UNC Financial Systems Conference 2012
df
UNC SciQuest
Purchase to Settlement Update
Ken Craig (UNCGA)
Julie Hepner (SciQuest)
Session Outline
►
SciQuest E-Procurement Update
SciQuest Background
SciQuest System Overview / UNC Implementation
Status
UNC Path to SciQuest Initiative
SciQuest Benefits and Savings
Spend Analysis / Strategic Sourcing (Top Manageable
Spend Categories)
FY 2012 Operating Plans
Questions and Answers
Page 2
SciQuest Background
Page 3
SciQuest Strategic Procurement
Spend &
Performance
Analysis
Supplier &
Diversity
Information
Management
Settlement
Management
Sourcing &
Contract
Management
SciQuest is the
leading provider of
strategic
procurement and
supplier
management
solutions
Marketplace
&
eProcurement
Inventory &
Supply Chain
Integration
Page 4
The Source-To-Settle Process
RECRUIT & SET UP NEW SUPPLIERS
• Qualify and on-board new vendors
• Manage supplier performance & risk
UNDERSTAND &
MANAGE YOUR SPEND
NEGOTIATE STRATEGIC
CONTRACTS
• Analyze spend by category
• Determine sourcing
opportunities
• Search qualified suppliers
• Award new business
• Author and manage contracts
PAY SUPPLIER INVOICES
•
•
•
•
SHOP PRODUCTS & SERVICES
AND DRIVE SAVINGS
Receive goods
Match invoices
Manage exceptions
Approve payment
SEARCH IN-HOUSE SUPPLIES
•
•
•
•
•
Connect suppliers
Standardize catalogs
Highlight preferred suppliers
Approve requisitions
Transmit orders
• Integrate stockroom inventory into marketplace
• Manage chemical stockrooms & approvals
Page 5
The SciQuest Difference
►
Recognized leader in academic / research-centric organizations
More than 147 colleges and universities; 270 campuses
58 of 108 universities classified as ‘very high research activity’
34 of top 50 research schools based on NSF funding
Established and relevant Supplier Network – No supplier transaction or
participation fees
►
Low-risk choice
Preferred SunGard eProcurement Partner (56 SunGard clients)
12+ years of experience, solid financial standing
Proven client results and ROI at peer institutions
►
Unmatched customer relationships
97% customer satisfaction ratings
98% customer renewal rates
Client Partner Program
Higher Ed Customer Community: Regional and national user groups
Page 6
Select SciQuest Higher Education
Clients
Page 7
SciQuest State Government, Private Industry and
Higher Education Clients
Page 8
HigherMarkets Platform and
Unique Capabilities
Page 9
HigherMarkets Source-To-Settle Solution
Search and Shop
Catalogs
Services
PR creation
Accounting
Approvals
PO creation
PO consolidation
PO distribution
Receipts
EInvoicing
Matching
Bid Management
Reverse Auctions
EPROCUREMENT MODULES
SOURCING
DIRECTOR
SPEND
DIRECTOR
REQUISITION
MANAGER
ORDER
MANAGER
SETTLEMENT
MANAGER
SUPPLIER INFORMATION MANAGEMENT
SUPPLIER CONTRACT MANAGEMENT & AUTHORING
MATERIALS MANAGEMENT
BUSINESS INTELLIGENCE AND REPORTING
SciQuest SUPPLIER NETWORK
Page 10
One Stop Shopping Drives User Adoption
and Spend Under Management
Punchout Catalogs
Services Forms
Consulting, Legal, Business Cards
Dell, E&I, Consortia
Hosted Catalogs
Science Catalog, Local Suppliers,
Diversity Suppliers
On-site Inventory
Internal Requests
Catering, Printing, IT requests,
Travel Approval
Order Status
Personal Assistance
Contract Details
Procurement Policies/Info
Page 11
Manage Supplier Connections via SciQuest
TRANSACTION DATA
MANAGED SERVICES
•
•
•
•
•
•
•
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
University of North Carolina System Schools
Page 12
SciQuest Requisitioning: Driving Campus
Wide Spend Through the Platform
One Stop Shopping
Single channel of spend for all goods and services on campus
Inclusion of internal and external services spend
Integrated shopping, requisitioning, ordering, receiving, invoicing
Configurable workflow to meet needs of diverse research campus
Integration with other campus systems (ie; MRO)
End user insulation from SunGard Banner application
Procurement Result
Easy to use system draws end users
Majority of campus spend flows through platform
Procurement obtains comprehensive and actionable spend data
Page 13
University of North Carolina
System – Solution Overview
Page 14
UNC Solution Overview
Search and Shop
Catalogs
Services
PR creation
Accounting
Approvals
PO creation
PO consolidation
PO distribution
Receipts
EInvoicing
Matching
Bid Management
Reverse Auctions
EPROCUREMENT MODULES
SOURCING
DIRECTOR
SPEND
DIRECTOR
REQUISITION
MANAGER
ORDER
MANAGER
SETTLEMENT
MANAGER
ENTERPRISE/
Contract Mgr
SUPPLIER INFORMATION MANAGEMENT
SUPPLIER CONTRACT MANAGEMENT & AUTHORING
MATERIALS MANAGEMENT
All UNC
Schools
ECU Only
SciQuest SUPPLIER NETWORK
Page 15
UNC Member SciQuest Configuration & Status
Supplies
Manager
Spend Director
Requisition
Manager Order Manager
Settlement
Manager
Contract
Manager
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
NC A&T
√
√
√
NC Central
√
√
√
UNC Asheville
UNC Charlotte
UNC
Greensboro
√
√
√
√
√
√
√
√
√
√
Prod Ready
2/2012
Pending
Kickoff
Live Pending
Banner 8.6
Live Pending
Banner 8.6
Pending
Kickoff
√
Pending
Kickoff
UNC Pembroke
UNC
Wilmington
Western
Carolina
√
√
√
√
√
√
√
√
√
√
√
√
Winston Salem
√
√
√
√
Pending
Kickoff
Pending
Kickoff
App State
ECU
Elizabeth City
State
Fayetteville
State
√
* Contract Manager is turned on and available for schools when they are ready
to use.
√
√
√
√
√
√
√
√
√
Page 16
UNC Campus SciQuest
Marketplace Logos
Page 17
User
Analysis
Total Active SciQuest users by
Peak Active Users - by % of
Total
UNCGA member
1%
5%
App State
5%
ECU
13%
Elizabeth City State
14%
Fayetteville State
Total Active Users = 4,081
5%
5%
7%
4%
10%
NC A&T
NC Central
UNC Asheville
UNC Charlotte
UNC Greensboro
20%
4%
7%
UNC Pembroke
UNC Wilmington
Peak Active Users by UNCGA Member
900
800
700
600
500
400
300
200
100
0
808
590
525
400
225
295
190
171
270
153
195
Reporting period: July 1, 2011 thru March 31, 2012
199
60
Page 18
Spend Analysis – Consortium Spend by Supplier/By Member
FYTD 2011-2012
Spend for consortium Enabled Suppliers
Reporting period: July 1, 2011 through 3/13/2012
Page 19
Spend Analysis – Consortium Spend by Supplier/By Member
FYTD 2011-2012
$8,000,000
$7,000,000
$6,000,000
$5,000,000
Appalachian State University
$4,000,000
Fayetteville State University
Elizabeth City State University
$3,000,000
Winston Salem State
$2,000,000
UNC Wilmington
$1,000,000
UNC Asheville
$0
Western Carolina
UNC Greensboro
UNC Pembroke
NC Central University
UNCCharlotte
East Carolina University
NC A&T
Reporting period: July 1, 2011 through 3/1/2012
Page 20
UNC System / UNC Campus
Sample Catalog Listings
►
Sample System Contracts
Fischer Scientific
WVR International
CDWG
Gov Connect
NAPA Autoparts
Grainger
Capital Air Services
National Educational Music Co
Professional Lighting & Supply
Anderson Sanitary
Maintenance
►
Sample School Catalogs
Hewlett Packard
CaterTrax
Impact Plus Uniforms
Xerox
MyOffice Products
Pocket Nurse
Henry Schein
Forms & Supply
Dell
Staples
Page 21
UNC System Initiative
Page 22
UNC E-procurement Strategic Enablement
Path
►
2004 UNC gained consent from DOA to pursue an integrated Banner EProcurement solution
►
2005 SciQuest piloted at ECU with consent from P&C
•
•
Saves ECU $600K annually
Generates $1.3M in process and cost avoidance savings
►
November 2006 - PACE recommended significant opportunities for EProcurement savings
►
March 2007 – UNCGA created PACE E-Procurement team with campus
representation
►
May – August 2007 – PACE E-Procurement team defined system
requirements
►
January 2008 – CFOs reviewed SciQuest solution
Page 23
UNC E-procurement Strategic Enablement
Path
►
March 2008 – UNC-GA submitted business case for SciQuest to campuses
•
•
•
•
•
Lowest E-Procurement total costs of ownership
Sole E-Procurement strategic partner with real-time interface with Banner
Provides an electronic payment to settlement solution
No duplicated IT support required
Uncertainty with continuation of the NCEP system (set to expire February 2010)
►
June 2008 – UNC System participated in demonstration of the NC E-Procurement
system (NCEP) by P&C
►
June 2008 - SciQuest was identified as the sole E-Procurement solution as best value,
given the software’s functionality, low total cost of ownership, and existing Banner
interface capability
►
June 2008 – UNC-GA entered into negotiations with SciQuest Corp. for system level
contract as an E-Procurement solution
►
July 2008 - UNC executed SciQuest contract that provided a 61% recurring license fee
discount with consent for Division of Purchase and Contract Division
Page 24
University of North Carolina
System – Benefits
Page 25
UNC System E-Procurement Annual Costs vs.
NCEP Costs
UNC System
NCAS Expenditures for Period ended 06/30/2011 (objects: 53XXXX)
E-Procurement Effect On
Spend
Non-Procurement Related Costs
Fixed Price Contracts or Single
Instance Contracts
Opportunity to Negotiate Savings
- Services
Opportunity to Negotiate Savings
- Commodities
Grand Total
Total Spend
Potential
NCEP ECommerce
Costs @
1.75%
SciQuest
Annual
License Fee
Costs
UNC EProcurement to
Settlement
Savings for Using
SciQuest
$
7,206,984,276
-
$
329,546,472
-
$
650,657,599
-
$
1,278,047,195
22,365,826
1,282,020
21,083,806
$
9,465,235,541
22,365,826
1,282,020
21,083,806
Manageable Spend: $1,.929 B
Banner Schools: $817 M
PeopleSoft: $1,112 M
1.75% of
Manageable
Commodity Spend
-
-
-
-
0.07% of
Manageable Service
and Commodity
Spend
Notes
1, Salaries, benefits, rental / lease exp., travel, debt service, depreciation, scholarships, grants, etc.
2. Utilities, insurance and bonding, capital improvement projects,
3. Contractual services, repairs, maintenance agreements, communication, mail, supplies and materials, purchase
for resale items, capital equipment purchases, etc.
4. PeopleSoft provides a fully integrated electronic procurement to settlement solution within it’s baseline ERP
system at no additional cost.
Page 26
Common E-Procurement –
Calculated Savings Descriptions
► Contract
Compliance Savings (Hard Savings)
Savings achieved by channeling more spend/transactions to existing
contracts thus taking advantage of already existing discounts
► Strategic
Sourcing Savings (Hard Savings)
Savings achieved using strategic sourcing initiatives to identify / create new
and / or better contracts with new / existing suppliers and
► Process
Savings: (Quasi Hard / Soft Savings)
Requisition to PO Delivery:
•
•
•
Reduction in processing costs from requisition through the delivery of the PO to
the suppliers.
Elimination of auto-fax service fees
Reduced paper costs
Settlement Automation:
•
•
Reduction in processing costs from the receipt of goods through invoicing and to
payment of the invoices.
Avoidance of duplicate invoice payments.
Page 27
Common E-Procurement –
Non-Calculated Savings Descriptions
► Contract
Lifecycle Savings (Soft Savings)
Savings achieved through more effectively and proactively managing
contracts throughout their lifecycle
► Settlement:
Prompt-Payment-Discounts (Soft Savings)
Savings achieved through enabling quicker payment of invoices and
negotiating early payment or enablement of electronic invoicing discounts
► P-Card
Rebate Savings (Hard Savings)
Savings achieved through driving more spend / transactions to university PCards thus enabling a larger rebate from the University’s P-Card bank.
► Software
as a Service Savings (Soft Savings)
Cost avoidance benefit for effective use of software as a service (SAAS)
solution to avoid redundant IT interface and application support costs, to
leverage single instance contract and catalog management services with
member institutions, to drive spend to preferred vendors, to create a system
wide purchase to payment data warehouse to drive strategic sourcing and
catalog enablement to generate savings and efficiency for the UNC Banner
institutions.
Note: UNC plans to incorporate the above mentioned performance metrics
into our SciQuest implementation ROI report in FY 2012.
Page 28
UNC SciQuest – Estimated Savings Metrics –
Banner Schools
•Negotiable goods and services spend: $817M
•
Estimated annual savings: $15.6M
1. Contract compliance and strategic sourcing savings
(20%)
2. Requisition to PO processing savings (35%)
3. Accounts payable processing savings (40%)
Page 29
Process Savings Metrics
Performance
Area
Before
E-Procurement
After
E-Procurement
Spend Under Management
48%
65-80%
Requisition-To-Order Costs
$ 60
$ 31
Requisition-To-Order Cycles
11.0 Days
4.4 Days
39%
12-23%
Invoice Receipt-To-Payment Costs
$ 34.11
$ 2.18
Invoice Receipt-To-Payment Cycles
35.1 Days
2.8 Days
Percentage of Maverick Spend
Page 30
Process Savings Examples
Strategic Vendor Savings





Increase on-contract spending
Increase diversity spending
Negotiate better contract pricing
Reduce maverick spending (spot buys)
Foundation for strategic sourcing
Process Benefits










Consortia catalog and contract maintenance
Improve researchers tools for acquiring materials for research
Self-service to improve customer service to campus users
One-stop shopping & request portal
Improve back-office staff productivity & efficiency
Improve payment cycle time
Improve time-to-order cycle time
Eliminate redundant processes, manual processes and delays
Overall increased efficiency of administrative staff
Enable other financial and non-financial workflows with SciQuest forms functionality
Supplier Network Benefits (TBD)
Page 31
UNC Banner Schools - Top Opportunities to Negotiate
Savings Spend Categories – Service and Commodities ($817M)
Rank OBJECT DESC
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
532199 - MISC CONTRACTUAL SERVICES
532181 - FOOD SER AGREEMENT
533800 - PURCHASES FOR RESALE
535890 - OTHER ADMIN EXPENSE
532310 - REPAIRS-BUILDINGS
534630 - LBRRY&LRNING RESRCE COLL
533900 - OTHER MATERIALS & SUPP
533720 - EDUCATIONAL SUPPLIES
534539 - OTHER EQUIPMENT
532170 - ADMIN SERVICES
534534 - PC/PRINTER EQUIPMENT
534523 - EQUIP-SCIENTIFIC/MEDICAL
532811 - TELEPHONE SERVICE
532850 - PRINT,BIND,DUPLICATE
532390 - REPAIRS-OTHER
533110 - GENERAL OFFICE SUPPLIES
534530 - OTHER DP EQUIPMENT
532441 - MAINT AGRMT-OTHER SOFTWRE
Total
Top 25%
Next 25%
Next
25%
106,363,467
97,938,138
88,707,479
47,747,935
42,301,499
38,091,543
23,735,278
21,493,705
19,549,337
19,081,044
17,382,379
16,774,566
13,315,698
13,292,486
13,016,219
12,653,104
12,349,174
11,957,703
% of Manageable
Spend
13.02%
11.99%
10.86%
5.84%
5.18%
4.66%
2.90%
2.63%
2.39%
2.34%
2.13%
2.05%
1.63%
1.63%
1.59%
1.55%
1.51%
1.46%
Page 32
UNC Banner Campuses - Top Fixed Price Contracts or
Single Instance Contract Spend Categories ($177M)
Rank OBJECT DESC
1
532210 - ENRG SER -ELECTRICAL
2
532220 - ENRG SER -NAT.GAS/PROPANE
3
532919 - OTHER INSURANCE
Total
Top 50%
% of Manageable
Spend
64,861,760
36.68%
27,123,949
15.34%
23,446,874
13.26%
Next 25%
4
534331 - BLDG-GENERAL CONTRACTS
20,573,556
11.64%
5
532230 - ENRG SER -WATER & SEWER
14,636,819
8.28%
6
532911 - PROPERTY-INSURANCE
5,082,023
2.87%
7
532913 - LIABILITY INSURANCE
4,060,248
2.30%
Next 15%
Page 33
Future UNC Spend Analysis / Strategic
Sourcing Strategy
►
Conduct a UNC System spend analysis study using existing Banner / PeopleSoft data to
determine the most impactful opportunities to strategic sources University spend along with eenabling high volume transactions across the University.
►
Implement SciQuest UNC System consortium dashboard reporting for purchase to settlement
process, and catalog management services operations to effectively and efficiently manage
University spend.
►
Explore expansion of the Education Advisory Board’s Spend Compass tool to effectively manage
University spend in FY 2013. The service is a purchase to settlement benchmarking data
warehouse tool for 55 universities and over 200 hospitals to manage, analyze, and monitor spend.
Current members are UNCCH, UNCW, and UNCC. Other campuses are evaluating membership.
(Examples of analysis provided are: top vendor spend, top vendor spend by commodity class,
non-preferred vendor spend by commodity class, price benchmarking against similar higher
education institutions by commodity class or item number, P-card spend analysis, price variance
reports, etc.)
►
The above mentioned analysis will drive catalog and contract enablement to vendors that provide
fully enabled purchase to settlement capability with the largest ROI to member institutions
►
Have plans with DOA to share state and university contracts and catalogs where applicable
Page 34
SciQuest Electronic Workflow Forms Efficiency
Opportunities (Examples)
Suggestion: Utilize additional forms for services, processes or
suppliers & share forms down to members
>
>
>
>
>
>
Brings additional spend under management
Customized Design
Can route workflow by form “type”
Improved form design tool on SciQuest
Can associate with a contract
E-enable other campus financial and non-financial approvals
Research Animal
Orders
Vendor Quote
Surplus Property
Copier/Printer
Orders
Business Cards
Laundry Services
Print Services
Professional
Services
Car Rental
Payment Form
Sole Source
Justification
Check
Request/Direct
Pay
New Supplier
Request
Travel
Authorization
Travel
Reimbursement
Banner System
Access
Fund Authority
Request
Page 35
Examples of Forms Usage
UNC System Contract Manager Consortium
Add non-catalog products to contracts
> Use as a substitute for self managed catalogs or suppliers with small number
of items (up to 100)
> Searchable like a Hosted Catalog, and can be showcased as a catalog
> Can upload items to SciQuest and make available within search results
> Can share down to members and make items visible within each member’s site
> State term, and other UNC System contracts
> NO LICENSE CHARGED!
Page 36
UNC SciQuest E-Procurement FY 2012
Plans
►
►
►
►
►
►
►
Establish project advisory committee, process lead, and project plan in
November
Establish University Procurement Office to manage strategic sourcing and
spend analysis operations
Conduct UNC System strategic sourcing study. The analysis will use
existing data from SciQuest and Spend Compass campuses to drive
catalog enablement with vendors that provide end-to-end purchase through
settlement capability
Expand system level catalog inventory from 10 to 20-30 catalogs by June
30, 2012
Sustain 60 state term contracts, and load Alliance and other UNC campus
contracts on GA consortium site
Develop implementation plan to leverage and expand SciQuest forms
workflows adoptions (i.e. Clemson and VA Tech)
Develop a purchase to pay return on investment annual report for the
SciQuest Implementation
Page 37
UNC SciQuest Update
Questions and comments
Page 38