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Achieving Best-in-Class Spend Management The intersection of Finance, e-Procurement and Supplier Relationship Management Suzanne Miglucci Vice President Business Development, SciQuest Tony Im Director Global Professional Services, SciQuest
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Agenda State of the procurement market
Best-in-class procurement results Leveraging supplier relationships Real Results About SciQuest Where it has evolved. Understand where your organization is on the continuum Identify steps that you can take within your organization to advance on the continuum. Introduce the Spend Management Value Quadrant and ways to evaluate the evolution of Spend Management Understand the importance of a supplier management strategy as it related to Spend Management. Introduce step by step process for deploying a supplier management strategy.
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Procurement Challenges
Cost Savings and Compliance: Identify cost savings opportunities across decentralized complex organizations Monitor vendor contract compliance Optimize operating budgets Directing Spend: Diversity and sustainability Contracted and group purchasing/consortium suppliers Spend Visibility: Visibility into how organization dollars are being spent Control wasteful spending Risk mitigation Customer Service: Easy-to-use solutions
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Procurement Evolution
Paper processes, some made electronic, but not integrated. Endless cycle of low user-adoption driven by a limited number of suppliers, which prevents visibility into spending – critical to achieving deeper cost savings. Supplier integration to achieve a comprehensive, leveraged supplier strategy.
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Best-in-Class Strategic Procurement
Performance Improvement from e-Procurement Sources: (1) Aberdeen e-Procurement Benchmark Report
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Best-in-Class Strategic Procurement
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User-Friendly Shopping Environment
Elements of a Private Marketplace Hosted Preferred Suppliers Supplier Punch-out Internal Suppliers (stock-rooms) Services & Non-catalog Items User-friendly, familiar interface Preferred product positioning Access to any supplier with a variety of methods View on-hand inventory Your products and pricing
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Traditional Supplier Management
Pain Points Costly, resource-intensive Non-standardized data Low supplier adoption Limited product choices Limited supplier selection
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Leveraged Supplier Management
Managed Services Supplier connectivity Extensive product classification Centralized e-catalog Price/content management Transaction integrity Transaction tracking Customer support E-Transaction Data Purchase order Advanced ship notification Invoicing Receipt notification Contract data Payment data Supplier Hub
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Supplier Enablement Content: Meaningful product and service information Drives end-user adoption Helps end users make informed purchasing decisions Helps Purchasing reduce errors and streamline order processing Connections: Integrations with supplier systems and processes Catalog data Punchouts Order distribution, acknowledgements and revisions Receipts and invoices Seamless integration with financial and ERP systems Continuity: Ongoing managed services Updates to pricing and product data Monitoring and management of orders Normalized, classified data for spend analysis
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SciQuest Integration with Kuali
Co-developed with the Kuali team to: provide “out of the box” functionality that can be customized to the organizations requirements if required deliver seamless integration accelerate the implementation of the solution Recommended solution designed to maximize the functionality in both systems
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Process Overview HigherMarkets Kuali Complete Cart Approve Req.
Create PO Transmit PO Record Receipt Receive Invoice Login Shop Hosted And Punchout Catalogs Send Via: cXML Fax Receive & Validate cXML EDI Portal Click “Return Cart” HigherMarkets Non Catalog Items and Forms Post PO Click on HM Link Complete & Validate Requisition Financial Approval Workflows Create PO Manual / Auto Desktop or Central Receipt Matching & Payment Log In Kuali
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Available Integrations for KFS 3.0
Kuali Financial Systems 3.0 SciQuest HigherMarkets Spend Director cXMl Shopping Cart Return (via HTTPS) SciQuest cXML Punch Out Supplier Spend Director Hosted Catalogs Purchase Order to Supplier cXML Purchase Order(s) to Supplier Purchase Order (SQXML) Order Manager Invoice (SQXML) Settlement Manager Invoice(s) from Supplier Purchasing Accounts Payable Kuali Adapter cXML PunchOut cXML Invoice (via FTP) cXML or SQ XML
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Solution Overview
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SciQuest Demonstration Scenarios
End user needs supplies for the lab Department admin is asked to purchase a computer for a new employee End user would like to know the status of the purchase order to the supplier
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Kuali Home Page Click here to access SciQuest Catalogs, View SciQuest Order History or View SciQuest Invoice History
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SciQuest Home Page
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SciQuest Hosted Catalog Search Results
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SciQuest Punchout to a Supplier
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SciQuest Shopping Cart
Return items back to Kuali
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Kuali Requisition
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Real Results with Strategic Procurement
Reduce costs and improve margin Increase spend under management 5-20% savings on new contract opportunities Increase efficiency and better utilize resources A complete automated solution Substantial time saved through efficient processes (reduced req-to-order cycle times from 8 days to less than 1) Rapidly enable and seamlessly manage hundreds of supplier catalogs and integrations +80% utilization of existing contracts
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Real Results with Strategic Procurement
Drive unparalleled user adoption Easy-to-use solutions that drive smart purchasing decisions Elevate decision-making Enhanced visibility into spend patterns and history Enhance existing Kuali functionality with: A comprehensive shopping environment Order management and delivery capabilities Contract management Supplies management
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Real Results California Institute of Technology
About Caltech Dedicated to “benefiting society through research integrated with education” 3800 employees and faculty; 2,000+ enrolled Awarded 32 Nobel prizes Goals Improve the quality of procurement services Manage negotiated contract pricing Enable online catalog ordering Improve operating efficiency Achieve cost savings through campus-wide spending Results Streamlined procurement process Improved quality and ease of purchasing Purchasing department transformed to strategic 98% user adoption 40 preferred suppliers enabled Cost savings gained through institute-wide procurement volume Notable Fact: CalTech is using the SciQuest solution as a means to ensure discounts from suppliers: they do not include any suppliers in their catalog that do not offer discounted pricing!
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Jerry Fuller, Assistant VP for Procurement, UTHSC
Real Results UTHSC About University of Texas Health Science Center Oldest school of public health in TX National reputation as a leader in education and research 5,000+ faculty and staff; enrolled Goals Ensure consistent and accurate pricing Consolidate spending across the university Obtain high user adoption Achieve better pricing, discounts, and turnaround through aggregated suppliers and automated payment Results Increased on-contract spending and spend visibility User adoption increased by 10% 15 suppliers enabled in 45 days Reduced internal catalog and punch-out costs “SciQuest's solutions have allowed our institution to build strong relationships with our key suppliers, increasing our spend visibility and positively impacting our bottom line.” Jerry Fuller, Assistant VP for Procurement, UTHSC
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Connect to your suppliers Capture more transactions
About SciQuest SciQuest helps organizations advance their critical missions by improving their procurement processes. Our specialized knowledge, on-demand software, and ongoing services empower organizations to lower costs, increase productivity, and realize the potential of strategic procurement. We focus on the higher education industry, and are committed to Kuali initiative. What we do: Augment existing systems or Deliver complete Source-to-Settle procurement solutions How we do it: E-procurement tools (software) On-going services (managing supplier content and prices) Software-as-a-Service model (low IT costs) Integration to core technology such as Kuali Connect to your suppliers Capture more transactions Control your spend
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Select SciQuest Customers
About SciQuest Select SciQuest Customers Leading provider of on-demand procurement and supplier enablement solutions for goods and services Web-based, subscription solution More than 120 customers Solution ROI within 1 year 5-10X total ROI 97% customer satisfaction 98% renewal rate
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Q&A and Closing Remarks
Receive a copy of today’s presentation Provide your business card, and I’ll send you a copy Call or Suzanne Miglucci Vice President Business Development SciQuest (919) Learn more about upcoming events NextLevel 2009, February 8 – 11, Dallas, Texas Visit our Events Web page:
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