1. 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California NAEP Annual Meeting and Exposition April 1 -4, 2012 Procurement’s Value Proposition

2. 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California  FY 2012 Academic Budget $1.3 billion  $2.5 billion with Medical Center Brief History  Public Institution of Higher Ed  Founded by Thomas Jefferson in 1819.  13,000 Undergraduate  6,000 graduate students.

3. 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Brief History of Procurement  Accounts Payable and Purchasing  Manage over $200 million in annual purchases  Approve 120,000 PO invoices annually  Implemented the Oracle ERP in 2001  Implemented Sciquest in 2006

4. 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Does Procurement have a Value Proposition?

5. 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Parents Faculty Students Staff Vendors Management

6. 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California What went through your mind while crouched in the rocket nose-cone, awaiting blastoff? He wryly replied " I was thinking that the rocket had twenty thousand components, and each was made by the lowest bidder". John Glenn 1960

7. 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California RFP - Negotiation Written Agreement Cooperative Clause Additional Goods and Services Clause Payment Terms and Type e-Commerce Requirements Agreement

8. 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California e- Commerce System e-invoice Ghost Card (e-payables) ACH payments (Paymode) p-Card Optimization Agreement Electronic Procure to Pay

9. 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Electronic ordering Electronic Invoicing Electronic Payment Value to Supplier

10. 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Internet Marketing Internet Marketing – Websites 1990 Affiliate marketing - Using one website to drive traffic to another and paying commissions for referred business. CDNOW 1994 and Amazon 1996. Pay per click (PPC) - Advertisers pay the hosting service when ad is clicked. GoTo.com -1998 and Google 2000 Email Marketing - Uses electronic mail to communicate commercial or fund-raising messages to an audience. Estimated $400 million spent in 2006. Display Advertising - Displaying text, logos, photographs or other images on the Internet. Widely used for branding.

11. 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California

12. 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California

13. 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Accounts Payable Vendor File P-card Program Travel Agreement Electronic Procure to Pay Engagement

14. 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Contract Page Electronic Agreement University’s Brand Logo Agreement Electronic Procure to Pay Engagement Promotion

15. 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California

16. 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Agreement Electronic Procure to Pay Engagement Promotion Optimize

17. 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Optimize  Eliminate paper checks  Maximize early payment discounts  Push p-card only vendors to card  Establish fee for services schedule  Require catalog suppliers to e-invoice  Identify untapped sources (Travel)

18. 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Agreement Electronic Procure to Pay Engagement Promotion Optimize

19. 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California UVa Customer Value  Cost Savings  Easier transactions (Hotel Widget)  Better engagement Parents and Students

20. 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Hotel Reservations Widget 1 Click Places to Stay 2 Select Date of Stay 3 Reserve Room For details visit: http://www.procurement.virginia.edu/ pagepacontracts http://www.procurement.virginia.edu/

21. 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Value Proposition for Vendors  Eliminate paper orders, invoices and checks  Brand recognition (marketplace and contract)  Push p-card only vendors to card  Identified as a contract vendor  Manufacturer contracts (HP, Corning, etc)  Competitive advantage Vendors

22. 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California

23. 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Internal Value Proposition  ROI model for e-commerce system  Unrestricted revenue  Increased recognition  Reduced FTE count  Engaged workforce  Improved strategies (Travel) Faculty, Staff and Management

24. 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California FY 2012 Goal “Chart a course to financial self-sufficiency through revenue generation and cost reduction”

25. 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California

26. 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California John McHugh University of Virginia Assistant Director, Procurement and Supplier Diversity Services jm7v@virginia.edu 434-924-4214 Terry Butler University of Virginia Assistant Director, Procurement and Supplier Diversity Services TBB@virginia.edu 434-924-4353 Questions?