Procurement to Pay (P2P) Initiative March 2014 “Supporting and Enabling Strategic Sourcing”

Procure-to-Pay Shared Services Initiative Objectives I.Leverage the shared application and data structure of the CSU Common Financial System II.Improve the efficiency and effectiveness of processes to purchase and pay for goods and services Focus on Strategic Sourcing

Presidential Synergy Project Initiated to Evaluate Administrative Processes The Common Financial System Steering Committee (CFS Steering) is Reconvened to Support Effort December 2011 P2P Timeline

Focus on Strategic Sourcing CFS Steering Identifies Purchasing and Accounts Payable Processes for Consideration A Sub-committee is Established to Evaluate the Current and Potential Future State For Purchasing And Accounts Payable Within the CSU Report to Presidential Sponsors a Report Proposing The Procure-to-pay Initiative 2012 P2P Timeline

Focus on Strategic Sourcing Presidential Sponsors Discuss Report's Findings and Recommendations with the Chancellor, Campus Presidents, and Other CSU Stakeholders The Chancellor Approves Request for Proposal from Consultants to Assist with P2P Detailed Design and Project Validation/Return on Investment March 2013 P2P Timeline

Focus on Strategic Sourcing A New Simplified, Streamlined, and Automated Way to Purchase and Pay was Envisioned Implement a simplified and streamlined process approach across the university Enable strategic procurement Support movement to electronic invoicing and payments Provide metrics for managing services and promote continuous improvement

Procure-to-Pay Opportunities for Savings and Efficiencies Identified With full participation, and after complete implementation, the overall cost savings opportunity available to the CSU was conservatively estimated at $30 million per year. Focus on Strategic Sourcing Spending reductions through strategic sourcing integrated with shared e-Procurement catalogs $27.0 million Reduced or reallocated labor processing time by 10% by eliminating process steps and manual touch points $2.8 million Better cash management and reduced costs through electronic payments $1.0 million

Focus on Strategic Sourcing Proposals From Consultants Evaluated and a Firm has been Selected Reprioritizing Initiative's Focus “Strategically manage the cost of purchasing campus services and supplies through implementation of enabling agreements, processes and technologies” Consultant’s Scope of Work - TBD 2014 P2P Timeline $27.0 million $2.8 million $1.0 million

Implementing Strategic Sourcing Moving Forward Focus on Strategic Sourcing STRATEGIC SOURCING MUCH MORE TO COME $27.0 million REORGANIZATION DEEMPHASIZED $2.8 million PROGRESS BEING MADE – Payment Plus Implementation $1.0 million

Moving Forward Focus on Strategic Sourcing P2P Coordinating Activities (Ongoing) PeopleSoft CFS Upgrade to PeopleSoft 9.2 Mobile Application Installations Document Management Application Installation Travel Application Installation Business Intelligence Application Installation

Moving Forward Focus on Strategic Sourcing P2P Quick Wins (Now) Coordinate Campus Spend Analytics Collaborative Sourcing/Strategic Sourcing Expand Use of Electronic Payments Simplify and Streamline Processes i.e. Travel, Management of Credit Cards, etc.

Moving Forward Focus on Strategic Sourcing Redesign, Simplify and Streamline (In Phases) Establish Supporting Change Management Plan Evaluate Costs/Benefits of Preventive Internal Controls compared to Detective Reshape/Reframe Contracting Services and Procurement Policy and Procedures Assess Procurement Data Configuration and Operational Metrics Plan Implementation of E-Procurement Systems and Associated Catalogs

Focus on Strategic Sourcing