The University announced last week that it plans to save an estimated $40 million annually by overhauling and centralizing the way it purchases goods and services.

“The University is at a critical juncture and if we are going to devote more of its funds to our core mission, we must agree collectively to spend less on administering the institution,” President David Skorton said in a University statement. “Streamlining and directing our procurement process is a critical step toward reducing expenditures without major impact on our core mission and minimizing the effect of the budget deficit on our employees.”