1 / 18

Data Driven Strategies

Data Driven Strategies: Case Studies in Shared Services from Systemwide Procurement Bill Cooper – UC, AVP and CPO T0m Roberts – CSU, DIRECTOR OF CONTRACTs July 11, 2013. Data Driven Strategies. Where were we a few years ago? Disparate systems

beck-head
Download Presentation

Data Driven Strategies

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Data Driven Strategies: Case Studies in Shared Services from Systemwide ProcurementBill Cooper – UC, AVP and CPOT0m Roberts – CSU, DIRECTOR OF CONTRACTsJuly 11, 2013

  2. Data Driven Strategies • Where were we a few years ago? • Disparate systems • No meaningful business intelligence or analytics in procurement • Analytics required to set strategies, gain efficiencies, save money • Projects developing over last few years enabled by increasingly sophisticated analytics • UC’s P200 program • CSU’s Procure-to-Pay project • Where we are today • What’s next? Data Driven Strategies

  3. Procurement Statistics UC • $5.6B in annual spend • 157,000 normalized suppliers with >900,000 supplier records • 1.0M Purchase Orders • 2.6M Invoices • 5.3M Transaction Lines • Over 250,000 systemwide employees • CSU • $1.3B in annual spend • 54,000 normalized suppliers with an unknown number or supplier records • Total Purchase Orders unknown • Approx. 318,000 Invoices • 10,000 Suppliers Paid $1,000 each or less • 87,000 Invoices • Representing < 5% spend • Over 44,000 systemwide employees Data Driven Strategies

  4. UC and CSU Procurement Organization • De-centralized Model • UC and CSU - No system-wide Purchasing, Accounts Payable or IT • UC and CSU – Systemwide sourcing and contracting functions • Procurement Departments – UC = 11, CSU = 24 • Both with varying levels of Procure-to-Pay ownership and influence • ERP Systems • UC – 9 ERP systems Peoplesoft, Banner, Walker, Homegrown/Legacy* • CSU – 1 instance of PeopleSoft financial ERP system • eCommerce Instances • UC - 6 SciQuest, CommerceOne/PerfectCommerce, Homegrown • CSU – no eProcurement system • UC and CSU - Fund Based Accounting • Many “buckets” of money, varying reporting needs Data Driven Strategies

  5. Spend Analytics • The process of data: • Collection • Cleansing • Normalization • Classification • Enhancement • For the purposes of creating business intelligence to facilitate: • Reduction of procurement costs • Agency collaboration • Improvements in business efficiency • Key Performance Indicators • Monitoring of compliance • It is not necessarily a report generating tool Data Driven Strategies

  6. UC and CSU Procurement Reporting & AnalyticsBefore Spend Analytics • Extremely Limited • Largely relied on incomplete and often biased supplierreported data • Most resources lacked easy access to their own data • No access to data at other locations • Inconsistent • Lack of standardized systemwide data definitions, commodity coding • Disparate systems & processes • Labor Intensive • Data requests to campuses with approx 1 month delivery lead time • Additional work & time needed to compile data • Suppliers not normalized • Spend not consistently classified Data Driven Strategies

  7. Two projects enabled by “spend analytics”UC’s “P200 Project”CSU’s “Procure-to-Pay PROJECT” Data Driven Strategies

  8. The UC Challenge WORKING SMARTER CHALLENGE: Within 5 years, the University will redirect $500 million from administrative costs to the academic and research missions. http://workingsmarter.universityofcalifornia.edu/ P200 CHALLENGE: Deliver $200 million in annual cost savings across all funding sources through the sourcing, implementation, and utilization of competitive contracts and innovative supply chain strategies for procured goods and services. Data Driven Strategies

  9. P200 Program Initiatives Key: Initiated Project Future Project • Summary of P200 Program Initiatives Completed Project P200 Program Projects UCOP Organizational Alignment Spend Analytics Sourcing Technology Strategic Sourcing Utilization Organizational Management Performance Management Program Management Change Management The projected ROI for the P200 program is 920%. Data Driven Strategies University of California

  10. Two projects enabled by “spend Analytics”UC’s “P200 Project”CSU’s “Procure-to-pay Project” Data Driven Strategies

  11. The CSU Challenge Deliver Efficiencies Through Synergy • Implements a common business process approach across the university Procure-to-Pay Project Data Driven Strategies

  12. Facilitates shared services • Relies on a more strategic procurement environment • This relies on a highly adoptable eProcuremnentsolution Procure-to-Pay Project • Increase efficiencies • Uses many analytic tools Data Driven Strategies

  13. CSU and CSU Spend Analytics Programs - Similar Visions • Provide common infrastructure, data definitions, reporting and analytics tools to address challenges with gathering accurate spend information at the local and system levels • Phase 1: Implement the spend analytics solution • Phase 2: Build additional local and systemwide functionality • Spend Analytics is the building block to managing systemwide performance and contract utilization Data Driven Strategies

  14. UC and CSU Initial Focus: Four Simple Questions • Who is our Audience? • Who is buying? • What is being bought? • Who are we buying from? • How are we buying? • Bonus: How is my data filtered What are we buying? Who are we buying from? Who is buying? How are we buying? Data Driven Strategies

  15. UC and CSU Spend Analytics Benefits • Ease of Use • Web based solution with a single system wide view of spend data • Cost Savings • Spend visibility leads to development of sourcing, forecasting and planning strategies • Efficiencies • Quicker and easier to pull data and prepare reports • Standardized system wide definitions allow for increased inter- and intra-campus collaboration • UC can leverage system wide data to perform price reasonableness checks and supplier negotiations 15 7/11/2013

  16. What’s Next? • UC • Spend Analytics phase 2 • Drive further spend classification accuracy and detail • Revisit campus data to fine tune accuracy and gather additional data elements • Performance Management • Creation of additional systemwide data definitions • Additional data sources • Additional opportunities for analysis • Contract analysis • Sustainability/Small Business Reporting • P-Card Program • Operational metrics • CSU • Spend Analytics phase “next” • Incorporate spend data on more frequent basis • Quarterly beginning Q1 2013 • Expand vendor and comparative data enrichment • Expand training related to campus savings assessments system collaboration tools • Incorporate contract data in spend tool to monitor • Continue identifying target commodity categories • Development of support analytics as required by P2P project • Incorporate performance measurement data in analytics Data Driven Strategies

  17. What’s Next? CSU System’s Combined Annual Spend > $1.4 Billion San José Northridge San Marcos Fullerton Pomona Maritime Academy Sacramento San Luis Obispo San Diego Dominguez Hills Sonoma San Bernardino UC System Combined Annual Spend > $5 Billion Monterey Bay What if all campuses had consistent, robust and actionable procurement information that could be leveraged collaboratively in an effort to drive cost savings and efficiencies system wide? Channel Islands Bakersfield Fresno Humboldt Stanislaus Long Beach Chico East Bay Los Angeles San Francisco 17 Data Driven Strategies 7/11/2013

  18. Thank You

More Related