Procurement Services Forum
Fall 2012
1
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:
2

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
Today’s Agenda:
eProcurement

Strategy Overview

Metrics

Current State

Update on current modules

Future State & Timeline

eProcurement Catalogs: new & in
process
Strategic Sourcing
3

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
eProcurement Strategy Overview
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.
*Requisition/PO
Contract Compliance
*Non-PO
*eInvoicing
Non-Catalog
Sourcing
eProcurement
Encumbrances
Accounts Payable
Payment Scheduling, Accruals,
Payment Processing,
APE Interface, 1099, etc.
PAS
*eReimbursements
Payments to individuals
Contract Management
* Modules are Implemented
Vendor
Management
eReimbursement and Non-PO Invoice Metrics
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
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 that
doesn'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
16000
eProcurement Vs. PAS (Transaction)
14000
12000
8000
6000
4000
2000
0
Apr -12
May -12
June -12
PAS Transactions
July -12
Aug -12
eProcurement Transactions
Sept -12
# of PAS Transactions
10000
eProcurement - Current State
Requisition
/POs
eInvoicing
eReimbursements
Non-PO
Invoice
8
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)
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
9
eProcurement Strategy Overview:
2011
Non-PO Invoicing
Spring
2012
Summer
2012
Timeline
Fall
2012
Winter
2013
Spring
2013
Summer
2013
Rollout
Non-Catalog Ordering
under direct buy
Campus Rollout
Receiving
Non-Catalog Exceptions
Non-Catalog Ordering
over direct buy
Encumbrances
Supplier Enablement
Implementation Team
Other resources
Rollout
Analysis
Analysis
LEAN
Scoping and Design
Supplier Enablement Team
eProcurement Strategy Overview:
2011
Contract Management
Contract Compliance
Spring
2012
Summer
2012
Fall
2012
Timeline
Winter
2013
Spring
2013
Analysis
Analysis
Analysis
Sourcing
Implementation Team
Other resources
Summer
2013
Thank you to our Beta Testers!!!
A special thank you to our
Non Catalog Beta Testers!!!
We sincerely appreciate your help!
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
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
ePro Strategy Overview:
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
13
New Catalogs
ePro Strategy Overview:
14
Catalogs in the Pipeline
Up Next: Strategic Sourcing & UW Contracts

15
Strategic Sourcing

Launches in ePro

Contract Pipeline

Contract Portal:
-
What is it?
-
Where can it be found?
-
Why should departments use
it?
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
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We are using Strategic Sourcing
to 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
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.
17
UW Contracts
UW
Contracts
An online, contract
repository within the
Procurement Services
Website
Designed especially
for UW customer
usage
Easily accessible and
searchable
18
Update:
eReimbursements
What is it?
 An online tool in eProcurement used to
reimburse UW employees for expenditures
under $3500

What’s new?
Rejecting manual check
request
reimbursements to
employees
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
19
Update:
Non-PO
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-training
20

What’s new?
Cancellation of Small
Dollar PAS Reqs
Attachments are now
the official record
as part of the UW
records retention
policy
Changes to the way we’re paying suppliers
Supplier onboarding is a two step process:
Step 1: Supplier completes
the online Supplier
Registration Form
(SRF)
Step 2: The Supplier signs up
for electronic payment
Two Options:
Who should complete this?
(1) ePayables:
UW preferred method of payment
Why is it preferred?

All new suppliers
o
o

21
Any former suppliers that have been
placed in either a hold or delete
status
payment takes 2 to 3 working days
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
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
22
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
23
Procurement Desktop Reports
Update:
Procurement Desktop Reports (PDR)
What’s new?
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
24
Requisition Status Report
Expiring POs by Budget
Department Dashboard
Business Diversity Program
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/
25
Environmental Stewardship & Sustainability

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
Sustainability: It’s in our nature.
Procurement Services Website:

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
27
Primer
Procurement Services Website:
http://f2.washington.edu/fm/ps/