data drive strategies in procurement tom roberts, director jason stanton, data analyst contract...

Data Drive Strategiesin Procurement

Tom Roberts, DirectorJason Stanton, Data Analyst

Contract Services & Procurement

Office of the Chancellor

January 22, 2015

Data to Management Information

• What is data• Data can be any level of information detail from our

systems (or elsewhere)• What is management information?• Management information is gleaned from data and

used to make decisions. Business Intelligence (BI)• There is a place in business for both

Mining Data• Choices in data to use

• Raw data• Cleansed data• Enriched data

• Choices of accessing data• PeopleSoft financial system• Downloading into applications then manipulating it

• Data Warehouse• Spreadsheets or databases• Oracle (or other) tools• Hire a third party

CSU Hired a Third Party

• Spikes Cavell• Spend analytics company specializing in public sector

• We now have:• Four years of data• All campuses / business units• Over 100 user accounts systemwide• Can see our data and data from other institutions

What Does Spikes Do?

ENRICH

4

CLASSIFY

3

DATA

COLLECT

1

CLEANSE

2

REDACT

5

COLLATE

6

Accurate extraction of raw financial data from PeopleSoft and US Bank.

Data standardization, removal of duplicates and identification of errors.

Classification of vendor and purchase card data into NAICS, NIGP, and vCode categories

Appending of supplemental attributes from Spikes Cavell and licensed 3rd party reference datasets to each of the core trade vendor records.

Identification and redaction of payments made to individuals or where security might be compromised.

Aggregation of all of the spend and related data into a single, unified and consistent master database.

Raw Data

CSU_VENDOR_PYMT 22745

Business Unit = COCSU

Payment Dt From = 2012-07-01

Payment Dt To = 2013-06-30

Unit Remit Vndr Tax ID Vendor Classification Name Address 1 City St Postal Payment Ref Check Amt

COCSU 0000000021 ****427007 Outside Party FEDERAL EXPRESS PO BOX 7221 PASADENA CA 91109-7321 347270 24.210



COCSU 0000000026 ****745535 Outside Party AT&T DATACOMM PO BOX 8104 AURORA IL 60507-8104 342756 79500.000






Payment Dt Creation Dt PymntAcctg Date Payment Method Pay Status Voucher Vchr Ln Descr Vchr Ln Vchr Dist ln No Vchr GL Unit Vchr Account

6/18/2013 6/18/2013 6/18/2013 System Check Paid 00158989 W/E 05/26/13 1 1 COCSU 660803



7/23/2012 7/23/2012 7/23/2012 System Check Paid 00150742 FY 11/12 CNI campus implementa1 1 COCSU 616816

8/15/2012 8/15/2012 8/15/2012 System Check Paid 00151334 Equipment, including staging a1 1 COCSU 616002



8/15/2012 8/15/2012 8/15/2012 System Check Paid 00151337 FY 11/12 - Equipment for 10 Gi1 1 COCSU 616002

8/15/2012 8/15/2012 8/15/2012 System Check Paid 00151338 Equipment, staging and install1 1 COCSU 616002

Descr FIRMS Object CDFirms Obj Cd DescrVchr Fund Vchr Dept PO No. PO Ln PO Category CodeVchr Ln Dist Amt

EXPRESS MAIL CHARGES660001 Postage and Freight 48501 1057 0 16.140



IT COMMS PROJ ECT MGMT COST616001 I/T Communications 48503 1101 0000003182 1 00067 79500.000

IT HARDWARE OVER $5,000616002 I/T Hardware 48501 1101 0000003358 1 00010 6000.000





A/P Voucher Level Transaction Table

PeopleSoft Open PO Report

Commodity Codes Project

• Recommend an approach to change the use of the current NIGP commodity codes from three to five digits to achieve a more granular reporting of expenditures with in the CSU.

CSU Current Use of Codes

• Started out 12 years ago with 270 NIGP codes• Now over 1,000 codes across all campuses• Created by campuses for their individual needs

8820096185DEFAULT962561502742500BT

84066C42554N95403LAMPSTRVL

Commodity Codes Project

• Recommend an approach to change the use of the current NIGP commodity codes from three to five digits to achieve a more granular reporting of expenditures with in the CSU. • Findings• The CSU does not use commodity codes in a uniform

manner across campuses• Large jump from 270 select codes to the full five digit

NIGP series• UNSPSC or NIGP are both used in online catalogues

CSU Data by the Numbers

• 2012/13 Fiscal Year Transaction Count• 1,028,000 AP voucher lines (313,000 vouchers)• 242,000 pCard transactions• 91 tables

Progressive Value-add to the CSU over Three Years

• Year One (the learning year)• Perfected data collection methodologies• Custom face-to-face visits/demos/training for many

campuses and groups (FOA, PSSOA)• CSP Data Analyst serves as first response to end

user support.• Spend Analytics used in several CO projects

.

Progressive Value-add to the CSU over Three Years• Year Two (guiding campuses to savings, creating

awareness)• Delivered 23 campus-tailored Savings Opportunity

Assessments and tutorials in:• Invoice Consolidation (reduce invoice volume) • Category Rationalization (reduce vendors in highly

populated commodity or service categories)• Compliance with Contracted Vendors (confirming

campus is purchasing from vendors under contract)

.

Invoice Consolidation• From 2011/12 to 2012/13 – Reduction of AP invoices in almost all campuses (2% systemwide,

over 5,300 invoices)

During the same period – overall increase of 1% in total spend

Increase of 2% in pCard usage

According to RPMG Research Corp, each invoice can cost up to $71 from receipt to payment. Overall value-add would then exceed $376,000 (2010 Purchasing Card Benchmark Survey)

.

Progressive Value-add to the CSU over Three Years

Year Three (“spend under management”)• Development of project program to define how much CSU total

spend is being managed (under contract).• This is a necessary metric in measuring strategic sourcing

and contract compliance success. • Campuses presented with a specific action plan to bring

greater spend under contract

Spend Under Management

• 849 contracts uploaded to the Spikes Observatory from:• CSU systemwide contracts• UC contracts• DGS contracts• E&I contracts

• One-stop place to search for available contracts• Ability to track monthly spend with contracted vendors


Monthly spend with contracted vendors

Example ofCampus Use of Data:

California Polytechnic State University,

San Luis Obispo

Dru Zachmeyer, Director

.

San Luis Obispo

.

www.calstate.edu

http://www.calstate.edu/

data drive strategies in procurement tom roberts, director jason stanton, data analyst contract...

Documents

data data

csu data

years of data

data standardization

related data

mining data choices

purchase card data

data warehouse spreadsheets