Paul Martin, Assistant Vice President for Administration
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Transcript of Paul Martin, Assistant Vice President for Administration
LEAD YOUR INSTITUTION TO SAVINGS:The Evolution of Strategic Sourcing and the P2P Transformation
Paul Martin, Assistant Vice President for AdministrationRon Moraski, Director of Procurement ServicesMeaghan Kraft, Manager of Procurement Systems
WHERE it all STARTED…
Long-Term Vision to
Transform Procuremen
t
P-card Program
experienced Fraud
Solution, Managemen
t Approval and Funding
Three Pronged
Approach
Three pronged approach
Procure to Pay (P2P) Initiative
Travel Management Initiative
Strategic Sourcing Initiative
Collaboration IS the Only Way
Original Long-Term Procurement Vision
• Completed in 1996Use of Purchase and
Travel Card Integrated with ERP
• Completed in 2006Use of automated E-Procurement System
• Not scheduled until fraud happened in May 2010
Minimize Purchase Card Program and Implement
Sourcing Program
Cancellation of P-Card Program
• May 2010 – cards were cancelled overnight
P-Cards No P-Cards
Number of Cards 850 29
Number of PO’s Processed 5,700 16,000+
Number of Direct Pays 8,800 26,000+
Rebate $$ $100K $0
Current Area of focus
Procure to Pay (P2P) Initiative
Enhance e-
procurement process to include
e-settlement
(e-invoicing
and e-payment)
Improve integration
of procureme
nt and disbursem
ent systems
with Banner
Drive advance approvals
to purchase and pay through state-of-the art
procurement and
payables programs
Eliminate the need for the
former p-card
system
Utilize with
Strategic Sourcing to drive savings
Objectives
–Mitigate Risk– Provide Robust Controls– Streamline and Automate Processes– Become State-of-Art in Industry– And Obviously …..
Approval of Funding – Savings Promised
Start-up Costs OngoingAnnual Cost
P2P 135,000 25,000
Travel Management 28,500 187,340
Strategic Sourcing 530,000 447,800
Totals 693,500 660,140
Estimated SavingsPer Year
P2P 245,000
Travel Management 370,000
Strategic Sourcing Up to 800,000
Totals 1,415,000
Overview of current e-procurement & Disbursement system
• Core ERP System – Banner Finance• e-Procurement (SciQuest) modules– Spend Director– Requisition & Order Manager– Settlement Manager– Contract Manager– Sourcing Director
• 16 Marketplace [Punch-out] Suppliers• 12 e-Invoice suppliers [3 supplier portal, 9 cXML
transfer]• Payments made through check or ACH
Inefficiencies with Current Processes
Supplier Set-up
Purchase
Invoice
Banner Integration
Pay
PO’s
E-Invoice/Paper
Electronically feeds to Banner
Non-PO’sPaper
(campus enters Requisition)
AP Enters into Banner
ACH or Check
Manual Set-up in Procurement
P2P improvements
SciQuestDigital
Mailroom, AP Director, TSM,
ADW
AMEXBIP &
vPayment*
New and enhanced Partnerships with:
*a benefit of the AMEX partnership is the vPayment solution which is SciQuest-enabled
P2P improvements
Digital Mailroom
Invoice capture for all paper invoices electronically
feeds into OSCAR
Live – March 2014
AP Director
SciQuest module that
allows for automating processing
Live – March 2014
TSM
Total Supplier Manager
allows suppliers to set-up and
control their information
Go-live Fall 2014
Non-PO Banner
Integration
SciQuest Solutions
Supplier Set-up
Purchase
Invoice
Banner Integration
Pay
Non-PO invoices will
be fed electronically into Banner.
This functionality
will be available with
Banner 8.9 patch
Date - TBD
P2P improvements
Digital Mailroom [DMR]• Will use for both PO and
Non-PO invoices• Improved controls for
non-PO invoices– At least two levels of approval required for all
non-PO invoices– Audit on non-PO invoice activity
• Match failure workflow improvements for PO Invoices
AP Director:
• Invoices available within 2 business days
• PO invoices will be matched and routed for approval
• Non-PO invoices will route to the invoice owner
Partnerships and solutions
Check and ACH
BIP
vPay CPC
New Forms of Payment
AMEX SolutionsSupplier Set-up
Purchase
Invoice
Banner Integration
Pay
vPay on Demand
Still considering
use
Amex payment solutions
BIPSimilar to ACH
Supplier is responsible for their own bank
information
Payment terms
vPayment
Embedded, secure credit card solution
Pay on ship – credit card sent via PO process
JV upload into ERP
Both solutions provide rebate on spend
Phase I – march 2014 - COMPLETE
Digital Mailroom
AP Director BIP vPay
phASE 2 – SummER / Fall 2014
Non-PO Banner
Integration
Invoice Status
Update
PO Workflow
on FOAPAL
TSMvPay on Demand & CPC
challenges
• High number of “Active” Suppliers • % of PO Invoices vs. Non-PO invoices• 1st Non-PO Digital Mailroom Client– Working with SciQuest to develop non-PO invoice workflow
using ADW
SuccessesSo Far
• Documented Cost Savings $4.8M+• Purchasing Revenue $200k• As a result of these numbers, our President granted an
increase in the project budget
Overall Project Success
• Original P-Card Rebate $100k• New Savings / Revenue $5M+– Sourcing– Travel– P2P
• Efficiencies• Visibility
QUESTIONS