Achieving Strategic Procurement
University of Hawaii System
Discussion and Demonstration
May 22, 2008
©2007 SciQuest, Inc. Confidential
Introductions
University of Hawaii Attendees
SciQuest Attendees
• Mark Garvella - Account Executive
• Dan Traub - Lead Solutions Engineer
• John Fabris - Vice President of Higher Education
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©2007 SciQuest, Inc. Confidential
Today’s Agenda
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8:30 – 8:45
8:45 – 9:10
9:10 – 9:30
9:30 – 11:00
11:00 – 11:15
11:15 – 11:30
Introduction & Brief SciQuest Overview
Trends, Observations & Results
SciQuest Solution Overview
Demonstration
Building the Business Case
Final Questions
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©2007 SciQuest, Inc. Confidential
SciQuest Background
©2007 SciQuest, Inc. Confidential
About SciQuest
SciQuest is the global leader in helping academic and
research-centric organizations realize the potential of
strategic procurement.
Our specialized knowledge, on-demand software and
service-first approach empower organizations to
manage spend, drive ROI and advance their critical
missions.
Connect to
your suppliers
What we do:
 Improve existing procurement systems
 Add value to planned procurement implementations
 Provide end-to-end procurement solutions
Capture more
transactions
How we do it:
 Combination of software and services
 Web-based, Software-as-a-Service model
 Integrations into any existing systems, including Kuali,
Banner, SAP, Oracle, PeopleSoft and more
Control your
spend
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©2007 SciQuest, Inc. Confidential
The SciQuest Difference
• Higher Education focus and experience
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Recognized leader in academic and research-centric organizations
70+academic and research universities
Extensive relationships with Higher Education suppliers
Community-driven development approach
• One stop supplier enablement
• Critical mass of supplier catalogs
• Local suppliers, diversity suppliers
• Automated transaction processing: order delivery and electronic
invoicing
• Research supplier catalog and research specific search tools
• Proven Return On Investment (ROI)
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Strategic spend and supplier reporting
Aggregate and leverage spend across campuses
ROI achieved within one year
Client reference cases and results
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©2007 SciQuest, Inc. Confidential
Sample SciQuest Higher Education Clients
•University of Michigan
•Indiana University
•Pennsylvania State University
•University of Illinois (system)
•University of Texas Health and
Sciences Center
•University of Missouri - System
•Clemson University
•University of California Berkeley
•University of Virginia
•University of New Mexico
•University of Louisville
•Cornell University
•Rockefeller University
•Colorado State University
•Virginia Polytechnic Institute
•University of Louisville
•University of Florida
•Florida State University
• Iowa State University
• University of Pennsylvania
• California Inst. of Technology
• Yale University
• Arizona State University
• University of Notre Dame
• University of Arizona
• University California Santa Cruz
• University of California San Diego
• University of California Riverside
• East Carolina University
• University of Pittsburgh
• University of Vermont
• M.I.T
• Dartmouth College
• Harvard University
• West Virginia University
• Tennessee Board of Regents
Joint SciQuest/Kuali KFS
Clients
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©2007 SciQuest, Inc. Confidential
Trends and Observations
©2007 SciQuest, Inc. Confidential
Higher Education Priorities
• Build accountability into purchasing process
• Leverage buying power across campus and
across systems
• Promote consortium contracts, diversity suppliers
• Decentralize execution, but centralize sourcing
expertise
• Re-focus procurement staff on strategic priorities
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Strategic sourcing / analysis
Contract management
Customer service
Risk mitigation
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©2007 SciQuest, Inc. Confidential
The Evolution of Strategic Procurement
Traditional Procurement
Paper-Based
Processes
Strategic Procurement
Automated
Processes
Supplier
Integration
(e-Requisition)
Reduction in
process costs
ReqApprovalPO
Reduction of
“maverick spend”
Lower Cost of Goods
Aggregate actionable
data
Inadequate Front End
“Shopping” Experience
SearchReq
• No single platform
• Poor search process
• Content = too lean
• Suppliers = too few
Confused, frustrated,
and time-pressured
end-users go around
the system
Leveraged
Supplier
Strategy
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Complete and integrate the
SearchPO process
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Create a single online
managed marketplace
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Enable a critical mass of
suppliers & content
Increase in end-user adoption
(More spend under management)
Opportunity to direct end-users
to preferred suppliers
Ability to capture uniform,
detailed spend data
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©2007 SciQuest, Inc. Confidential
Strategic Supplier Management
TRANSACTION DATA
MANAGED SERVICES
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• Supplier connectivity
• Extensive product
taxonomy
• Centralized eCatalog
• Price/content management
• Transaction integrity
• Transaction tracking
• Customer support
Purchase Order
Advanced Ship Notification
Invoicing
Receipt notification
Contract data
Payment data
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©2007 SciQuest, Inc. Confidential
SciQuest Supplier Network
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* This is a partial list. The full list is available upon request.
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©2007 SciQuest, Inc. Confidential
Real Results
©2007 SciQuest, Inc. Confidential
University of Missouri Sample Savings
“We expect to achieve as much as $17.9 million annually at full
system maturation. What other “back-office” function at a
university can create such a financial impact?”
-- Bill Cooper, AVP Management Services and Chief Procurement
Officer
• E-Procurement Objectives
• One Stop Shopping, Greater visibility into Spend,
Capitalize on ERP Investment, University wide cost
savings and process efficiencies, Supports Strategic
• Where the University of Missouri is Today
• LIVE in Pilot Phase as of October 1, 2007: 175 users
• 80% catalog purchases going thru SciQuest
• Renegotiated contracts with top 18 suppliers resulting in
savings of 3%-37% per contract
• Annualized estimated cost savings for 18 vendors is
$6,719,715
• Realized cost savings to-date: $2,300,000
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©2007 SciQuest, Inc. Confidential
Real Results – University of New Mexico
• About University of New Mexico
• Research-extensive university
• 20,000+ employees; 33,000+ enrolled
• Process ~$180M per year in purchases
• Goals
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Streamline purchasing process
Improve contract compliance
Enhance and improve administrative efficiency
Direct spend to preferred suppliers
Improve efficiency and compliance with
budgetary and policy guidelines
• Results
"We have been able to
leverage our buying power
with more suppliers. We
process about $180 million
a year in purchases,
ranging from pencils to
natural gas to health
insurance. SciQuest's
HigherMarkets solution
allows us to monitor
purchases more closely,
reduce maverick buying,
and also monitor contract
compliance. Ultimately, it
allows us to manage our
money better."
Bruce Cherrin, Director of
• Time to process a purchasing request reduced
Purchasing, University of
from 2-3 weeks to 2-3 minutes
New Mexico
• Greater accounting control and compliance
• Finance staff can focus on the strategic instead of clerical work
• Real-time data integration between SciQuest and SunGard Banner
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©2007 SciQuest, Inc. Confidential
Real Results – UTHSC
• About University of Texas Health Science Center
• Oldest school of public health in TX
• National reputation as a leader in education
and research
• 5,000+ faculty and staff; 3500+ enrolled
• Goals
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Ensure consistent and accurate pricing
Consolidate spending across the university
Obtain high user adoption
Achieve better pricing, discounts, and turnaround
through aggregated suppliers and automated payment
“SciQuest's solutions have
allowed our institution to
build strong relationships
with our key suppliers,
increasing our spend
visibility and positively
impacting our bottom line.”
Jerry Fuller, Assistant VP
for Procurement, UTHSC
• Results
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Increased on-contract spending and spend visibility
User adoption increased by 10%
15 suppliers enabled in 45 days
Reduced internal catalog and punch-out costs
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©2007 SciQuest, Inc. Confidential
Real Results – University of Pennsylvania
• About UPenn
• One of the U.S.’s oldest research universities
• 12,000 employees; 22,000+ enrolled
• $4.4B operating budget
• Goals
• Achieve higher returns from Oracle implementation
• Enable a critical mass of suppliers
• Increase campus-wide compliance with financial
policies and preferred contract suppliers
• Reduce the cost of products
• Eliminate maverick spending
• Results
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“Spend Director is a
breakthrough solution that
will take purchasing at The
University of Pennsylvania
to the next level. We
expect Spend Director to
further streamline the
buying experience for
faculty and staff and
increase the utilization of
our targeted suppliers
resulting in measurable
cost savings.”
Ralph Maier, Chief
Procurement Officer,
University of Pennsylvania
484% increase in contract compliance*
$77.4 million in total product cost savings*
More than 70% of campus spend under management
Average cycle time reduced from 18 days to less than one
ROI realized in 4 months
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* From Aberdeen’s Best Practices in e-Procurement, 2006
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©2007 SciQuest, Inc. Confidential
The SciQuest Solution
©2007 SciQuest, Inc. Confidential
SciQuest Strategic Procurement
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©2007 SciQuest, Inc. Confidential
Elements of a Private Marketplace
Punchout Catalogs
Services Forms
E&I, UHC, Provista
Hosted Catalogs
On-site Inventory
Science Catalog
Diversity Suppliers
E&I, UHC, Provista
Internal Requests
Personal Assistance
Order Status
Contract Details
Procurement Policies/Info
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©2007 SciQuest, Inc. Confidential
HigherMarkets Integration Scenario
Kuali
HigherMarkets
Login
Shop
Create
Req.
Hosted
Catalogs
Financial
Approvals
Punchout
Catalogs
Log In
Stockroom
Items
Create
Req.
Auto
EH&S
Approvals
Custom
Forms
Custom
Approvals
Non-Catalog
Items
Auth.
Interface /
LDAP
Create
PO
Approve
Req.
Validate &
Budget
Check
Final
Budget
Check
(optional)
Enhanced
Manual
Create PO
Encumber Funds
Transmit
PO
Send Via:
cXML
EDI
Email
Fax
Portal
Settle
Accept
E-Invoice:
cXML
EDI
Portal
Approve
&
Match
Enter
Receipt
(Match)
&
Pay
Invoice
Outbound Sync: Suppliers, Chart of Accounts, Ship To, Commodity
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©2007 SciQuest, Inc. Confidential
Product Demonstration
©2007 SciQuest, Inc. Confidential
ROI and Building a Business Case
©2007 SciQuest, Inc. Confidential
ROI - Business Case Components
• Savings Drivers:
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Contract compliance savings
Strategic sourcing savings
Process savings
Supplier savings
Payment savings
On demand savings
• Stakeholder Efficiency
• Researcher
• Procurement
• Grant Administrators
• Risk / Compliance Improvements
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©2007 SciQuest, Inc. Confidential
Thank You !
Please Contact:
Mark Garvella
Account Executive
916-315-8747
mgarvella@sciquest.com
©2007 SciQuest, Inc. Confidential