1. ERP E-Procurement and Vendor
Self-Service

2. Opening Remarks Moderator R. Kinney Poynter Executive Director NASACT
Speaker Dale Kress Project Manager Advantage Procurement (CGI)
Speaker Edgar C. (Ed) Ross State Controller (KY)
Speaker Thomas L. White State Comptroller (AL)

3. Intentionally Left Blank

4. Introductions Thomas L. White, Jr., CPA Agenda State Comptroller
Department of Finance
State of Alabama
Agenda
Introductions
E-Procurement and Vendor Self-Service
Edgar C. (Ed) Ross
State Controller
Commonwealth of Kentucky
Case Studies
Kentucky | Alabama
Dale Kress
Product Manager, CGI Advantage Procurement
Lessons Learned

5. E-Procurement and Vendor Self-Service Defined
ERP
Source-To-Settle
Procure-to-Pay
Spend
Analysis
Vendor Self-Service
Receiving
Three Way Match
Vendor
Registration
Contract
Mgmt
E-Catalogs
E-Invoicing
Sourcing

6. to-Pay (indirect spend)
The Solution Market
Market penetration – 5% to 20% of target audience
Maturity – Adolescent
Main stream adoption – 2 to 5 years
Procure-
to-Pay (indirect spend)
Market penetration – 1% to 5% of target audience
Maturity – Adolescent
Main stream adoption – 5 to 10 years
Source-to-Settle
(Gartner: Hype Cycle for Procurement, 2013)

7. How Does E-Procurement Impact Spend and Improve Efficiencies?
Provides access to consolidated spend information
Maximizes buying power
Reduces the costs of goods and services
Brings more spend under management
Leverages procurement card rebates
Increases transaction accuracy and reduces cycle times

8. Legislative and Policy Mandates and Objectives
Promote transparency 1
Support local government entities 2 3
Increase supplier base (diversified, etc.) programs
Increase competition 4

9. Commonwealth of Kentucky
Case Study:
Commonwealth of Kentucky

10. Current State in Kentucky
Single Statewide ERP with Vendor Self Service
Contract Management
Sourcing
Procure-to-Pay
Procurement Cards
Spend Analysis

11. E-Procurement in Kentucky
Solicitation Management
Contract Management
Catalog Management
Buyers
Requisition Management
Order Management
Payment
Management
End Users
Account Management
Opportunity Management
Contract Management
Vendors
Solicitation Management
Contract Management
Catalog Management
Citizens

12. Kentucky catalogs support decentralized ordering and leverage buyer power
# of Catalog vs Non-catalog MA’s
# of MA Lines vs Catalog Lines
Catalog MA’s 1,842
Non-Catalog MA’s 6,228
Total 8,070
# of MA Catalog Lines 2,577,270
# of MA Commodity Lines ,408
Total 2,618,678
98%
1,842
8,070
2,577,270
% of Master Agreements (MA)
% of Spend
Total MA Spend = $7.9B*
23%
Catalogs
34%
77%
66%
Catalogs ($2.7B)*
Non-Catalogs
Non-Catalogs ($5.2B)
*Total MA Spend and Catalog Spend were calculated from FY and do not account for Procurement Card usage

13. Kentucky catalogs support decentralized ordering and leverage buyer power
Top Catalog Spend by Commodity Code
96200
$1.44B
Miscellaneous Services (Mostly Medicaid – MCO’s)
91829
$198.5 M
Computer Software Consulting
91395
$103.6 M
Paving/Resurfacing, Highway and Road
77545
$72.3 M
Road Maintenance Salt
20400
$66.9 M
Computer H/W & Peripherals (for Microcomputers)
Computer H/W & Peripherals (for Mini & Mainframe Computers)
20600
$66.3 M
96130
$52.5 M
Employment Agency/Search/Temp Services
95823
$47.4 M
Computer Management Services $0
$50M
$100M
$150M
$200M
$1.5B
*Top Catalog Spend by Commodity Code was calculated from FY

14. Punch Out Usage and Benefits
SPEND
Total PunchOut Spend
$2,780,555.07
Dell
$2,208,124.91
Grainger
$301,616.10
Steelcase
$132,216.32
Fastenal
$130,175.12
MSC
$6,707.34
Software House (SHI)
$1,715.28 
Streamlined, efficient ordering process 
Reduced order cycle time (quicker receipt of materials) 
Secure Internet shopping using an online catalog customized with your standards and pricing
Increased contract compliance 

15. Punch Out Risks and Challenges
Coordinating an implementation timeline with multiple parties
Holding vendors accountable for custom catalog content (auditing)
Reliance on vendor Punch Out site stability
Educating buyers and users

16. Intentionally Left Blank

17. Case Study:
State of Alabama

18. Highly customized solution of on-line and batch processes for
History
Highly customized solution of on-line and batch processes for
Accounting
Financial
Reporting
Payroll
Procurement
Personnel
Functionality

19. Current System Landscape
Agency
Accounting
System
State-wide
Payroll/
Personnel
System
Central
Accounting
System
Additional
Agency
Accounting
Systems
Procurement

20. The Plan 2013 2014 2015 Financials Proof of Concept Agency
Went Live October 1, 2013
Financials Proof of Concept Agency
Target Go Live date April 1, 2015
Budget Preparation
Financial, Procurement and VSS
Target Go Live date October 1, 2015

21. Future Application Landscape
Single Integrated Statewide ERP with Vendor Self Service
Financial Management
Human Resource Management
Procurement
Vendor Self Service
Budgeting
Business Intelligence

22. Modernization Background: Decision Process
GOAL
Replace legacy procurement system with state of the art integrated system
Reduce the total number of systems, interfaces and analysis required to support an expanding network of disparate systems
Support the complete procure-to-pay cycle
Eliminate the need to re-key transaction information, preventing errors at the point of entry
Allow procurement professionals to spend more time negotiating with vendors, managing contracts and strengthening relationships, thus reducing the cost of goods and services

23. Procurement Primary Objectives
Benefit Feature
Maximize User Adoption
Simple web and mobile enabled solution
Remain Current
Release upgradable sustainability
Reduce State Support Needs
Self service vendor portal to simplify vendor updates and catalogue maintenance
Immediate Access to Information
Modern business intelligence and real-time funds availability check and posting

24. and Mitigation Strategies
Lessons Learned
and Mitigation Strategies

25. Lessons Learned and Mitigation Strategies1 2 3 4 5
The importance of a public sector solution
Define your measures of success
The value of ERP integration
Vendor outreach is essential
Target the right goods and services
Mandate usage

26. Questions? Moderator R. Kinney Poynter Executive Director NASACT
Speaker Dale Kress Project Manager Advantage Procurement (CGI)
Speaker Edgar C. (Ed) Ross State Controller (KY)
Speaker Thomas L. White State Comptroller (AL)

27. Intentionally Left Blank

28. Contact Info
ISO 9001 Certified
Dale Kress
Procurement Product Manager,
CGI Advantage
CGI State & Local
Government/ERP Solutions
(703)
Thomas L. White, JR.
State Comptroller
State of Alabama
Edgar C. (Ed) Ross
State Controller
Commonwealth of Kentucky

29. Thank you