Research Administration Network

October 18, 2013

Overview 1. Procurement 101 Lite Version

Crystal Yu – Procurement Trainer, Procurement Services

2. New Online Advances & Expense Reports Course

Salimah Janmohamed – Communication & Training Officer, Finance Infrastructure & Support

3. Travel Management Program

Gloria Bachar – Travel Program Manager, Procurement Services

4. Questions

Procurement 101Lite Version

Crystal Yu – Procurement Trainer, Procurement Services

• Procurement Objectives

• McGill’s Procurement Cycle

• Payment Matrix

• MMP Roles & Responsibilities

• MMP Key Functions

• Procurement Website

• What’s coming…

• Questions

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Agenda

• Service unit

• Attain procurement excellence through customer-focusedservices and value-added strategies, while optimizing resources in support of the University’s Mission

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Procurement objectives

Procurement Cycle

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Procurement Cycle

Why use a Purchase Order?

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Why is it important to follow proper procurement cycle and obtain Purchase Order (PO)?

Contractual document: contains McGill’s Standard Terms and Conditions of purchase to protect the financial interests of the University

Once accepted by the vendor, the Purchase Order becomes a legally binding purchase agreement

The FOAPAL(s) implicated are encumbered for the total value to ensure funds are available at the time of invoice payment

Select Vendor(s)

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Where possible, priority should be given to contracted and preferred vendors, including internal University stores and services:

Higher assurance that the vendor is a legitimate entity with acceptable financial stability service

As a whole, the University can capture all purchasing data with a view to negotiate better terms of purchase now and in the future

Visit the Procurement Services website for a list of McGill Contracted and Preferred Vendors sorted by good/service

Best Practice of Payment Method

Finance Services Knowledge Base - Article # 4111: OVERVIEW of Procurement and Payment Methods

McGill MarketPlace

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The McGill MarketPlace (MMP) is an e-procurement system, a virtual shopping mall where users can view, compare and order products from various catalog vendors, as well as place non-catalog requisitions.

FOAPALs are used as methods of payment

Shopper

Access MMP to:- browse catalogs- add items to a cart- enter a delivery date to a cart- enter internal and vendor notes - add attachments- assign (i.e. forward) cart to a Requestor

All employees, students and casuals are automatically established as shoppers

MMP Roles & Responsibilities

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Financial Services KB - Article # 4033

Requestor

Access MMP to:- Create PRs from their own carts or carts assigned to them- Assign FOAPAL(s) for overall order, or by commodity- Assign shipping address- Submit PR (‘place order’) for approval

Automatic for Fund Financial Managers (FFM);

FFMs may sponsor other employees to be Requestors

Once a Requestor, they can place orders on any FOAPAL in any amount

Approver

Access Minerva Finance menu to:- Intercept and review purchase requisitions- Assess whether order is legitimate, reasonable and an appropriate use of fund(s)- ‘Approve’ or ‘Disapprove’ (with comments) an order

By default, the Approver is the FFM

The FFM may name one or more delegates and establish $$ limits fund by fund

Ordering - Roles & Responsibilities

Requisition is approved

locally & centrally

Approvers (FFM,

FFM’s delegates)

/ Fund Admin

Requisition Approval

Submit requisition

for approval

Requisition Submission

Requestor

Invoice received by A/P;

Payment issued to supplier

Payment

Supplier

Requestor

Accounts Payable

Auto PO for <$10K;

P.S. Buyer release

PO for >$10K

POIssuance

Auto Buyer /

P.S. Buyer

Change/Cancellation Request Form

Verify G & S received;

Invoice >$10K signed

by FFM

G & SReceived

Requestor

MMP Key Functions

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Copy old or rejected requisitions by 3 simply clicks:

Available Actions Copy to New Cart Go

MMP Key Functions cont’d

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Search orders by multiple parameters: requestor, date, supplier...

MMP Key Functions cont’d

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Search orders by multiple parameters (cont’d): FOAPAL elements

Tracking your order

https://www.mcgill.ca/procurement/mmp/tracking

• Track requisition status – Approval History

• View PO status

• Search for a Requisition / PO

• View a purchase related document

Order Modifications

• If Req is pending for approval disapprove req: http://www.mcgill.ca/procurement/mmp/tracking - Disapprove a pending requisition

• PO already issued confirm with vendor that order can be changed or cancelled

• Send request to Procurement Services:

• http://www.mcgill.ca/procurement/forms/cancellation

• http://www.mcgill.ca/procurement/forms/changeorder

• Feedback.purchasing@mcgill.ca

MMP – Current look

MMP –New Look Nov. 2013

Procurement Website

http://www.mcgill.ca/procurement/

PS website –most visited

• McGill Marketplace: How to, tips, trouble shoots http://www.mcgill.ca/procurement/mmp

• Our Supplier: contracted and preferred suppliershttp://www.mcgill.ca/procurement/supplier

• New Supplier Request Form: http://www.mcgill.ca/procurement/forms/new-supplier-request

• How to do Business with McGill: requirement, payment terms, invoice template http://www.mcgill.ca/procurement/howto/do-business-mcgill

PS Website: Hidden Treasure

• How to: http://www.mcgill.ca/procurement/howto

New Tools (work in progress)

Project Name Description Estimated Start

Contract Monitoring and Compliance Tool

Contract pricing repository, contract details and visibility through MMP.

F13 Q3

E-Settlement/e-Invoicing Automation of receipt and processing of conforming invoices/automatic rejection of non-conforming invoices

F14 Q1

Supplies Manager Standardization of the inventory management of various stores across campus (I.e. Chemical Store, Animal Resource Pharmacy, Chemistry stores) as well as supplier Biobars.

F14 Q1

Vendor Registration Management Tools

A self-serve tool that would allow suppliers to register and maintain their own information in MMP

F14 Q2

Change Order Integration Integration of change order between Banner and MMP, with a proper approval workflow.

F14 Q3

Proposed New Tools cont’d

Project Name

Asset RedistributionAsset Tracking (Life Cycle)Attachments integration between MMP & BannerAuto assignment of buyers to requisitionsAuto-Buy up to $25,000Commodity CodingContract Authorization ManagementIncoming Shipment ReportsMCS enablement on MMPMMP Order FormsProcurement Reporting ViewsSourcing ToolVendor Catalog EnablementWeb Surveys

Upcoming Courses (work in progress)

Procurement 101

• Procurement cycle, how to tips, day to day purchasing activities, etc.

Procurement 201

• Procurement policy, Public Tender procedures, evaluation methods, etc.

Sustainable Procurement

User Support

• Financial Services Knowledge Base

http://kb.mcgill.ca/fskb/Purchase & Payments > MMP

Who to contact and when – Article #3953

• Procurement Services http://www.mcgill.ca/procurement

feedback.purchasing@mcgill.ca

514.398.2840

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QUESTIONS?

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New Online Advances & Expense Reports Course

Salimah Janmohamed – Communication & Training Officer, Finance Infrastructure & Support

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Presentation to Research Network Administration

October 18, 2013

Gloria Bachar, Travel Program Manager, Procurement Services

McGill UniversityProcurement Services

30McGill UniversityProcurement Services

Confirmed as SRI (Strategic Reframing Initiative) project by Steering committee in Fall of 2011

Sponsored by office of V-P Di Grappa

Procurement Services mandated for the research/benchmarking

Program development in collaboration with Financial Services

McGill TMP - Consultative Approach

Internal Consultations, Benchmarking and Market Research

Advisory and Steering Committees

Risk Mitigation Committee

RFI (Request for Information) and Calls for Tender (CFT) for

each element prepared by Procurement Services

Benchmarking with other Universities

Market Research

One–on-One meetings with Deans of Faculties & Top Travelers

Faculty/Staff Survey Feb/March/April 2013

Focus Groups March to September 2013

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Here they are:

Travelers Administrators

Current Process

Hotels AirlinesRental Cars

Online booking sitesTravel Agencies

Cash Advances

Accounts Payable

University-wide adopted Travel Management Program

• improve customer service

• one stop shopping for all travel-related services = less time spent on

travel research and manual data entry

• process efficiencies (without restricting travelers’ choices)

• reduce advances and out of pocket expenses

• consolidate travel volume for tendering and contracted discounts

• compliance with the Act respecting contracting by public bodies -R.S.Q. c. C-65.1

• https://www.mcgill.ca/procurement/regulation/government/act

33McGill UniversityProcurement Services

1.Travel Management Company and Online Booking Tool

• save time due to one-stop shop

• access to market pricing, contracted prices and University regulations

2. A Travel Card Program – a two tier program

• a virtual travel credit card to pay for airline tickets at time of purchase

• individual travel credit cards issued to travelers to cover out-of-pocket

and on-the-road expenses – reducing cash advances

McGill TMP –Main elements with potential benefits based on industry standards

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3. End-to-end Integrated Booking and Expense Management System

• booking trip, preparing expense report, obtaining approvals (online)

• quicker turnaround time for payment

• minimize the manual handling of paper receipts

4. Mitigating travel risks

• develop guidelines, awareness programs

• provide the community with tools and best available practices

5. Expansion of Expense Reimbursement Regulations to include travel

• clear , consistent procedures for booking and payment choices

• easy access to information

McGill TMP – Main Elements with Potential Benefits based on industry standards

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Best practices approach to Travel Management: integrated, automated, cost effective

1 TMC or 1 Online Booking Tool

Book Trip

Online Approvals

Audit

PayTraveler

PaymentTake Trip

Virtual & individual Credit Cards

Complete Expense Report

Data Analysis

Reporting

Future Process

McGill UniversityProcurement Services

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Destination

Airline

Flight options

Hotel

Car Rental

Any TMC or OBT

TMC: Travel Management Company

OBT: Online Booking Tool

Today’s Choices Tomorrow’s choices

Destination

Airline

Flight options

Hotel

Car Rental

•One stop shop

•Customized Services

•Automated reconciliation of expenses

•Consolidation of spend /better pricing

McGill TMP – “As Is” vs. “Proposed” Process

McGill UniversityProcurement Services

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Questions and Feedback

Thank you!

Questions?