upholding the highest service quality standards.
UPST has been laser-focused on improving efficiency without sacrificing service quality, even with increases in transaction volume from one fiscal year to the next. The table below summarizes process areas measured over the last 5 years and our efficiency gains ranging from 13% to 37% in major process areas.
Efficiency Gains (FY20 vs.FY24)
| Performance Indicator | FY2020 | FY2024 | % Change (FY20 vs. FY24) |
|---|---|---|---|
| Days to set-up a new supplier (Domestic) | 11 days | 7 days | 36% improvement |
Days to execute a contract (covers reviews by UPST, OGC, IT, Treasury, Supplier & Campus DoA) | 23 days | 20 days | 13% improvement |
| Invoices processed electronically | 46% | 63% | 37% improvement |
| Late payments (greater than 30 days) | 19% | 14% | 26% improvement |
| Days to resolve a case/request | 10 days | 7 days | 30% improvement |
As we mature as a procurement organization, we can only improve with your support. We remain deeply committed to collaborating with our valued suppliers and partners. Your contributions are vital to the success of UMass, and we are excited to move forward together under the guidance of this exceptional leadership team.
Thank you for your continued partnership and support. We invite you to stay connected with us by visiting the UPST website often and following us on LinkedIn.