Yale’s New eProcurement Solution
Feedback Session
Pilot Group Representatives
September 7, 2004
Agenda
• Introduction
• Demonstration of Solution
• Issues Discussion
• Additional Q&A (if needed)
1:30-1:45
1:45-2:15
2:15-3:30
3:30-4:30
Who is here?
• Representatives from the Pilot group
– Medical School
– Central Campus
– Business Office Staff
– Lab Personnel
– Project Management Team
Why you are here?
• Major Buy/Pay Improvement Initiative
• Pilot Group was chosen, based on:
– Nominees from the DUCs group
– Volume of your department’s transactions
through Phase 1 suppliers
• We need your feedback on some issues
What are the benefits of this solution?
• Benefits to the User/Lab Community:
– buy from multiple suppliers at once
– reduces the need for cost transfers
– single log in and interface for all hosted contract supplier
catalogs (~100 suppliers, to be rolled out in waves)
– easy electronic requisition order form that is pre-populated with
your profile information (ship to, charging instructions, etc.)
– convenient shopping 24 hours a day
– excellent deal combining price, quality and service
– provides up-to-date catalog information
– create efficient express orders using Favorites
– cross-supplier searches in catalogs to find best price
– faster turn-around time for orders and payments to suppliers
– accounting commitment created in Oracle financials (i.e. to track
real-time spend against a grant)
– easy split charging when required
What are the benefits of this solution?
• Benefits to the University:
– improves management and planning capacity
– greater institutional costs savings by aggregating and leveraging
University-wide transaction volume
– faster turn-around time for orders and payments to suppliers
– improves quality of service to Yale community and simplifies and
streamlines the Buy Pay Process
What are the benefits of this solution?
• Benefits to the Business Office:
– review, routing and approval
– accounting commitment created in Oracle financials (i.e. to track
real-time spend against a grant)
– easy split charging when required
– upfront collection and validation of charging instructions
(eliminates back-end handling of error invoices)
– eliminates the handling of paper requisitions and paper invoices
– reduces the need for cost transfers
Project Information
• eProcurement Solution is SciQuest
– Specializes in large research institutions
• Go live, with Pilot group, 3rd QTR FY05
– Phase 1: ~20-30 supplier catalogs
– Phase 2: ~60-70 additional catalogs
• 3 ways to requisition in the solution
– Shop in catalogs
– Non-catalog request for existing supplier
– Non-catalog request for new supplier
Demonstration
Start Requisition
Workflow
Yale eProcurement Workflow
Contract Suppliers - Catalog/Punchout/Non-Catalog Item
Customer
Has a Need
to Make a
Purchase
Is the Requisition
>= $5K or a noncatalog request?
Approval Options for Requestors:
$0 - Everything needs approval
<$500 does not require approval
<$1000 does not require approval
<$2000 does not require approval
<$5000 does not require approval
No
Yes
Yes
OEHS
Approval
Is it a restricted item?
No
Departmental Approval
No
PO(s) Created in
Yale
eProcurement
Solution Site
Yes
Is the
Purchase Order
Total
>=$xx?
Yes
Yale Purchasing
Services Approval
Note: Requisitions will be split into Folders for
Purchasing Services Approval by Supplier.
Higher Level
Purchasing
Services Approval
No
PO(s) Sent to
Supplier via
Fax/Email/cXML
End Requisition
Process
Is the Req >=$5K
or a Non-Catalog
Form?
Start Purchase
Order Workflow
Approval Options for Approvers:
Business Office Staff person #1 - up to $10,000
Business Office Staff person #2 - up to $25,000
Business Manager - up to $100,000
Dept. Chair /Dean - order notification
Issues Discussion
• Topic #1: See Supplier List
– Are there any suppliers you use most often
that are not on this list?
Issues Discussion
• Topic #2: Charging Instructions
A. Validation and Expenditure Item Date
•
Use of pre-awards
B. Valid Tasks for a Project, but no description for
C.
D.
E.
the “Task”
Use of VIP’s
Expenditure type default for VIP
The way they appear in the solution
Issues Discussion
• Topic #3: Frequency of Order Changes
and Cancellations
– How often do you change or cancel an order
after you place it?
Issues Discussion
• Topic #4: Training Options
– Classroom
– Web-based, on demand
– Train the trainer
– No training
Issues Discussion
• Topic #5: User profile information
– START for access and default profile
information
– Default Ship to addresses
– Default approver name
Issues Discussion
• Topic #6: Department Views
– What view of transactions do you need? (i.e.
Division, Department or Organization level)
– Who needs which level?
Issues Discussion
• Topic #7: Workflow Approval Thresholds
– What kind of transaction approval do you
require? (just Business Office or Lab
Managers as well?)
Approval Workflow $ Limit Requirements
Requisitioner’s $ Limits:
Example $ limits and definitions:
–
$0 - Everything needs approval
– <=$ 500 requisition does not require approval
– <=$1000 requisition does not require approval
– <=$2000 requisition does not require approval
– <=$5000 requisition does not require approval
Approver’s $ Limits:
Example $ limits and definitions:
– Business Office Staff person #1- Can approve to $10,000
– Business Office Staff person #2- Can approve to $25,000
– Business Manager- Can approve to $100,000
– Department Chair/Dean – notification of large $ orders
Statistics on current transaction volume
• UNP VIP Transactions FY 2004:
Range
Invoice Count
Cumulative Count
% Cumulative
Total
Between 0 - $200
136,172
139,970
79.9%
$200 - $500
21,746
161,716
92.3%
$500 - $1,000
9,589
171,305
97.8%
$1,000 - $2,000
2,553
173,858
99.2%
$2,000 - $5,000
995
174,853
99.8%
Statistics on current transaction volume
(cont’d)
• PCard Transactions FY 2004:
Cumulative
Range
Between 0 - $200
Transaction Count
Count
% Cumulative
Total
78,068
81,675
69.7%
$200 - $500
22,141
103,816
88.5%
$500 - $1,000
7,624
111,440
95.1%
$1,000 - $2,000
3,608
115,048
98.1%
$2,000 - $5,000
2,079
117,127
99.9%
Statistics on current transaction volume
(cont’d)
• Purchase Order Invoices FY 2004:
Range
Invoice
Count
Cumulative
Count
% Cume.
Count
Between 0 - $200
7,043
7,935
30.5%
$200 - $500
4,293
12,228
47.0%
$500 - $1,000
3,068
15,296
58.8%
$1,000 - $2,000
2,877
18,173
69.8%
$2,000 - $5,000
3,417
21,590
83.0%
Questions & Answers
Next Steps
1. Follow-up on any new issues that have
been discussed today
2. Send out notes from today’s session to
entire pilot group and the DUCs
3. Continue to solicit feedback via email as
issues arise
4. Have additional smaller feedback
sessions (if needed)