A presentation from UWA Finance and Resources

Strategic Procurement Update –November 2009

Update on PTP project activities to date

Procurement

Systems development

FNAS pilots

What’s to come in 2010

Introduction

The Journey so far - Results

• Customer Satisfaction Survey (March 2009) Summary: University staff – Overall Average 97% satisfied with preferred suppliers performance

(93 respondents)

• FNAS Feasibility Pilot Phase 1: Completed 2008 Phase 2: In Progress 2009

3-way matching completed Expense Management System – Start up imminent

• Preferred Supplier Agreements delivered $3.4m savings (YTD) up to 3rd quarter 2009

• Australian Universities Procurement Benchmarking Surveys Strategic Procurement Function: UWA rated 6th highest performing above average (out of 17), delivering best value for money

PROCUREMENT TRANSFORMAITON

PROGRAM

BULK INVOICING - PS &

EXP MGT SYSTEM

INVEST IN CORE

PROCUREMENTFUNCTION

PEOPLE & ORGANISATION

EXECUTIVE SUPPORT & RISK

MANAGEMENT

STRATEGIC SOURCING(in waves)

INVEST INSYSTEM

DEVELOPMENT

STRATEGY & GOVERNANCE

SUPPLIER RELATIONS

TECHNOLOGY & PROCESS

CENTRALISE PO STAFF AT

SCH/FAC LEVEL

POLICY, PROCEDURE &

ACCOUNTABILITY

MANAGE PREFERREDSUPPLIERS

TRAIN PURCHASING

STAFF

MANDATE PREFERREDSUPPLIERS

REDUCE SUPLIER

BASE

ELECTRONIC CATALOGUES

ALL GOODS ORDERED

ELECTRONICALLYPROCUREMENT

LEADERSHIP

FORECAST REALISTIC

EXPENDITURE

MAINSTREAM EDI

PROCESS

PH

AS

E 1

PH

AS

E 2

PH

AS

E 3

PH

AS

E 4

Where are we at with agreed Strategic Procurement Transformation?

PTP: Phase 1 (Foundation)

PID

University Design Work

package

Stage Plan – Phase 1

System Development Work package

Consultants pack of existing

processes & tools

Sourcing Plan & timetable

Strategic Sourcing Work

package

CRM Plan & timetable

Tender Plan (per commodity)

Signed Agreement

Client Feedback document

CRM Action Plan (per Faculty)

Peoplesoft Functional

requirements docValidate RFP EMS

Select and recommend EMS

solution

EMS Training doc

EMS Test Plans

Uni Procurement Process

documented

Uni Org Design validation –

Faculty & Central

Procurement Strategy and

policy validation

Central Tool kit

RFQ

Quote Acceptance

Faculty Tool kit

UWA Validation statement

UWA Validation statement

- Acceptance

Peoplesoft Technical

requirements doc

Peoplesoft Procurement Test

Plan doc

Peoplesoft Training doc

Training Kit

End Stage Plan – Phase 1

Business Case – Phase 2

EMS Pilot Workpackage

Peoplesoft Configuration & modeling doc

EMS Functional requirements doc

EMS Technical requirements doc

SP

SP

Systems Development

11/8/08 – 04/12/09

15/9/08 – 16/06/09

2/6/08 – 22/01/10

University Procurement Design & Toolkits

PMMS Consulting and Faculty Reference Groups:

What did we achieve?

• Validation of the University’s existing Procurement Strategic Plan, including procurement framework and governance structure

• Organisation design for the central procurement function and a best practice Faculty model

• Developed prototype Tool kits for Central Procurement and Faculties

• PTP Board approved the University Design

New Preferred Supplier Agreements Awarded: 2008/2009

To October 2009o Multi Functional Deviceso Toner Cartridges (Laser Exchange and Corporate Express)o Medical consumables: Gloves and Sutureso Dental consumables (CUA implemented for products that are available)o Travel Emergency Assistance and Advisory Providero Travel Management Consultant (re-appointed)o PostBill Pay (Australia Post)o Dairy (Milk) and Juice Products

To March 2009o Qantaso Office Supplies: Corporate Express agreement extended to Oct 2013o Travel Agents: Agreements extended to March 2011o Apple Macintosh: Winthrop and Next Byteo Singapore Accommodationo Perth Accommodationo Specialist Procurement Consultant (PMMS)o Bottled Water: Neverfail agreement extended to Feb 2010

Systems Development

P2P Work Package (3 Way Matching)

Matching rules and tolerances developed

PeopleSoft 3 way matching configuration and testing completed

Business process re-design and better practice procedures developed

3 way matching pilot completed in School of Plant Biology (690 vouchers)

AP PO Functionality Work Package

PeopleSoft accounts payable module reviewed and functionality assessed

PeopleSoft purchasing module reviewed and functionality assessed

Purchasing survey developed and training needs assessed

Purchasing training redeveloped to include new features and functions

Over 15 new processes and features have been adopted

Systems Development

Expenses Management System (EMS)

Software configuration and modelling well advanced

MasterCard interface complete, file error management and

correction processes established

MasterCard merchant codes configured and mapped to default

account codes

Business process re-design and new procedure being finalised

Control and reconciliation processes being finalised

Unit Testing completed for acquittal process and GL interface transactions

Kick off pilot tasks with FNAS school of Animal Biology complete

10/15/2009 Plant Biology

Plant Biology: 3 Way Matching Pilot

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10/15/2009 Plant Biology

WHY 3 WAY MATCHING?

• Improve efficiencies in purchasing

• Implement best practice processes

• Remove/ reduce paper and errors

• Encourage system changes

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10/15/2009 Plant Biology

PROJECT STAGES

• Map Plant Biology purchasing process

• Compare to best practice process

• Gap Analysis

• PeopleSoft training

• Implement new processes, making changes to systems and workload allocation as suited

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10/15/2009 Plant Biology

REVISED PROCESS IN PLANT BIOLOGYREVISED PROCESS IN PLANT BIOLOGY• Request received

• Check if available via Preferred supplier

• Quotes before order

• PO over $20k signed off – Financial delegation

• Confirmation & Authorisation on quote received

• Place order (PeopleSoft on-line)

• Receipt on system

• Invoice vs. PO – variance 5% on anything under $400 or $20 on amounts above (revised)

• New create/amend Vendor process

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10/15/2009 Plant Biology

IMPACT ON PLANT BIOLOGYIMPACT ON PLANT BIOLOGY

Key changes to workflow were:

• Additional time upfront to obtain quotes

• Establishing appropriate segregation of purchasing function from receipting function

Offset by the following key benefits

• Improved transactional processing locally and in FS

• Enriched functionality of PeopleSoft

• Improved control over non-salary expenditure

• Greatly improved create vendor process

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10/15/2009 Plant Biology

NEXT STEPS IN FNASNEXT STEPS IN FNAS1. Extend 3 Way matching to other BU

2. Develop shared (X-Faculty) model for segregation of duties to separate purchasing from receipting

3. Explore opportunities to centralise purchasing by:

– co-funding Purchasing Officer positions for multiple BU– with deliveries to multiple locations per PO advice– receipting done in the BU

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What’s next .....

2010 to 2012

Finish PTP Phase 1 by March 2010

PTP Phase 2: University Implementation

Travel Approval/Requisition (Trobexis) Project