Beyond Key Performance Indicators: Data – Strategy – Results

1. Beyond Key Performance Indicators: Data – Strategy – Results Jean Clark, State of Arizona Chris Kennedy, Periscope Holdings

2. History of ProcureAZ 2009 – Began eProcurement Implementation • May 2009: project kickoff • September 2009 go-live: vendor, solicitation, contracts 2011 – Completed Statewide Rollout – full eProcurement 2012 – First Full Year of Consolidated Procurement Data

3. Aggregate spend across State Use data to maximize value Key Goals

5. Key Decisions:How do you analyze the data?

6. Complexity Performance reporting Predictive 6

7. Contracts AwardedSolicitation AmendmentsContract AmendmentsContract ExtensionsChange OrdersPre-Bids/Pre-ProposalsAdvertisementsNTP's IssuedGMP's IssuedBid Tabs/Evaluation SummariesReference CallsCoopsUtility AgreementsProject Close OutsScheduled MeetingsUnscheduled MeetingsDisputes/Letters/MemosPhone Calls IncomingPhone Calls OutgoingE-Mails IncomingE-Mail OutgoingEvent Agreements AwardedRFQ's AwardedSingle/Sole Source RequestsOffice Supply TransactionsApprovals for Office Supply ExceptionsActive ProCardsMonthly ExpendituresMonthly TransactionsCard Action RequestsCopy Center ImpressionsConvenience Copy ImpressionsColor Copy Impressions% Copy Requests Processed Same DayOutgoing Mail PiecesMonthly Mail ExpenditureMM Website UploadsInternet/Intranet EditingListserv AdministrationDatabase QueriesMM Template EditingMeasure Description# of JOC's released# of Contract Amendments# of Change Orders (constr)$ value of CO (constr)# of events# of RFQ's# of utility agreements% of informal sol in 45 daysReceive overall rating of 4.0 for informal processing on city wide surveys# of formal sol (awarded)% of formal sol awarded within 120 daysReceive overall rating of 4.0 for formal process on citywide surveys# of protests filed/sustainedReceive overall rating of 4.0 citywide surveysAction on bi-annual analysis of spend Dec/July)# of procurement trainingReceive overall rating of 4.0 indivdual training sessions# of copy center impressions# of convenience copier impressions# of outgoing mail pieces% of copy requests completed same day Receive overall rating of 4.0 for copy center services on citywide surveys# of active procards# of procard transactions$ amount of procard transactions # of fuel card transactionsfuel card expenditures# of Depts audited and reporting discrepenciesReceive overall rating of 4.0 for procard training session surveys# of MSR's$ value of MSR'sMSR's filled and shipped in 24 hrsStock turn ratesCost of warehousing per orderRatio of the cost of warehousing services as a % of the cost of goods issuedReceive overall rating of 4.0 for warehouse services on citywide surveys# of daily delivery locations# of packages deliveredDeliveries completed within 24 hrsReceive overall rating of 4.0 for courier services on citywide surveysFleet parts standardsReceive overall rating of 4.0 for part services on surveysInventory# of items (SKU'S)% of GrowthInventory ValueItem Turn Rates% Cycle Counts, Inventory AccuracyStockouts # of items.Orders (MSR'S) Issued to Walk-In CustomersElectronic Orders for Delivery & Will Call CustomersDaily Dollars Delivered per Monthly WorkdayDaily # of Lines Processed per Monthly WorkdayTotal Lines Processed per MonthNumber of pieces issuedDollars IssuedNumber of shipment lines receivedTotal hours req'rd. to process each line @8 minutes ea.Auctions/Sales# heldAvg days to processAmount collectedNon-Inventory Number of shipment lines received for ITTotal hours req'rd to process IT receipts @15 mins.eaNumber shipment lines rec'vd for all other depts. Total hours req'rd to process other dept. receipts Hrs.@8mins.eaTotal number of cartons receivedTotal number of Line items processedNon-Inventory Fleet Pieces PurchasedNon-Inventory Fleet Lines PurchasedTotal dollars spent on Non_Inv'ty Fleet PartsTotal hours req'rd to process Fleet Non Inv'ty lines purchases and receipts @12 mins.eaAccounting Payrecord Lines Processed by ICAccounting Payrecord Lines Processed by M/MgtMonthly Mail and Pkg Delivery Number of Delivery LocationsNumber of Pkgs. Delivered; Mail Bags,Library Totes,Boxes, Lab Samples, Medical Supplies & etc.Man Hours Required on Deliveries and Pick-UpsMan Hours Spent Working in WarehouseItems Picked-Up from Vendor Will-Calls

8. Key Performance Indicators 8

9. How do you show the value of procurement? 9

10. What is most important? 10

11. What can you do something about? 11

14. Complexity Dashboards Performance reporting Predictive 14

15. Dashboard Goals • Monitor consistent application of policy and programmatic goals • Ensure fair and competitive process • Maximize value of contracts • Support management of procurement resources • Increase value within spend categories • Add to transparency of State government

16. Data driven answers to the value of procurement 16

17. Efficiency 17

20. Quality 20

25. Consistency 25

28. What Now?

29. Business Intelligence Complexity Dashboards Performance reporting Predictive 29

30. What is Business Intelligence? “General ability to organize, access and analyze information in order to learn and understand the business. BI is an umbrella term that includes the applications, infrastructure and tools, and best practices that enable access to and analysis of information to improve and optimize decisions and performance.” (Gartner)

31. Review spend categoriesReview contract spendFind problemsFix them

32. Develop Opportunity AssessmentsPrioritize and planExecute

33. Conclusion

34. Where is Technology Driving Business? It isn’t enough to just operate. Businesses and governments need to be responsive, strategic, and predictive. Source: “Digital Megatrends 2015,” Oxford Economics – March 2011 34