Purchasing Directors’ Meeting February 17, 2004 3:00 P.M. State Purchasing.
-
Upload
derick-carroll -
Category
Documents
-
view
216 -
download
0
Transcript of Purchasing Directors’ Meeting February 17, 2004 3:00 P.M. State Purchasing.
![Page 1: Purchasing Directors’ Meeting February 17, 2004 3:00 P.M. State Purchasing.](https://reader035.fdocuments.in/reader035/viewer/2022081514/56649f155503460f94c2af2d/html5/thumbnails/1.jpg)
Purchasing Directors’ Meeting
February 17, 20043:00 P.M.
State Purchasing
![Page 2: Purchasing Directors’ Meeting February 17, 2004 3:00 P.M. State Purchasing.](https://reader035.fdocuments.in/reader035/viewer/2022081514/56649f155503460f94c2af2d/html5/thumbnails/2.jpg)
2
Purchasing Directors’ Meeting Purchasing Directors’ Meeting February 17, 2004 Agenda February 17, 2004 Agenda
Welcome / Meeting Overview
Florida A.G.C. Council Decision
New Office Consumables Contract
Strategic Sourcing
Operational Issues
Open Floor / New Issues
Next Meeting Location / Time
![Page 3: Purchasing Directors’ Meeting February 17, 2004 3:00 P.M. State Purchasing.](https://reader035.fdocuments.in/reader035/viewer/2022081514/56649f155503460f94c2af2d/html5/thumbnails/3.jpg)
3
Purchasing Directors’ Meeting Purchasing Directors’ Meeting February 17, 2004 Agenda February 17, 2004 Agenda
Welcome / Meeting Overview
Florida A.G.C. Council Decision
New Office Consumables Contract
Strategic Sourcing
Operational Issues
Open Floor / New Issues
Next Meeting Location / Time
![Page 4: Purchasing Directors’ Meeting February 17, 2004 3:00 P.M. State Purchasing.](https://reader035.fdocuments.in/reader035/viewer/2022081514/56649f155503460f94c2af2d/html5/thumbnails/4.jpg)
4
Florida A.G.C. Council DecisionRecent Events in U.S. District Court (N.D. Fla.)
• Feb 6 order granted plaintiff’s motion for partial summary judgment, finding that s. 287.09451, F.S., violates Equal Protection Clause because not narrowly tailored to serve compelling governmental interest
• Feb 12 settlement agreement filed with the court for approval
• Available on-line with materials for this meeting -http://marketplace.myflorida.com/buyer/directors.htm
![Page 5: Purchasing Directors’ Meeting February 17, 2004 3:00 P.M. State Purchasing.](https://reader035.fdocuments.in/reader035/viewer/2022081514/56649f155503460f94c2af2d/html5/thumbnails/5.jpg)
5
Florida A.G.C. Council DecisionPractical Implications for Florida Purchasing
• Don’t use set-asides or race-based selection criteria; OGCs have been briefed
• Consider using DMS “state objectives” language, which will be tweaked
• Chapter 287 amendments to clarify role of OSD
![Page 6: Purchasing Directors’ Meeting February 17, 2004 3:00 P.M. State Purchasing.](https://reader035.fdocuments.in/reader035/viewer/2022081514/56649f155503460f94c2af2d/html5/thumbnails/6.jpg)
6
Purchasing Directors’ Meeting Purchasing Directors’ Meeting February 17, 2004 Agenda February 17, 2004 Agenda
Welcome / Meeting Overview
Florida A.G.C. Council Decision
New Office Consumables Contract
Strategic Sourcing
Operational Issues
Open Floor / New Issues
Next Meeting Location / Time
![Page 7: Purchasing Directors’ Meeting February 17, 2004 3:00 P.M. State Purchasing.](https://reader035.fdocuments.in/reader035/viewer/2022081514/56649f155503460f94c2af2d/html5/thumbnails/7.jpg)
7
New Office Consumables Contract Registering with Office Depot
• Punch-out is live effective Feb 16
• Thanks for your patience!
• Demonstration
![Page 8: Purchasing Directors’ Meeting February 17, 2004 3:00 P.M. State Purchasing.](https://reader035.fdocuments.in/reader035/viewer/2022081514/56649f155503460f94c2af2d/html5/thumbnails/8.jpg)
8
• How do I get a hard copy of the Office Depot Catalog?
• Catalog number on Welcome Kit, order with first order
• Bulk Distribution by Account Managers
New Office Consumables Contract Issues and Resolutions – Catalog Distribution
![Page 9: Purchasing Directors’ Meeting February 17, 2004 3:00 P.M. State Purchasing.](https://reader035.fdocuments.in/reader035/viewer/2022081514/56649f155503460f94c2af2d/html5/thumbnails/9.jpg)
9
• Why am I having problems registering with Office Depot and receiving the welcome kit?
• Firewall and system issues
• Re-designed welcome kit and re-sent to all users
• Re-Registered all users missed in first round
• New registrations handled in 24 hrs or less
New Office Consumables Contract Issues and Resolutions – Registration Obstacles
![Page 10: Purchasing Directors’ Meeting February 17, 2004 3:00 P.M. State Purchasing.](https://reader035.fdocuments.in/reader035/viewer/2022081514/56649f155503460f94c2af2d/html5/thumbnails/10.jpg)
10
• Why are there price discrepancies between the bid items on the STC website and the lists on the Office Depot site?
• Pricing on various sites aligned during punch-out implementation process
• Web In All pricing correct and certified to State 2/11/04
New Office Consumables Contract Issues and Resolutions – Price Discrepancies
![Page 11: Purchasing Directors’ Meeting February 17, 2004 3:00 P.M. State Purchasing.](https://reader035.fdocuments.in/reader035/viewer/2022081514/56649f155503460f94c2af2d/html5/thumbnails/11.jpg)
11
• Why isn’t there a packing list in every box?
• All packages except full-case boxes are shipped with packing list enclosed
• Packing list from split-case (mixed product) references full case items
• Orlando and Weston facilities auditing to insure compliance
New Office Consumables Contract Issues and Resolutions – Missing Packing Lists
![Page 12: Purchasing Directors’ Meeting February 17, 2004 3:00 P.M. State Purchasing.](https://reader035.fdocuments.in/reader035/viewer/2022081514/56649f155503460f94c2af2d/html5/thumbnails/12.jpg)
12
• How can I complete my P-Card reconciliation under the new contract?
• DFS has approved the Office Depot packing list for P-Card reconciliation
• Full order with detail may be printed from Order History, or set up as auto e-mail confirmation
New Office Consumables Contract Issues and Resolutions – P-card Reconciliation
![Page 13: Purchasing Directors’ Meeting February 17, 2004 3:00 P.M. State Purchasing.](https://reader035.fdocuments.in/reader035/viewer/2022081514/56649f155503460f94c2af2d/html5/thumbnails/13.jpg)
13
• Why has the number of backorders increased under the new contract?
• Office Depot’s current analysis of State item fill-rate = 99.8%
• Backorder issues stemmed from number of items sourcing from wholesaler when equivalent items from Office Depot catalog are in stock. Wholesaler items will be shipped in separate package, and have separate packing list.
New Office Consumables Contract Issues and Resolutions – Backorders
![Page 14: Purchasing Directors’ Meeting February 17, 2004 3:00 P.M. State Purchasing.](https://reader035.fdocuments.in/reader035/viewer/2022081514/56649f155503460f94c2af2d/html5/thumbnails/14.jpg)
14
New Office Consumables Contract Registering with Office Depot
Users currently registered with Office
Depot
All established State accounts will remain unchanged. The only difference you will see upon logging in will be new prices.
Users not currently registered with Office
Depot
Users will need to register accounts with Office Depot. To start the registration process you will need to fill out and return the registration form found on the contract website. Office Depot will then contact you if further information is required.
Users currently registered with Office
Depot Established MFMP accounts will transfer the required information over to Office Depot whenever the punch-out site is used. No separate registration is required.
Users not currently registered with Office
Depot
Non-MFMP Users
MFMP Users
![Page 15: Purchasing Directors’ Meeting February 17, 2004 3:00 P.M. State Purchasing.](https://reader035.fdocuments.in/reader035/viewer/2022081514/56649f155503460f94c2af2d/html5/thumbnails/15.jpg)
15
New Office Consumables Contract Purchasing from Office Depot
Status of Agency Process of Purchasing
Not implemented in MFMP
Continue to use the Office Depot contract website to do your purchasing. All State accounts have been updated with the new contract pricing. Log in using your existing information and begin purchasing.
Implemented in MFMP
Simply do a search for the item you wish to purchase and the punch-out link for Office Depot will appear. Click on the link to be taken into the punch-out site. Once inside purchase your items and checkout. Upon checkout you will be taken back into MFMP where the item information will be captured within your PO.
![Page 16: Purchasing Directors’ Meeting February 17, 2004 3:00 P.M. State Purchasing.](https://reader035.fdocuments.in/reader035/viewer/2022081514/56649f155503460f94c2af2d/html5/thumbnails/16.jpg)
16
New Office Consumables ContractContact Information
DMSSteve Poole, Contract [email protected] or 488-4945
Renee Gregory, Contract [email protected] or 414-6740
Office DepotMorrie Norwood, Senior Account [email protected] 800-386-0226 x7111
![Page 17: Purchasing Directors’ Meeting February 17, 2004 3:00 P.M. State Purchasing.](https://reader035.fdocuments.in/reader035/viewer/2022081514/56649f155503460f94c2af2d/html5/thumbnails/17.jpg)
17
Purchasing Directors’ Meeting Purchasing Directors’ Meeting February 17, 2004 Agenda February 17, 2004 Agenda
Welcome / Meeting Overview
Florida A.G.C. Council Decision
New Office Consumables Contract
Strategic Sourcing
Operational Issues
Open Floor / New Issues
Next Meeting Location / Time
![Page 18: Purchasing Directors’ Meeting February 17, 2004 3:00 P.M. State Purchasing.](https://reader035.fdocuments.in/reader035/viewer/2022081514/56649f155503460f94c2af2d/html5/thumbnails/18.jpg)
18
Strategic Sourcing Objectives
Leverage State-Wide Volume
Obtain Best Prices & Value
Obtain State-Wide Savings
Increase Demand / Volume on STCs
Identify New STC Opportunities
Reduce State-Wide Supply Base
Manage Compliance
Strategic sourcing is a proactive process to leverage demand and select vendors that offer the best value.
![Page 19: Purchasing Directors’ Meeting February 17, 2004 3:00 P.M. State Purchasing.](https://reader035.fdocuments.in/reader035/viewer/2022081514/56649f155503460f94c2af2d/html5/thumbnails/19.jpg)
19
Strategic SourcingStates Currently Focusing on “Spend Management”
• Connecticut – “Buy Smart, Buy Together” • Delaware – “Partner$ in Procurement”• Florida - MyFloridaMarketPlace• Illinois • Missouri• New Mexico• Oregon• Rhode Island• Virginia – “Partners in Procurement”
![Page 20: Purchasing Directors’ Meeting February 17, 2004 3:00 P.M. State Purchasing.](https://reader035.fdocuments.in/reader035/viewer/2022081514/56649f155503460f94c2af2d/html5/thumbnails/20.jpg)
20
Strategic Sourcing Methodology
Source: Accenture Best Practices
Fast Track to Value
Validate & Profile
Category
Conduct Industry Analysis
Build Total Cost of
Ownership Model
Develop Category Strategy
Conduct Supplier Analysis
Build Supplier Selection Decision
MatrixConduct Auctions
Complete Prepare Fact-
Based Negotiation “Packages”
Negotiate Value
Propositions
Category Profile
Industry Profile
TCO Model
Category Strategy
Value Propositions
Benefits Realization
Develop
Measure Results & Trends
High-Level Data
Collection & Analysis
Fast Track to Value
Segment Purchases
Validate & Profile
Category
Conduct Industry Analysis
Build Total Cost of
Ownership Model
Develop Category Strategy
Conduct Supplier Analysis
Build Supplier Selection Decision
MatrixConduct Auctions
Complete Prepare Fact-
Based Negotiation “Packages”
Negotiate Value
Propositions
Auctions
FormCross-
Functional Sourcing
Teams
Develop
Measure Results & Trends
High-Data
Collection & Analysis
Fast Track to Value
Segment Purchases
Validate & Profile
Category
Conduct Industry Analysis
Build Total Cost of
Ownership Model
Develop Category Strategy
Conduct Vendor Analysis
Build Vendor
Selection Decision
MatrixConduct Auctions
Complete ITB/ITN/
RFQ/RFP
Develop Value
Proposition Around Options
Make Award
Decision
In-ScopeCategories
CFSTs(Cross-FunctionalSourcing Teams)
Selection Decision Matrix
ITB/ITN/RFQ/RFP
Continual Vendor
Improvement
Profile Internally & Externally
Develop Strategy
Screen Suppliers &
Selection Factors
Conduct Auctions &
Shape & Negotiate
Value Propositions
Implement AgreementsAssess
Opportunities
Profile Internally & Externally
Develop Strategy
Screen Suppliers &
Selection Factors
Conduct Auctions &
Shape & Negotiate
Value Propositions
Kick-Off &
Profile Internally
& Externally
Develop Strategy
Develop Selection Factors &
Screen Vendors
Conduct Competitive
Event
Prepare Value
Proposition & Award
Implement Agreements
Kick-Off & Assess
Opportunities
-
FormCross-
Functional Sourcing
Teams
Develop Vendors
Measure Results & Trends
ToolsAriba ContractsAriba Analysis
Ariba Sourcing
Ariba Sourcing
Ariba Contracts
Ariba Analysis
Award Decision (ITA)
Ariba Analysis
Typical Deliverables
Key Worksteps
- and / or -
![Page 21: Purchasing Directors’ Meeting February 17, 2004 3:00 P.M. State Purchasing.](https://reader035.fdocuments.in/reader035/viewer/2022081514/56649f155503460f94c2af2d/html5/thumbnails/21.jpg)
21
Spend Analysis Overview
FLAIR Spend was Analyzed &
“Sourceable” Spend Identified & Categorized
Total Spend
$7,966 MM
$1,601 MM
$5,757 MM
$-
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
Out of Scope Agencies (e.g. universities)
Out of Scope Categories (e.g. travel advances)
$1 MM$39 MM
Vendors’ Spend < $2500
$567 MM
Non-Sourceable Vendors (e.g., Municipal govt, schools, etc)
Sourceable Spend
Total Spend
$7,966 MM
$1,601 MM
$5,757 MM
$-
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
Out of Scope Agencies (e.g. universities)
Out of Scope Categories (e.g. travel advances)
$1 MM$39 MM
Vendors’ Spend < $2500
$567 MM
Non-Sourceable Vendors (e.g., Municipal govt, schools, etc)
Sourceable Spend
$7,966 MM
$1,601 MM
$5,757 MM
$-
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
Out of Scope Agencies (e.g. universities)
Out of Scope Categories (e.g. travel advances)
$1 MM$39 MM
Vendors’ Spend < $2500
$567 MM
Non-Sourceable Vendors (e.g., Municipal govt, schools, etc)
Sourceable Spend
Spend was Segmented by
Benefit Potential & Ease of
Implementation
Ease ofImplementation
Benefit Potential
Difficult
Easy
HighLow
4
2 1
3
• # of Agencies• # of STCs• STC Penetration %• Competitive Demand• Vendors = 80% Spend• Sourceability
• Sourceable Spend• Savings Potential
•Food Services - $0.09
•Other Construction - $0.7
•Medical Equip. - $2
•Agricultural Supplies - $18
•Structures - $1,671
•Building & Fixed Equip. - $44
•Engineering Svcs. - $585
•Motor Vehicles – Other - $3 •Motor Vehicles – Passenger - $33
•Other Prof. Svcs.-$11
•Temp. Employment - $16
•Property Svcs.- $5
•Building/Const. Material-$23
•Medical Svcs. - $75
•IT Software-$23
•Janitorial Supplies & Services-$24
•Office Machinery-$14
•Fuel-$21•Financial & Insurance-$90
•Utilities-$71
•Legal-$48
•Other Rental Equip.-$3
•Printing-$20•Advertising-$98
•Travel-$21
Wave 1Wave 2Wave 3
Consolidated
Categories were Mapped to 9 Waves of 3
Categories Each
Sourcing Business Model was Developed from Savings
Goals
ProfessionalServices
$2,450MM
FLAIR FY2001-02 Sourceable Spend$5,757MM
Construction$1,937MM
IT & Telecom$399MM
Medical$261MM
FacilitiesMgmt.
$300MM
Office Equip.& Services$175MM
Utilities andFuel
$91MM
Food(Products
and Services)$85MM
Vehicles &Equip. Rental
$38MM
Travel$21MM
IndependentContractor-NEC*
$1,360MM
Engineering$585MM
Consulting$214MM
Advertising$98MM
Financial &Insurance$90MM
Legal$48MM
Prof. Dev.$28MM
Structures$1,671MM
ConstructionServices$199MM
Equipment$44MM
Building Material$23MM
Other$1MM
Telecom$153MM
IT Services$150MM
IT Hardware$73MM
IT Software$23MM
MRO Services$185MM
MRO Material$87MM
Janitorial$24MM
Property Services$5MM
Medical Supplies$183MM
Medical Services$75MM
Furniture andEquipment
$72MM
Postage andFreight$35MM
Office Supplies$33MM
Printing$20MM
Copy Equip.$14MM
Utilities$71MM
Fuel$21MM
Food Products$67MM
AgricutureSupplies$18MM
PassengerVehicles$33MM
Other Vehicles$3MM
Rented Equip.$2MM
Temp. Labor andOther
$26MM
MedicalEquipment
$3MM
Level 1 Super
Category
Level 2 Category
Wav
e
Spend Category Originally Identified Spend for Pilot and
Initial User Agencies Compliance %
Estimated Sourceable Spend
Potential Annual Savings % from
Sourceable Spend
Estimated Potential Savings
FY2003-04 FY2004-05 FY2005-06 FY2006-07 FY2007-08
1 Office Supplies $ 33,028,259 89% $ 29,489,796 10% 2,890,000$ 2,047,083$ 2,890,000$ 2,890,000$ 481,667$ -$
1 Printing $ 20,322,758 80% $ 16,319,174 13% 2,133,900$ 1,155,863$ 2,133,900$ 2,133,900$ 711,300$ -$
1 MRO Material $ 87,108,798 32% $ 28,000,000 5% 1,344,000$ 840,000$ 1,344,000$ 1,344,000$ 336,000$ -$
2 MRO Services $ 184,511,919 70% $ 129,158,343 8% 9,686,876$ 1,210,859$ 9,686,876$ 9,686,876$ 7,265,157$ -$
2 IT Hardware $ 73,344,149 80% $ 58,675,319 9% 5,390,000$ 673,750$ 5,390,000$ 5,390,000$ 4,042,500$ -$
2 Travel $ 20,560,895 100% $ 20,560,895 7% 1,439,263$ 179,908$ 1,439,263$ 1,439,263$ 1,079,447$ -$
3 Telecom $ 152,691,544 75% $ 114,518,658 11% 12,826,000$ -$ 8,016,250$ 12,826,000$ 12,826,000$ 3,206,500$
3 Furniture And Equipment $ 72,086,215 60% $ 43,251,729 6% 2,775,000$ -$ 1,734,375$ 2,775,000$ 2,775,000$ 693,750$
3 Office Machinery $ 14,271,115 90% $ 12,844,004 8% 998,000$ -$ 623,750$ 998,000$ 998,000$ 249,500$
4 Motor Vehicles - Passenger $ 32,514,967 80% $ 26,011,973 8% 2,080,958$ -$ 260,120$ 2,080,958$ 2,080,958$ 1,560,718$
4 Motor Vehicles - Other $ 2,965,577 80% $ 2,372,461 8% 189,797$ -$ 23,725$ 189,797$ 189,797$ 142,348$
4 Food Products $ 67,379,747 29% $ 19,337,987 10% 1,933,799$ -$ 241,725$ 1,933,799$ 1,933,799$ 1,450,349$
4 Medical Supplies $ 182,870,285 10% $ 17,500,000 10% 1,750,000$ -$ 218,750$ 1,750,000$ 1,750,000$ 1,312,500$
5 Financial & Insurance $ 89,919,017 70% 62,943,312$ 4% 2,517,732$ -$ -$ 1,573,583$ 2,517,732$ 2,517,732$
5 Building And Fixed Equipment $ 44,034,058 60% 26,420,435$ 10% 2,642,043$ -$ -$ 1,651,277$ 2,642,043$ 2,642,043$
5 IT Software $ 23,167,469 30% 6,950,241$ 10% 695,024$ -$ -$ 434,390$ 695,024$ 695,024$
6 Medical Services $ 75,071,935 60% 45,043,161$ 5% 2,252,158$ -$ -$ 281,520$ 2,252,158$ 2,252,158$
6 Postage & Freight $ 35,381,999 35% 12,206,790$ 6% 732,407$ -$ -$ 91,551$ 732,407$ 732,407$
6 Janitorial Supplies & Services $ 23,861,491 55% 13,123,820$ 8% 1,049,906$ -$ -$ 131,238$ 1,049,906$ 1,049,906$
7 Advertising $ 97,557,990 60% 58,534,794$ 4% 2,341,392$ -$ -$ -$ 1,463,370$ 2,341,392$
7 Temporary Employment Services $ 15,614,795 60% 9,368,877$ 10% 936,888$ -$ -$ -$ 585,555$ 936,888$
7 Fuel $ 20,754,101 80% 16,603,280$ 6% 996,197$ -$ -$ -$ 622,623$ 996,197$
8 Construction Services $ 198,972,579 20% 39,794,516$ 6% 2,387,671$ -$ -$ -$ 298,459$ 2,387,671$
8 Legal $ 47,692,521 40% 19,077,008$ 4% 763,080$ -$ -$ -$ 95,385$ 763,080$
8 Building & Construction Material $ 22,671,688 60% 13,603,013$ 6% 816,181$ -$ -$ -$ 102,023$ 816,181$
9 Agricultural Supplies $ 17,606,785 60% 10,564,071$ 6% 633,844$ -$ -$ -$ -$ 396,153$
9 Professional Development $ 27,945,992 20% 5,589,198$ 6% 335,352$ -$ -$ -$ -$ 209,595$
9 Other Professional Services $ 10,785,905 60% 6,471,543$ 4% 258,862$ -$ -$ -$ -$ 161,789$
Other Categories $ 4,062,462,307 0% $ 6,018,307 $ 316,805 -$ -$ -$ -$ -$
Total 5,757,156,857$ 15% 870,352,705$ 7% 65,113,134$ 6,107,463$ 34,002,733$ 49,601,151$ 49,526,309$ 27,513,881$ Cumulative Total 6,107,463$ 40,110,196$ 89,711,346$ 139,237,656$ 166,751,536$
Estimated Potential Savings by Fiscal Year
Wav
e
Spend Category Originally Identified Spend for Pilot and
Initial User Agencies Compliance %
Estimated Sourceable Spend
Potential Annual Savings % from
Sourceable Spend
Estimated Potential Savings
FY2003-04 FY2004-05 FY2005-06 FY2006-07 FY2007-08
1 Office Supplies $ 33,028,259 89% $ 29,489,796 10% 2,890,000$ 2,047,083$ 2,890,000$ 2,890,000$ 481,667$ -$
1 Printing $ 20,322,758 80% $ 16,319,174 13% 2,133,900$ 1,155,863$ 2,133,900$ 2,133,900$ 711,300$ -$
1 MRO Material $ 87,108,798 32% $ 28,000,000 5% 1,344,000$ 840,000$ 1,344,000$ 1,344,000$ 336,000$ -$
2 MRO Services $ 184,511,919 70% $ 129,158,343 8% 9,686,876$ 1,210,859$ 9,686,876$ 9,686,876$ 7,265,157$ -$
2 IT Hardware $ 73,344,149 80% $ 58,675,319 9% 5,390,000$ 673,750$ 5,390,000$ 5,390,000$ 4,042,500$ -$
2 Travel $ 20,560,895 100% $ 20,560,895 7% 1,439,263$ 179,908$ 1,439,263$ 1,439,263$ 1,079,447$ -$
3 Telecom $ 152,691,544 75% $ 114,518,658 11% 12,826,000$ -$ 8,016,250$ 12,826,000$ 12,826,000$ 3,206,500$
3 Furniture And Equipment $ 72,086,215 60% $ 43,251,729 6% 2,775,000$ -$ 1,734,375$ 2,775,000$ 2,775,000$ 693,750$
3 Office Machinery $ 14,271,115 90% $ 12,844,004 8% 998,000$ -$ 623,750$ 998,000$ 998,000$ 249,500$
4 Motor Vehicles - Passenger $ 32,514,967 80% $ 26,011,973 8% 2,080,958$ -$ 260,120$ 2,080,958$ 2,080,958$ 1,560,718$
4 Motor Vehicles - Other $ 2,965,577 80% $ 2,372,461 8% 189,797$ -$ 23,725$ 189,797$ 189,797$ 142,348$
4 Food Products $ 67,379,747 29% $ 19,337,987 10% 1,933,799$ -$ 241,725$ 1,933,799$ 1,933,799$ 1,450,349$
4 Medical Supplies $ 182,870,285 10% $ 17,500,000 10% 1,750,000$ -$ 218,750$ 1,750,000$ 1,750,000$ 1,312,500$
5 Financial & Insurance $ 89,919,017 70% 62,943,312$ 4% 2,517,732$ -$ -$ 1,573,583$ 2,517,732$ 2,517,732$
5 Building And Fixed Equipment $ 44,034,058 60% 26,420,435$ 10% 2,642,043$ -$ -$ 1,651,277$ 2,642,043$ 2,642,043$
5 IT Software $ 23,167,469 30% 6,950,241$ 10% 695,024$ -$ -$ 434,390$ 695,024$ 695,024$
6 Medical Services $ 75,071,935 60% 45,043,161$ 5% 2,252,158$ -$ -$ 281,520$ 2,252,158$ 2,252,158$
6 Postage & Freight $ 35,381,999 35% 12,206,790$ 6% 732,407$ -$ -$ 91,551$ 732,407$ 732,407$
6 Janitorial Supplies & Services $ 23,861,491 55% 13,123,820$ 8% 1,049,906$ -$ -$ 131,238$ 1,049,906$ 1,049,906$
7 Advertising $ 97,557,990 60% 58,534,794$ 4% 2,341,392$ -$ -$ -$ 1,463,370$ 2,341,392$
7 Temporary Employment Services $ 15,614,795 60% 9,368,877$ 10% 936,888$ -$ -$ -$ 585,555$ 936,888$
7 Fuel $ 20,754,101 80% 16,603,280$ 6% 996,197$ -$ -$ -$ 622,623$ 996,197$
8 Construction Services $ 198,972,579 20% 39,794,516$ 6% 2,387,671$ -$ -$ -$ 298,459$ 2,387,671$
8 Legal $ 47,692,521 40% 19,077,008$ 4% 763,080$ -$ -$ -$ 95,385$ 763,080$
8 Building & Construction Material $ 22,671,688 60% 13,603,013$ 6% 816,181$ -$ -$ -$ 102,023$ 816,181$
9 Agricultural Supplies $ 17,606,785 60% 10,564,071$ 6% 633,844$ -$ -$ -$ -$ 396,153$
9 Professional Development $ 27,945,992 20% 5,589,198$ 6% 335,352$ -$ -$ -$ -$ 209,595$
9 Other Professional Services $ 10,785,905 60% 6,471,543$ 4% 258,862$ -$ -$ -$ -$ 161,789$
Other Categories $ 4,062,462,307 0% $ 6,018,307 $ 316,805 -$ -$ -$ -$ -$
Total 5,757,156,857$ 15% 870,352,705$ 7% 65,113,134$ 6,107,463$ 34,002,733$ 49,601,151$ 49,526,309$ 27,513,881$ Cumulative Total 6,107,463$ 40,110,196$ 89,711,346$ 139,237,656$ 166,751,536$
Estimated Potential Savings by Fiscal Year
– Compliance % Considerations –
• # Agencies using commodity
• # of STCs in existence
• Existence of Agency agreements
• STC penetration %
• Assessment of STC attractiveness
• Catalog complexity
• Assessment of DMS expertise
• Degree of P-Card leakage
• Nature of commodity (e.g., OEM)
– Savings % Considerations –
• Sourceable spend
• Vendors = 80% spend
• Marketplace competitiveness
• Sourceability
• Assessment of spend and vendor consolidation in existence today
• Range of savings %s obtained at other private and public companies
• Over 100 ACN Procurement clients
23 Agency Interviews Conducted
WavesReflect Agency Input & DMS Feedback
Profile Internally & Externally
Develop Strategy
Screen Suppliers &
Selection Factors
Conduct Auctions &
Shape & Negotiate
Value Propositions
Implement AgreementsAssess
Opportunities
Profile Internally & Externally
Develop Strategy
Screen Suppliers &
Selection Factors
Conduct Auctions &
Shape & Negotiate
Value Propositions
Kick-Off &
Profile Internally
& Externally
Develop Strategy
Develop Selection Factors &
Screen Vendors
Conduct Competitive
Event
Prepare Value
Proposition & Award
Implement Agreements
Kick-Off & Assess
Opportunities
- Profile Internally & Externally
Develop Strategy
Screen Suppliers &
Selection Factors
Conduct Auctions &
Shape & Negotiate
Value Propositions
Implement AgreementsAssess
Opportunities
Profile Internally & Externally
Develop Strategy
Screen Suppliers &
Selection Factors
Conduct Auctions &
Shape & Negotiate
Value Propositions
Kick-Off &
Profile Internally
& Externally
Develop Strategy
Develop Selection Factors &
Screen Vendors
Conduct Competitive
Event
Prepare Value
Proposition & Award
Implement Agreements
Kick-Off & Assess
Opportunities
-
![Page 22: Purchasing Directors’ Meeting February 17, 2004 3:00 P.M. State Purchasing.](https://reader035.fdocuments.in/reader035/viewer/2022081514/56649f155503460f94c2af2d/html5/thumbnails/22.jpg)
22
• Discuss current contracts to identify weaknesses and strengths
• Conduct buyer needs assessments (interviews, surveys, etc.)
• Gather spend data to help build new strategy
• Develop new contract strategy
• Construct solicitation document
Strategic SourcingPre-Solicitation Steps
![Page 23: Purchasing Directors’ Meeting February 17, 2004 3:00 P.M. State Purchasing.](https://reader035.fdocuments.in/reader035/viewer/2022081514/56649f155503460f94c2af2d/html5/thumbnails/23.jpg)
23
Top Agency Users
3rd Tier Agency Users
2nd Tier Agency Users
Category Team Core Members
Data & SMEs to Category Team
Benefit From STC
Agency Participation on Category Teams
![Page 24: Purchasing Directors’ Meeting February 17, 2004 3:00 P.M. State Purchasing.](https://reader035.fdocuments.in/reader035/viewer/2022081514/56649f155503460f94c2af2d/html5/thumbnails/24.jpg)
24
Strategic SourcingCore Team Members
Office ConsumablesDMS – Tom Butler
MRO MaterialsDMS – David Comer
PrintingDMS – Charles DayDOHDCF
Facility ServicesDMS – Chuck BeallDOTDOH
Medical SuppliesDMS - Susan BarrDOHDCF
Uniforms/Officer EquipmentDMS – Mark LovellHSMV DOTDEP FDLEFWCC
![Page 25: Purchasing Directors’ Meeting February 17, 2004 3:00 P.M. State Purchasing.](https://reader035.fdocuments.in/reader035/viewer/2022081514/56649f155503460f94c2af2d/html5/thumbnails/25.jpg)
25
Strategic SourcingStrategic SourcingExternal ProfilingExternal Profiling
• “A person . . . who participates in the drafting of a solicitation or who develops a program … is not eligible to contract …” s. 287.057(18), F.S. (2002)
• “… made available simultaneously to all vendors…” s. 287.057(1), F.S. (2002)
![Page 26: Purchasing Directors’ Meeting February 17, 2004 3:00 P.M. State Purchasing.](https://reader035.fdocuments.in/reader035/viewer/2022081514/56649f155503460f94c2af2d/html5/thumbnails/26.jpg)
26
Purchasing Directors’ Meeting Purchasing Directors’ Meeting February 17, 2004 Agenda February 17, 2004 Agenda
Welcome / Meeting Overview
Florida A.G.C. Council Decision
New Office Consumables Contract
Strategic Sourcing
Operational Issues
Open Floor / New Issues
Next Meeting Location / Time
![Page 27: Purchasing Directors’ Meeting February 17, 2004 3:00 P.M. State Purchasing.](https://reader035.fdocuments.in/reader035/viewer/2022081514/56649f155503460f94c2af2d/html5/thumbnails/27.jpg)
27
Operational Issues
• Wendi Sellers’ Departure – best wishes!– Insurance/Professional Services specialist
– Will advertise position in PeopleFirst
• Rules
• State Term Contracts
![Page 28: Purchasing Directors’ Meeting February 17, 2004 3:00 P.M. State Purchasing.](https://reader035.fdocuments.in/reader035/viewer/2022081514/56649f155503460f94c2af2d/html5/thumbnails/28.jpg)
28
Operational IssuesRules
• Transaction Fee Rule (60A-1.031) and related form PUR 3776– Revised effective February 11
• Vendor Registration Rule (60A-1.030)– February 16 JAPC meeting
• Rule Development Workshop– February 20, 2004, 1:30 p.m. DMS Room 301– Revised drafts will be on MFMP site
![Page 29: Purchasing Directors’ Meeting February 17, 2004 3:00 P.M. State Purchasing.](https://reader035.fdocuments.in/reader035/viewer/2022081514/56649f155503460f94c2af2d/html5/thumbnails/29.jpg)
29
Operational IssuesState Term Contracts
New Contracts• SUVs, ATVs, Motorcycles – 2/25/04• Drug Screen Test Kits – 3/1/04• Tractors, Mowers, Cutters – 3/1/04• Equipment Maintenance – 3/1/04• IT Consulting – 4/1/04 • Miscrosoft LAR – 4/1/04• Feature Phones – 4/30/04
Expiring Contracts• Cereals – 4/29/04• Cookies and Crackers – 5/31/04• Plates, Cups, Tableware, etc. - 3/12/04
![Page 30: Purchasing Directors’ Meeting February 17, 2004 3:00 P.M. State Purchasing.](https://reader035.fdocuments.in/reader035/viewer/2022081514/56649f155503460f94c2af2d/html5/thumbnails/30.jpg)
30
Purchasing Directors’ Meeting Purchasing Directors’ Meeting February 17, 2004 Agenda February 17, 2004 Agenda
Welcome / Meeting Overview
Florida A.G.C. Council Decision
New Office Consumables Contract
Strategic Sourcing
Operational Issues
Open Floor / New Issues
Next Meeting Location / Time
![Page 31: Purchasing Directors’ Meeting February 17, 2004 3:00 P.M. State Purchasing.](https://reader035.fdocuments.in/reader035/viewer/2022081514/56649f155503460f94c2af2d/html5/thumbnails/31.jpg)
31
Purchasing Directors’ Meeting Purchasing Directors’ Meeting February 17, 2004 Agenda February 17, 2004 Agenda
Welcome / Meeting Overview
Florida A.G.C. Council Decision
New Office Consumables Contract
Strategic Sourcing
Operational Issues
Open Floor / New Issues
Next Meeting Location / Time
![Page 32: Purchasing Directors’ Meeting February 17, 2004 3:00 P.M. State Purchasing.](https://reader035.fdocuments.in/reader035/viewer/2022081514/56649f155503460f94c2af2d/html5/thumbnails/32.jpg)
32
Purchasing Directors’ MeetingPurchasing Directors’ MeetingNext MeetingNext Meeting
Time: 3:00 p.m. to 5:00 p.m.
Date: Thursday, March 11, 2004
Location: TBD (and posted to website)