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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. http://www.unspsc.org
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
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
reviewed
• 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
– Michael Jackman – MFMP Applications Manager
– Robert Cooper III – MFMP Production Support Lead
– Weber Gluesenkamp – MFMP Support Analyst
Questions
• Any questions?
