Next Generation Risk Mitigation through Business Intelligence (BI) for Services Procurement Spend

Transcription

1 Next Generation Risk Mitigation through Business Intelligence (BI) for Services Procurement Spend Allegis Global Solutions Jess Bongiovanni Director, Services Procurement Jon Kesman Global Procurement Director sig.org/summit

2 MACHINE LEARNING IN SERVICES PROCUREMENT IT S A GAME CHANGER Jess Bongiovanni Director, Services Procurement SERVICES PROCUREMENT COE Jon Kesman Global Procurement Director SERVICES PROCUREMENT COE

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4 AI IS ALSO IMPACTING THE SERVICES PROCUREMENT SECTOR

5 ARTIFICIAL INTELLIGENCE DETERMINES MATHEMATICAL EQUATIONS THAT APPROXIMATE REALITY BY FITTING TO AVAILABLE DATA NOT JUST EXECUTING COMMANDS & COMPUTATIONS GIVEN BY USER OR CODE

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7 PARSING, STRUCTURING & CLASSIFYING Significant Scope Terms ORIGINAL Jan SOW 1 Similarity to ORIGINAL 0.92 May 15, 2016 SOW 2 Similarity to ORIGINAL 0.84 Nov 12, 2016 SOW 3 Similarity to ORIGINAL 0.70 Jan 1, 2017 Significance Score Model 1 10

8 SOW ANALYZER STATEMENT OF WORK TEXT EXPECTED DAYS TO SOW COMPLETION TODAY STATED COMPLETION SIMILAR SOWS CONTAINED THESE PHRASES DAYS ALERTS The bill rate for drivers is 14% lower in Raleigh The bill rate for technicians is 2.5% lower in Raleigh The time to hire for a driver is predicted to be 40 days Consider starting now to ensure compliance

9 READ SOWs Structure Data Improve VMS structured data Compare to VMS Audit Standardize and categorize SOW data ANALYZE SOW DATA Read MSAs and match SOWs Compare to AP data Identify cost savings opportunities Categorize and analyze contract clauses PREDICT RESOURCE COST Predict roles needed for a delivered work product Confidence scores for the roles required Estimate resources needed for work product PREDICT PROJECT COST Estimate effort for work product Recommend approach for type of SOW (milestone, fixed price, time and materials) Estimate cost for work effort up to one year

10 HIGH LEVEL DATA FLOW DIAGRAM

11 I M JUST TRYING TO MAKE IT THROUGH THE DAY AND EXECUTE ON MY CATEGORY PLAN WHILE BALANCING COMPETING PRIORITIES. CATEGORY MANAGER U S E R P E R S O N A LOCATION Baltimore, MD AGE JOB LEVEL Manager TENURE 10 years EDUCATION BS Business Admin TRAVEL TOUCHPOINTS 10% IN OFFICE ON THE GO MAJOR ACTIVITIES Conduct competitive bidding (RFx) Negotiate contracts and pricing Manage vendor performance Manage procurement department staff Market analysis, research and supplier identification Identify savings opportunities Manage internal stakeholder alignment & understand business needs Create and execute category plans TIME MANAGEMENT SOURCING FACE-TO-FACE MEETINGS MARKET RESEARCH PHONE MOTIVATIONS 10% 10% 20% 30% 30% INTERNAL EXTERNAL CPO RISK LEGAL CATEGORY MANAGER IT DEPT HEAD FINANCE FRUSTRATIONS - The pain points I d like to avoid Lack of visibility into spend and historical data Tactical demands interfering with strategic initiatives Inconsistent contract terms and conditions Insufficient data to hold suppliers accountable for performance Efficient interactions with my suppliers. Productive engagement with my business partners. Effective tools and technology. Easy access to data to get my job done. Finding new ways to deliver business value and savings INDUSTRY ANALYSTS MY TYPICAL DAY SUPPLIERS Management of budgets and amendments for services Rogue spend management and after the fact contracts Influencing business partners and internal stakeholders on the sourcing strategy Not perceived as a valuable, strategic partner to the business PERSONA VARIANTS Category managers and their interactions with the business can vary depending on the category they are responsible for. For Example, IT category plans will be very different than those supporting facilities. Need ability to take lots of information and make sense of it. Executing on a category plan. Influencing business leaders spending the money on projects. They get beaten up by their boss and the business all day. The paper chase is the most pervasive task. When managers have questions or issues, they often need to research where contracts are and track them down, read through the contract, research invoices, call the supplier, etc.

12 SO, WHAT S THE SIZE OF THE PRIZE?

13 AI NEEDS DATA TO LEARN MORE DATA MEANS IMPROVED OUTCOMES

14 THANK YOU Jess Bongiovanni Director, Services Procurement SERVICES PROCUREMENT COE Jon Kesman Global Procurement Director SERVICES PROCUREMENT COE

15 Evaluation How-to: Why? Your feedback drives SIG Event content By signing and submitting your evaluation, you are automatically entered into a prize drawing From the App How? 1. Select Schedule 2. Select Schedule by Day 3. Select Day 4. Select Session S04 5. Scroll to Session Survey COMPLETE & SUBMIT EVAL

16 Session #4 Next Generation Risk Mitigation through Business Intelligence (BI) for Services Procurement Spend Allegis Global Solutions Jon Kesman Jess Bongiovanni Download the App: sig.org/app Tweet: #SIGfall17

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