myfloridamarketplace commodity code …...kick-off september 8, 2016 agenda • mfmp commodity code...

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  • MyFloridaMarketPlaceCommodity Code Governance

    Kick-OffSeptember 8, 2016

  • Agenda

    • MFMP Commodity Code Governance

    • UNSPSC Taxonomy Refresher

    • Current UNSPSC Release & MFMP

    • Governance Group Responsibilities

    • Review Approach and Process

    • Resources and Information

  • MFMP Commodity Code Governance

    • MFMP CR 155 – Commodity Code Standardization

    – Optional project service elected by DMS in FY2014

    – Replace custom FL commodity code set (FLID)

    – Implemented at year end for use in FY2015

    • Overall CR 155 project strategic goals

    – Enhance spend analytics

    – Enhance strategic sourcing capabilities

    – Enhance e-commerce capabilities (e.g. vendor catalogs)

  • MFMP Commodity Code Governance

    • DMS Elected to use United Nations Products and Services Classification (UNSPSC) code set

    • The United Nations Standard Products and Services Code (UNSPSC) is a hierarchical convention that is used to classify all products and services.

  • MFMP Commodity Code Governance

    • New concern: size of code set– FLID code set was ~5,000 codes (at class/group level)

    – Current version was UNSPSC v15 with >54,000 codes

    – Limited selection of UNSPSC codes to be in MFMP commodity code set

    – Activated ~9,000 codes including all commodity level services codes

    – Significant limitation of commodity level goods codes

    • Too specific – Live aubergine anemone

    • Not consistent with strategic goals

  • MFMP Commodity Code Governance

    • Commodity code change management process– CR 155 included governance deliverable to manage overall state

    change process

    • Commodity code governance group established– Part of governance included a group to review new UNSPSC releases

    – Initial group was DMS State Purchasing but expanding to various departmental purchasing groups

    • Major agencies: AHCA, DOH, DOC, and others

    • Two primary change points for MFMP codes– Request to activate an “existing” code

    – UNSPSC releases new code set

  • UNSPSC Taxonomy Refresher

    UNSPSC Segment Progression*

    * UNSPSC provided presentation: Introduction and Overview UNSPSC to UNSPSC.pdf

  • UNSPSC Taxonomy Refresher

    UNSPSC StructureThe UNSPSC commodity code structure is an 8 digit code with 4 levels of break down in terms of specificity.

    Code Format: XX XX XX XX (no spaces)

    Example: 23 15 29 08 - Bottle washing machine (23152908)

    XX Segment

    The logical aggregation of families for analytical purposes

    XX Family

    A commonly recognized group of inter-related commodity categories

    XX Class

    A group of commodities sharing common characteristics

    XX Commodity

    A group of substitutable products or services

  • Current UNSPSC Release & MFMP

    • UNSPSC publishes a new version once a year

    • UNSPSC has released two versions since last year’s MFMP annual commodity code update

    – UNSPSC v18 – focus on healthcare services

    – UNSPSC v19 – small release with relatively few new codes

    – All releases include ad hoc code change requests

    • UNSPSC releases change audit log with each version

    – Used to track adds, updates, moves, deletes

    – MFMP uses the audit log to determine impacts to MFMP commodity code set

  • Current UNSPSC Release & MFMP

    • MFMP team pre-processes new UNSPSC version

    – Identify changes impacting current MFMP code set

    – Identify recommendations for adds

    • MFMP business logic for activating UNSPSC codes

    – All Segment level codes activated

    – All Family level codes activated

    – All Class level codes activated

    – All Commodity level codes that are Services activated

    – No Commodity level codes that are Goods activated without review and approval

  • Current UNSPSC Release & MFMP

    • UNSPSC v19 has >83,000 codes

    – 7.6% increase from v17 (+5891 codes)

    – Almost all are new commodity level codes (86%)

    – Almost all are new services (79%)

    • Number of changes impacting MFMP

    – ~5,000 changes impact MFMP

    – 16 deletes, 4 moves, 80 edits, 4,895 adds

    • Segments, families, classes, and service commodities

    – 4,895 codes will be added to MFMP commodity code set

    – Next MFMP code set minimally 16,593 (41% increase)

  • Current UNSPSC Release & MFMP

    • 2016 - Commodity level goods not auto-activated– 1,396 new commodity codes that are goods to be


    • 2015 Release– Commodity level goods not auto-activated

    • 23,125 new commodity codes that are goods

    – Segment 50: Food Beverage and Tobacco Products• 14,614 commodity codes to be reviewed

    – Segment 51: Drugs and Pharmaceutical Products• 7,923 commodity codes to be reviewed

    – General: Various ad hoc changes• 588 commodity codes to be reviewed

  • Governance Group Responsibilities

    • What does this mean for you?

    – 1 Team:

    • General Code Review Team

    – Homework: review codes before meeting

    – Understand the overall goals and justify activation

    • Only recommend activation for known uses

    • Spend categorization, solicitation control, search-ability

    – Feel empowered and make decisions

    • Speak up during meetings

  • Governance Group Responsibilities

    • What if we miss something?

    – Ability for agencies to request activation later

    – Activation requests part of monthly ODU process

    • DMS is the final decision maker on code activation/inclusion in MFMP code set based on this groups recommendation

  • Review Approach and Process

    • General Group – 2 Meetings

    • Commodity Code Meeting Schedule

    – September 16, 2016 2:00 PM – 4:00 PM @ MFMP

    – September 23, 2016 2:00 PM – 4:00 PM @ MFMP

    • Review new Commodity level codes

    – Rolling review for activation decisions

    • Only 1,396 to be reviewed and mostly in meeting

    • You are reviewing only the codes that have not been previously recommended

  • Implementation ScheduleMeeting Date & Time Materials Meeting Minutes

    Introduction September 8, 2016 10 – 11 am TBD TBD

    General Code Review 1 September 16, 2016 2 – 4pm TBD TBD

    General Code Review 2 September 23, 2016 2 – 4pm TBD TBD

    Deliver Object Code Map to DFS September 30, 2016 N/A N/A

    ODU Submission for Code Implementation October 1, 2016 N/A N/A

    Implementation & Communication Beginning October 10, 2016 N/A N/A

    2016 Commodity Code Listing TBD TBD N/A

    2016 Commodity Code Change File TBD TBD N/A

  • UNSPSC_Review_General

    Review Approach and Process

  • Resources and Information

    • Where can I find the codes for review?

    – All materials, including the codes for review, are available here on the DMS Website• DMS MFMP Current Projects Web Site

  • Resources and Information

    • UNSPSC Governance Team Leads

    – Tyler Brown – MFMP Business Process Analyst

    [email protected]

    – Michael Jackman – MFMP Applications Manager

    [email protected]

    – Robert Cooper III – MFMP Production Support Lead

    [email protected]

    – Weber Gluesenkamp – MFMP Support Analyst

    [email protected]

    mailto:[email protected]:[email protected]:[email protected]:[email protected]

  • Questions

    • Any questions?