Transcript Purchasing and Paper Initiative Presentation.pptx

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Purchasing
Budget Hearings – Purchasing
Steve Shelley
March 21, 2013
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Purchasing
 Director of Purchasing
 Assistant Director
 Purchaser
 Purchaser (handles accounts payable)
 Purchasing Assistant (Acts as Procurement Card Administrator)
 Administrative Assistant
 Storekeeper
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Purchasing
MISSION STATEMENT
The mission of Purchasing is to assist the University
to obtain goods and services needed by faculty,
students, and staff, to spend the University’s money
wisely so that maximum value is obtained for its
limited financial resources.
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Purchasing
Requisitions/Purchase Orders
450
400
Average 240 per month
350
Purchase orders 2860 per year
300
250
200
150
100
1356 requisitions per year
50
Average 113 per month
0
Jan-12
Feb
Mar
Apr
May
Jun
Jul
Aug
Requisitions
Sep
Oct
Nov
Dec
Jan
Sep
Oct
Nov
Dec-13
Purchase/Change Orders
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Purchasing
Average processing time from Requisition to
Purchase Order is 1.55 days
We do not incorporate Requisitions that require bids
into this number
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Central Warehouse
Storekeeper
 Responsibilities
 Receives all materials shipped to MSU both physically and
prepares all reports electronically
 Shipments made by MSU (receives all shipments)
 Secures an inventory of ~$220,000 thru issues & receipts
 Stores and maintains equipment for all departments located on
campus
 Receives & stores all surplus equipment until disposed
 Makes deliveries to departments of received materials
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Central Warehouse
Note:
If your departments are buying the same supplies
repetitively with their procurement card, then
those materials could be inventoried in the central
warehouse with Purchasing buying for the best
value to the University (Save You Money!)
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HUB Data
 Stands for Historically Under-utilized Business
 Director of Purchasing acts as Campus HUB
Coordinator
 Purchasing, at minimum, solicits two (2) HUBS
for bidding purposes (if at all possible)
 Two reports to State each fiscal year
 Semi-annual
 Annual
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HUB Data
% Of Dollars Spent
#1 In State
$10,088,744
#1 In State
$20,244,948
90.00%
80.00%
% Of Dollars Spent
70.00%
$3,137,498
60.00%
$1,284,633
$1,304,353
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
FY2008
FY2009
FY2010
FY2011
FY2012
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HUB Data
• 2012 Goals
•
•
•
•
•
Heavy Construction 11.9%
Building Construction 26.10%
Special Trades Construction 57.2%
Professional Services 20%
Commodities 12.6%
2012 Actual
45.7%
61.2%
35.8%
100%
47.3%
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Procurement Card
200000
P-Card Dollars
180000
Avg. $147,000 per month
160000
140000
120000
100000
80000
60000
$1,764,000 per year
40000
192 Card Holders
20000
0
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2
3
4
5
6
7
8
9
10
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Months
FY12
FY13
Average
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Procurement Card
P-Card Transactions
1200
1000
Avg. 890 per month
800
600
FY12
FY13
Average
400
10,680 Transactions per year
200
100% audit each month
0
1
2
3
4
5
6
7
8
9
10
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Months
13
Contract Administration
Contract Repository
70
~360 Contracts to date
60
Average ~45 per month
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Contracts
40
30
20
10
0
Prior
Jul-12
Aug-12 Sep-12
Oct-12
Nov-12 Dec-12
Jan-13
Feb-13 Mar-13 Apr-13 May-13
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Contract Administration
Director of Purchasing is now over contract administration
 Work load has increased over 100% by creating the contract
administration office
 Two people in the purchasing office are handling the contract
administration duties
 The Director of Purchasing
 The Administrative Assistant
The purchasing office needs to add one additional
person to the department to be able to handle the
additional responsibilities.
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Paperless Initiative
Question:
How many sheets of copy paper are purchased each
year by Midwestern State University?
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Paperless Initiative
Question:
How many sheets of copy paper are purchased each
year by Midwestern State University?
Answer:
– >8,400,000 Sheets
• This does not take into consideration what the print shop
buys, or what is being purchased via the procurement
credit card.
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Paperless Initiative
Question:
How many dollars does MSU spend each year on toner
and ink cartridges for our printers?
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Paperless Initiative
Question:
How many dollars does MSU spend each year on toner
and ink cartridges for our printers?
Answer:
– > $75,000 per year
This does not include the copy machines located on
campus. This cost is built into your lease cost of the
copier.
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Paperless Initiative
Sample of current paperless transactions:
 Direct Deposits—21,000 Checks - NOT BEING PRINTED
 Hourly Time Sheets—7,600 copies - NOW ELECTRONIC
 Purchasing, Accounts Payable, Receiving, Purchase Orders
Change orders, Miscellaneous— >60,000 copies per year - NOW
SCANNED
 Student – related – NOW ELECTRONIC
 Billings - 25,000 electronic
 Refunds - 7,400 electronic
 Postage savings of $17,000 in student-related mailings
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Paperless Initiative
Opportunities:
 Acculog Software Registrar Office—Graduate & Undergraduate
Catalog
 Potential savings up to $40,000 per print
 Direct Pay Vouchers > 10,000
 Monthly Time Sheets > 7,000
 Budget Transfers > 800
 W-2’s and W-4’s > 2,500
 Employment Contracts > 4,000
 Notice of Employment > 3,000
 PTF’s > 10,000
 Routing Sheets & Contracts > 10,000
 Banner Approval Module for Requisitions > 6,000
 And many other opportunities throughout campus
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Paperless Initiative
Summarizing the requirements for a paperless initiative:
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Original form generated electronically and completed on-line
Automatic edits within system
Approvals are electronic
Routing is electronic
Once fully approved, information entered into system automatically
Any attachments can be scanned and follows record/form digitally
Repository for form/attachments are digital with easy viewing access
What would it take for MSU to create a paperless initiative?
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Paperless Initiative
Current Capabilities:
 Banner already has forms for timesheets, PTF’s, budget transfers,
requisitions, etc.
 Electronic approval and routing being used for hourly timesheets
 Document imaging currently being done in Admissions, Registrar,
Financial Aid and Purchasing
 Exploring the capabilities we currently are paying for and possess
within Banner system
 Cost may be minimal to expand use to other offices and areas
 Other campuses use for practically all administrative paperwork
and files
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Paperless Initiative
Digital Signatures:
 Digital signatures post a person’s secured scanned
signature onto an electronic or scanned document (such
as contracts)
 Would require additional software outside of Banner
 Software is compatible with Microsoft Word, Excel,
PDF & others
 Digital signature software costs are estimated to be
~$30,000 plus server, with payback less than one year
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Paperless Initiative
Suggested Next Steps:
 Support from senior administration
 Start a small working group
 Tackle a minor form (such as budget transfer)
 Work with one or two departments to beta test
 Pick the next form to target
 Roll-out to other departments via good communication,
training and support
 Target 1-2 years for most major forms to go electronic,
depending on resources and IT staffing availability
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Questions?
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