PROCUREMENT SERVICES WINTER FORUM 1

Today’s Agenda: eProcurement  New suppliers  What we’re working on Strategic Sourcing  Equipment maintenance program Record Retention Best Practices  Guest Speaker: Barbara Benson Tax Office Updates  3% Withholding / 1099 reporting updates  Tax Office Training Lean Projects  Purchasing  Copiers  Supplier Registration  Accounts Payable  Shared Services  BDP Small Business Plan Business Diversity Program Environmental Stewardship & Sustainability office Updates:  Security Update: SSNs on invoices  Travel Card Training & new restrictions  Biennium Close  Changes to Check mailing process  Procurement Desktop Reports  Benchmarking Supplier Spotlight  SLU 2

N EW E P ROCUREMENT S UPPLIERS eBioscience Inc. a manufacturer of antibodies, reagents and cytokines for the biotechnology, pharmaceutical and medical research community is now available in eProcurement. Agilent Technologies, Inc., a leading manufacturer and supplier of scientific test equipment, bio-analytical and electronic measurements tools, supplies and consumables, including Strategene products, is now available in eProcurement. Millipore is a Life Science leader providing cutting-edge technologies, tools, and services for bio science research and bio pharmaceutical manufacturing. Bio-Rad, is a punchout offering eInvoicing and custom quotes. The Bio-Rad catalog features real- time pricing, real-time inventory and backorder status with estimated shipping costs prior to checkout. Users can create “Hot Lists” to manage regularly ordered products and receive order acknowledgement s including a link to track delivery status. Office Depot Green Cart feature will help your office become “greener” by recommending an alternate item with “greener” attributes when one is available. 3

eProcurement What are we working on??? EnPointe Santa Cruz Computer Hardware Distributor for Lenovo Life Science 4

5  New contract available for scientific equipment maintenance  Specialty Underwriters – specialize in working with universities and hospitals  Typical Savings of 10-20%  Use the same suppliers you are currently using Coming Soon…

ProCard Reconciliation & Record Retention Myths & Misconceptions QuestionAnswer  If we don’t have transactions in a particular month, do we print out the ProCard transaction detail report?  Can we scan our paper invoices and then shred the paper?  Electronic receipt/invoices from merchants – Do we have to print the invoice or can we just save the electronic invoice on our computer/system?  No, printing a blank report is not required. However, users are advised to check with their department internal procedures.  No. You are welcome to scan your invoices, but right now you must still keep the original paper.  ProCard advises you to print invoices and attach them to the report for reconciliation. However, from a records management perspective if they are both electronic and you can tie them together—and there is no paper--you don’t have to print.

ProCard and Records Management  All records (both paper and electronic) have a specific amount of time they need to be kept before they can be destroyed. For state budgets, this records retention period can be found at: schedules/gs/general/uwgs6 schedules/gs/general/uwgs6  For grant/contract budgets it can be found at: schedules/gs/general/uwgs7 schedules/gs/general/uwgs7

Paper v. Electronic Records  If you receive an invoice or receipt in paper, it has to stay in paper to meet records retention requirements. It can be scanned, but the paper is still considered your official copy.  If you receive an invoice or receipt electronically, you can keep it electronically and do not need to print.  If you have a mixture of paper and electronic records, right now it is best to keep everything in paper to satisfy audit requirements. For your own reference use, you are welcome to scan the paper and refer to the electronic file.

Tax News for % Withholding  Governmental agencies must withhold 3% tax  Applies to payments over $10,000  Applies to payments for property or services  Bill to repeal has been introduced Expanded 1099 Reporting  1099 reporting will be required for all payments over $600  Will include payments to corporations (currently exempted from reporting)  Will include payments for goods, as well as services (currently only services)  Bill to repeal passed Senate 9

Tax Office Tax Office Starts 2011 Tax Training Series - WA Sales & Use Tax Overview – For more information and a link to the sign up page please see the Tax Training page.Tax Training page 10

Security Initiative: SSN Update from AP Since December we've been actively working on masking SSN's on "online" invoices and related paperwork. This is a very manual process and we may not always catch that information before sending to scanning. We're working on adding language to our website advising suppliers not to include their SSN's on their invoices and requesting departments to help us mask sensitive information on invoices before sending to AP. Our 1099 database is locked on the i-drive with restricted access to only a few individuals in AP and in IOM. The Issue:Personal SSNs are often listed on invoices Here is what AP is doing to mitigate that risk: 11

Travel Card Travel Card Training RESTRICT NON-TRAVEL RELATED MERCHANTS ON THE INDIVIDUAL TRAVEL CARD. Examples: Barber and Beauty Shops Dating and Escort Services Massage Parlors Health and Beauty Spas Personal Services Jewelry Stores Gambling establishments Travel Card Matrix /ps/sites/default/files/cts/fo rms/Travel%20Matrix.pdf

LEAN Project Updates » S HARED S ERVICES W HAT IS IT : Joint project with College of Arts and Sciences to create a Shared Services Center to consolidate transactional activities L ATEST U PDATE :  Project manager is on board  Fiscal Specialist 2 positions will be hired  Office space established 13

LEAN Project Updates D ELEGATION OF A UTHORITY S OLICITATION S TRATIFICATION P AY VS. B UY C ONTRACT ACCESSIBILITY T OOLS AND T EMPLATES Goals R EDUCE TRANSACTIONS BY 80% R EDUCE PROCESS STEPS BY 50% I NCREASE CUSTOMER SATISFACTION I NCREASE CONTRACT UTILIZATION TO 100% » P ROCUREMENT E XPRESS : Kaizens 14

LEAN Project Updates » S UPPLIER R EGISTRATION P ORTAL  Wave 1: target completion May  Will allow suppliers to submit their information via one method (online)  Benefits:  cutting out redundancy and variation in the delivery process,  ensuring strict version control, and finally,  eliminating majority of manual data input in the process.  This first wave will allow us to cut down 55 steps in the present day process and dramatically reduce the turnaround timeline for the supplier registration process. 15

LEAN Project Updates : Copiers  Clean up existing orders/invoices issues  Select suppliers for assessment/pilot project  Select Departments for pilot Goals R EDUCE EQUIPMENT BY 25% R EDUCE PAPER USE BY 30% R EDUCE COST TO UW BY 25% R EDUCE INVOICE DISCREPANCIES BY 75% R EDUCE ENERGY USE OF COPIERS AND PRINTERS BY 50% Kaizens 16

LEAN Project Updates » AP P RODUCTION L INE KAIZEN : FOCUSED ON STREAMLINING AP PROCESSES FOR INVOICES PROCESSED ON PAS PO’ S  AP will be transitioning into the old Travel space in February to pilot the “Production Line” kaizen  Looking at streaming how copies of invoices are sent to campus  Looking at increasing the threshold for NonRIP invoices » AP STAR TEAM KAIZEN : FOCUSING ON PREVENTING & RESOLVING INVOICE DISCREPANCIES  Working on Single Point of Contact (SPOC) for AP and Purchasing to review and resolve most discrepancies 17

LEAN Project: Small Business Subcontracting Plans These plans are required for all federal contracts over $650,000 Requires goals for spending a portion of contract funds with small businesses owned and controlled by socially and economically disadvantaged individuals The goal is to create a more efficient and transparent process for creating and reporting on the small business subcontracting plans Any department that has large federal contracts is encouraged to provide input 18

19 Small Businesses in eProcurement A. Daigger Excel Gloves & Safety Supplies* ISC Bioexpress Lab Equipment & Supplies Bioline eBioscience Fermentas Reagents Complete Office Keeney’s Office Plus* Office Supplies Arnold Dental Supply Troxell Communications Other

20 Diverse Supplier Search

UW Paper Conservation Committee Paper Conservation Committee was formed in January 2010 and is sponsored by UW Finance and Facilities, and the UW Environmental Stewardship and Sustainability office Committee members include representation from the following:  UWMC Materials Management & HMC Purchasing  UW Procurement Services  UW Recycling & Solid Waste  UW Creative Communications  UW & UW Medicine IT Services  UW Bothell - Facility Services & Physical Plant  UW Tacoma - Finance & Administration  UW Faculty  UW Educational Outreach 21

UW Paper Conservation Program Website:  Profiles In Green Check out best practices on paper reduction from members of the UW community.  Beverly Anderson, School of Forest Resources Beverly Anderson  Kevin Steenis, UWIT Kevin Steenis  Howard Chizeck, Professor, Department of Electrical Engineering Howard Chizeck  UW Professional & Continuing Education UWEO UW Professional & Continuing Education  Contact Us If you have ideas or best practices, contact us at 22

Questions or comments? Environmental Stewardship and Sustainability Office Phone: (206)

Checks ~ Effective February 15th ~ Distribution of paper checks for suppliers & travel reimbursements will begin its transition to Creative Communications. This change will be seamless to campus. ~ Phase 2 ~ Phase 2 will transfer the process of sorting, separating, and handling all vendor checks and travel reimbursements to Mailing Services. Impact to campus:  There will be a location change for payment-check pick-up.  No special requests will be allowed after a check has been issued The implementation timeline is dependent on programming requirements. As we get closer to a date for implementation, we will notify you of the date. 24

Procurement Desktop Reports Prioritize & flesh out some report specifications March 2011 Beta Testing April 2011 Target delivery for reports to campus users Starting Point: 35 reports 25

Biennium Close Biennium Close Cut-Off Dates are now online  March 31st = recommended deadline for Large Ticket Purchase Orders  See for more informationhttp://f2.washington.edu/fm/ps/bienniumclose How will we communicate the deadlines with you? - Procurement Services “What’s New” on the Web (link)link - Procurement Services eNews (link)link - Monthly Biennium Close eNewsletters (in development) - PAS Flashes - FM Newsletters (link)link - MyFinancial.desktop news (link)link Are you new to Biennium Close? - Check out the online Biennium Close Awareness Training on the Procurement Services Website (in development) 26

UW Benchmarking Cost Study is Underway System-wide Benchmarking Cost Study Project  Increase process standardization & automation  Prioritize improvement initiatives by focusing on:  11 procurement process groups  4 finance processes  Requires collection of data on:  Staffing levels  Workloads  Transaction volumes  Quality indicators  Cost drivers  Planning started in November 2010  Project completion in late Spring

Proprietary & Confidential University of Washington March 29th, 2011

Proprietary & Confidential Your Local VWR Contacts: Sales Representative: Rose Long-O'Donnell Cell: UW Customer Service: University Team Phone: Region Manager: Sarah Barna Cell: Area Vice President: Kathy Pankanin Cell: Life Science Specialist: Marianne Zollman Visit the VWR Life Science webpage: VWR Life Science VWR Life Science Furniture Specialist: Brad Johnson Visit the VWR Furniture webpage: VWR FurnitureVWR Furniture

Proprietary & Confidential VWR Lab Supplies, Equipment, Chemicals Agreement A Primary Supplier Agreement with Univ of WA Free Freight No Hazardous Charges No Ice Fees No Fuel Surcharges Discounted Pricing on Most Items, Saving you $$ No Hassle Return Policy, No Restock Fee on Standard Items UW Contract Number: CNR 01163

Proprietary & Confidential Over 2 Million sq ft. of Warehouse Space 7 Major Regional Distribution Centers 7 Focused Service Centers Multiple Just-in-Time Locations 5 Customer Service Centers Creating Value: Distribution & Supply Chain Expertise North American Operations Edmonton Portland Brisbane San Dimas Phoenix Juarez Houston Guadalajara Mexico City Denver Suwanee Eagan Batavia Bridgeport Franklin Rochester Buffalo Toronto, ON Right choice, Right mix, Right time 99.88% Fill Rate Accuracy Next Day or 2nd Day Delivery Available

Proprietary & Confidential 265,000 SF RDC 100 Whse Associates $25MM Inventory 19,000 Items in Stock 24/7 Availability ISO 9002 Certified Daily Volume  Trucks Received 15  Pieces Shipped7,900  Items Received1,500  Lines Shipped4,500  Orders Shipped2,200 Brisbane, Ca RDC Operational Excellence ** Moving facility in 2012 to 500,000 SF RDC**

Proprietary & Confidential Creating Value: The Power of Choice Diversified Product Mix to Meet Your Diversified Needs

Proprietary & Confidential Products Available from VWR…. FREE FREIGHT and NO Hazardous or Ice Fees

Proprietary & Confidential Life Science Suppliers Available from VWR…. FREE FREIGHT and NO Hazardous or Ice Fees

Proprietary & Confidential VWR Brand Items & Additional Services Made by quality suppliers for VWR Provides BEST Value Option to Save Your Lab the Most $$

Proprietary & Confidential eProcurement and VWR Easy-to-Use Website via eProcurement – VWR.com Helpful Ordering Tools: Product Cross-Referencing Searching Hot Lists Custom Catalogs Real time pricing & availability

Proprietary & Confidential Tabbed Content Redesigned Product Pages – Now Live! VWR Confidential Sustainability Icons

Proprietary & Confidential Brochures, Collateral, etc. Multiple Images Icons for Key Attributes Redesigned Product Pages – Now Live! VWR Confidential

Proprietary & Confidential Click-to-Chat – Now Live on VWR.com US CSR Support online Technical Product Assistance Website Tech Support Available M-F, 8:30AM to 7PM EST (8 PM on 3/14 DST) Places Available: VWR Collection product pages Order Status Shopping Basket Checkout, etc. New Investments – VWR.com VWR Confidential

Proprietary & Confidential Sustainability Sustainable Products & Promotions