Transcript Avoid Holding Patterns: Hold Resolution Utilizing Imaging

eProcurement at the
University of Pennsylvania
SciQuest “Find, Buy & Manage” Seminar
Princeton, New Jersey
October 23, 2003
Presentation Agenda
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About Procurement at Penn
eProcurement Business Objectives
Phase I Key Accomplishments
Phase II Business Objectives
Critical Success Factors
Conclusion
Contact Information
Q&A
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About Procurement at Penn
• Delegated buying environment - 1,900
purchasing system users creating requisitions
at the point-of-demand and approving orders
<$5,000
• Oracle Financials - Oracle Release 11i
Purchasing, Payables & General Ledger with
iProcurement electronic requisition
• Penn Marketplace - Penn’s private supplier
exchange launched in January 2002 for most
commonly order products and services
• Annual Purchase Volume - 275,000
transactions & $700M in spend
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eProcurement Business Objectives
• Make purchasing easy - increase customer
satisfaction, compliance and utilization by
reducing time & effort related to buying
activities
• Focus on core competencies - enable
purchasing staff to focus on customer and
supplier relationship management, contract
negotiations, sourcing, and cost saving
opportunities
• Leverage technology for ROI - implement
technology to achieve process efficiencies by
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reducing effort, cycle time, and costs
Phase I Key Accomplishments
• Efficiencies - 92% of all purchase orders
created, approved, and electronically
transmitted to suppliers in less than one
hour
• Utilization - 54% of purchase orders issued
to the 32 Penn Marketplace suppliers
(25,000+ in supplier database) and 42% of
invoices received via EDI
• Cost Savings - $67 Million in documented
hard dollar product & service cost savings
• Compliance - 78% reduction in maverick
buying
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Phase II Business Objectives
• Enhanced Penn Marketplace - implement
SciQuest hosted Penn Marketplace on
January 5, 2004
• Supplier Enablement - increase supplier
and content enablement to approximately
75 suppliers and over 3M SKUs
• Utilization - increase utilization rates to
70% of transactions & 50% for EDI invoices
• Customer Satisfaction - introduce new
functionality at the point-of-demand to
further streamline the buying process
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Critical Success Factors
• Strategic Business Partner - utilization of
SciQuest’s Spend Director product, supplier
and content enablement capabilities
• Supplier Participation - further promote
eProcurement as a competitive advantage for
suppliers resulting in the opportunity for a
significant increase in market share
• Content Enablement - offer customers a
combination of third party hosted content and
punch-out to key contract supplier web sites
• Content Management - enhance buyer and
supplier collaboration for management of
Penn specific content & contract pricing
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Strategic Business Partner
• Implementation of SciQuest’s Spend
Director product provides new and
enhanced functionality
• Individual & Corporate favorite lists
• Quick order functionality
• Robust search capability
• Online configuration and searching for
researchers
• Ability to “private label” site presentation
and terminology
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Supplier Participation
• Competitive advantage for Penn
Marketplace suppliers
• Participating suppliers enjoyed a 16 to
42% increase in business in 2002
• Product exposure to all buyers within
Penn
• Effective platform for internal web based
marketing of new products and
promotions
• Positions minority-owned and small
businesses on a level plying field with
major suppliers
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Content Enablement
• Opportunity for Penn to significantly
increase product & service offerings
• Hosted content for low turnover product
catalogs
• Punch-out to configurable suppliers &
high volume – high turnover product
catalogs
• Line item attributes for “preferred
product”, “supplier diversity” and “green
products”
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Content Management
• Streamlined process for managing
supplier content
• SciQuest provides web based
administrative tools for reviewing &
approving new supplier content
• Quicker approval of changes to existing
supplier content
• Helps ensure compliance with terms of
supplier pricing agreement
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Conclusion
• At Penn, the successful adoption of
eProcurement & significant ROI has
been realized by the….
• campus wide utilization of eProcurement
buying tools
• increased customer satisfaction with
redesigned business processes and
recommend suppliers
• reallocation of central resources to value
added activities
• success of strategic supply chain and
cost savings initiatives
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Contact Information
• Ralph Maier
Associate Director, Purchasing Services
University of Pennsylvania
• Phone: (215) 898-1452
• E-Mail:
[email protected]
• Internet:
www.purchasing.upenn.edu
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