SC500 Update

SC500 Workshop Participants- Not pictured Erin Riley, Mike Kuhner and Ted Johnson

SC500 (Supply Chain 500) is in full swing since our last update in June.

As you may recall, SC500 is a key strategic initiative from the CFO and COO 2016-2020 Strategic Plan that launched at the start of FY16/17. This is a follow-on to the successful P200 initiative where we exceeded $260MM of annualized benefit at the end of FY 15/16.

The goal of SC500 is to look for ways to optimize the supply chain across UC in pursuit of $500MM in annual benefit. SC500 is currently in the assessment phase. This initial phase is scheduled for October completion.  It has three primary objectives:

1)       Determine whether the $500MM benefit target is realistic and identify other non-financial benefit targets to consider as well

2)       Provide recommendations on what changes need to occur to achieve this goal and what the operating model would look like

3)       Evaluate to what extent the UC is ready to embrace the required changes

The SC500 project team, which includes UC staff and consultants from A.T. Kearney, began by visiting all of the campuses to interview stakeholders in procurement, travel, AP, logistics and distribution. The purpose of these interviews, in addition to extensive data collection, was to establish campus-specific operating model baselines.

We also conducted three workshops. Workshop participants provided balanced representation across all Supply Chain functions and campuses. Participants evaluated current and future state options, provided campus and subject matter expertise and assessed recommendation opportunities to support the SC500 objectives.

We have also launched an Advisory Group, consisting of campus VCAs and VCPBs, who are supporting the SC500 assessment by providing input to the recommendations, offering guidance and acting as a campus change agent.

In the coming weeks, the SC500 project team will refine the recommendations, business case, and potential implementation and change management plans. The final recommendation will be presented to Nathan Brostrom and Rachael Nava, who will then provide direction on how to proceed based on the strategic priorities across UC.

For questions or comments regarding the SC500 project, please contact nik.neu@ucop.edu.

Nik Neu

Business and Process Program Manager, PMO