Procurement Services All Staff June 2011 Procurement Services All Staff for June 2011 Agenda

Let’s start with the Strategy Map…

Procurement Services Year in Review 31 contracts in eProcurement, representing $40M of annual spend and 150,000 transactions over 60% of our overall "addressable spend" covered by contracts Over $20M in university-wide contract savings and over $3M in one-off savings 650 suppliers accepting the BofA credit card, 1500 accepting ACH - #1 governmental card program on the west coast

Procurement Services Year in Review LEAN projects A/P Purchasing Supplier Registration Other projects Procurement desktop reports Employee expense reimbursement Contract Management System 14 department business reviews since the beginning of 2011 EAB and Hackett studies

Procurement Services Year in Review MyFD: Budget Worksheet (Released April 2010)  Approximately 200 users who are working with these reports Reconciliation Report (Released October 2010)  There are 552 users, as of today, who’ve used online reconciliation.  Reconciliation Status Report (Released February 2011) eFECS: Online Faculty Effort Certification Report (released July 2010) Approx 300 users.  The next release (online certification) will jump up to around 3000 users. Special Note: New / Revised Reconciliation Guidelines Significant effort went into creating a new/revised set of reconciliation guidelines. Several folks in Financial Accounting and Procurement Services were involved in shaping them. These were released to campus in February 2011. Fewer BAR / BSR Pages Being Printed There has been a 13% decrease in printed BAR/BSR pages since the same month last year: June 2010 31,713 pages printed June 2011 27,552 pages printed 4,161 fewer pages Some of the reduction can be attributed to the release of online reconciliation.

Our New Org Chart

Why do this? campus needs Better integration of strategic sourcing events Continued coordination throughout the entire purchase to pay process More visibility around UW-wide initiatives in the corporate responsibility area Improved intake process Speaker: Mark

Key Changes/Themes Core management team Intake team Improved integration across organization Ownership of entire process

Stretch Goals Intake Reduce PAS reqs by 50% Eliminate re-assignments Reduce suppliers from 5000 to 3000 in 12 months Project/Sourcing Reduce cycle times by 50% in 12 months Reduce process steps by 50% in 12 months Small dollar buying Transition small dollar transactions to Ariba within 18 months

Stretch Goals PCS Increase BoA suppliers by 50% in 12 months Eliminate paper checks to suppliers/employees in 12 months Increase eProcurement catalog spend by 100% within 12 months Improve response tracking and consistency Payables Invoices ready for payment within 10 days Log within 24 hours Process within 48 hours Resolve discrepancies within 5 days

How will we accomplish these goals?

Summer Roll-Outs June – August 2011 Supplier Registration (LEAN) Bank of America Phase II (Buyer Initiated Payment) Spend Compass: UW & Education Advisory Board Tools & Templates (LEAN) Solicitation Stratification (LEAN) Procurement Desktop Reports (PDR) Contract Visibility for Campus (CMS) Small Business Plans (LEAN) (use the "pipeline" as a basis for a couple slides on the "what's to come")...

Summer Roll-Outs Supplier Registration: Purpose & Impact: To streamline the process and reduce lost or misdirected information. To eliminate the paper based process of suppliers registering in the vendor database. Status: Online form near complete. Will do testing. Have done demonstration for Purchasing of the new form. Deliverable Date: End of June 2011 Bank of America Phase II (BIP): Purpose & Impact: Enroll all new suppliers to electronic payment option Status: On going. Expanding the project to Personal Services group Deliverable Date: June 2011 (use the "pipeline" as a basis for a couple slides on the "what's to come")...

Summer Roll-Outs Spend Compass: UW & Education Advisory Board Purpose & Impact: Use EAB Spend Compass tool to analyze spend and benchmark costs against peer institutions. Status: 4 pilot projects underway to determine utility of tool and expand use to more Procurement staff Deliverable Date: June - Aug 2011 (use the "pipeline" as a basis for a couple slides on the "what's to come")...

Summer Roll-Outs Tools & Templates (PS Lean): Purpose & Impact: To enhance customer ease & to decrease buyer wait time. Centralize web access for contract forms and information. Add web address on PAS Order Entry screens. Create standardized, user friendly sole source justification forms & instructions for customer usage. Improve % of electronic contract documents delivered to Pur-Entry. Establish ongoing list of additional forms & information. Status: SS forms completed; current vetting by users. Work order sent to PAS programmers. Separate database/Drupal forms in construction phase. Established ongoing list of additional forms & info (RFQ form already under construction!) Deliverable Date: July 2011 (use the "pipeline" as a basis for a couple slides on the "what's to come")...

Summer Roll-Outs UW Supplier Contracts Visibility (PS Lean): Purpose & Impact: Expand accessibility and improve usability of existing contracts. Expand the development of the PS Contract Management System for campus visibility using a web portal and an option for subscriptions in the future. Status: CMS has been created by Procurement Services IT and a web portal is in development Purchasing buyers are validating and importing contract data into CMS  Deliverable Date: July 2011 (use the "pipeline" as a basis for a couple slides on the "what's to come")...

Summer Roll-Outs Solicitation Stratification (PS Lean): Purpose & Impact: Improve Online Instructions for Informal/Formal. Solicitations To reduce rework in the solicitation process. To clarify roles in the process. To identify structural efficiencies. Update Procurement Services WebSite to stratify informal/formal solicitations to reduce rework in the solicitation process. To clarify roles in the process. To identify structural efficiencies that align with the new model.  Deliverable Date: July 2011 (use the "pipeline" as a basis for a couple slides on the "what's to come")...

Summer Roll-Outs Procurement Desktop Reports (PDR): Project Description: Develop financial management customer reports and easy online access for departments. Department Dashboard Report provides key performance indicators that include:        Supplier Spend by Purchasing Method Department Spend by Method Online Invoice Processing by Department PAS Spend with eProcurement Suppliers ProCard Spend with eProcurement Suppliers Missed ProCard Opportunities Department Diversity Spend AP Invoices Reports:  supplier invoice status      ProCard Audit Reports:  to assist in determining ProCard spend risks Corporate Travel Services Reports:  fiscal status for travel accounts Status: June 2011 Beta testing January 2012 phasing out the paper RIP and NonRIP notices Deliverable Date: July 2011 (use the "pipeline" as a basis for a couple slides on the "what's to come")...

Summer Roll-Outs Small Business Plans (Lean): Project Description: Work with process partners to identify and communicate the roles and responsibilities for the creation and reporting of Small Business Plans so each part of process is understood by those needing a SBP.  GIM 19                       Provide a policy for the SBP process, including roles and responsibilities Revised Instructions & Worksheet        Provide clarity on information needed to write a SBP   Deliverable Date: July 2011 (use the "pipeline" as a basis for a couple slides on the "what's to come")...