Lean
Procure to Pay
David Kemp
Senior Consultant
CISTECH, Inc.
 220 N Ames Street, Matthews, NC 28105  704-849-6717 
www.cistech.net
1
Lean Procurement Process
Create PO
-Reqs
-Approval
-MRP Recs
Collect Quotes
-Distribute RFQ
-Analyze Response
Pay Invoice
-Status
-EFT
Communicate with Supplier
-Terms, date, quantity
-Specifications
-Shipping information
Receive
Material
-Planning
-Identify PO/item
-Receive to MAPICS
CISTECH, Inc.
 220 N Ames Street, Matthews, NC 28105  704-849-6717 
www.cistech.net
2
2
Lean Procurement Process
Create PO
-Reqs
-Approval
-MRP Recs
Collect Quotes
-Distribute RFQ
-Analyze Response
Pay Invoice
-Status
-EFT
Communicate with Supplier
-Terms, date, quantity
-Specifications
-Shipping information
Receive
Material
-Planning
-Identify PO/item
-Receive to MAPICS
CISTECH, Inc.
 220 N Ames Street, Matthews, NC 28105  704-849-6717 
www.cistech.net
3
3
Electronic Requisition Approval
• Integrated into PowerLink with Integrator
CISTECH, Inc.
 220 N Ames Street, Matthews, NC 28105  704-849-6717 
www.cistech.net
Electronic Requisition Approval
• Hierarchy based on user/purchase type
CISTECH,
Inc.
5
 220 N Ames Street, Matthews, NC 28105  704-849-6717 
www.cistech.net
5
eReq: Visibility in Power Link
CISTECH, Inc.
 220 N Ames Street, Matthews, NC 28105  704-849-6717 
www.cistech.net
6
eReq: E-mail approval
Requisition can be approved directly from email
CISTECH, Inc.
 220 N Ames Street, Matthews, NC 28105  704-849-6717 
www.cistech.net
7
Lean Procurement Process
Create PO
-Reqs
-Approval
-MRP Recs
Collect Quotes
-Distribute RFQ
-Analyze Response
Pay Invoice
-Status
-EFT
Communicate with Supplier
-Terms, date, quantity
-Specifications
-Shipping information
Receive
Material
-Planning
-Identify PO/item
-Receive to MAPICS
CISTECH, Inc.
 220 N Ames Street, Matthews, NC 28105  704-849-6717 
www.cistech.net
8
8
The Problem:
Supplier Communications
• …can be inefficient
– Systems are usually manual
– Our orders may be lost in their swamp
– They get back to us eventually
– Their communications get lost in our swamp
• …can be error prone
– Orders, lines, dates, quantities get mixed up
– Drawings get lost
– Scraps of paper get misplaced
CISTECH, Inc.
 220 N Ames Street, Matthews, NC 28105  704-849-6717 
www.cistech.net
9
9
Operational Concerns:
• Higher staff costs
– Buyer resource spent administering paperwork,
following up to confirm orders, calling suppliers for
ship dates, updating spreadsheets, faxing…
• Higher production costs
– Extra inventory to buffer unreliable suppliers and
communication failures
– Increased expedited shipping costs
– Production delays or shutdowns due to unexpected
stockouts
• Higher cost of quality
– Out-of-date specs and requirements
CISTECH, Inc.
 220 N Ames Street, Matthews, NC 28105  704-849-6717 
www.cistech.net
10
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Our Solution
For the supplier…
• Notification that we placed an order
• Online access to real time orders and forecasts
• One-click VA (vendor acknowledgment)
• Create ASN’s (Advanced Shipment Notification)
For the buyer…
• Prompt, two-way communication
• Instant visibility of supplier commitments
• Instant visibility of shipments
• All integrated into Power-Link
CISTECH, Inc.
 220 N Ames Street, Matthews, NC 28105  704-849-6717 
www.cistech.net
11
11
Supplier Portal:
Simple PO scenario
Buyer



Place the PO
See Supplier
Accept
See Shipping
Notification
CISTECH, Inc.
Supplier
• View PO
• Vendor Acknowledgement
(VA)
• Shipping Notification (ASN)
 220 N Ames Street, Matthews, NC 28105  704-849-6717 
www.cistech.net
12
12
Supplier Portal:
‘Negotiation’ scenario
Buyer





Supplier
Place the PO
Review change
Accept change
See Supplier
Accept
•
•
•
•
See Shipment
Notification
• Shipping Notification (ASN)
CISTECH, Inc.
View the PO
Propose change (qty, date)
See Customer Accept
Vendor Acknowledgement (VA)
– Currently VA done by BAE
 220 N Ames Street, Matthews, NC 28105  704-849-6717 
www.cistech.net
13
13
eReq & Supplier Portal
A live demo
Using
PowerLink & the Internet
CISTECH, Inc.
 220 N Ames Street, Matthews, NC 28105  704-849-6717 
www.cistech.net
Lean Procurement Process
Create PO
-Reqs
-Approval
-MRP Recs
Collect Quotes
-Distribute RFQ
-Analyze Response
Pay Invoice
-Status
-EFT
Communicate with Supplier
-Terms, date, quantity
-Specifications
-Shipping information
Receive
Material
-Planning
-Identify PO/item
-Receive to MAPICS
CISTECH, Inc.
 220 N Ames Street, Matthews, NC 28105  704-849-6717 
www.cistech.net
15
15
Receiving
• Visibility of Shipment Notifications (ASN’s)
enables planning
• Easy to find correct shipment
• Receive Shipment Notification including
multiple PO’s and lines with ‘1 click’.
• Bar code packages speed receipt and
putaways
CISTECH, Inc.
 220 N Ames Street, Matthews, NC 28105  704-849-6717 
www.cistech.net
16
Receiving
• Immediate Visibility of shipments
CISTECH, Inc.
 220 N Ames Street, Matthews, NC 28105  704-849-6717 
www.cistech.net
17
Receive Utilizing Shipment Notification
CISTECH, Inc.
 220 N Ames Street, Matthews, NC 28105  704-849-6717 
www.cistech.net
Lean Procurement Process
Create PO
-Reqs
-Approval
-MRP Recs
Collect Quotes
-Distribute RFQ
-Analyze Response
Pay Invoice
-Status
-EFT
Communicate with Supplier
-Terms, date, quantity
-Specifications
-Shipping information
Receive
Material
-Planning
-Identify PO/item
-Receive to MAPICS
CISTECH, Inc.
 220 N Ames Street, Matthews, NC 28105  704-849-6717 
www.cistech.net
19
19
Invoice Status
CISTECH, Inc.
 220 N Ames Street, Matthews, NC 28105  704-849-6717 
www.cistech.net
20
Electronic Funds Transfer ACH
•
•
•
Provides Electronic Distribution of
Accounts Payable payments
Enhances the IFM EFT process by
providing editing and ‘pre-note’
capabilities
Creates ACH formatted file and extracts to
IFS Drive for transfer to your bank
CISTECH, Inc.
 220 N Ames Street, Matthews, NC 28105  704-849-6717 
www.cistech.net
21
EFT -- Workflow
•
•
•
Process starts after regular IFM approval
process
IFM setup provides vendor settlement
method and account number
Generates ACH Bank File
– Provides creation of ‘Pre-notes’ for additional
instructions to the bank
• Account Verification
CISTECH, Inc.
 220 N Ames Street, Matthews, NC 28105  704-849-6717 
www.cistech.net
22
Lean Procurement Process
Create PO
-Reqs
-Approval
-MRP Recs
Collect Quotes
-Distribute RFQ
-Analyze Response
Pay Invoice
-Status
-EFT
Communicate with Supplier
-Terms, date, quantity
-Specifications
-Shipping information
Receive
Material
-Planning
-Identify PO/item
-Receive to MAPICS
CISTECH, Inc.
 220 N Ames Street, Matthews, NC 28105  704-849-6717 
www.cistech.net
23
23
Quoting – coming in R2
• Extension of XA-Enter quote data in
Power Link
– Enterprise Integrator
• Deliver quote requests via Supplier Portal
• Consolidate quote replies in Power Link
• Analyze data with views, sub
CISTECH, Inc.
 220 N Ames Street, Matthews, NC 28105  704-849-6717 
www.cistech.net
24
Quoting- Buyer Quote Entry
CISTECH, Inc.
 220 N Ames Street, Matthews, NC 28105  704-849-6717 
www.cistech.net
25
Quoting-Supplier Portal Entry
From Buyer Quote Entry
Entered by Supplier
CISTECH, Inc.
 220 N Ames Street, Matthews, NC 28105  704-849-6717 
www.cistech.net
26
Quote Analysis
CISTECH, Inc.
 220 N Ames Street, Matthews, NC 28105  704-849-6717 
www.cistech.net
27
Lean Procurement Process
Create PO
-Reqs
-Approval
-MRP Recs
Collect Quotes
-Distribute RFQ
-Analyze Response
Pay Invoice
-Status
-EFT
Communicate with Supplier
-Terms, date, quantity
-Specifications
-Shipping information
Receive
Material
-Planning
-Identify PO/item
-Receive to MAPICS
CISTECH, Inc.
 220 N Ames Street, Matthews, NC 28105  704-849-6717 
www.cistech.net
28
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Summary:
• Lean Procurement: Quote to Pay
• Transform effectiveness of Buyers
– Power Link is the single source for all
information
•
•
•
•
Quotes
Supplier Commitments
Attachments, Comments
Ship Notices
• Improved visibility and control of Materials
– Better information, better decisions
CISTECH, Inc.
 220 N Ames Street, Matthews, NC 28105  704-849-6717 
www.cistech.net
29
Summary: Quick ROI
• MAPICS ‘Module’
• Power Link for internal users
• Technology: R7 Enterprise Integrator and
System Link
• Low Risk
• Fast Implementation and ROI
• Low ongoing maintenance
– Standard XA components
CISTECH, Inc.
 220 N Ames Street, Matthews, NC 28105  704-849-6717 
www.cistech.net
30
Enhancements?
•
•
•
•
•
•
Quotes (coming in R2)
Invoice Status
Upload Invoices
Supplier Scorecard
Non Disclosure Agreements
Other Documents (Engineering)
CISTECH, Inc.
 220 N Ames Street, Matthews, NC 28105  704-849-6717 
www.cistech.net
31
Questions?
CISTECH, Inc.
 220 N Ames Street, Matthews, NC 28105  704-849-6717 
www.cistech.net
32