Procurement Services Forum Winter 2012 AGENDA FOR THE DAY Procurement Services Today eReimbursements Cost Study Benchmarking Tools & Templates eProcurement Strategic Sourcing NonPO Invoice Sustainable and Diverse Purchasing Information Resources.
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Procurement Services Forum Winter 2012 AGENDA FOR THE DAY Procurement Services Today eReimbursements Cost Study Benchmarking Tools & Templates eProcurement Strategic Sourcing NonPO Invoice Sustainable and Diverse Purchasing Information Resources 2 Our Mission Our Vision Our Services We help people who change the world through collaboration, consultation and financial stewardship We are a dynamic organization that anticipates emerging needs and delivers exceptional service anywhere, anytime • • • • • • • • • Tools we Provide Public and Private Sector Best Practices • • • • • • Grow eProcurement Solutions Purchasing Strategic Sourcing Contracting Accounts Payable Procard Procurement Customer Service Communications, Outreach & Training Green & Sustainable Purchasing Small & Diverse Supplier Awareness • 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) Procurement Desktop Reports eProcurement eReimbursements NonPO Invoice Online Credit Card Application 3 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 Group Overall procurement costs as a percent of spend are significantly higher than peer group, driven primarily by FTE 4% 0.3% 0.4% Other Technology 3.3% 0.8% 0.6% 0.1% 0.1% UW Labor 0.1% 0.1% 0.6% 0.5% Peer Group World-Class Comparison to U of Michigan University of Michigan has larger spend ($2B vs. $1B) yet fewer noncentral FTE involved in procurement function 4% 0.3% 0.4% Other Technology 3.3% Labor 0.9% 0.2% 0.2% UW 0.8% 0.1% 0.1% 0.5% 0.6% UM Peer Group Components of Procurement Costs As a Percentage of Spend 3.47% Campus Units Outsourcing Purchasing Technology Central Procurement 2.99% 0.91% 0.45% 0.15% 0.32% UW 0.31% UM 0.01% 0.16% eProcurement Before we thought of eProcurement as just catalogs… As we progress… eProcurement will grow with more modules NonPO Invoice eReimbursements Non Catalog Ordering eProcurement Catalogs Contract Compliance Sourcing System EPROCUREMENT Module Purpose & Impact eReimbursements NonPO Invoice Non Catalog Ordering EXTENSION MATRIX Types of Transactions Purchasing or Payment Method Being Replaced eReimbursements provides an electronic mechanism for submitting reimbursements to employees • Check Requests • Petty Cash • Revolving Fund Accounts • Manual Check Request process 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 •Orders for suppliers that don’t have eProcurement catalogs NOTE: Orders >$5,000 will route to a Buyer • PAS – Orders over the direct buy limit Allow users to create a Non-Catalog order within eProcurement when a supplier requires a PO. • ProCard • ProCard To monitor the progress on these projects, see http://f2.washington.edu/fm/ps/procurement-project-pipeline/epro-extension-matrix Launch Date Feb 2012 Feb 2012 Spring 2012 EPROCUREMENT EXTENSION MATRIX Module Purpose & Impact Types of Transactions Purchasing or Payment Method Being Replaced 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 Automate and streamline our sourcing process •RFP (Request for Proposal) •RFI (Request for Information) •Reverse Auctions • Manual Strategic Sourcing activities Sourcing System Launch Date • ProCard Summer 2012 To monitor the progress on these projects, see http://f2.washington.edu/fm/ps/procurement-project-pipeline/epro-extension-matrix Fall 2012 NON-PO INVOICE NOW LIVE! BIG THANKS to the following departments for participating in our pilot program: • • • • • • • • • • 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 Pilot Participant Testimonial – Elliott Nutt, Disability Services 11 NON-PO INVOICE STEPS TO GAIN ACCESS 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 2) Pass an on-line knowledge assessment with 80% or better 3) ASTRA authorizations granted by Procurement Customer Support Use of Non-PO Invoicing is possible approximately 2 days after completing knowledge assessment. EREIMBURSEMENT Full Campus Release Feb 27th! eReimbursements is a new module for reimbursing UW employees for expenditures made on behalf of the University up to $3500. Payment available by direct deposit or check $75 waiver for attaching receipts – depending on department policies Not for travel expenses or paying vendors Check with your administrator before implementing Identified on budget with prefix “XR” Attach receipts to XR in Ariba and retain originals in department For more information, see: http://f2.washington.edu/fm/ps/xr-overview Questions? Contact [email protected] or call 685-5377 Department responsible for approving appropriateness of expenditures Pre-loaded “Funding Approver” from eTravel Thank you to our participants on the eReimbursement team and to the 20+ departments who piloted it and gave feedback. 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 14 STRATEGIC SOURCING PROJECTS • • • Campus-wide initiatives Improved pricing and terms Ease of use Catering Hotels Event Rentals A few of the projects currently underway 15 Managed Print Services (copiers /printers) 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 16 SUSTAINABILITY Laserjet 4N Laserjet 4015DN No duplex – 8 ppm 52 ppm – duplex - Energy Star 1200 KWH 1595 CO2e (lbs) 571KWH 758 CO2e (lbs) Take the catalyst survey to see whether your office qualifies: https://catalyst.uw.edu/catalyst/chooser/0f4c06593ca225d9074ec03f6d81bf6f 17 SUSTAINABILITY 18 SUSTAINABILITY Get with the program! green.washington.edu/ess/engage/paper-conservation Showcase your best practice! 19 DIVERSE & SUSTAINABLE PURCHASING Socially Responsible Purchasing Local Green/Sustainable Diverse Where to Find Suppliers Procurement Services UW Contracts Search eProcurement Business Diversity Program Supplier Search Who to Contact Office of Environmental Stewardship & Sustainability Business Diversity Program 20 Claudia Christensen RESOURCES The following slides are for links for your own reference. We will not be speaking to these items. 21 WHAT WE’VE ACCOMPLISHED SINCE LAST TIME ProCard / CTA Online Application (Jan 15 2012) • ASTRA Approval Flow • Track card applications / approvers online http://f2.washington.edu/fm/ps/how-to-buy/procard/howtoapply#forms Online Supplier Registration Portal (2009) • 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 Electronic Payment Methods: (2009) • 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 22 RESOURCES FOR QUICK REFERENCE Contracts • UW Contracts: Online search for active contracts, eProcurement contracts and search for small / diverse suppliers http://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 forms http://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 23 RESOURCES FOR QUICK REFERENCE PDR Available now • 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!) NonPO Invoice Available now • NonPO Invoice http://f2.washington.edu/fm/ps/nonpo - Includes: Best Practices , Exception List, FAQs and Training Registration & Materials eReimbursements Available to campus Feb 27 • 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 24 RECENT HEADLINE NEWS Headline News • State waives receipt requirement for purchases up to $75 Go online to see how this can apply to you and what restrictions are in place: http://f2.washington.edu/fm/ps/sites/default/files/Mitigating%20guidelines%20for%20$ 75.pdf • Reconciliation made Easier in MyFD The 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 Soon Non-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 25 HOW TO STAY INFORMED Newsletters • Procurement Services Campus eNews Sign up to receive news flashes and periodic newsletters from Procurement Services https://mailman2.u.washington.edu/mailman/listinfo/procurementservicesnews Read previous issues at • Procurement Pipeline Keep track of the status of the projects you heard about today http://f2.washington.edu/fm/ps/Home/Procurement-Project-Pipeline • eProcurement Extensions Keep 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 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 method Payments can be delayed if the supplier is not set up for electronic payment 27 Electronic Payment Methods ACH is available for those suppliers who cannot accept the payment card, but there are disadvantages to the University. The University of Washington's number one recommended payment method is by payment card. Payment Card Benefits for the University ACH is an option… but has weighty disadvantages Cost savings Fewer checks to print and mail Disadvantage: Costs the University money to process Reduced exposure to check fraud Disadvantage: Initial set up may take from 5-10 business days Time savings Fewer calls for lost or misplaced checks Sustainability Fewer check stock to purchase 28