LEAGUE OF CITIES COUNTY GROUPS Procure AZ The

LEAGUE OF CITIES & COUNTY GROUPS Procure. AZ The State of Arizona’s e. Procurement & Sourcing Solution For Public Entities Statewide 1

LEAGUE OF CITIES & COUNTY GROUPS Procure. AZ was Implemented for You! • Current economic environment demands governments to leverage opportunities • The state invested $2 M in its cutting edge e. Procurement solution, so you don’t have to • The state licensed and designed Procure. AZ for public entity use in Arizona • Modernize your procurement system and processes to generate cost savings and efficiencies 2

LEAGUE OF CITIES & COUNTY GROUPS Why Procure. AZ? Value The state saw a need to find a procurement solution that was easy to use and access and would: • Eliminate waste • Cut costs • Exude transparency • Increase productivity & process efficiencies • Decrease cycle time • Create vendor competition • Drive business to local AZ vendors • Provide one-stop-shop for vendors to register and submit invoices • Track the results needed to make strategic purchasing decisions • Make contracting with public entities easier 3

LEAGUE OF CITIES & COUNTY GROUPS Why Procure. AZ? Functionality • State Contract/Catalog Search & Ordering – Savings from state pricing • Sourcing & Solicitation – Manage and award proposals in one online system • Vendor Management – One-stop-shop for vendors • Contract Management – Track and update contracts • Reverse Auction – Suppliers compete to offer lowest price • Requisition & Purchase Orders – Streamline ordering • Invoice & 3 Way Match Receipt – Enhance transparency • Integration into Financial System – Eliminates data entry and enhances budget controls 4

LEAGUE OF CITIES & COUNTY GROUPS What Procure. AZ Can Do For You? Benefits • Reduce costs with access to over 21, 000 vendors and their competitive state contract prices • Utilize strategic sourcing by soliciting, evaluating and awarding bids within Procure. AZ • Offer a one-stop-shop for vendor management – eliminate the time required for your staff to manually track vendors • Increase staff productivity and redirect manpower by reducing cycle times • Create savings through innovative solicitations like reverse auctions • Zero IT infrastructure required to implement system • Catalog and Sourcing Investment paid for by the state; ability to order off Procure. AZ contracts • Public can access contract spend creating accountability through transparency 5

LEAGUE OF CITIES & COUNTY GROUPS Success of Procure. AZ Results • Increased vendor competition – over 21, 000 vendors registered in system • Created savings on goods & services – 30% cost reduction on statewide office supply contract • Leveled the playing field for local small businesses • Decreased average cycle times by nearly half – went from 4 days to 2. 3 days • Conducted over 700 online solicitations • Hosted nine successful reverse auctions – each auction closed nearly 20% below opening bid • Increased local co-op participation by 51% 6

LEAGUE OF CITIES & COUNTY GROUPS Cost to You State Catalog & Sourcing Full e. Procurement FREE! Minimal Support Cost § Leverage vendors, solicitations and bidding, contract and catalog search § Leverage full Procure. AZ e. Procurement and sourcing functionality § Ability to order off of Procure. AZ contracts using the system – Requisition § Procure. AZ produces a “XML file” for import and integration into your financial or ordering system – Invoice – 3 -way match with PO and receipt transaction – Your IT staff can construct the import function, or – Using an hourly rate, Procure. AZ team will provide services for integration – Receipt of Goods and Services § Nominal subscription fee paid to our vendor, Periscope to provide: – First line technical support for Procure. AZ Phase II – Training to your team – For as little as $8, 200 a year § You can contract with Periscope to provide: – Integration to your financial systems – Business process consulting 7

LEAGUE OF CITIES & COUNTY GROUPS Why Implement Procure. AZ? Benefits § Already licensed by the State for your use § Enhance current procurement system § Increased vendor access § Use State contracts for better pricing § One-stop-shop for vendors § Minimize staff involvement, so they can redirect their time to other tasks § Integrates into financial systems § Utilize local businesses 8