Beyond Key Performance Indicators:
Data – Strategy – Results
Jean Clark, State of Arizona
Chris Kennedy, Periscope Holdings
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
Key Goals
• Aggregate spend across State
• Use data to maximize value
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Key Decisions:
How do you analyze the data?
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Complexity
Performance
reporting
Predictive
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Contracts Awarded
Solicitation Amendments
Contract Amendments
Contract Extensions
Change Orders
Pre-Bids/Pre-Proposals
Advertisements
NTP's Issued
GMP's Issued
Bid Tabs/Evaluation Summaries
Reference Calls
Coops
Utility Agreements
Project Close Outs
Scheduled Meetings
Unscheduled Meetings
Disputes/Letters/Memos
Phone Calls Incoming
Phone Calls Outgoing
E-Mails Incoming
E-Mail Outgoing
Event Agreements Awarded
RFQ's Awarded
Single/Sole Source Requests
Office Supply Transactions
Approvals for Office Supply Exceptions
Active ProCards
Monthly Expenditures
Monthly Transactions
Card Action Requests
Copy Center Impressions
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 transactions
fuel card expenditures
# of Depts audited and reporting discrepencies
Receive overall rating of 4.0 for procard training session
surveys
# of MSR's
$ value of MSR's
MSR's filled and shipped in 24 hrs
Stock turn rates
Cost of warehousing per order
Ratio of the cost of warehousing services as a % of the
cost of goods issued
Receive overall rating of 4.0 for warehouse services on
citywide surveys
# of daily delivery locations
# of packages delivered
Deliveries completed within 24 hrs
Receive overall rating of 4.0 for courier services on
citywide surveys
Fleet parts standards
Receive overall rating of 4.0 for part services on surveys
Inventory
# of items (SKU'S)% of Growth
Inventory Value
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Item Turn Rates
Key Performance Indicators
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How do you show the value of
procurement?
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What is most important?
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What can you do something
about?
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Complexity
Dashboards
Performance
reporting
Predictive
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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
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Data driven answers to the value of
procurement
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Efficiency
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Quality
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Consistency
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What Now?
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Complexity
Business
Intelligence
Dashboards
Performance
reporting
Predictive
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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)
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Review spend categories
Review contract spend
Find problems
Fix them
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Develop Opportunity
Assessments
Prioritize and plan
Execute
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Conclusion
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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
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