Data Drive Strategies
in Procurement
Tom Roberts, Director
Jason 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?
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.
5
6
DATA
3
2
1
COLLECT
CLEANSE
4
CLASSIFY
ENRICH
REDACT
COLLATE
Raw Data
A/P Voucher Level Transaction Table
CSU_ VENDOR_22745
PYMT
Business Unit = COCSU
Payment Dt From = 2012-07-01
Payment Dt To = 2013-06-30
Unit
Remit Vndr
Tax ID
Vendor Clas s if ic at ion
Name
Addres s 1
Cit y
St
Pos t al
Pay ment Ref
COCSU
0000000021
****427007
Outside Party
FEDERAL EXPRESS
PO BOX 7221
PASADENA
CA
91109-7321
347270
24.210
COCSU
0000000021
****427007
Outside Party
FEDERAL EXPRESS
PO BOX 7221
PASADENA
CA
91109-7321
347270
24.210
COCSU
0000000021
****427007
Outside Party
FEDERAL EXPRESS
PO BOX 7221
PASADENA
CA
91109-7321
347315
8.070
COCSU
0000000026
****745535
Outside Party
AT&T DATACOMM
PO BOX 8104
AURORA
IL
60507-8104
342756
79500.000
COCSU
0000000026
****745535
Outside Party
AT&T DATACOMM
PO BOX 8104
AURORA
IL
60507-8104
343061
195986.370
COCSU
0000000026
****745535
Outside Party
AT&T DATACOMM
PO BOX 8104
AURORA
IL
60507-8104
343061
195986.370
COCSU
0000000026
****745535
Outside Party
AT&T DATACOMM
PO BOX 8104
AURORA
IL
60507-8104
343061
195986.370
COCSU
0000000026
****745535
Outside Party
AT&T DATACOMM
PO BOX 8104
AURORA
IL
60507-8104
343061
195986.370
COCSU
0000000026
****745535
Outside Party
AT&T DATACOMM
PO BOX 8104
AURORA
IL
60507-8104
343061
195986.370
Pay ment Dt
Creat ion Dt
Vc hr Ln Des c r
Vc hr Ln
Py mnt Ac c t g Dat e
Pay ment Met hod
Pay St at us Vouc her
6/18/2013
6/18/2013
6/18/2013
System Check
Paid 00158989
W/E 05/26/13
1
1 COCSU
660803
6/18/2013
6/18/2013
6/18/2013
System Check
Paid 00158991
W/E 06/02/13
1
1 COCSU
660803
6/21/2013
6/21/2013
6/21/2013
System Check
Paid 00158992
W/E 06/09/13
1
1 COCSU
660803
7/23/2012
7/23/2012
7/23/2012
System Check
Paid 00150742
FY 11/12 CNI campus implementa
1
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 00151335
Equipment, including staging a1
1 COCSU
616002
8/15/2012
8/15/2012
8/15/2012
System Check
Paid 00151336
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
Des c r
FIRMS Objec t CD
Firms Obj Cd Des cVc
r hr Fund
Vc hr Dept
PO No.
PO Ln
Vc hr Dis t ln No
Vc hr GL Unit
Chec k Amt
PO Cat egory
Vc hrCode
Ln Dis t Amt
EXPRESS MAIL660001
CHARGES
Postage and Freight 48501
1057
0
16.140
EXPRESS MAIL660001
CHARGES
Postage and Freight 48501
1057
0
8.070
EXPRESS MAIL660001
CHARGES
Postage and Freight 48501
1057
0
IT COMMS PROJECT
616001MGMT COST
I/T Communications 48503
1101
0000003182
1 00067
79500.000
IT HARDWARE OVER
616002$5,000
I/T Hardware
48501
1101
0000003358
1 00010
6000.000
IT HARDWARE OVER
616002$5,000
I/T Hardware
48501
1101
0000003358
1 00010
412.500
IT HARDWARE OVER
616002$5,000
I/T Hardware
48501
1101
0000003358
1 00010
5738.000
IT HARDWARE OVER
616002$5,000
I/T Hardware
48502
1101
0000003463
1 00010
699.920
IT HARDWARE OVER
616002$5,000
I/T Hardware
48501
1101
0000003386
1 00010
8219.370
8.070
Vc hr Ac c ount
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
88200
96185
DEFAULT
96256
15027
42500BT
84066C
42554N
95403
LAMPS
TRVL
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
Spend Under Management
Spend Under Management
Monthly spend with contracted vendors
Example of
Campus Use of Data:
California Polytechnic State University,
San Luis Obispo
Dru Zachmeyer, Director
.
San Luis Obispo
.
San Luis Obispo
.
San Luis Obispo
.
San Luis Obispo
.
San Luis Obispo
.
San Luis Obispo
.
www.calstate.edu