UNIVERSITY OF CALIFORNIA SANTA BARBARA PROCUREMENT SERVICES TOWN HALL Presented By: Jacob Godfrey Date: 10/20/2015
Welcome Everyone! Agenda Big Picture Mission and Team Performance Challenges Looking Forward UCSB Procurement Town Hall 10/20/2015 2
UC Procurement Challenge Within 5 years, the University will redirect $500 million from administrative costs to the academic and research missions. $500 MILLION P200 Program Challenge Redirect $200 million annually to teaching, research and public service through the procurement of goods and services. 11/16/2015 3
Sourcing Prioritization Matrix A list of identified sourcing opportunities within the six categories in Current Procurement Spend were prioritized based on estimated benefit and ease of implementation. $4M LS04 Lab Supplies & Fixtures Life Sciences MRO/Facilities Estimated Benefit $0M LS08 Drugs & Pharmaceutical Products LS09 -Med Equip., Accessories & Supplies LS07 Measuring, Observing & Testing Instruments PS04 Business & Corp Management Consultation Services LS06 Lab & Scientific Equip (Remaining Spend) MRO06 Other Bldg & Facility Maint. Svcs PS03 Legal Services IT06 Software/Hardware Engineering IT01-PC/Laptops MRO05 PS05 - Printing IT11 Software (Non-Oracle) PS01-Temp Personnel Svcs PS02 Temp Personnel Recruitment PS07 Risk Mgmnt Consult. Svcs PS13 - Advertising IT12- software (Oracle) PS08 Publishing PS11 LS05 -Lab & Scientific Equip MRO02 Cleaning & Janitorial Services PS06 IT Consulting IT03 Networks Equipment PS09 Sales & Business Promotion Activities IT08 MRO08 IT04 OEE06 IT07 OEE05 PS10 IT02 -Apple IT05 IT09 IT10 PS12 FD02 FD03 FD04 FD01 Prepared & Preserved Foods (Prime Vendor) OEE02 FD07 FD05 FD06 MRO01 Cleaning & Janitorial Supplies MRO03 - Furniture LS03 Chemicals: Elements & gases LS01 Chemicals: Compounds & Mixtures OEE01 Postal, Small Parcel & Courier Svcs OEE07 Office Supplies OOE03-Printer or Fax Toner MRO07 General MRO Supplies LS02-Chemicals: Additives MRO04 Refuse Disposal & Treatment OEE04 Paper Products 0.5 Higher Effort 1.5 2.5 3.5 Ease of Implementation 4.5 5.5 6.5 Lower Effort 7.5 IT and Telecom OEE Prof Services Food and Dining Requires further review Note: Sourcing opportunities identified for Non-Traditional categories have not been included in the prioritization matrix 4
P200: A Transformative Journey P200 Program established Procurement Leadership Council formed Strategic capabilities assessment delivered (KPMG) 5-year Strategic Plan developed Procurement Management Board established, CPO hired Strategic Plan approved and funded Leadership & Strategy Alignment 2012 2013 2014 Operating Model Optimization 2015 Operating Infrastructure Implementation Steady State Benefit tracking in place Strategic Sourcing COE pilots/wave 1 sourcing initiated Performance Management key performance indicators defined Contract Director/Repository launched Spend Analytics launched Sourcing Director launched Sourcing Technology and Spend Analytics roadmaps established 11/16/2015 5
UC P200 Program - Updates Exceeded FY14-15 Goal! Benefit actuals and forecasts in millions based on spend volumes and opportunity sizing Steady State Objectives: Establish and utilize new system-wide contracts Strategically source nontraditional categories $100 $133 $120 $140 $170 $165 $200 Increase effectiveness of procurement operations FY12-13 (baseline) FY13-14 (actuals) FY14-15 (actuals) FY15-16 System-Wide Sourcing Existing Contracts (pre Nov 13) $60 $63.5 $36.8 $15.7 $6.5 Current Contract Benefits (post Nov 13) $11.9 $43.6 $21.4 $16.6 New Contracts (forecast)* Traditional Categories - - - $49.9 $55.9 Non-Traditional Categories - - - $24 $51 Local Campus Activities Procurement& Supply Chain $35 $50.9 $80.8 $48 $64 Payment Incentives $5 $6.3 $8.5 $6 $6 Efficiency $0.9 FY16-17 11/16/2015 * New contracts forecast will adjust as new benefits achieved are added to the portfolio 6
UCSB Solar Array Energy Savings Opportunity In an effort to save money and increase energy and power to the campus, Facilities Management and Procurement worked together on an RFP to solicit a Solar company to install solar panels on campus building rooftops. Solar energy is an environmentally sustainable, cost-saving commodity which provides the most sound and cost effective method of providing additional energy for the campus. It s important to note the University is not paying for the panels or installation, but rather only the energy we produce. We are leasing the following ground space to produce the energy: Lot 38 (Harder Stadium) Mesa Parking Structure San Clemente Parking Structure Lot 10 Parking Structure (CNSI) Rob Gym Events Center (Thunderdome) 2013 University of California Results $705,000 annual savings from generating power instead of pulling from the grid. During the 20 year contract, UCSB is looking at a very conservative total of $14.1M in savings. Power of Collective Spend Collaboration Sustainability Cost Savings
UC Procurement Services Our Vision Be acknowledged by University of California executive and campus leadership, faculty, staff and students as a high performing strategic partner that is essential to the financial health of the University Our Mission Expand opportunities for teaching, research and public service by delivering savings and efficient procurement services across the University of California Our Strategic Objectives Develop collaborative relationships with clients across the UC system to understand needs and provide high quality procurement services that best meet those needs. Pursue strategic initiatives in a coordinated manner that leverages the power of our collective spend and redirects savings to teaching, research and public service. Invest in and optimize talent and technologies across the University to deliver far greater benefit than can be achieved by any single location working independently. Drive down Total Cost of Ownership (TCO) and promote new revenue opportunities through effective sourcing, contract management and supply chain solutions. Partner with suppliers to develop business relationships and solutions that optimize value for the University. 8
UCSB Procurement Services Team Jacob Godfrey Associate Director & Chief Procurement Officer/Materiel Manager Open Procurement Services Assistant CalliPrice Procurement Manager Vaughn Boyle Equipment Manager and FlexCardProgram Coordinator Kathleen Yabsley Gateway Systems Coordinator Open Strategic Sourcing Coordinator Daniel Sweeney Contracts Analyst Kimberley Tapia Contracts Analyst Jason Gonzalez Buyer Monica Yamasaki Buyer Lynn Corrigan FlexCard Coordinator Diana Kunz Mina Equipment Management Assistant Open P200 and Special Programs Coordinator Karen Jeffers Contracts Analyst We are looking for talented and motivated people to join our high performance team! TJ Bloominger Buyer Donna Baumann Supplier Enablement Specialist What s Changed This Year: We Reorganized Under FARM We Repositioned Central Stores How About Our People? 2 Departures 1 New Hire 1 Promotion 1 Reclassification 9
Challenges Technical FSIP Asset Management Module FSIP GMC Integration and Build Out FSIP Gateway Integration UCOP Spend Analytics Integration Regulatory OMB Uniform Guidance SB 854 - Prevailing wage SB 376 -Fair Wage Fair Work / Fair Wage 10
Gateway Gateway Users: Active Users: 6,160 Requistioners: 3,300+ Account Approvers: 2,100+ Department Buyers: 600+ Site Content: Hosted Catalogs: 15 Inclusive of 1.5M Products Punchout Suppliers: 16 Total Suppliers: 5,375 Summary Statistics: 127,580 Purchase Orders Processed 1.2 Day Turn Around Average! 176,696 Invoices Paid* - 6.2 Day Turn Around Average! *AP Processed 200,000 as of October 9 th at 9:29am 11
Training and Resources Classes Offered Procurement Fundamentals Accounts Payable 101 Small Business Subcontracting Gateway 101 Gateway Forms Gateway Receiving Gateway Management Console 101 FlexCard Department Administrator FlexCard Department Reviewer FlexCard Holder Fundamentals of Equipment Management Register for training at: https://learningcenter.ucsb.edu- search "Gateway." Training and User Manuals http://www.bfs.ucsb.edu/procurement/gateway/training Helpdesk help@procurement.ucsb.edu X8025 Website FAQ s http://www.bfs.ucsb.edu/procurement/gateway/faqs 12
Gateway Helpdesk 350 300 24 HRS or Less -Average Ticket Response Time! 250 200 150 100 50 Supplier Cancel/Close PO Payment Status/Invoicing Misc Contracts Requsition Questions 0 6,791 Tickets Submitted over the last 12 months 566 Average Monthly 17 Ticket Categories Tracked Next Steps: ETS Service Desk (Tier 1 & 3) and UCSD Service Desk (Tier 3) 13
UCSB Procurement Services Performance 7 6 5 4 3 2 1 0 Purchase Order Processing Time (Days) 2010 2011 2012 2013 2014 2015 Processing time has improved by 75% since 2013! FY15 Procurement Services Turnaround RFP Activity by FY 0-2 days 2-5 days 5-9 days 9+ days 16 14 12 10 8 6 4 2 0 RFPs 2012 2013 2014 2015 Central Procurement processed 2,941 PO s in FY 15 or 5% of all PO s Issued
Contracts Performance Processing time has improved by 75% since 2013! 6 5 4 3 2 1 0 Turnaround (in weeks) 2011 2012 2013 2014 2015 FY 15 Processing Time 0-8 days (1 week) 9-15 days (2 weeks) 16-22 days (3 weeks) Over 3 weeks
Cycle Time (PR PO) FY15 UCBerkeley 0% 20% 40% 60% 80% 100% UC - Combined Member Cycle Time (FY15) 4.0% 2.6% 0.5% UCIrvine UCRiverside UCSB UCSC UCSD 0 Days 1 Day 2-5 Days 6-10 Days 11-29 Days 30+ Days 16.2% 13.0% 63.7% 0 Days 1 Day 2-5 Days 6-10 Days 11-29 Days 30+ Days UCSF UCBerkeley UCIrvine UCRiverside UCSB UCSC UCSD UCSF Total 0 Days 62,459 3,740 5,173 23,197 11,616 127,973 130,338 364,496 1 Day 38,957 3,253 2,068 6,854 6,556 16,875 18,427 92,990 2-5 Days 35,488 3,056 1,197 4,714 4,868 11,023 13,909 74,255 6-10 Days 14,377 609 232 1,134 1,610 2,383 2,844 23,189 11-29 Days 11,228 207 94 530 1,184 835 972 15,050 30+ Days 1,881 18 10 109 232 250 133 2,633 Grand Total 164,390 10,883 8,774 36,538 26,066 159,339 166,623 572,613 The PO Cycle Time report represents a grouping by the number of days it takes for a PR document to go from PR submission to org PO revision Date. Reference Period; July 1, 2014 Mar 24, 2015 (SciQuest Data Warehouse)
FlexCardProgram Performance 450 400 350 300 250 200 150 100 50 0 FlexCard Holders 2010 2011 2012 2013 2014 2015 FlexCard Holders 12000000 10000000 8000000 6000000 4000000 2000000 0 FC Spend Smart Chip Embedded Credit Cards are being issued! 2010 2011 2012 2013 2014 2015
Gateway Invoice Processing Results! 200,000 Invoices Processed in Gateway as of Oct 9 th, 2015 Processing Time has decreased by nearly 75%! 25.0 20.0 15.0 10.0 5.0 Invoice Date to Export Date Invoice Date to Export Date 0.0 2011 2012 2013 2014 2015 Next Steps: Enable more suppliers to submit electronic invoices directly to Gateway. Target 50% of the total invoice populations by end of FY 2016. 18
Cycle Time (Inv) FY15 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% UC - Combined Member Cycle Time UCBerkeley 5.2% 3.1% 0.9% UCSB UCSC UCSD 0 Days 1 Day 2-5 Days 6-10 Days 11-29 Days 30+ Days 6.6% 8.8% 75.4% 0 Days 1 Day 2-5 Days 6-10 Days 11-29 Days 30+ Days UCSF UCBerkeley UCSB UCSC UCSD UCSF Total 0 Days 99,235 45,447 15,574 173,800 213,172 547,228 1 Day 22,830 1,848 77 5,812 17,613 48,180 2-5 Days 39,889 2,165 170 6,035 15,459 63,718 6-10 Days 29,611 1,389 52 2,048 4,421 37,521 11-29 Days 15,973 2,241 81 1,323 2,669 22,287 30+ Days 3,579 1,859 19 354 818 6,629 Grand Total 211,117 54,949 15,973 189,372 254,152 725,563 Cycle Time = Invoice Submit to Invoice Export Date Reference Period; July 1, 2014 Mar 24, 2015 (SciQuest Data Warehouse)
Vendor Management Summary Total Requests Processed: 2,549 Supplier Additions: 1,396 Duplicates/Changes: 1,153 Process Time Non Catalog Hosted Catalog 0-3 days (68%) 4-9 days (18%) 10-20 days (7%) 21+ days (7%) Coming FY 2016 Vendor File Clean Up!
Announcing the Gateway Mobile App! 21
Looking Forward Gateway New Mobile App Check it out! Sustainability & Social Justice Disaster Preparedness -Supply Chain and Debris Management Plan CPSM - Investing in our Expertise Delegated Procurement Who can sign? Business Contracts Program / CORO Initiative Systems AP CXML Invoicing and Vendor Portal Project Vendor Management - Supplier Rationalization & Vendor File Payment Plus Program Expansion Procurement Services Training and Newsletter We re looking for a few good people to join our team! 22
Recap of Performance Highlights Requisition Processing Time Improved by 75% Contracts: Processing Time Improved by 75% Invoice Processing Time Improved by 75% 23
If you would like to contact us after the presentation: Jacob Godfrey jacob.godfrey@bfs.ucsb.edu http://www.bfs.ucsb.edu UCSB Procurement Services HelpDesk help@procurement.ucsb.edu 805-893-8025 24
Thank you for your time! Questions? 25