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

2. 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.

3. 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

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

5. 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

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

7. ALLOWABILITY
Who is Authorized?
What is Allowable?

8. 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

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

10. State Research Foundation UB Foundation
Funding Sources
State Research Foundation UB Foundation

11. 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

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

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

14. 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

15. eReq

16. 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

17. 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:
Sandy McMullen
Direct:

18. 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

19. Other eReq info
Ereq Purchase Orders do not interface directly with suppliers. Submission of eReq is done by the buyer via, , 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.

20. 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

21. 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.

22. 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)
or hard copy required
Web receiver coming soon
Always send invoice received in Department to the representative in Accounts Payable

23. 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.

24. PCard

25. 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

26. 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

27. 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

28. We look forward to working with you!
Who Should I Contact?
Procurement Card Administration, 224 Crofts Hall,
University Business Services webpage:
Angie Rzeszut, CPCP
Procurement Card Program Administrator
Kathy Brown
Procurement Card Coordinator
Debbie Kostran
Mary Kvetkosky
We look forward to working with you!

29. eProcurement

30. Staples
UPS
VWR

31. 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 notification
No need for eReqs or Speed Orders
Can allocate expenditures using all funds
Consolidated billing

32. What can you do now?

33. 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

34. 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

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