Business Day 2011 October 27th Purchasing Overview Business Day 2011 October 27th

Our Mission Procurement Services provides exceptional customer service, knowledge and expertise for the purchase, payment, and inventory of goods and services to the University community, as well as suppliers and related fiscal/regulatory agencies.  We pursue the University’s 2020 mission with teamwork, progressiveness, professionalism and respect.

Our Goals Teams are effective and supportive of one another Communication is effective Professional atmosphere is evident Customer Service standards are defined and implemented Best practices are used and recognized

What we will be talking about today Who we are What we do How we do it How can we help you?

INTRODUCTION Technology Cost Staffing How it has changed our processes Paper and electronic Expectations Technology Processing PO and Payments is over $100 per transaction Time and effort Cost Continual decline throughout Campus New pressures for everyone Staffing

Transaction Breakdown STATISTICS – 7/1/10 – 6/30/11 For all Funding Sources 26,935 eReq’s Total Under $500 - 14,868 eReq’s (55.2%) Under $2500 – 21,904 eReq’s (81.30%) Transaction Breakdown Approximately 8,500 Speed Orders

ALLOWABILITY Who is Authorized? What is Allowable?

WHO IS AUTHORIZED? Only Individuals authorized by the President are allowed to commit University Resources How does this relate to Purchasing? Appropriate Methods of Purchase

WHAT IS ALLOWABLE? Grant-Specific for Research Foundation State Funds are Provided by Taxpayer Dollars Recruitment Retention Fund Raising

State Research Foundation UB Foundation Funding Sources State Research Foundation UB Foundation

GUIDELINES Thresholds Reasonableness of Price Split Ordering 1 Year Period, not calendar or fiscal Higher dollar, longer process time Reasonableness of Price Always a consideration Requirements Increase as Dollars Increase

Sole Source GUIDELINES (cont’d) - No Other Source - Unique Abilities or Requirements - Need Reasonableness of Cost - Detailed Justification for Sole source

New York State Initiatives GUIDELINES (cont’d) New York State Initiatives Multiple Priorities - MWBE – 28% Goals (www.nylovesmwbe.ny.gov) - Preferred Sources - Small Business - Green Initiatives

Procurement Major initiatives Streamline processes Expand PCard usage eProcurement Online ordering Value added service Leverage Technology Improve communication Developing Supplier relationships Target cost savings opportunities Competitive Bidding Strategic sourcing

eReq

What is eReq eReq stands for electronic Requisitioning Allows initiators to create and route to departmental fund approvers Upon approval, the eReq is routed to purchasing for processing eReqs are assigned to buyers based on commodities Available for all 3 funding sources

Who can use it? Access to create an eReq is granted to all employees State and UBF – Approver authorization for State and UBF accounts is established by submitting an eReq approver Authorization form Research Foundation Approver for RF accounts is granted by the PI on the account through the RF Delegate System For training on the eReq system, Contact: Beth Fenush Direct: 645-4504 fenush@buffalo.edu Sandy McMullen Direct: 645-4554 mcmullen@buffalo.edu

When to Submit eReq eReq should be used when other methods such as PCard, speed orders of eProcurement are not appropriate University representative must sign contract or agreement Maintenance agreements Establish blanket order Purchase exceeds $2500

Other eReq info Ereq Purchase Orders do not interface directly with suppliers. Submission of eReq is done by the buyer via, email, fax, or mail eReq is used to order from Suppliers ONLY. Individuals cannot be paid on eReq All suppliers must be in the UB supplier file(UBSF). A W-9 is required to be filled out by the supplier to add them to UBSF. Processing time for new suppliers may take longer for new suppliers.

Speed Orders The Speed Order is an optional method of procurement used by departments to place orders using State funds for $1500 or less for materials, supplies and services from local or non-local vendors. The order may be picked up or shipped direct to the using Department. When there is a need to delegate authority. When a PCard is not possible. 20

Confirming receipt of goods or services Receiving: A “Receiver” is an acknowledgement to Accounts Payable that goods and/or services on a Purchase Order have been received in good condition and payment is authorized. Automatic receiving policy If invoice is under $1,500 (except furniture and carpeting) no receiver is required. Departments must notify AP immediately if goods are received damaged or if there is a discrepancy with order.

Receivers Continued Receipt confirmation Invoices over $1,500 require receipt notification. State Utilize web receiver process at ubbusiness.buffalo.edu Quick link for Web receivers Research Foundation and UB Foundation (UBF) Email or hard copy required Web receiver coming soon Always send invoice received in Department to the representative in Accounts Payable

Inventory Services The University is required to record and maintain information regarding equipment with original value of greater than $5,000 or defined by the sponsor. Inventory Services sends form to department Inventory coordinator when equipment is purchased, must be returned as soon as equipment is received. Departments are responsible to provide timely and accurate information to Inventory services when requested. Yearly inventory is sent and must be reviewed and returned.

PCard

What is the Procurement Card? The PCard is the University’s preferred method to purchase authorized items up to $2500 using RF and State funds University Liability credit card assigned to individuals Non-travel business-related expenses State funds – Citibank Visa Research Foundation funds – American Express Programmed to a specific state or RF account 2010/2011 – 665 cardholders $12.2M in spend with 42,175 transactions vs. 26,835 eReqs

Why Is The PCard Preferred? To save money: On average, each PCard transaction results in a $70 savings in administrative processing costs, PO $100 vs. PCard $30 cost. $25 item ends up costing $125 including the processing costs. To save time: Efficient– streamlines both purchasing and payment; it reduces processing time by at least 6-7 days To create flexibility and convenience: Enables cardholders to make authorized purchases directly from supplier – no need to go through Purchasing – no eReq

What Can I Buy with the PCard? Internet purchases, online ordering Registration fees for conferences Seminars, memberships, subscriptions Supplies –office, computer, scientific Equipment and one-time repairs Copying, printing Advertising State contract vendors, eProcurement suppliers Justified food purchases On campus at UB Micro, UB Bookstore, Print Services, Great Lakes Graphics ALL PURCHASES MUST BE ALLOWABLE ON THE ACCOUNT

We look forward to working with you! Who Should I Contact? Procurement Card Administration, 224 Crofts Hall, 645-2676 University Business Services webpage: www.ubbusiness.buffalo.edu Angie Rzeszut, CPCP rzeszut@buffalo.edu Procurement Card Program Administrator Kathy Brown brownk@buffalo.edu Procurement Card Coordinator Debbie Kostran dkostran@buffalo.edu Mary Kvetkosky mfk3@buffalo.edu We look forward to working with you!

eProcurement

Staples UPS VWR

Benefits of eProcurement Streamlines purchasing and payment process User friendly portals to order commonly required products and specific services Approval process/Administrative function Increased order accuracy View NYS Contract rates Quicker delivery Easy access to tracking status history and email notification No need for eReqs or Speed Orders Can allocate expenditures using all funds Consolidated billing

What can you do now?

Get Started Now Contact Purchasing early in the Purchasing process Allow sufficient processing time Don’t make everything URGENT Request W-9 if the supplier is new

Get Started Now Ensure PCardholder is assigned to your unit along with a backup Assign card to individual who does the Purchasing – not the Department Head or Chair Establish eProcurement accounts if applicable Review last year’s activity and plan ahead Establish Blanket Orders Consolidate Orders

Thank you for attending Business Day Questions? Thank you for attending Business Day