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Procurement Services Forum

Fall 2012

Recap: What did we talk about last time?

Hackett Study

New eProcurement Modules (eReimbursement & NonPO were

just rolling out at that time)

New forms in the Tools & Templates section:

Sole Source Justification eforms PAS document attachment form

Projects underway in the Strategic Sourcing Group:

Catering, Hotels, Event Rentals Managed Print

HP PurchaseEdge program & setting copiers to duplex mode

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Today’s Agenda:

eProcurement Strategy Overview Metrics Current State Update on current modules Future State & Timeline eProcurement Catalogs: new &

in process

Strategic Sourcing Launches in ePro Contract Pipeline Demo: The Contract Portal

New Updates Changes to the way we’re

paying suppliers New: Attaching scanned

documents in eProcurement Changes to 1099 MISC

Reporting Business Diversity Program

Update Environmental Stewardship &

Sustainability Update Procurement Services website

demo

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Goal: Utilize eProcurement to manage all procurement functions creating a streamlined, single point of entry for all purchases. This should standardize the process and reduce costs.

PAS

*Non-PO

Sourcing

Contract Compliance

Vendor Management

Accounts PayablePayment Scheduling, Accruals, Payment Processing,APE Interface, 1099, etc.

Contract Management

*eReimbursements

*eInvoicing

Payments to individuals

Non-Catalog

Encumbrances

eProcurement Strategy Overview

*Requisition/PO

* Modules are Implemented

eProcurement

eReimbursements Non-PO Invoice

% of utilization 100% 100%

# of transactions 10,089 3765

Total dollars processed $2.2M $5.1M

Transaction process savings $423,700 $158,130

** Go-live date February 2012

eReimbursement and Non-PO Invoice Metrics

Non-PO Invoice Testimonial

Testimonial from the Center for Lung Biology Moving rapidly away from ProCard to the simple & time saving Non-PO invoicing

In the past: Called the supplier, confirmed each invoice number and charge, paid with ProCard Monthly ProCard reconciliation

Cardholder matched each invoice to payment (budget, account codes, etc.) Invoices & all payment documentation sent to reconciler for 2nd reconciliation & filing

It was both time consuming and labor intensive, but now: Go to eProcurement and pay each invoice using the "copy" for multiple payments A unique invoice payment number is generated and invoice resides in system Reconciler is automatically notified with an email

“We are saving at least 2 hours in processing orders from one vender alone, and thatdoesn't even take into consideration time saved in looking up charges later. For budget reconciliation it saves even more time since you can click on the link to go directly to the eProcurement record with the supplier invoice attached.”

“I strongly urge everyone to take advantage of this new system. It is a huge timesaver!”–Nan Holcomb, Center for Lung Biology, South Lake Union Campus

Percentage of orders going through eProcurement

Apr -12 May -12 June -12 July -12 Aug -12 Sept -120

2000

4000

6000

8000

10000

12000

14000

16000

PAS Transactions eProcurement Transactions

eProcurement Vs. PAS (Transaction)

# o

f PA

S

Tran

sactio

ns

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eProcurement - Current State

Requisition/POs

eInvoicing

eReimbursements

Non-PO Invoice

using 42 eProcurement catalogs (punchout and hosted)

electronic invoices for eProcurement catalog orders

reimbursing UW employees for expenditures made on behalf of the UW up to $3,500

payments to suppliers when a PO is not required (up to $10K)

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eProcurement – Future State

NON CATALOG

ORDERING• opens up the functionality of eProcurement so that orders can be placed with suppliers that

currently do not have catalogs

PAYMENTS TO INDIVIDUALS

• paying individual for services under the direct buy limit• This module is not to be used for paying UW employees or suppliers

CONTRACT

MANAGEMENT • contract authoring, negotiations and maintenance

CONTRACT COMPLIANCE

• assuring that we are paying the correct price once the contract is set up This module will also allow us to make more complex purchases

SOURCING

• automate and streamline sourcing events with an online transparent process

Non-PO Invoicing

Non-Catalog Orderingunder direct buy

Receiving

Non-Catalog Exceptions

Non-Catalog Ordering over direct buy

Encumbrances

Supplier Enablement

2011 Spring 2012

Summer

2012

Fall 2012

Winter 2013

Spring 2013

Summer

2013

Rollout

Campus Rollout

Supplier Enablement Team

Scoping and Design

LEAN

Rollout

Implementation TeamOther resources

Analysis

Analysis

eProcurement Strategy Overview: Timeline

Contract Management

Contract Compliance

Sourcing

2011 Spring 2012

Summer

2012

Fall 2012

Winter 2013

Spring 2013

Summer

2013

Implementation TeamOther resources

eProcurement Strategy Overview: Timeline

Analysis

Analysis

Analysis

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A special thank you to our Non Catalog Beta Testers!!!

We sincerely appreciate your help!

Jim Pilon; UW Bothell Finance & Administration

Heidi Tilghman & Monica Cohn; Humanities Shared Services Center

Zenaida Quitlong; HR Administration & Information Systems

Elizabeth Mounce; Bioengineering

Wilma Boyd; School of Art

Rich Leibfried; UW Medicine IT Services

Joseph Sabo, Ping Huang, Daniel Yoon, Felix Velasco, Aris Gempesaw, Chris Payne, Liza Plotkin, Heather Nicholson & Robert Patton; UW Procurement Services

Thank you to our Beta Testers!!!

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ePro Strategy Overview: New Catalogs

Life Sciences

• DigiKey – March 2012• R&D Systems – March 2012• Henry Schein – July 2012• Roche Diagnostic – May 2012

Furniture

• Business Interiors Northwest – July 2012• Ebony Furniture – February 2012

MRO

• Fastenal – Sept. 2012

AV

• B&H Foto – Sept. 2012

ePro Strategy Overview: Catalogs in the Pipeline

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Up Next: Strategic Sourcing & UW Contracts

Strategic Sourcing

Launches in ePro

Contract Pipeline

Contract Portal:- What is it?- Where can it be found?- Why should

departments use it?

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Strategic Sourcing

What is “Strategic Sourcing”?

Analyze spend across the UW

Identify best contract opportunities

Structured, long term approach

Actively manage relationships with suppliers

How do we do it? Analyze what the UW buys Target best opportunities

for savings Establish strategic

partnerships with suppliers

We are using Strategic Sourcingto reach overall UW Goals of consolidating spend and increasing savings.

Create savings –> contract savings of ~8%

More efficient processes – i.e. eProcurement

Reduce risk for the University

Better, more collaborative relationships with suppliers

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Strategic Sourcing & Contract Pipeline

Strategic Sourcing Projects 2012 PS completed four major strategic sourcing projects in 2012 which resulted

#55 new contracts available for campus wide usage in the following areas: Hotels Catering Event Rentals IT Servers

 Contract Pipeline Current strategic sourcing projects underway to streamline process for

customers and reduce costs are: Managed Print Services, Audio Visual Design Services and Optics. 

In addition, the commodity areas undergoing analysis for potential 2012/2013 projects are: bus charters, town car services, air travel, logistics (air/sea/ground freight), marketing, video production & event planning services to name a few. 

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UW Contracts

UW Contracts

An online, contract

repository within

the Procurement

Services Website

Designed

especially for UW

customer usage

Easily accessible

and searchable

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What is it? An online tool in eProcurement used to

reimburse UW employees for expenditures under $3500

When not to use it? Do not use for Travel reimbursements Do not use for equipment over $2000 Not for supplemental income, incentives, stipends, prizes,

awards, or gifts

How to find training Classes can be found at:

f2.washington.edu/fm/ps/training-events/classroom-training

What’s new?

Rejecting manual check request reimbursements to employees

Update: eReimbursements

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What is it? An online tool in eProcurement used to make a

payment to a supplier.

When to use it? An official PO copy is not required by the supplier The invoice is under the “Direct Buy Limit” The goods are not on the exceptions list

f2.washington.edu/fm/ps/nonpo-exceptions

How to find training The Introduction to Preparing a Non-PO Invoice Class

is offered monthly For a complete list of training opportunities, see f2.washington.edu/fm/ps/training-events/classroom-t

raining

What’s new?

Cancellation of Small Dollar PAS Reqs

Attachments are now the official record as part of the UW records retention policy

Update: Non-PO

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Changes to the way we’re paying suppliers

Step 1: Supplier completes

the online Supplier Registration

Form (SRF)

Who should complete this?

All new suppliers

Any former suppliers that have been placed in either a hold or delete status

Step 2: The Supplier signs up for electronic payment

Two Options:

(1) ePayables: UW preferred method of payment

Why is it preferred?o payment takes 2 to 3 working dayso no additional fee to UW

(2) PayMode (ACH) (2 step process)

o The Supplier enrolls in the payment program and completes the PayMode application form

o PayMode authenticates the account

Supplier onboarding is a two step process:

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Scanning Policy

Attaching documents in eProcurement

Effective August 1, 2012, supporting documents should be electronically attached within eProcurement to be retained as the document of record

The size limit for an attachment in eProcurement is 4MB

For destruction of documents after scanning, each department must create a scanning policy that is in compliance and on file with Records Management

For more information, see f2.washington.edu/fm/ps/tools-for-reconciling/scanning/ariba

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Changes to 1099 MISC Reporting in 2013

Beginning in tax year 2013, we will be reporting all payments made to reportable suppliers on Form 1099 MISC

Effective tax year 2013 (January 1 – December 31, 2013): all payments to 1099 reportable suppliers, including travel expenses, will be captured and reported on Form 1099 MISC Forms mailed January of 2014

Suppliers will be responsible for deducting associated expenses on their tax return, if applicable

Departments should advise their suppliers to retain all original receipts. If receipts are submitted, they should be returned to the supplier

Exception: Travel expenses associated with honorarium payments. Honorarium travel reimbursements should be processed through eTravel and

will not be captured for 1099 reporting Reimbursements through eTravel subject to State travel rules

More information to come. Contact Rachel Wipf in the Tax Office

at 206-685-0159 or taxofc@uw.edu with any questions

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What reports are available? Accounts Payable Procard Central Travel Account Purchase Order Department Dashboard

Where can they find them? http://f2.washington.edu/fm/ps/tools-for-reconciling/pdr

Why is this useful to the campus customer? Provides copies of invoices Assists with budget reconciliation Management of department resources

Procurement Desktop ReportsUpdate: Procurement Desktop Reports (PDR)

What’s new?

Requisition Status Report

Expiring POs by Budget

Department Dashboard

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Mission

• Proactively engage with and support the UW’s commitment to creating a diverse business environment

Vision

• The UW will utilize businesses whose ownership is representative of our diverse and local community

Economic Impact

• For every $1 of direct UW spending, $1.275 of indirect spending is generated for the state economy

• Small businesses represent 96.2% of all registered businesses in WA

Finding Suppliers

• Procurement Services UW Contracts Search• eProcurement• Business Diversity Program Diverse Supplier Search

Contact US

• http://f2.washington.edu/bdp/

Business Diversity Program

Sustainability: It’s in our nature.

Sustainability Executive Order signed by President Young on August 30, 2012

Stay up to date with events:o Third Annual Sustainability Summit, October 24

Stay involved with our programs: green.washington.edu

Environmental Stewardship & Sustainability

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Home Page / Quick links UW Contracts, eProcurement,

Non-PO, eReimbursement, PDR, etc.

How to Buy, Pay & Reconcile

Training & Events Upcoming classroom training eLearning tutorials (expanding) Procurement Forums

(registration & presentation materials) Communications & Outreach

Newsletter

Procurement Project Pipeline

Procurement Services News

Supplier news & Promotions

Procurement Services Website: http://f2.washington.edu/fm/ps/

Procurement Services Website: Primer