Benefits of external spend analysis

Kevin Beardsley CPPB, CPPODirector of PurchasingVirginia Beach City Public Schools

Our spend data was located in three separate systems We had no way of knowing the spend directly from the school

level (10% to 12% of total spend). We were required by school board policy to report annual on

spend with SWAM vendors. We could not check school based spend for contract

compliance.

Our Challenges

Combine spend data from three (3) systems (P-card, FMS, and school based bookkeeping software)

Scrub data for duplications Establish parent vendor file for SWAM reporting.

Our Solution

Poll

2 Poll Questions

Benefits of external spend analysis?

The problem of poor data is solved for you Ability to report accurate aggregate spend ROI is very easily justified

Results allow focus of areas of strategic interest Estimated 1.5 FTE just to produce SWAM reports Efficiency gain of users only having to learn one system Data Analysts can look for opportunities/work more closely

with buyers Auditors also use system

Centralized data repository

All Spend Analysis data from every department is centralized in one place. Consolidation of A/P, e-Procurement, pCard and Contract data in one seamless online database for quick and easy access to ALL spend data.

Collect aggregate sources (InSITE, BuySpeed, Purchase Card, etc.)

Cleanse Data Fitness Check Classify automatic and manual Enrich add extra vendor info Redact individual names hidden Collate merge with other datasets

How we get there

The ability to easily distribute spend information across all departments or manage centrally and provide information to key stake holders is just one of the many benefits.

Secure access to nominated users

AB C

D

Questions

What are some of the uses of the data?

SWAM Reporting Contract Compliance Trend Identification Spend Analysis (Local, regional, by state) Spend categories by percentage of spend Project planning

Contract Compliance

Contract Compliance

Contract Compliance

Contract Compliance

Contract Compliance

Manage top tiered vendors

99.4% of VBCPS spend is with vendors where more than $1,000 was spent in the year = 2,149 vendors.

Vendors With The Most Transactions

Supplier Name Transactions Value Average Invoice ValueOFFICE DEPOT INC 8,678 $2,472,686.95 $284.94VIRGINIA BEACH CITY SCHOOL BOARD 2,350 $2,228,742.50 $948.40ELECTRONIC SYSTEMS INC 2,092 $5,513,900.22 $2,635.71COMDATA NETWORK INC 1,868 $149,004.75 $79.77Amazon.com 813 $182,253.97 $224.17MID-ATLANTIC SCHOOL EQUIPMENT CO 607 $728,154.80 $1,199.60KIS COMPUTERS 502 $405,877.56 $808.52THE HOME DEPOT 485 $101,089.02 $208.43WALMART.COM 394 $57,749.55 $146.57SCHOOL SPECIALTY INC 391 $243,114.47 $621.78WALMART/SAMS CLUB 389 $156,611.45 $402.60BSN SPORTS INC 384 $562,082.58 $1,463.76FOLLETT LIBRARY RESOURCES INC 375 $410,203.86 $1,093.88SONNY MERRYMAN INC 357 $2,783,162.92 $7,795.97APPLE INC 333 $1,502,456.57 $4,511.88HARBOUR GRAPHICS APPARELL INC 326 $236,207.26 $724.56BARNES & NOBLE INC 314 $145,174.98 $462.34SAMS CLUB 306 $76,241.87 $249.16LOWES 296 $86,458.77 $292.09VERIZON WIRELESS SERVICES LLC 279 $67,479.47 $241.86

This shows the top 20 vendors by the number of transactions per year.

Analysis by various levels of budgetary hierarchy

All information can be exported or clicked to drill into the detail below.

Analyze how VBCPS spends through purchase cards

14,691 pCard transactions, 26% of all transactions for FY 14

Over 65% of all spend remained within the Commonwealth of Virginia.

Analyze how VBCPS spends geographically

Analysis by various levels of budgetary hierarchy

Filters on any criteria including transactions type or locality can be applied.

SWaM Reporting

Ease pressure of reporting of SWaM vendors (Minority, Female Owned & Small.

Ease pressure of reporting of SWaM vendors (Minority, Female Owned & Small)

Ease pressure of reporting of SWaM vendors (Minority, Female Owned & Small)

Ease pressure of reporting of SWaM vendors (Minority, Female Owned & Small)

209

Hispanic Owned Business

Hispanic Female Owned Small

Business

Indian Female Owned Small

Business

African-American Female Owned

Business

African-American Owned Small

Business

DisableVet Owned Small Business

Small Business

Female Owned Small Business

Asian Owned Business

African-American Owned Business

Asian Female Owned Small

Business

84

8

4

1

1

Hba Architecture & Interior Design

Wnp Services Inc

Spend%

9.32%

7.03%

4.38%

%

CountType

3.39%

3.17%

2.73%

2.16%

Mid-Atlantic School Equipment Co$728,154.80

$680,672.08

$585,879.80

$464,206.97

Diversity Spend By Diversity Type (FY14)Diversity Type Count (FY14)

Waller Todd & Sadler Architects Inc

Diversity Spend Summary (FY14)

Diversity Vendor Summary Top 10

Vendors (FY14)

Vendor Name

$2,783,162.92######

3.57%

$1,508,722.91

$2,000,314.49

De Kirby Inc

Integrated Security Technologies Inc

Asphalt Roads & Materials Co Inc

Logical Choice Technologies, Inc

$940,451.41

$773,183.65

$765,916.75

3.60%

Sonny Merryman Inc

Rrmm Architects Pc

Diversity Spend

Summary (FY14)

Diversity Vendor

Summary (FY14)

Diversity Transaction

Summary (FY14)

$21,462,553.47

(18.38 % of total spend)

315

(6.58 % of total vendors)

6,340

(11.76 % of total spend)

######

######

2.54%

1.27%

0.95%

0.63%

0.32%

0.32%

0.32%

0.32%

0.32%

3

2

1

1

1

Diversity Spend Report

FY14 - Summary

Non-Diversity Vendors81.62%Diversity Vendors18.38%Small Business81.21%Female Owned Small Business14.15%Hispanic Female Owned Small Business1.89%Asian Owned Business1.19%Indian Female Owned Small Business0.81%DisableVet Owned Small Business0.43%African-American Owned Business0.21%Hispanic Owned Business0.05%Asian Female Owned Small BusinessAfrican-American Owned Small BusinessAfrican-American Female Owned Business0.00%

Increase from FY13 to FY14Increase from FY13 to FY14Increase from FY13 to FY14

Diversity Spend Comparison

FY11-FY12-FY13-FY14

Diversity Vendor and Transaction

Count Comparison FY11-FY12-FY13-

Diversity Spend

Comparison

Diversity Vendor Count

Comparison

Diversity Transaction

Count Comparison

36.87%38.77%74.08%

Diversity Spend by Diversity Type Comparison

(FY11 Blue), (FY12 Green), (FY13 Orange), (FY14 Yellow)

Diversity Spend Report

FY14 - Comparisons

$14,758,156$26,238,121$15,680,495$21,462,553FY11FY12FY13FY144,656 4,321 3,642 6,340 248 302 227 315 FY11FY12FY13FY14TransactionCountVendorCount$1$10$100$1,000$10,000$100,000$1,000,000$10,000,000$100,000,000

5079.72%$3,385

Categories of Diversity SpendSpend in VirginiaAverage Transaction Value

Diversity Spend

Categories (FY14)

Diversity Vendor

Location (FY14)

Diversity Transaction

Average (FY14)

Diversity Spend by Category (FY14)

vCode Business SubSector

Construction Trades

Construction Consultants

Spend

$3,713,006.78

$3,300,328.77

%

17.42%

15.49%

Other Goods & Services$592,308.382.78%

Furniture

Educational Equipment

Stationery

Grounds Maintenance

Road Vehicles

Systems Integration & Services

Security Equipment

Construction Materials

IT Hardware & Software

Education Service Providers

Clothing & Footwear

Travel

General Contractors

Clinical & Medical

Catering Equipment

Marketing

Machinery and Electronics

General Facilities Management

Fittings

$348,670.51

$338,862.65

Telecommunications Services

Recreation Services

Farming

Catering Services

Logistics

Business & Management Consultants

Advertising

Hotels and Other Accommodation

Information Services

Events and Event Facilities

Eating Establishments

Disability Equipment

Waste Disposal

Insurance Services

Vending Machines

Arts

Other Energy Sources

Cleaning & Janitorial Equipment

Sports & Playground

Retail

Food

Data Communications

$265,645.50

$258,347.26

$245,231.02

$203,956.17

$203,670.36

$318,934.31

$281,118.00

$278,150.87

$274,916.20

$266,539.92

$78,463.93

$41,929.00

$41,650.38

$35,299.96

$30,408.49

$195,606.18

$188,721.69

$136,220.86

$133,681.56

$130,900.00

$18,557.31

$14,881.00

$12,613.41

$12,353.50

$10,037.50

$28,013.59

$23,481.45

$22,245.75

$21,753.96

$19,792.84

$584,931.44

$416,127.70

$413,699.85

$372,743.39

$2,792,483.00

$1,491,400.01

$1,183,715.78

$1,156,387.94

$795,040.47

2.74%

1.95%

1.94%

1.75%

13.10%

7.00%

5.55%

5.43%

3.73%

0.92%

0.89%

0.64%

1.29%

1.25%

1.25%

1.21%

1.15%

1.64%

1.59%

1.50%

1.32%

1.31%

Diversity Spend Report

FY14 Additional

Metrics

0.06%

0.05%

Spend by Transaction Type pCard or AP

(FY14)

Top Spend by City in Virginia (FY14)

0.10%

0.09%

0.09%

0.07%

0.06%

0.17%

0.14%

0.13%

0.11%

0.10%

0.63%

0.61%

0.37%

0.20%

0.20%

0.96%

0.96%

AP Spend90.43%Virginia Beach$5,017,122 29.32%Evington$2,783,163 16.27%Chesapeake$2,220,447 12.98%Portsmouth$1,616,119 9.45%Herndon$960,088 5.61%Manassas$585,880 3.42%All Other Cities$3,927,349 22.95%

Questions

Benefits of external spend analysisThank you for attending this webinar. You will receive a follow up email shortly after the webinar, and a second e-mail with a link to the recorded session and presentation material within 7 days.

If you have any questions for Kevin, he can be reached at Kevin.Beardsley@VBSchools.com. If you have questions for Spikes Cavell, please direct your questions to info@spikescavell.com or call 1-800-990-0228

mailto:Kevin.Beardsley@VBSchools.commailto:info@spikescavell.com

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