A presentation from UWA Finance and Resources Strategic Procurement Update –November 2009

 Update on PTP project activities to date  Procurement  Systems development  FNAS pilots  What’s to come in 2010 Introduction

The Journey so far - Results Customer Satisfaction Survey (March 2009)  Summary: University staff – Overall Average 97% satisfied with preferred suppliers performance (93 respondents) FNAS Feasibility Pilot  Phase 1: Completed 2008  Phase 2: In Progress 2009  3-way matching completed  Expense Management System – Start up imminent Preferred Supplier Agreements delivered $3.4m savings (YTD) up to 3 rd quarter 2009 Australian Universities Procurement Benchmarking Surveys  Strategic Procurement Function: UWA rated 6th highest performing above average (out of 17), delivering best value for money

PROCUREMENT TRANSFORMAITON PROGRAM

BULK INVOICING - PS & EXP MGT SYSTEM INVEST IN CORE PROCUREMENT FUNCTION PEOPLE & ORGANISATION EXECUTIVE SUPPORT & RISK MANAGEMENT STRATEGIC SOURCING (in waves) INVEST IN SYSTEM DEVELOPMENT STRATEGY & GOVERNANCE SUPPLIER RELATIONS TECHNOLOGY & PROCESS CENTRALISE PO STAFF AT SCH/FAC LEVEL POLICY, PROCEDURE & ACCOUNTABILITY MANAGE PREFERRED SUPPLIERS TRAIN PURCHASING STAFF MANDATE PREFERRED SUPPLIERS REDUCE SUPLIER BASE ELECTRONIC CATALOGUES ALL GOODS ORDERED ELECTRONICALLY PROCUREMENT LEADERSHIP FORECAST REALISTIC EXPENDITURE MAINSTREAM EDI PROCESS PHASE 1 PHASE 2 PHASE 3 PHASE 4 Where are we at with agreed Strategic Procurement Transformation?

PTP: Phase 1 (Foundation) SP Systems Development 11/8/08 – 04/12/09 15/9/08 – 16/06/09 2/6/08 – 22/01/10

University Procurement Design & Toolkits PMMS Consulting and Faculty Reference Groups: What did we achieve? Validation of the University’s existing Procurement Strategic Plan, including procurement framework and governance structure Organisation design for the central procurement function and a best practice Faculty model Developed prototype Tool kits for Central Procurement and Faculties PTP Board approved the University Design

New Preferred Supplier Agreements Awarded: 2008/2009 To October 2009 o Multi Functional Devices o Toner Cartridges (Laser Exchange and Corporate Express) o Medical consumables: Gloves and Sutures o Dental consumables (CUA implemented for products that are available) o Travel Emergency Assistance and Advisory Provider o Travel Management Consultant (re-appointed) o PostBill Pay (Australia Post) o Dairy (Milk) and Juice Products To March 2009 o Qantas o Office Supplies: Corporate Express agreement extended to Oct 2013 o Travel Agents: Agreements extended to March 2011 o Apple Macintosh: Winthrop and Next Byte o Singapore Accommodation o Perth Accommodation o Specialist Procurement Consultant (PMMS) o Bottled Water: Neverfail agreement extended to Feb 2010

Systems Development P2P Work Package (3 Way Matching)  Matching rules and tolerances developed  PeopleSoft 3 way matching configuration and testing completed  Business process re-design and better practice procedures developed  3 way matching pilot completed in School of Plant Biology (690 vouchers) AP PO Functionality Work Package  PeopleSoft accounts payable module reviewed and functionality assessed  PeopleSoft purchasing module reviewed and functionality assessed  Purchasing survey developed and training needs assessed  Purchasing training redeveloped to include new features and functions  Over 15 new processes and features have been adopted

Systems Development Expenses Management System (EMS)  Software configuration and modelling well advanced  MasterCard interface complete, file error management and correction processes established  MasterCard merchant codes configured and mapped to default account codes  Business process re-design and new procedure being finalised  Control and reconciliation processes being finalised  Unit Testing completed for acquittal process and GL interface transactions  Kick off pilot tasks with FNAS school of Animal Biology complete

10/15/2009Plant Biology Plant Biology: 3 Way Matching Pilot 11

10/15/2009Plant Biology WHY 3 WAY MATCHING? Improve efficiencies in purchasing Implement best practice processes Remove/ reduce paper and errors Encourage system changes 12

10/15/2009Plant Biology PROJECT STAGES Map Plant Biology purchasing process Compare to best practice process Gap Analysis PeopleSoft training Implement new processes, making changes to systems and workload allocation as suited 13

10/15/2009Plant Biology REVISED PROCESS IN PLANT BIOLOGY Request received Check if available via Preferred supplier Quotes before order PO over $20k signed off – Financial delegation Confirmation & Authorisation on quote received Place order (PeopleSoft on-line) Receipt on system Invoice vs. PO – variance 5% on anything under $400 or $20 on amounts above (revised) New create/amend Vendor process 14

10/15/2009Plant Biology IMPACT ON PLANT BIOLOGY Key changes to workflow were: Additional time upfront to obtain quotes Establishing appropriate segregation of purchasing function from receipting function Offset by the following key benefits Improved transactional processing locally and in FS Enriched functionality of PeopleSoft Improved control over non-salary expenditure Greatly improved create vendor process 15

10/15/2009Plant Biology NEXT STEPS IN FNAS 1.Extend 3 Way matching to other BU 2.Develop shared (X-Faculty) model for segregation of duties to separate purchasing from receipting 3.Explore opportunities to centralise purchasing by: –co-funding Purchasing Officer positions for multiple BU – with deliveries to multiple locations per PO advice –receipting done in the BU 16

What’s next to 2012  Finish PTP Phase 1 by March 2010  PTP Phase 2: University Implementation  Travel Approval/Requisition (Trobexis) Project