{"id":110772,"date":"2023-03-17T13:52:58","date_gmt":"2023-03-17T17:52:58","guid":{"rendered":"https:\/\/www.hajim.rochester.edu\/senior-design-day\/?p=110772"},"modified":"2024-03-01T15:55:09","modified_gmt":"2024-03-01T19:55:09","slug":"university-of-rochester-corporate-purchasing-non-clinical-spend-analysis","status":"publish","type":"post","link":"https:\/\/www.hajim.rochester.edu\/senior-design-day\/university-of-rochester-corporate-purchasing-non-clinical-spend-analysis\/","title":{"rendered":"University of Rochester: Corporate Purchasing Non-Clinical Spend Analysis"},"content":{"rendered":"\r\n

\"\"<\/h2>\r\n

Team<\/h2>\r\n<\/colgroup>\r\n\r\n\r\n\r\n\r\n\r\n\r\n
Team Member<\/strong><\/td>\r\nMajor<\/strong><\/td>\r\n<\/tr>\r\n
Amanda Pignataro<\/td>\r\nB.S. in Data Science<\/td>\r\n<\/tr>\r\n
Avery Girksy<\/td>\r\nB.S. in Data Science<\/td>\r\n<\/tr>\r\n
Ryan Hilton<\/td>\r\nB.S. in Data Science<\/td>\r\n<\/tr>\r\n
Vaarya Srivastava<\/td>\r\nB.S. in Data Science<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n\r\n\r\n\r\n

Mentor<\/h2>\r\n\r\n\r\n\r\n

Prof. Cantay Caliskan<\/a> , Goergen Institute for Data Science<\/p>\r\n\r\n\r\n\r\n

Sponsor<\/h2>\r\n

University of Rochester Corporate Purchasing:<\/p>\r\n

Katherine Sadoff-Herrick, Neil Pierce, Jeff Meteyer, Carl Tietjen, Wen Li, Ph.D.<\/span><\/p>\r\n

Introduction<\/h2>\r\n\r\n\r\n\r\n

Procurement is the process of acquiring goods or services from an outside source. [1] Approximately $600 billion is spent each year by public and private universities, collectively, and many experience challenges when identifying cost efficient suppliers. Specifically, the Procurement Department at the University of Rochester is hoping to determine cost containment opportunities. Thus, strategic modeling and price auditing will be implemented to understand and leverage the department\u2019s full buying power.\u00a0<\/span><\/p>\r\n

Our project is motivated by the University of Rochester’s desire to enhance analytics of non-clinical spend data. Through cost-saving measures, the University of Rochester could redirect funding towards improving student life and increasing student opportunities.\u00a0<\/p>\r\n

Project Objectives<\/h2>\r\n
    \r\n
  1. \r\n

    Leverage UR Purchasing\u2019s full buying power<\/span><\/p>\r\n

      \r\n
    1. Achieved through: Exploratory Data Analysis and Clustering<\/li>\r\n<\/ol>\r\n<\/li>\r\n
    2. \r\n

      Recognize best Cost and Value for cost containment opportunities<\/span><\/p>\r\n

        \r\n
      1. Achieved through: Price Auditing Algorithm<\/li>\r\n<\/ol>\r\n<\/li>\r\n
      2. \r\n

        Understand the impact of inflation<\/span><\/p>\r\n

          \r\n
        1. Achieved through: Comparing data to external benchmarks<\/li>\r\n<\/ol>\r\n<\/li>\r\n<\/ol>\r\n

          Dataset Overview<\/h2>\r\n
            \r\n
          1. Main dataset or may be referred to as ‘Procurement Capstone<\/strong>‘:<\/span>\r\n
              \r\n
            1. 75 Columns and 297,082 Rows<\/span><\/li>\r\n
            2. Each row is item or product from an invoice<\/span><\/li>\r\n
            3. 25 Quantitative, 50 Qualitative Features<\/span><\/li>\r\n
            4. Data ranging from January 2020- January 2023<\/li>\r\n
            5. Example Data<\/span>:\u00a0\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n
              \r\n

              Field Label<\/b><\/p>\r\n<\/td>\r\n

              		\r\n

              Example Data<\/b><\/p>\r\n<\/td>\r\n<\/tr>\r\n

              \r\n

              Company<\/i><\/b><\/p>\r\n<\/td>\r\n

              		\r\n

              River Campus Colleges<\/span><\/p>\r\n<\/td>\r\n<\/tr>\r\n

              \r\n

              Supplier<\/i><\/b><\/p>\r\n<\/td>\r\n

              		\r\n

              W B Mason Co Inc<\/span><\/p>\r\n<\/td>\r\n<\/tr>\r\n

              \r\n

              Line Description<\/i><\/b><\/p>\r\n<\/td>\r\n

              		\r\n

              Dazzling Copy Paper<\/span><\/p>\r\n<\/td>\r\n<\/tr>\r\n

              \r\n

              UNSPSC<\/i><\/b><\/p>\r\n<\/td>\r\n

              		\r\n

              14110000<\/span><\/p>\r\n<\/td>\r\n<\/tr>\r\n

              \r\n

              Unit of Measure<\/i><\/b><\/p>\r\n<\/td>\r\n

              		\r\n

              Carton<\/span><\/p>\r\n<\/td>\r\n<\/tr>\r\n

              \r\n

              Invoice Date<\/i><\/b><\/p>\r\n<\/td>\r\n

              		\r\n

              2022-06-30<\/span><\/p>\r\n<\/td>\r\n<\/tr>\r\n

              \r\n

              Distribution Quantity<\/i><\/b><\/p>\r\n<\/td>\r\n

              		\r\n

              4.0<\/span><\/p>\r\n<\/td>\r\n<\/tr>\r\n

              \r\n

              Distribution Extended Amount<\/i><\/b><\/p>\r\n<\/td>\r\n

              		\r\n

              138.00<\/span><\/p>\r\n<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<\/li>\r\n<\/ol>\r\n<\/li>\r\n

            6. Additional datasets:\r\n
                \r\n
              1. Contracting pricing datasets for 8 suppliers<\/li>\r\n
              2. UNSPSC conversion dataset<\/li>\r\n
              3. Benchmark pricing datasets obtained from the Bureau of Labor Statistics<\/li>\r\n<\/ol>\r\n<\/li>\r\n<\/ol>\r\n

                Exploratory Data Analysis<\/h2>\r\n

                To summarize the main characteristics of our various datasets, we conducted exploratory data analysis (EDA).\u00a0<\/p>\r\n

                The following are key details and features that arise in the\u00a0 Procurement Capstone dataset:<\/p>\r\n

                  \r\n
                1. Company: <\/span><\/i>High-level internal operational unit of the University of Rochester\r\n