Purchasing Update
eRequest Refresher
New eStores Overview
Goals of University Purchasing
• Nathan Andridge—Senior Director of Purchasing
Receiving, Stores and Mail (2012)
• Focus on Strategic Purchasing
– Saving the university $50 million over the
next 4 years
– Using Contracted Vendors (eStores)
– Reducing vendor database
– Lowering the total cost of ownership
Why Use Contracted Vendors?
 6 to 9 months has been spent
negotiating contracts with
vendors
 Purchase high quality goods
and services at a low cost
 Standardize products/services
across campus
Why Use Contract Vendors?
 Aggregate university spending
 Aids spending analysis
 Firm pricing and discounts
 Long term vendor relationships
 Faster processing using eStores
4/13/2015
4
Vendor Maintenance
• New process established by central purchasing
to reduce the number of suppliers in our vendor
database
– Currently 18,571
– Down from over 100,000+
– Goal next year 15,562
4/13/2015
5
Vendor Maintenance
• Most purchases from new vendors are one-time
purchases
• Admin cost to setup new vendor
– $275
• Admin cost for purchase order
– $350
Vendor Maintenance Questions?
• Have the goods and/or services been
received?
• Would a PCard be an alternative method
of payment to vendor?
• What OSU vendor provided similar
goods/services in the past for the
department?
4/13/2015
7
OSU Mandated Contracts
• Office Max
• UPS
• Plumbing Services (4)
• ComDoc
Preferred Vendors
DS Water
Aramark
4/13/2015
8
Procurement Process
Overview
What happens to my order after I submit it?
Approval Matrix Review
On Behalf of:
Who Approves?
Who Obtains Approval?
Dean
OAA
Department Obtains via Adhoc
Business
Manager
Chair or Kristina
Renner
Department Obtains via Email/System
Department Chair
Marie Mead
Faculty Member
Chair
BOC Manager will obtain Approval
Department Obtains via Send
Notification
Staff Member
Business Manager
Normal Approval Process
Student
Business Manager
Normal Approval Process
Exception: Business Manager may approve for all standard office and lab supplies, regardless of who the
request is for.
Note: For Business Meals: Approvals above apply to all business meals, regardless of host, if the presence of
the Dean,
Chair, or Faculty member is required for the meal to take place.
Procurement Forms Signature Guide
Forms
Signature/Approval Needed
Who gets the approval?
Internal Contracts*
Marie Mead
Department Prior to eRequest Approval
External Vendor Contracts**
Director of Purchasing
BOC requests approval with REQ
Bid Waivers
Marie
BOC will obtain signature
OSP Wire Transfer Form***
PI
Department after REQ is completed
Univ Wire Transfer Forms***
Marie
BOC will obtain signature
Business Meal Forms
See Signature Matrix
Department Prior to eRequest Approval
*Example: Blackwell Event Room, Ohio Union Event Rooms, Residence Life, TTM Bus Rental, etc
**Vendor contracts are NEVER to be signed by the department or BOC.
***Department should ensure BOC has necessary info to complete the form.
Internal Contracts
• Marie Mead’s Signature is required.
• Department obtains signature via email,
prior to eRequest approval.
• Examples: The Blackwell Meeting Room,
Fawcett Center, Residence Life, TTM Bus
Rental, etc.
External Vendor Contracts
• Departments are NEVER authorized to
sign any contract or agreement.
– Only authorized signature of The Director of
Purchasing is valid
• Contracts/agreements should be attached
to the eRequest, and the BOC will obtain
the signature from purchasing.
Business Meal Forms
• Meal form is to be completed by department
prior to eRequest approval.
– Department will obtain all department
signatures
– BOC will obtain Marie’s Approval if BOC is
making the purchase
• Alcohol (Preapproval required when BOC pays)
• Spousal Attendance- must be pre-approved
– Department obtains via email
• Dollar Limit Exceptions- must be pre-approved
• Dean Direct Report
Business Meal Forms
• What information is required?
–
–
–
–
Meal Type
Date, Time, and Location of the meal
Detailed Business Purpose
Attendees and their Affiliation
• Large Student/alumni groups may be grouped
– Example: Class of 1963 Alumni, Members of CHEER
Camp, Etc
– Appropriate Signatures
Bid Waiver Forms
• Department completes appropriate
Request for Bid Waiver Form prior to
eRequest approval.
– Separate forms for UNIV or OSP Funds
– Department obtains all department signatures
– If UNIV, BOC will obtain Marie’s signature
Bid Waivers
 A bid waiver is an “exception” to the bid process
 Bid limits are >$25,000 for goods and >$50,000 for services.
 OSP: Federal Grant: $10,000
 If you are unsure, contact your SPO
 These limits are supplier specific and applied to
each org / fund combination on a fiscal year
basis.
 Purchases from eStores, or university-wide
contracts are excluded from this provision.
Bid Waiver Process
 There are four types of waivers:




Sole Source
Emergency
Economic
Technical and Specialized Consulting Services
 Documents needed
 Approved requisition from the Financials System
 Completed Request for Waiver of Competitive Bidding form including
appropriate signatures
 Detailed explanation for the waiver
 Quotation, contract, service agreement from the supplier to support
waiver
 A completed Declaration of Material Assistance (DMA) form for
purchases $100K or more.
Wire Transfer Forms
• The BOC will complete and request
appropriate signatures.
– UNIV: Marie
– OSP: PI
• BOC will email form to initiator for signature
• BOC send to AP for payment.
• To aid in more efficient processing provide
Proforma invoice with vendor contact
information.
Break &
Questions
eRequest
Contact Information
The “Requested For” field
determines who the
purchase is being made for.
Requested For: Will default to Initiator’s
name.
Initiator information will default
here.
•
•
Requester Access: You can update this
field.
Standard Access: Unable to change this
field.
Purchasing/Payment Option
Standard Purchasing
Request:
•
Supplies/Equipment
•
eStores
•
Services
•
•
•
Change Orders
Blanket/Term Orders
Memberships
Purchasing Card Preferred:
Should only be used when the department makes a
purchase on their department card.
Internal Order:
Should be used to make purchases with OSU Internal
Vendors. This does not include eStores punch-out.
Blanket Order Release:
To arrange payment of an invoice against an existing
blanket purchase order.
Reimbursement To Employee:
When an OSU Employee purchases goods or services
on behalf of the University. Not to be used for Travel
related expenses.
Payment:
To be used for travel prepayment expenses including:
cash advances, hotel, registration, etc.
Refund:
When goods or services have been purchased from the
University and are later canceled or returned.
Reimbursement To Non-Employee:
When an OSU Student purchases goods or services on
behalf of the University. Not to be used for Travel
related expenses.
Vendor/Payee and Item Details
Description:
Be as specific as possible. What is it you want
the BOC to purchase?
Examples:
• Hose, Pro Gold, High Temp Polymer, Part#
AR-06-HTP
• APA Professional Membership
• Change Order to PO 145274AA32
Vendor/Payee Information:
The vendor name must be on top! Include all
necessary vendor information including:
name, address, contact and/or phone number
First Impressions
1791 Coventry Rd.
Columbus, OH 43212
Donna Vorce
614-555-5555
General Request Information
Ship to: Where do you want the items
to be delivered?
•
116 Bolz Hall
2036 Neil Ave.
Columbus, OH 43210
Attn: Brutus Buckeye
•
N/A
Additional Info: Any other
information the approver or the
BOC should know goes here.
• Shipping Info
• Website
• Due date
• Special purchasing instructions
Business Purpose
• A well stated business purpose should answer
the following questions:
– Why is this purchase taking place/necessary?
– How will this purchase benefit OSU/Engineering?
• Should be written to communicate the reason for
and the benefit of the purchase to someone
outside the department or engineering.
– Acronyms must be spelled out.
Example of Appropriate
Business Purposes
• “Electrical materials for the Electronics Lab to be used in
research by graduate students as a part of the engineering
projects program.”
• “Computer supplies to be used for data analysis and research
by the Buckeye Bullet Student Project team at the Center for
Automotive Research.”
• “Custom construction of two vessels which will be used to
measure varying degrees of decay on two specific metal types.”
Attachments
Quote from Vendor
Meal Form
Webcart/Screenshot
Necessary
Approvals
MOU
Receipts
E-mail quote from
vendor
NO verbal quotes!!
Funding Source
Business Meals: 64408
Meals at University Functions:
64493
Alcohol: 64430
*Discretionary Fund
Blanket Order Release
Initiator
Blanket Order
Release
Description,
Quantity &
Cost
Blanket Order Release
Ship to,
Additional
Info and
Business
Purpose
Attachments
Org, Special Funding
Instructions and Chartfield
Change Order
Standard
Purchasing
Request
Description/
Vendor
Information
Change Order
Ship To,
Additional
Info
Business
Purpose
Attach any
supporting
documentation
Cash Advance
Payment
Description/
Vendor
Cash Advance
Ship
To
Business Purpose
Attachments needed to
support transaction
Benefits of using eStores
• eStores items are from contracted suppliers
- No bids or waivers are required
- Contracted lowest overall pricing
• Extensive selection of products and suppliers
• Easy identification of items from MBE and EDGE
• Imports shopping cart directly into eRequest
- Ensures accuracy of items requested
- Expedites processing of transactions
- Automatic PO Dispatching and Faxing
FAQs
1. Why do my items have to be shipped to Central Receiving?
–
–
–
–
Packages are opened and inspected…..
Less delivery trucks on campus……
Packages delivered to campus addresses within 2 - 3 hours of receiving…
Tracked in PeopleSoft
2. What should I do with invoices sent to me/department?
– E-mail to apinvoices@osu.edu (Include Purchase Order Number)
3. My eRequest is in pending completion status what does that mean?
–
Your order was approved at the BOC and is pending dispatch from a
BOC buyer or further processing by OSP/UNIV purchasing department.
 OSP Purchasing 614-292-6871
 UNIV Purchasing 614-292-2694
FAQs Cont…
4.
My eRequest is in completion status, but I have not received my items?
–
–



5.
Your order was approved at the BOC and dispatched by a BOC buyer or OSP/UNIV
purchasing department
To save time and expedite your request contact vendor
Confirm they have received PO or CC payment
Confirm shipment of items
Contact the BOC if additional action is needed.
How do I process an OSP Consultant agreement?
–
6.
All OSP Consultant agreement should be sent directly to your Sponsored Program Officer
What is an alternate documentation for original receipts?
–
Duplicate of original receipt…
 From a copy or scan you have made
 Reproduction by the vendor
FAQs Cont…
7. How do I return an item to vendor?
–
–
–
Contact vendor to obtain return merchandise authorization (RMA) or e-stores
return form if purchased via e-stores punchout
Return item to vendor
Contact the BOC if merchandise was purchased using BOC credit card
8. If I make comments in eRequest will the BOC be notified?
–
The BOC is not notified when updates are made to eRequest. Please contact the
BOC with question or concerns about your request
9. When should I submit a critical/emergency eRequest?
–
–
Equipment is broken
Unable to do job without supplies or equipment needed
10. When should I use my department PCard?
–
–
–
Business meals
Emergencies
Purchases needed after business hours