Procurement Services Forum

Winter 2012

AGENDA FOR THE DAY

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Information Resources

Procurement Services Today

Cost Study Benchmarking

eProcurement

NonPO Invoice

eReimbursements

Tools & Templates

Strategic Sourcing

Sustainable and Diverse Purchasing

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Our Mission

We help people who change the world through collaboration, consultation and financial stewardship 

Our Vision

We are a dynamic organization that anticipates emerging needs and delivers exceptional service anywhere, anytime

Our Service

s

• Purchasing• Strategic Sourcing• Contracting• Accounts Payable• Procard• Procurement Customer Service• Communications, Outreach and

Training• Green & Sustainable

Purchasing• Small & Diverse Supplier

Awareness

Tools we

Provide

• Procurement Desktop Reports• eProcurement• eReimbursements• NonPO Invoice• Online Credit Card Application

Public and Private Sector Best Practices

• Grow eProcurement Solutions

• Increase spend under management

• Reduce costs centrally and in campus units

• Leverage data – spend analytics

• Strategic Sourcing

• Better access to data for campus units (transparency)

Overview• The Hackett Group was engaged to benchmark procurement and certain

finance functions to provide context for current status

• Participants selected:– Central procurement– 50 units from colleges & schools– 19 units from administration or central services

• Data collection phase: 4 weeks to collect– Time spent on high-level categories– Fully-loaded labor cost and other costs– Transaction volumes and spend data

• Compiled and compared with peer group to assess efficiency and effectiveness

Comparison to Peer GroupOverall procurement costs as a percent of spend are significantly higher than peer group, driven primarily by FTE

UW Peer Group World-Class

3.3%

0.6% 0.5%

0.4%

0.1%0.1%

0.3%

0.1%0.1%

OtherTechnologyLabor

4%

0.8%0.6%

Comparison to U of Michigan

UW UM Peer Group

3.3%

0.5% 0.6%

0.4%

0.2% 0.1%

0.3%

0.2% 0.1%

OtherTechnologyLabor

4%

0.8%0.9%

University of Michigan has larger spend ($2B vs. $1B) yet fewer non-central FTE involved in procurement function

Components of Procurement Costs

UW UM

2.99%

3.47%

0.32%0.15%

0.91%

Campus Units

Outsourcing

Purchasing Technology

Central Procurement

0.45% 0.01%

0.16%0.31%

As a Percentage of Spend

Sourcing System

Contract Compliance

eProcurementBefore we thought of eProcurement as just catalogs…

As we progress…eProcurement will grow with more modules

Catalogs

eReimb-ursements

eProcurement

NonPO Invoice

Non Catalog Ordering

EPROCUREMENT EXTENSION MATRIX Module Purpose & Impact Types of

TransactionsPurchasing or

Payment Method Being

Replaced

Launch Date

eReimbursements eReimbursements provides an electronic mechanism for submitting reimbursements to employees

• Check Requests• Petty Cash• Revolving Fund

Accounts

• Manual Check Request process 

Feb2012

NonPO Invoice Allow users to pay suppliers when a Purchase Order is not necessary

• Subscriptions• Membership Fees• Invoice payments

<$5,000 for suppliers not requiring a PO

• PAS – Orders under direct buy limit

• ProCard

Feb2012

Non Catalog Ordering

Allow users to create a Non-Catalog order within eProcurement when a supplier requires a PO.

•Orders for suppliers that don’t have eProcurement catalogsNOTE: Orders >$5,000 will route to a Buyer

• PAS – Orders over the direct buy limit

• ProCard

Spring2012

To monitor the progress on these projects, see http://f2.washington.edu/fm/ps/procurement-project-pipeline/epro-extension-matrix

EPROCUREMENT EXTENSION MATRIX Module Purpose & Impact Types of Transactions Purchasing or

Payment Method Being Replaced

Launch Date

Contract Compliance

Used for complex purchases that don’t lend themselves to the typical catalog order (i.e. maintenance agreements, leases, service agreements, etc.)

• Service agreements• Maintenance contracts• Larger orders that

have milestones• Standing orders• Open orders• Term supply contracts

that can’t go into an eProcurement catalog

• PAS – Orders over the direct buy limit

• ProCard

Summer2012

Sourcing System

Automate and streamline our sourcing process

•RFP (Request for Proposal)•RFI (Request for Information)•Reverse Auctions

• Manual Strategic Sourcing activities

Fall2012

To monitor the progress on these projects, see http://f2.washington.edu/fm/ps/procurement-project-pipeline/epro-extension-matrix

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NON-PO INVOICE

NOW LIVE!

BIG THANKS to the following departments for participating in our pilot program:

Pilot Participant Testimonial – Elliott Nutt, Disability Services

• APL• Biology• Disability Services• UW Medicine – SLU• School of Art• Humanities Shared Services• Dean of Arts and Sciences• Meany Hall Performing Arts• Family Medicine Residency Network• UW Medicine IT Services

NON-PO INVOICESTEPS TO GAIN ACCESS

3) ASTRA authorizations granted by Procurement Customer Support

Use of Non-PO Invoicing is possible approximately 2 days after completing knowledge assessment.

2) Pass an on-line knowledge assessment with 80% or better

1) Attend a training session – all users must be educated on the use of the system and best practices

Hands-on Webinar On-line PowerPoint

EREIMBURSEMENTFull Campus Release Feb 27th!

eReimbursements is a new module for reimbursing UW employees for expenditures made on behalf of the University up to $3500.

Thank you to our participants on the

eReimbursement team and to the 20+ departments who piloted it and gave feedback.

Payment available by direct deposit or check

Not for travel expenses or paying vendors

Identified on budget with prefix “XR”

Attach receipts to XR in Ariba and retain originals in department

$75 waiver for attaching receipts – depending on department policies

Check with your administrator before implementing

Department responsible for approving appropriateness of expenditures

Pre-loaded “Funding Approver” from eTravel

For more information, see: http://f2.washington.edu/fm/ps/xr-overview Questions? Contact payman@uw.edu or call 685-5377

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TOOLS & TEMPLATES

LIVE TODAY!!!

Procurement Services is pleased to announce 2 new work-process improvements:

• Sole Source Justification Statement eforms • PAS Document Attachment Webform

Benefits: Submit sole source justification statement eforms directly to procurement

services Submit PAS documents directly to procurement services Eliminates lost documents Eliminates duplication of efforts Eliminates lost time

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STRATEGIC SOURCING PROJECTS

• Campus-wide initiatives• Improved pricing and terms• Ease of use

Catering Hotels Event Rentals

Managed Print Services (copiers

/printers)A few of the projects currently underway

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SUSTAINABILITY

Paper Reduction - Compliance with HB 2287

- Only purchase 100% recycled copy paper- Reduce our consumption by 30%

- Upgrade your ‘clunker’ printer or fax machine- HP PurchasEdge program, a partnership with

Office Depot and HP- Duplex capable and energy efficient printers

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SUSTAINABILITY

Laserjet 4N Laserjet 4015DN

No duplex – 8 ppm 52 ppm – duplex - Energy Star

1200 KWH 571KWH1595 CO2e (lbs) 758 CO2e (lbs)

Take the catalyst survey to see whether your office qualifies:https://catalyst.uw.edu/catalyst/chooser/0f4c06593ca225d9074ec03f6d81bf6f

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SUSTAINABILITY

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SUSTAINABILITY

Get with the program! green.washington.edu/ess/engage/paper-conservation

Showcase your best practice!

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DIVERSE & SUSTAINABLE PURCHASING

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RESOURCES

The following slides are

for links for your own

reference.

We will not be speaking

to these items.

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WHAT WE’VE ACCOMPLISHED SINCE LAST TIME

(Jan 15 2012)

ProCard / CTA Online

Application • ASTRA Approval Flow• Track card applications / approvers online

http://f2.washington.edu/fm/ps/how-to-buy/procard/howtoapply#forms

(2009)

Online Supplier Registration

Portal• Allows us to capture critical information for various state and federal reporting requirements• http://f2.washington.edu/fm/ps/how-to-pay/department-responsibilities/supplier-registration

(2009)

Electronic Payment Methods:

• Payment Card (recommended electronic payment method): http://f2.washington.edu/fm/ps/epayables

• ACH (available for those suppliers who cannot accept the payment card, but there are costly disadvantages to the University) http://f2.washington.edu/fm/ps/payment-methods

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RESOURCES FOR QUICK REFERENCE

Contracts

• UW Contracts:Online search for active contracts, eProcurement contracts and search for small / diverse suppliershttp://f2.washington.edu/fm/ps/how-to-buy/contracts/uw-contracts

Watch this site for new contracts added frequently…. Multiple contracts with small / diverse companies

eForms

• Sole Source Justification formshttp://f2.washington.edu/fm/ps/how-to-buy/sole-source-justification

• Send PAS Attachments electronically from your computer http://f2.washington.edu/fm/ps/attachment

• Procard & CTA Applications are now Online http://f2.washington.edu/fm/ps/how-to-buy/procard/howtoapply#forms

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RESOURCES FOR QUICK REFERENCE

Available nowPDR

• Reports & Best Practices: http://f2.washington.edu/fm/ps/tools-for-reconciling/pdr Instructions on how to use the reports, locate a copy of an invoice, approve invoices over $10,000 and monitor high risk ProCard and Travel Card transactions (and more!)

Available nowNonPO Invoice

• NonPO Invoice http://f2.washington.edu/fm/ps/nonpo- Includes: Best Practices , Exception List, FAQs and Training Registration & Materials

Available to campus Feb 27eReimbursements

• eReimbursements http://f2.washington.edu/fm/ps/xr-overview- Includes an Overview, How to Create an eReimbursement, the Approval Process, Special Notes, Tips & Tricks and a FAQ section - eReimbursements is for reimbursing UW Employees

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Headline News

• State waives receipt requirement for purchases up to $75Go online to see how this can apply to you and what restrictions are in place:http://f2.washington.edu/fm/ps/sites/default/files/Mitigating%20guidelines%20for%20$75.pdf

• Reconciliation made Easier in MyFDThe Reconciliation Report has been enhanced to link UW-IT, Procard, Corporate Travel, Mailing Services and eProcurement transactions. To learn more, see http://myfd.washington.edu/help/reconcilation

• New System & New Training – Register SoonNon-PO invoicing provides user a a convenient means of making quick payments, as an alternative to ProCard and when the purchase is below the direct buy limit. Training and a passing grade is required to use this tool. Classes begin the week of Feb 20th. Register at http://f2.washington.edu/fm/ps/training-events/classroom-training#ePnonpo

RECENT HEADLINE NEWS

Newsletters

• Procurement Services Campus eNewsSign up to receive news flashes and periodic newsletters from Procurement Serviceshttps://mailman2.u.washington.edu/mailman/listinfo/procurementservicesnewsRead previous issues at

• Procurement PipelineKeep track of the status of the projects you heard about todayhttp://f2.washington.edu/fm/ps/Home/Procurement-Project-Pipeline

• eProcurement ExtensionsKeep up on the progress of the eProcurement Extensions you heard about today http://f2.washington.edu/fm/ps/procurement-project-pipeline/epro-extension-matrix

• MyFinancial.desktop News (MyFD)Subscribe to receive up to date information regarding MyFD at https://mailman1.u.washington.edu/mailman/listinfo/myfd_info Or read previous newsletters at http://f2.washington.edu/fm/myfd/myfdnews

• Environmental Stewardship and Sustainability Newsletter (ESS)Read the current ESS News at http://f2.washington.edu/ess/news

• Business Diversity Program (BDP)See the latest Business Diversity news at http://f2.washington.edu/bdp/news

HOW TO STAY INFORMED

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NEW REQUIREMENTS FOR ALL NEW SUPPLIERS

The Supplier Registration Portal is a web-based form for all new suppliers that do business with the University. This comprehensive form provides detailed information for various state and federal reporting requirements

All new suppliers are need to be sign up for an electronic payment methodPayments can be delayed if the supplier is not set up for electronic payment

.

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Electronic Payment Methods

Payment Card Benefits for the University

Cost savings Fewer checks to print and mail

Reduced exposure to check fraud

Time savings

Fewer calls for lost or misplaced checks

SustainabilityFewer check stock to purchase

The University of Washington's number one recommended payment method is by payment card.

ACH is available for those suppliers who cannot accept the payment card, but there are disadvantages to the University.