Procurement Services Forum
Winter 2012
AGENDA FOR THE DAY
Procurement Services Today
eReimbursements
Cost Study Benchmarking
Tools & Templates
eProcurement
Strategic Sourcing
NonPO Invoice
Sustainable and Diverse Purchasing
Information Resources
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Our
Mission
Our
Vision
Our
Services
We help people who change the
world through collaboration,
consultation and financial
stewardship
We are a dynamic organization that
anticipates emerging needs and
delivers exceptional service
anywhere, anytime
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Tools
we
Provide
Public and Private Sector
Best Practices
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• Grow eProcurement Solutions
Purchasing
Strategic Sourcing
Contracting
Accounts Payable
Procard
Procurement Customer Service
Communications, Outreach &
Training
Green & Sustainable Purchasing
Small & Diverse Supplier
Awareness
• Increase spend under
management
• Reduce costs centrally and in
campus units
• Leverage data – spend analytics
• Strategic Sourcing
• Better access to data for campus
units (transparency)
Procurement Desktop Reports
eProcurement
eReimbursements
NonPO Invoice
Online Credit Card Application
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Overview
• The Hackett Group was engaged to benchmark procurement and certain
finance functions to provide context for current status
• Participants selected:
– Central procurement
– 50 units from colleges & schools
– 19 units from administration or central services
• Data collection phase: 4 weeks to collect
– Time spent on high-level categories
– Fully-loaded labor cost and other costs
– Transaction volumes and spend data
• Compiled and compared with peer group to assess efficiency and
effectiveness
Comparison to Peer Group
Overall procurement costs as a percent of spend are significantly higher
than peer group, driven primarily by FTE
4%
0.3%
0.4%
Other
Technology
3.3%
0.8%
0.6%
0.1%
0.1%
UW
Labor
0.1%
0.1%
0.6%
0.5%
Peer Group
World-Class
Comparison
to
U
of
Michigan
University of Michigan has larger spend ($2B vs. $1B) yet fewer noncentral FTE involved in procurement function
4%
0.3%
0.4%
Other
Technology
3.3%
Labor
0.9%
0.2%
0.2%
UW
0.8%
0.1%
0.1%
0.5%
0.6%
UM
Peer Group
Components of Procurement Costs
As a Percentage of Spend
3.47%
Campus Units
Outsourcing
Purchasing Technology
Central Procurement
2.99%
0.91%
0.45%
0.15%
0.32%
UW
0.31%
UM
0.01%
0.16%
eProcurement
Before we thought of
eProcurement as just catalogs…
As we progress…
eProcurement will grow with more modules
NonPO
Invoice
eReimbursements
Non Catalog
Ordering
eProcurement
Catalogs
Contract
Compliance
Sourcing
System
EPROCUREMENT
Module
Purpose & Impact
eReimbursements
NonPO Invoice
Non Catalog
Ordering
EXTENSION MATRIX
Types of
Transactions
Purchasing or
Payment
Method Being
Replaced
eReimbursements
provides an electronic
mechanism for submitting
reimbursements to
employees
• Check Requests
• Petty Cash
• Revolving Fund
Accounts
• Manual Check
Request process
Allow users to pay
suppliers when a
Purchase Order is not
necessary
• Subscriptions
• Membership Fees
• Invoice payments
<$5,000 for
suppliers not
requiring a PO
• PAS –
Orders under
direct buy limit
•Orders for suppliers
that don’t have
eProcurement
catalogs
NOTE: Orders
>$5,000 will route to a
Buyer
• PAS –
Orders over
the direct buy
limit
Allow users to create a
Non-Catalog order within
eProcurement when a
supplier requires a PO.
• ProCard
• ProCard
To monitor the progress on these projects,
see http://f2.washington.edu/fm/ps/procurement-project-pipeline/epro-extension-matrix
Launch
Date
Feb
2012
Feb
2012
Spring
2012
EPROCUREMENT
EXTENSION MATRIX
Module
Purpose & Impact
Types of Transactions
Purchasing or
Payment Method
Being Replaced
Contract
Compliance
Used for complex
purchases that don’t
lend themselves to the
typical catalog order
(i.e. maintenance
agreements, leases,
service agreements,
etc.)
• Service agreements
• Maintenance contracts
• Larger orders that have
milestones
• Standing orders
• Open orders
• Term supply contracts
that can’t go into an
eProcurement catalog
• PAS – Orders
over the direct
buy limit
Automate and
streamline our sourcing
process
•RFP (Request for
Proposal)
•RFI (Request for
Information)
•Reverse Auctions
• Manual Strategic
Sourcing activities
Sourcing
System
Launch
Date
• ProCard
Summer
2012
To monitor the progress on these projects,
see http://f2.washington.edu/fm/ps/procurement-project-pipeline/epro-extension-matrix
Fall
2012
NON-PO INVOICE
NOW
LIVE!
BIG THANKS to the following departments for participating in our pilot
program:
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APL
Biology
Disability Services
UW Medicine – SLU
School of Art
Humanities Shared Services
Dean of Arts and Sciences
Meany Hall Performing Arts
Family Medicine Residency Network
UW Medicine IT Services
Pilot Participant Testimonial
– Elliott Nutt, Disability Services
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NON-PO INVOICE
STEPS TO GAIN ACCESS
1) Attend a training session
– all users must be educated on the use of the system and best practices
Hands-on
Webinar
On-line PowerPoint
2) Pass an on-line knowledge assessment with 80% or better
3) ASTRA authorizations granted by Procurement Customer Support
Use of Non-PO Invoicing is possible approximately 2 days after
completing knowledge assessment.
EREIMBURSEMENT
Full Campus Release Feb 27th!
eReimbursements is a new module for reimbursing UW employees for expenditures
made on behalf of the University up to $3500.
Payment available by direct deposit
or check
$75 waiver for attaching receipts –
depending on department policies
Not for travel expenses or paying
vendors
Check with your administrator before
implementing
Identified on budget with prefix “XR”
Attach receipts to XR in Ariba and
retain originals in department
For more information, see:
http://f2.washington.edu/fm/ps/xr-overview
Questions?
Contact payman@uw.edu or call 685-5377
Department responsible for approving
appropriateness of expenditures
Pre-loaded “Funding Approver” from
eTravel
Thank you to our participants on the
eReimbursement team and to the
20+ departments who piloted it and
gave feedback.
TOOLS & TEMPLATES
LIVE TODAY!!!
Procurement Services is pleased to announce 2 new work-process
improvements:
• Sole Source Justification Statement eforms
• PAS Document Attachment Webform
Benefits:
 Submit sole source justification statement eforms directly to procurement
services
 Submit PAS documents directly to procurement services
 Eliminates lost documents
 Eliminates duplication of efforts
 Eliminates lost time
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STRATEGIC SOURCING PROJECTS
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Campus-wide initiatives
Improved pricing and terms
Ease of use
Catering
Hotels
Event Rentals
A few of the projects currently underway
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Managed Print
Services
(copiers
/printers)
SUSTAINABILITY
Paper Reduction
- Compliance with HB 2287
- Only purchase 100% recycled copy paper
- Reduce our consumption by 30%
- Upgrade your ‘clunker’ printer or fax machine
- HP PurchasEdge program, a partnership with
Office Depot and HP
- Duplex capable and energy efficient printers
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SUSTAINABILITY
Laserjet 4N
Laserjet 4015DN
No duplex – 8 ppm
52 ppm – duplex - Energy Star
1200 KWH
1595 CO2e (lbs)
571KWH
758 CO2e (lbs)
Take the catalyst survey to see whether your office qualifies:
https://catalyst.uw.edu/catalyst/chooser/0f4c06593ca225d9074ec03f6d81bf6f
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SUSTAINABILITY
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SUSTAINABILITY
Get with the program!
green.washington.edu/ess/engage/paper-conservation
Showcase your best practice!
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DIVERSE & SUSTAINABLE PURCHASING
Socially Responsible Purchasing
Local
Green/Sustainable
Diverse
Where to Find Suppliers
Procurement Services
UW Contracts Search
eProcurement
Business Diversity Program
Supplier Search
Who to Contact
Office of Environmental
Stewardship & Sustainability
Business Diversity Program
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Claudia Christensen
RESOURCES
The following slides are
for links for your own
reference.
We will not be speaking
to these items.
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WHAT WE’VE ACCOMPLISHED
SINCE LAST TIME
ProCard / CTA
Online Application
(Jan 15 2012)
• ASTRA Approval Flow
• Track card applications / approvers online
http://f2.washington.edu/fm/ps/how-to-buy/procard/howtoapply#forms
Online Supplier
Registration Portal
(2009)
• Allows us to capture critical information for various state and federal reporting requirements
http://f2.washington.edu/fm/ps/how-to-pay/department-responsibilities/supplier-registration
Electronic Payment
Methods:
(2009)
• Payment Card (recommended electronic payment method):
http://f2.washington.edu/fm/ps/epayables
• ACH (available for those suppliers who cannot accept the payment card, but there are costly
disadvantages to the University)
http://f2.washington.edu/fm/ps/payment-methods
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RESOURCES FOR QUICK REFERENCE
Contracts
• UW Contracts:
Online search for active contracts, eProcurement contracts and search for small / diverse
suppliers
http://f2.washington.edu/fm/ps/how-to-buy/contracts/uw-contracts
Watch this site for new contracts added frequently….
Multiple contracts with small / diverse companies
eForms
• Sole Source Justification forms
http://f2.washington.edu/fm/ps/how-to-buy/sole-source-justification
• Send PAS Attachments electronically from your computer
http://f2.washington.edu/fm/ps/attachment
• Procard & CTA Applications are now Online
http://f2.washington.edu/fm/ps/how-to-buy/procard/howtoapply#forms
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RESOURCES FOR QUICK REFERENCE
PDR
Available now
• Reports & Best Practices:
http://f2.washington.edu/fm/ps/tools-for-reconciling/pdr
Instructions on how to use the reports, locate a copy of an invoice, approve invoices over
$10,000 and monitor high risk ProCard and Travel Card transactions (and more!)
NonPO Invoice
Available now
• NonPO Invoice
http://f2.washington.edu/fm/ps/nonpo
- Includes: Best Practices , Exception List, FAQs and Training Registration & Materials
eReimbursements
Available to campus Feb 27
• eReimbursements
http://f2.washington.edu/fm/ps/xr-overview
- Includes an Overview, How to Create an eReimbursement, the Approval Process, Special
Notes, Tips & Tricks and a FAQ section
- eReimbursements is for reimbursing UW Employees
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RECENT HEADLINE NEWS
Headline News
• State waives receipt requirement for purchases up to $75
Go online to see how this can apply to you and what restrictions are in place:
http://f2.washington.edu/fm/ps/sites/default/files/Mitigating%20guidelines%20for%20$
75.pdf
• Reconciliation made Easier in MyFD
The Reconciliation Report has been enhanced to link UW-IT, Procard, Corporate Travel,
Mailing Services and eProcurement transactions. To learn more, see
http://myfd.washington.edu/help/reconcilation
• New System & New Training – Register Soon
Non-PO invoicing provides user a a convenient means of making quick payments, as an
alternative to ProCard and when the purchase is below the direct buy limit. Training and
a passing grade is required to use this tool. Classes begin the week of Feb 20th. Register
at http://f2.washington.edu/fm/ps/training-events/classroom-training#ePnonpo
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HOW TO STAY INFORMED
Newsletters
• Procurement Services Campus eNews
Sign up to receive news flashes and periodic newsletters from Procurement Services
https://mailman2.u.washington.edu/mailman/listinfo/procurementservicesnews
Read previous issues at
• Procurement Pipeline
Keep track of the status of the projects you heard about today
http://f2.washington.edu/fm/ps/Home/Procurement-Project-Pipeline
• eProcurement Extensions
Keep up on the progress of the eProcurement Extensions you heard about today
http://f2.washington.edu/fm/ps/procurement-project-pipeline/epro-extension-matrix
• MyFinancial.desktop News (MyFD)
Subscribe to receive up to date information regarding MyFD at
https://mailman1.u.washington.edu/mailman/listinfo/myfd_info
Or read previous newsletters at http://f2.washington.edu/fm/myfd/myfdnews
• Environmental Stewardship and Sustainability Newsletter (ESS)
Read the current ESS News at http://f2.washington.edu/ess/news
• Business Diversity Program (BDP)
See the latest Business Diversity news at http://f2.washington.edu/bdp/news
NEW REQUIREMENTS FOR ALL NEW SUPPLIERS
.
The Supplier Registration Portal is a web-based form for all new
suppliers that do business with the University.
This comprehensive form provides detailed information for various
state and federal reporting requirements
All new suppliers are need to be sign up for an electronic payment
method
Payments can be delayed if the supplier is not set up for electronic
payment
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Electronic Payment Methods
ACH is available for those
suppliers who cannot accept
the payment card, but there
are disadvantages to the
University.
The University of
Washington's number
one recommended
payment method is by
payment card.
Payment Card Benefits
for the University
ACH is an option…
but has weighty disadvantages
Cost savings
Fewer checks to print and mail
Disadvantage:
Costs the University
money to process
Reduced exposure to check fraud
Disadvantage:
Initial set up may
take from 5-10
business days
Time savings
Fewer calls for lost or misplaced checks
Sustainability
Fewer check stock to purchase
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