Examining Services Spend Version

Contents

Overview

The Services Analysis feature provides tools for segmenting services spend dollars for analysis. Vendors of services contracts are assigned services categories. You can select services categories to segment and examine spend. You can also look at spend for individual vendor entities, regions/organizations, and contracts. You can also work with all spend.

The analysis tools provide actual spend data from the past 12 months.

Important: Services contract type security is not used in the services analysis workbench. Users at all levels of security can display data for services contracts of any type.

If you are working with supply contract spend, see "Examining Supply Contract Spend."

Access to the Shared Services Analysis Feature

Customers have the option of enabling/disabling the Shared Services Analysis feature as part of their SCM package. This feature is initally enabled by default.

When this feature is disabled, users cannot work with shared services spend data and analytics. The SCM main menu does not provide a Services Analysis element. Also, when this feature is disabled, any shared services gauges, such as these below are not available:

• Shared Services Market Share
• Monthly Service Spend Trend

Contact the Help Desk or your Premier Consultant to enable or disable this feature.

Security

The role object "SharedSvcsAnalysis" controls access to this feature. To display the "Shared Services Workbench," the minimum setting must be View. For details about the settings required for the activities within this menu, see Role objects associated with Sourcing and Contract Management .

Analysis Groups

The analysis tools create dynamic analysis groups that segment a hospital's total services spend according to descriptors that the analyst selects. For example, a services analysis group might contain spend data for...

        ... a particular service category, such as "Travel and Car Rental" or "Printer/Copier Maintenance"
            ...from selected vendors
                 ...associated with particular regions/organizations.

Put together, "service category," "vendors" and "regions/organizations" identify a segment of spend data -- an analysis group.

An analysis group is fluid: you can "slice and dice" the spend by changing, removing, or adding spend descriptors. For example, you may wish to know which vendors account for the highest percent of spend Temporary Labor.

What is Spend?

The Vendor Spend section of the Product Index Layer documentation discusses spend in detail. Here are key points about spend:

• Spend is only available for registered vendors.
• Spend is calculated at the vendor entity level.
• Spend calculations are based on invoiced dollars.
• Spend is actual dollars from the previous number of months as specified by the user. Twelve months is the default.
  Months of spend is a "rolling" measure: as a month is completed, the spend values change.
• Spend is reported only for whole months.
  So, if you have contract spend for, say, July 15, it will not be visible until August 1.
• Spend Type is defined for the vendor when the vendor is registered.
• Two Spend Types are available: supply and services
  - The Supply Analysis Workbench lets you work with supply spend. See Examining Supply Spend.
  - The Services Workbench lets you work with services spend, as described in the sections below.

Identifying a Segment of Services Spend to Work With

Figure 1 is the "Shared Services Spend Analysis" page. The Analysis Group panel displays the default view of spend.

• To open the "Shared Services Spend Analysis" page, from the Sourcing and Contract Management main Contents, on the Shared Services tab, select Analysis Workbench.

Figure 1 - Services Spend for Analysis: Default View

The Analysis Group panel initially displays the total spend dollars (Figure 1, top, left).
By default, spend is displayed for the previous 12 months, but you can change the time period. You can specify any date range for which you have services spend history.
Note: Spend data for services contracts that expired before the selected beginning date is not displayed.

• Click change. The steps are outlined below.

When you create an analysis group by identifying spend segments, this panel displays spend for the analysis group.

The Prior X Months panel (Figure 1, bottom) shows spend organized according to the Views on the left, and for the time period that you set on the Analysis Group panel (by clicking change).
The Views -- Category, Vendor, Contract, and Region/Org -- let you specify how spend dollars are displayed.
- The default view is Category. Typically, categories are assigned to entities that have services vendors registered to them. (But, categories can also be assigned to vendor entities that have registered supply vendors.) See the Editing Vendor Entity Records for a discussion of assigning categories.
- You could also display all services Vendor entities with spend for the time period.
- Similarly, you could display all Contracts with spend, or all Regions/Orgs with spend.

Two additional selectors are available: Dept and Expense Code (GL account). See Figure 1A. To use these selectors (which are not otherwise visible), the application must have your department spend and expense account data populated in its tables from your general ledger. If you wish to analyze spend using the Dept and Expense Code selectors, contact the Solutions Center (aka, HelpDesk) to discuss how to provide the data to SCM. (Stand-alone sites use connectors.)

Figure 1A - View Selectors Including Dept and Expense Code

The center of the panel lists spend dollars grouped according to the selected View, and broken into the various view elements.
- Category displays spend by each category that has spend. If a registered vendor has no category assigned, then its spend cannot be displayed, and you cannot analyze it. (For this reason, when you register a services vendor, be sure that you select a services category.)
- Vendor displays spend for each vendor entity that has spend. (Local) appears next to any vendor entity that is local.
- Contract displays spend for each contract that belongs to a services vendor.
- Region/Org displays spend for each region/organization that you have defined in Sourcing and Contract Management.
Use the Views and the search tool on this panel to identify a segment of spend for further analysis.

To create an analysis group:

1. On the main Contents, Shared Services tab, click Analysis Workbench.
   The Analysis Workbench panels appear (Figure 1).

2. Accept the twelve months default time frame for the spend, or select a new time frame.

   • To change the timeframe, on the Analysis Group panel, next to the default dates for twelve months, click change (Figure 2).

Figure 2 - Selecting the Months of Spend to Display for Analysis

• The Edit - Change Date Range panel appears.
• In the Month Range field, click the down arrow and select a number of months.
  If you wish to use specific months and years to define the date range, click User Specified and select To and From months/years from the list that appears.
  Note: For the beginning date of the range that you select, data for contracts that have expired before that date is not displayed.
  
• Click Save.

3. In the Prior X Months panel (Figure 1), select a View descriptor, or use the default view Category.
   For example, you could select Vendors to organize the spend by vendor entity.
4. Once you have spend organized using one of the View descriptors, locate the particular area of spend that you are interested in.
   
5. Review the list and make a selection (or use the search).
   For example, if spend is organized by Vendors, click the search icon to locate a particular vendor entity.
   • Mouse over the area of interest; e.g., the vendor entity, and click the selection box to select spend. See Figure 3.
     - A check appears in the box.
     - The selected area is grayed out momentarily on the Prior X Months panel.

Figure 3 - Selecting a Vendor Entity's Spend for an Analysis Group

6. Mouse over the refresh message in the Analysis Group panel.
   - The selected area of spend appears on the Analysis Group panel (on top).
   - The spend values change from the total because you have just isolated a segment of total spend.
   
7. Use the View descriptors on the Prior X Months panel to locate additional spend areas as needed, until you have identified the segment
   of spend that you wish to work with (Figure 4).

Figure 4 - Selecting a Vendor Entity to Define an Analysis Group

The columns of data on the Prior X Months panel are sortable. Click an underlined column header to sort in ascending or descending order.
A green arrow indicates the direction of sort.

Table 1 is a summary of how to organize spend using the different View descriptors. Once you have selected a descriptor, you can click
the search icon to find a particular element. For example, clicking Vendor organizes spend by vendor entity.
Clicking opens a search box so that you can look for a particular vendor entity.
Similarly, in the Category view, click to search for spend in a particular services category.

Table 1 - Views: Methods of Displaying Spend

Invoices View

The Invoices (Figure 5) view displays spend on individual invoices for an analysis group.

• You need to create an analysis group to display invoices.

For All spend, the Invoices link is grayed out.

Note: In addition to the columns on the panel (Figure 5) , the Invoices view also displays the Dept and Expense Code, if used by the site, and included in the data available to the system (i.e., for stand-alone sites, these values would need to be passed in via a connector). If not available in the spend data, the columns do not appear.

Figure 5 - Shared Services Workbench: Invoices View of Analysis Group Spend

Trend View

The Trend view displays a graph that lets you see how spend dollars are trending over a period of the prior 12 months.
You can display a trend for an analysis group, or for all spend.

• Click the Trend view displays a graph of the trends.
• On the graph, mouse over any node to display spend dollars.

Figure 6 is a trend graph for all spend.

Notice (on the bottom, lower right) that you can add the graph to any dashboard that you have created.

• Click Add to Dashboard.
  (See Using Dashboards for details.)

Figure 6 - A Trend Graph for All Services Spend

Imagine that you have created an analysis group, and that you wish to see how spend for each one in the group is trending (Figure 7).

Note: The group was created by selecting spend from two vendor entities, but it could have been created using one or more categories, contracts, or regions/organizations.

Figure 7 - A Trend Graph for Vendor Services Spend

Market Share

• To view each vendor's percent market share for a spend segment, or for all spend, click Market Share.

Figure 8 graphs vendor entity market share for an analysis group with spend from several vendors. The graph displays spend from the previous twelve months.

• On the graph, the Y axis is the  Percentage of Spend. The X axis is Time, by month. Spend percentages are calculated at the end of each month.
• Putting the cursor on any month node of the graph displays the percentage for the month. For example, in Figure 8, the May node
  for American Printing has been selected.
• Clicking a vendor in the legend toggles the display for the vendor on and off.
  

Figure 8 - Market Share of Services for Two Vendor Entities

From the graph, the spend segment provided by American Printing was 100% in May. For A. C. Moore, it was 100% in December. The spend for both vendors was flat in other months. If you wished to expand this analysis group to see spend for other vendors in the same services Category (or different categories), or for any group of Vendors, you could do so. Similarly, you could look at vendor market share if you had used Contracts to create the analysis group, or if you had used Regions/Orgs. When more spend dollars exist for the months in the graph, you would see additional lines representing the vendors and percent spend.

How spend percentages for services vendors are calculated

• Actual spend amounts are used in calculating percentages.

• Charted values are not continuous. A single value is calculated for each month. Lines are drawn to help users visualize change over the months. (The chart is a plot with six points per vendor on the Y axis.)

% Spend per month for a sub-group (e.g., A. C. Moore) =
      Spend per month for the sub-group (A. C. Moore / Total spend per month for all sub-groups.(e.g., Air Emergency + 3M + American Printing + A .C. Moore + all the other vendors.)

Work With Unregistered Spend

If you know that you have spend for a services vendor, but the spend is not displayed (on the Prior 12 Months panel), the vendor may be unregistered. Spend for unregistered vendors is not available for analysis.

The Actions panel (Figure 1, top, right) provides a shortcut for registering the vendors.

On the Actions panel link...

• For an unregistered vendor, click the link View Unregistered Vendors.
  A list of vendors that are not registered to entities appears.
  Note: To create/register vendor entities, the "CARegistration" role object in your user role must be set to Modify, minimally.

You can also work with registered and unregistered vendors from the Administration menu.

• From the main Contents, select Administration > Product Index Layer > Manage Vendor Entities.
  The online documentation topics Working with the Product Index Layer outlines the registration process in detail.

On the "Vendors and Entities" page:

• The Vendors tabbed panel displays vendors. The Entities tabbed panel displays vendor entities.
• The default spend time frame is Prior 12 Months. To select a different range, click the change link.
• Mousing over the item quantity for any vendor pops up the count of file and non-file items in the spend dollars (Figure 9).
• The Status view lets you display all vendors, registered vendors, and unregistered vendors. In the Unregistered Status view, no entities appear because the vendors have no entity cross references.
• You can select to view All vendors, vendors With Supply Spend, or vendors With Services Spend.
• When the Status view selection is Registered, under Local, you can choose All vendors, or Local vendors. Also, you can select the Spend Type Supply, Services, or All.

Figure 9 - Unregistered Vendors: Displaying the Quantity of File and Non-File Items in the Spend

The Register link lets you look for an entity that the vendor belongs to, and register the vendor. If no entity exists for cross-referencing the vendor, and the vendor is local, you can define a new entity yourself. (If the vendor is not local, you can request the Help Desk to create a new entity.)

• Click Register to register a vendor.

Details are in the topic Registering Vendors, or click the ? Help button.

Other Actions Panel Links

View Invoice Spend with Missing Vendors - Lets you view spend on invoices for missing vendors. These vendors are missing from your data tables, not just unregistered. Links from the missing vendors list let you add and register vendors.

View Services Vendors - Displays a list of vendors whose spend type is services.

Including AP-Only Vendor Spend in Analysis

This feature is only available for sites with Sourcing and Contract Management and with the  ERP - Materials Management and/or Accounts Payable applications.

Normally, spend dollars for analysis in Sourcing and Contract Management are drawn from the set of vendors labeled "MM and AP." These vendors produce both purchase order invoices and non-purchase order invoices.

Vendors labeled "AP-only" are not automatically included in the Sourcing and Contract Management spend pool because hospitals tend to have many such vendors that are small- volume suppliers or services providers, one-time vendors, or are set up as "AP-only" to handle refunds. However, you may have AP-only vendors with significant amounts of spend -- services vendors -- that you wish to analyze.

To include spend from AP-only vendors in Sourcing and Contract Management, you set a flag on the vendor record in Materials Management or Accounts Payable. The Vendor Edit panel.

Instructions are in the advanced vendors setup chapter -- Work with Vendor Information: Advanced -- for Materials Management and Accounts Payable.

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