KEY PERFORMANCE INDICATORS: WHAT IS THE INDICATOR … · 1. 2015 = ap director, 2. 2016 – total supplier manage & total contract manager 3. 2017 negotiated contact 2. brought up

KEY PERFORMANCE INDICATORS: WHAT IS THE INDICATOR ACTUALLY

INDICATING?

TEXAS, OKLAHOMA, ARKANSAS & LOUISIANA

A KEY PERFORMANCE INDICATOR IS A MEASURABLE VALUE THAT

DEMONSTRATES HOW EFFECTIVELY YOUR INSTITUTION IS ACHIEVING KEY

BUSINESS OBJECTIVES. INSTITUTIONS USE KPI’S AT MULTIPLE LEVELS TO

EVALUATE THEIR SUCCESS AT REACHING TARGETS.

WHAT IS A KPI?

THIS PRESENTATION WILL ASSIST YOU IN DEVELOPING AND TRACKING KPI’S TO ASSIST

YOU IN DEVELOPING STRATEGIES, OPTIMIZE RESOURCES, AND COMMUNICATING THE

VALUE OF THE PROCUREMENT ORGANIZATION.

1. MONITOR THE MATURITY OF YOUR PROCUREMENT ORGANIZATION

2. ASSESS THE PERFORMANCE OF PROCUREMENT STAFF/OTHER RESOURCES

3. ASSESS THE PERFORMANCE OF VENDORS

4. SETTING A BASELINE FOR EXPECTATIONS

WHY PUT IN THE EFFORT?

Presenter

Presentation Notes

Where do you stand in relation to your peer procurement organizations How is your staff performing? How are vendors performing? Does the vendor contribute to the overall cost reduction and best value strategies of your institution? Set a baseline to establish goals.

• IS IT FEASIBLE TO CALCULATE (AUTOMATION IS PREFERRED)?

• DOES IT SUPPORT THE MISSION OF THE DEPARTMENT/INSTITUTION?

• DOES IT MEASURE PERFORMANCE/DEPARTMENT EFFICIENCIES?

• DOES IT PROVIDE AN ACCURATE PICTURE OF THE ORGANIZATION?

• WILL IT SUPPORT YOUR REQUEST FOR ADDITIONAL RESOURCES?

• IS IT BUSY WORK OR WILL IT PROVIDE BENEFIT?

HOW TO DETERMINE WHICH KPI’S TO TRACK

• NUMBER/$ OF REQS/PO’S PROCESSED

• NUMBER/$ BELOW $15,000 (LOW BID LIMIT)

• NUMBER/$ ABOVE $50,000 (HIGH BID LIMIT)

• NUMBER/$ PROCESSED ON APPROPRIATED/RESTRICTED RESEARCH/FEDERAL FUNDS

• TOP 100 VENDORS

• DOLLAR AMOUNT ON PURCHASE ORDERS

• QUANTITY OF PURCHASE ORDERS

• ANNUAL SUM TO IDENTIFY VENDORS FOR E-INVOICING OR CONTRACT

• NON-COMPLIANT ORDERS (NUMBER/DOLLAR/REPEATED VIOLATIONS)

• REQUISITIONS THAT BYPASS PURCHASING (SHOWS EFFICIENCIES)

• %/$ OF PURCHASE ORDERS ON PUNCH-OUT OR E-COMMERCE SOLUTION

PURCHASING PERFORMANCE

• NUMBER OF REQUISITIONS PROCESSED PER PURCHASING FTE:

• BY MONTH;

• BY FISCAL YEAR;

• AVERAGE; AND

• % CHANGE.

• NOTE: MAKE SURE YOU ACKNOWLEDGE DIFFERENCE IN RESPONSIBILITIES AND

COMPLEXITY OF THE COMMODITIES BEING PROCESSED.

• AVERAGE NUMBER OF DAYS FOR TRANSACTIONS TO PROCESS

• TIME FROM REQUISITION SUBMISSION TO REQUISITION COMPLETION/PO COMPLETION

• SOLICITATIONS AWARDED

PURCHASER PERFORMANCE

MONTHLY STATS

Date FY17Total Pos

Purchase Orders < $15,000

Purchase Orders ˃ 40,000

POs onState Funds

POs on200 Prog Codes

# $ # $ # $ # $ # $

Sep-16 4,105 24,717,093 3,877 6,439,162 85 14,679,471 137 879,827 968 3,070,928

Oct-16 3,797 20,779,761 3,599 4,398,405 76 13,288,066 236 6,152,675 986 6,194,228

Nov-16 3,371 13,338,684 3,244 3,711,222 50 7,711,166 200 3,349,096 918 2,464,237

Dec-16 2,607 18,484,840 2,483 3,075,846 61 13,866,754 144 1,670,801 676 2,651,486

Jan-17 3,407 13,207,291 3,286 3,824,544 53 7,779,062 205 1,504,959 871 1,741,830

Feb-17 3,550 14,742,421 3,421 3,776,164 53 9,152,004 187 1,710,993 972 1,452,071

Mar-17 3,715 10,120,237 3,603 3,671,573 32 4,539,474 193 706,300 1,007 2,360,884

Apr-17 3,554 10,574,574 3,443 3,188,415 47 5,515,957 249 1,074,500 1,099 2,041,411

May-17 3,900 15,371,573 3,731 4,013,215 52 8,465,011 211 2,572,641 1,066 1,783,359

Jun-17 3,606 27,158,329 3,293 4,328,174 76 18,132,393 206 1,009,400 1,056 2,365,359

Jul-17 3,313 17,965,531 3,070 3,803,171 86 10,581,128 228 1,118,491 1,029 1,717,892

Aug-17 5,532 59,264,388 4,938 8,510,420 213 42,505,026 314 2,593,908 1,146 3,110,352

TOTAL 44,457 245,724,722 41,988 52,740,311 884 156,215,512 2,510 24,343,591 11,794 30,954,038

AVG 3,705 20,477,060 3,499 4,395,026 74 13,017,959 209 2,028,633 983 2,579,503

FY End Avg (JJA) 4,150 34,796,083 3,767 5,547,255 125 23,739,516 249 1,573,933 1,077 2,397,868

Y2Y changes -5% -3% 2% 81% -38% -12% 19% 91% -5% -35%

MONTHLY STATS

Date FY17Top 100 Vendors

ATF POs 1-Time Pymts Dollar Amt on POs Qty of POs

# $ # $ # $ % of Total # $ Sep-16 1,764 17,306,560 2,395 6,982,481 73 232,336 1.78% 19 3,985 Oct-16 1,441 15,611,488 2,209 4,993,696 84 141,797 2.21% 25 2,635 Nov-16 1,555 10,654,542 2,041 4,540,934 106 177,592 3.14% 24 3,161 Dec-16 954 16,203,335 1,432 8,304,684 100 256,944 3.84% 28 6,954 Jan-17 1,669 10,707,801 2,232 4,842,223 82 115,643 2.41% 19 2,317 Feb-17 1,617 11,904,991 2,222 6,535,654 64 94,536 1.80% 28 8,387 Mar-17 1,719 7,604,577 2,351 3,494,830 85 159,067 2.29% 31 6,210 Apr-17 1,630 8,191,342 2,148 3,819,398 79 336,154 2.22% 36 6,991

May-17 1,709 12,021,254 2,304 5,915,832 126 219,512 3.23% 21 4,743 Jun-17 1,602 21,196,515 2,193 6,825,069 108 255,876 3.00% 26 4,628 Jul-17 1,532 13,495,257 2,093 7,473,651 83 80,843 2.51% 23 3,761

Aug-17 2,195 43,161,113 3,203 23,618,697 126 276,535 2.28% 40 8,554 TOTAL 19,387 188,058,776 26,823 87,347,149 1,116 2,346,834 2.51% 320 62,325

AVG 1,616 15,671,565 2,235 7,278,929 93 195,569 0 27 5,194 FY End Avg (JJA) 1,776 25,950,962 2,496 12,639,139 106 204,418 0 30 5,647

Y2Y changes 6% -2% -5% 18% -4% 4% 1% 16% 31%

TOP 100 VENDORS $September October

Vendor $ # POs Vendor $ # POs

$1,335,298 8 $1,293,511 7 $1,001,049 1 $1,000,000 1

$849,400 3 $981,464 1 $800,000 1 $800,000 1 $586,680 4 $778,614 2 $547,000 4 $650,000 1 $458,540 2 $515,150 5 $457,863 1 $500,000 1 $450,000 1 $465,600 3 $380,000 1 $390,234 9 $359,665 1 $380,000 1 $348,000 1 $350,000 1 $345,000 4 $350,000 1 $340,729 1 $291,558 90 $338,922 1 $252,840 3 $335,345 93 $250,000 1 $320,000 1 $230,559 1 $310,000 2 $217,257 4 $300,000 1 $200,000 1 $261,969 156 $179,509 8 $250,000 1 $163,800 1 $222,327 5 $155,200 1 $202,117 2 $147,000 1 $180,119 95 $144,291 546

TOP 100 VENDORS QUANTITY

June JulyVendor # POs $ Vendor # POs $

504 $ 152,938.60 534 $ 180,977.02

191 $ 113,121.46 194 $ 168,832.02

103 $ 707,898.18 133 $ 868,254.84

96 $ 98,471.68 102 $ 147,387.89

89 $ 140,101.29 97 $ 96,210.47

86 $ 50,595.41 95 $ 193,184.07

79 $ 16,572.94 79 $ 19,521.77

57 $ 78,978.57 54 $ 17,350.59

57 $ 93,883.50 52 $ 69,442.25

57 $ 12,190.26 50 $ 131,976.40

52 $ 26,003.51 50 $ 16,551.75

48 $ 14,821.25 49 $ 54,320.62

44 $ 7,995.51 44 $ 55,619.53

37 $ 35,624.22 42 $ 84,945.88

33 $ 368,886.81 40 $ 4,587.33

30 $ 25,320.86 38 $ 27,853.73

ANNUAL QUANTITIESVENDORS QTYS VENDORS DOLLARS

5982 $ 11,475,759.65 2081 $ 5,795,392.37 1031 $ 2,081,630.15

966 $ 1,603,149.99 942 $ 1,585,114.32 752 $ 1,552,589.62 714 $ 1,535,033.54 570 $ 1,500,488.03 523 $ 1,143,968.89 512 $ 1,044,840.57 505 $ 1,017,114.63 498 $ 1,010,859.15 440 $ 1,008,024.50 431 $ 987,019.00 419 $ 846,367.85 384 $ 775,293.84 368 $ 652,722.36 357 $ 599,282.94 316 $ 561,211.37 303 $ 561,103.24

Date FY17A B C D E F G H I

# # # # # # # # #

Sep-16 397 235 392 748 272 372 476 273 338

Oct-16 60 69 329 402 228 311 487 248 363

Nov-16 30 8 202 371 177 379 362 210 278

Dec-16 49 25 159 292 148 176 303 219 200

Jan-17 65 37 247 296 202 255 428 204 355

Feb-17 39 17 270 368 215 342 378 203 415

Mar-17 15 16 285 457 231 211 448 176 477

Apr-17 20 19 332 337 214 302 392 146 452

May-17 57 64 403 343 262 307 486 151 363

Jun-17 202 124 356 480 319 294 529 139 348

Jul-17 171 214 508 398 292 383 353 214 235

Aug-17 343 187 491 990 276 350 466 350 320

TOTAL 1448 1015 3974 5482 2836 3682 5108 2533 4144

AVG 121 85 331 457 236 307 426 211 345

FY End Avg (JJA) 239 175 452 623 296 342 449 234 301

Y2Y changes -40% -54% 0% 18% -14% 45% 4% -35% 347%

PURCHASER PERFORMANCE

Presenter

Presentation Notes

Cathy did 4250 in fy 15

PURCHASING PERFORMANCE (JAGGAER)

Time Distribution (Days)

Avg Req Cycle Time (Day)

Reqs % Reqs Req Lines % Req Lines

30+ 48.72 160 0.44 287 0.30

11-29 15.70 996 2.72 1593 1.66

6-10 7.13 1921 5.24 3551 3.71

2-5 3.22 6525 17.79 14461 15.11

1 1.00 7186 19.59 16500 17.24

0 0.00 19892 54.23 59341 61.99

Total 36680 95733

73.82% in 0-1 Days over

73.15% in FY 16

Presenter

Presentation Notes

This FY we have completed 73.82% of reqs in 0-1 days and 91.61% within 5 days Last FY we completed 73.15% of reqs in 0-1 days and 90.25% within 5 days

COST OF INSTITUTIONAL BUSINESS

• COST TO COMPLETE AN INVOICE

• COST TO REVIEW AND PROCESS A CONTRACT

• COST TO PREPARE A TRAVEL VOUCHER

• COST TO PROCESS A PCARD TRANSACTION

• COST TO COMPLETE A REQUISITION

• COST TO ESTABLISH A VENDOR

OTHERS TO CONSIDER

• COST TO PAY BY ACH/SINGLE USE ACCOUNTS

• COST TO PAY BY PAPER CHECK

UNIT COST ANALYSIS

UNIT COST ANALYSIS

UNIT COST ANALYSIS

UNIT COST ANALYSIS

1. ONE TIME EXPENSES FOR IMPLEMENTATIONS

1. 2015 = AP DIRECTOR,

2. 2016 – TOTAL SUPPLIER MANAGE & TOTAL CONTRACT MANAGER

3. 2017 NEGOTIATED CONTACT

2. BROUGHT UP ANOTHER MBU IN 2016 AND IT CHANGED THE AMOUNT DUE FROM TTU.

3. CONTRACTING HIRED NEW FTE IN 2014 AND ADDITIONAL FTE IN 2016. ONE FTE SHIFTED FROM 100% CONTRACTING

TO SUPPORTING OTHER AREAS.

4. HUB/SBE IS REPORTED UNDER PURCHASING.

5. TYPICALLY YOU WANT THE VOLUME TO INCREASE AND THE UNIT COST TO DECREASE.

6. VENDOR SETUPS HAS BEEN IMPACTED BY VARIOUS FRAUD ISSUES, NEW SOFTWARE, AND VISUAL COMPLIANCE

PROGRAM.

IMPACTS

• MERITS/RAISES BASED ON PERFORMANCE

• SHIFTING RESOURCES FROM ONE AREA TO ANOTHER

• NEW/ADDITIONAL INVESTMENT IN TECHNOLOGY

• NEW FTE/REDUCED FTE (EX. HIRED AN ATTORNEY/DECREASED PAYABLES

STAFF)

• NEW MANDATES (HOW DOES NEW LEGISLATION IMPACT EFFICIENCIES?)

• BUDGET CUTS

QUESTIONS

JENNIFER ADLING

CHIEF PROCUREMENT OFFICER

TEXAS TECH UNIVERSITY

[email protected]

mailto:[email protected]

Documents

KEY PERFORMANCE INDICATORS: WHAT IS THE INDICATOR … · 1. 2015 = ap director, 2. 2016 – total supplier manage & total contract manager 3. 2017 negotiated contact 2. brought up