1. NAEP National Conference 2013 Orlando, FL April 10, 2013 Collaborative Analytics Identify Cooperative Purchasing Opportunities Easily Across Multiple Organizations

2. Do you recognize this situation? The key to Collaborative Analytics The 7 benefits of Collaborative Analytics Building the plan to deliver WHAT WE’LL COVER TODAY

3. REACTIVE COLLABORATION I’m about to source office furniture – anyone else? We are, but we won’t be ready until December. We just finished our new office furniture contract. We went with XYZ Company We’re using a cooperative contract. Ok thanks anyway. We’ll make sure it has a piggyback clause in it for you later.

4. PROACTIVE COLLABORATION I’m about to source office furniture – anyone else? From looking at the numbers, out of the 12 of us, we’re using 58 different furniture companies. And it looks like there are piggybacking clauses in 5 existing contracts, plus there are a couple of coop contracts you could use. And our group’s spend is pretty concentrated in 8 vendors at the top – they are getting about 75% of our group’s business already.

5. AT&T AT and T AT T AT & T Wireless AT &T Telecom AT&T Toledo AT&T Corp. ATT Wirless AT&T (Staff Cell Phones) AT &T Mobility ATTM 820736530NBI AT&T Corp AT & T Corporation AT&T Dublin OH#2398 THE KEY TO COLLABORATIVE ANALYTICS IS CONSISTENCY

6. DATA pCARD AP E-Proc Org 1 pCARD AP E-Proc Org 2 pCARD AP Org 3 pCARD AP E-Proc Org 4

7. “Collaborative Procurement” is more than just piggy-backing on another contract. Cooperatives have their place. Data is an equalizer and an enabler. Consistent data and timing are crucial to being proactive. THE KEY TO COLLABORATIVE ANALYTICS IS CONSISTENCY

8. 1.Saving money 2.Ad-hoc to Strategic shift 3.Leverage 4.Reduced risk, reduced price 5.Admin efficiencies 6.Crisis response 7.Your money’s impact THE 7 BENEFITS OF COLLBORATIVE ANALYTICS

9. These are the top categories of expenditure across six universities and one state agency in South Carolina. While the vendors may or may not already be common vendors, there are certainly categories that could be rationalized. STRATEGIC SHIFT: COMMON CATEGORIES

10. This shows the number of contracts by category for two school districts and the Maryland State Department of General Services. By being able to see where there are contracts in common categories and/or with the same suppliers, it provides a roadmap for when collaboration can take place. STRATEGIC SHIFT: COMMON CONTRACTS

11. For the 24 campuses that make up the California State University System, 66.12% of their spend is already with common vendors. This equates to $780m. There must be some opportunities for collaboration. LEVERAGE: COMMON VENDORS

12. Breaking it down further, there were 9 vendors that supplied all 24 campuses with a cumulative spend of $72.6m. A further 7 that supply 23 of 24 with a cumulative spend of $10.7m. LEVERAGE: COMMON VENDORS

13. Breaking it down even further to the vendor level shows how much was spent, by entity, with the common vendors can be very useful in identifying vendors to approach as a group immediately that the members are already using and for which contracts are probably already in place or available. LEVERAGE: COMMON VENDORS

14. And while there were a lot of common vendors across the system, there were large differences between campuses in how much they spent with common vendors. There is no ‘right answer’ as to how much should be spent with common vendors, but the data provides a starting point for trying to find out what that answer might be. LEVERAGE: COMMON VENDORS

15. Even between institutions that are in different states, there is a huge commonality of vendors. There were 286 vendors in common to the Universities of Colorado, Montana and Idaho with $115m common spend. LEVERAGE: COMMON VENDORS

16. Just as you would expect the return on an investment to be higher the riskier the investment, vendors factor contract risk into their pricing. The higher the risk to the vendor, the higher the price to compensate. REDUCED RISK/ REDUCED PRICE

17. These are a number of contracts available to California State University campuses, all in one place in a standard format, and include State Contracts, E&I Contracts, and California State University System contracts. Where there are multiple contracts with the same vendor, it provides an easier opportunity to compare contract pricing. SAVINGS AND/OR ADMIN EFFICIENCIES: GPO CONTRACTS

18. There were a total of 107,755 non pCard transactions for less than $500, but which only amounted to 2.41% of expenditure. This is a potential opportunity for a collaborative group to work with vendors and reduce the administrative burden of too many invoices. ADMIN EFFICIENCIES: INVOICE VOLUMES

19. Some consistency in the goods purchased and from the same vendors can make it much easier for the group members to reallocate or share resources in times of crisis such as parts for snow plows, text books, emergency generators/supplies. CRISIS RESPONSE: REALLOCATION

20. 46.77% of spending by this group was with small and medium sized businesses (those businesses employing fewer than 250 people). By looking more closely by category as a group, this data can be used to determine where a small savings value may lose when up against other considerations. YOUR MONEY’S IMPACT: SMALL AND MEDIUM BUSINESS

21. One criticism of collaborative procurement is that it doesn’t give local/minority/small/disadvantaged businesses a fair chance to compete. Through collaborative analytics, the impact of cooperative procurement on the groups diversity spend can be assessed as part of the collaborative analytics process. YOUR MONEY’S IMPACT: MINORITY/DIVERSITY SPEND

22. BUILDING THE PLAN FOR IMPLEMENTATION OF SAVINGS Org 1 Org 3Org 2 All departments, system-wide, full group opportunities Specific departments, some campuses, some group members Department, campus or member specific

23. If you want to be strategic about collaboration, you need to start with data. IN CONCLUSION

24. NAEP National Conference 2013 Orlando, FL April 10, 2013 Collaborative Analytics Identify Cooperative Purchasing Opportunities Easily Across Multiple Organizations