LEAD YOUR INSTITUTION TO
SAVINGS:
The Evolution of Strategic
Sourcing and the P2P
Transformation
Paul Martin, Assistant Vice President for
Administration
Ron Moraski, Director of Procurement Services
Meaghan Kraft, Manager of Procurement Systems
WHERE it all STARTED…
Long-Term
Vision to
Transform
Procurement
P-card
Program
experienced
Fraud
Solution,
Management
Approval and
Funding
Three
Pronged
Approach
Three pronged approach
Strategic Sourcing Initiative
Travel Management Initiative
Procure to Pay (P2P) Initiative
Collaboration IS the Only Way
Original Long-Term Procurement Vision
Use of Purchase and
Travel Card Integrated
with ERP
• Completed in 1996
Use of automated
E-Procurement System
• Completed in 2006
Minimize Purchase Card
Program and Implement
Sourcing Program
• Not scheduled until fraud
happened in May 2010
Cancellation of P-Card Program
• May 2010 – cards were cancelled overnight
P-Cards
No P-Cards
Number of Cards
850
29
Number of PO’s Processed
5,700
16,000+
Number of Direct Pays
8,800
26,000+
Rebate $$
$100K
$0
Current Area of focus
Procure to Pay (P2P) Initiative
Enhance eprocurement
process to
include esettlement
(e-invoicing
and epayment)
Improve
integration of
procurement
and
disbursement
systems with
Banner
Drive
advance
approvals to
purchase
and pay
through
state-of-the
art
procurement
and
payables
programs
Eliminate
the need for
the former
p-card
system
Utilize with
Strategic
Sourcing to
drive
savings
Objectives
– Mitigate Risk
– Provide Robust Controls
– Streamline and Automate Processes
– Become State-of-Art in Industry
– And Obviously …..
Approval of Funding – Savings Promised
Start-up Costs
Ongoing
Annual Cost
P2P
135,000
25,000
Travel Management
28,500
187,340
Strategic Sourcing
530,000
447,800
693,500
660,140
Totals
Estimated Savings
Per Year
P2P
245,000
Travel Management
370,000
Strategic Sourcing
Up to 800,000
Totals
1,415,000
Overview of current
e-procurement & Disbursement system
• Core ERP System – Banner Finance
• e-Procurement (SciQuest) modules
–
–
–
–
–
Spend Director
Requisition & Order Manager
Settlement Manager
Contract Manager
Sourcing Director
• 16 Marketplace [Punch-out] Suppliers
• 12 e-Invoice suppliers [3 supplier portal, 9 cXML
transfer]
• Payments made through check or ACH
Inefficiencies with Current Processes
Supplier Set-up
Purchase
Manual Set-up in Procurement
PO’s
Invoice
E-Invoice/Paper
Banner Integration
Electronically
feeds to Banner
Pay
Non-PO’s
Paper
(campus enters
Requisition)
AP Enters into
Banner
ACH or Check
P2P improvements
New and enhanced Partnerships with:
SciQuest
Digital
Mailroom, AP
Director, TSM,
ADW
AMEX
BIP &
vPayment*
*a benefit of the AMEX partnership is the vPayment solution which is
SciQuest-enabled
P2P improvements
SciQuest Solutions
Supplier
Set-up
Digital
Mailroom
AP Director
TSM
Invoice
capture for all
paper invoices
electronically
feeds into
OSCAR
SciQuest
module that
allows for
automating
processing
Total Supplier
Manager
allows
suppliers to
set-up and
control their
information
Live – March
2014
Live – March
2014
Non-PO
Banner
Integration
Purchase
Invoice
Banner
Integration
Pay
Go-live
Fall 2014
Non-PO
invoices will
be fed
electronically
into Banner.
This
functionality
will be
available with
Banner 8.9
patch
Date - TBD
P2P improvements
Digital Mailroom [DMR]
• Will use for both PO and
Non-PO invoices
• Improved controls for
non-PO invoices
– At least two levels of approval required
for all
AP Director:
non-PO invoices
• Invoices available within 2 business
– Audit on non-PO invoice activity
days
• PO invoices will be matched and routed
• Match failure workflow improvements
for PO Invoices
for approval
•
Non-PO invoices will route to the
invoice owner
Partnerships and solutions
AMEX Solutions
Supplier
Set-up
New Forms
of Payment
Still
considering
use
Purchase
Invoice
Check
and
ACH
BIP
vPay
CPC
Banner
Integration
Pay
vPay on
Demand
Amex payment solutions
BIP
vPayment
Similar to ACH
Embedded, secure credit
card solution
Supplier is responsible for
their own bank
information
Pay on ship – credit card
sent via PO process
Payment terms
JV upload into ERP
Both solutions provide rebate on spend
Phase I – march 2014 - COMPLETE
Digital
Mailroom
AP Director
BIP
vPay
phASE 2 – SummER / Fall 2014
Non-PO
Banner
Integration
Invoice
Status
Update
PO
Workflow
on
FOAPAL
TSM
vPay on
Demand
& CPC
challenges
• High number of “Active” Suppliers
• % of PO Invoices vs. Non-PO invoices
• 1st Non-PO Digital Mailroom Client
– Working with SciQuest to develop non-PO invoice workflow
using ADW
Successes
So Far
• Documented Cost Savings $4.8M+
• Purchasing Revenue $200k
• As a result of these numbers, our President granted an
increase in the project budget
Overall Project Success
• Original P-Card Rebate
• New Savings / Revenue
– Sourcing
– Travel
– P2P
• Efficiencies
• Visibility
$100k
$5M+
QUESTIONS
Ron Moraski
morasr@rpi.edu
518-276-8439