LEAD YOUR INSTITUTION TO SAVINGS:The Evolution of Strategic Sourcing and the P2P Transformation

Paul Martin, Assistant Vice President for AdministrationRon Moraski, Director of Procurement ServicesMeaghan Kraft, Manager of Procurement Systems

WHERE it all STARTED…

Long-Term Vision to

Transform Procuremen

t

P-card Program

experienced Fraud

Solution, Managemen

t Approval and Funding

Three Pronged

Approach

Three pronged approach

Procure to Pay (P2P) Initiative

Travel Management Initiative

Strategic Sourcing Initiative

Collaboration IS the Only Way

Original Long-Term Procurement Vision

• Completed in 1996Use of Purchase and

Travel Card Integrated with ERP

• Completed in 2006Use of automated E-Procurement System

• Not scheduled until fraud happened in May 2010

Minimize Purchase Card Program and Implement

Sourcing Program

Cancellation of P-Card Program

• May 2010 – cards were cancelled overnight

P-Cards No P-Cards

Number of Cards 850 29

Number of PO’s Processed 5,700 16,000+

Number of Direct Pays 8,800 26,000+

Rebate $$ $100K $0

Current Area of focus

Procure to Pay (P2P) Initiative

Enhance e-

procurement process to include

e-settlement

(e-invoicing

and e-payment)

Improve integration

of procureme

nt and disbursem

ent systems

with Banner

Drive advance approvals

to purchase and pay through state-of-the art

procurement and

payables programs

Eliminate the need for the

former p-card

system

Utilize with

Strategic Sourcing to drive savings  

Objectives

–Mitigate Risk– Provide Robust Controls– Streamline and Automate Processes– Become State-of-Art in Industry– And Obviously …..

Approval of Funding – Savings Promised

Start-up Costs OngoingAnnual Cost

P2P 135,000 25,000

Travel Management 28,500 187,340

Strategic Sourcing 530,000 447,800

Totals 693,500 660,140

Estimated SavingsPer Year

P2P 245,000

Travel Management 370,000

Strategic Sourcing Up to 800,000

Totals 1,415,000

Overview of current e-procurement & Disbursement system

• Core ERP System – Banner Finance• e-Procurement (SciQuest) modules– Spend Director– Requisition & Order Manager– Settlement Manager– Contract Manager– Sourcing Director

• 16 Marketplace [Punch-out] Suppliers• 12 e-Invoice suppliers [3 supplier portal, 9 cXML

transfer]• Payments made through check or ACH

Inefficiencies with Current Processes

Supplier Set-up

Purchase

Invoice

Banner Integration

Pay

PO’s

E-Invoice/Paper

Electronically feeds to Banner

Non-PO’sPaper

(campus enters Requisition)

AP Enters into Banner

ACH or Check

Manual Set-up in Procurement

P2P improvements

SciQuestDigital

Mailroom, AP Director, TSM,

ADW

AMEXBIP &

vPayment*

New and enhanced Partnerships with:

*a benefit of the AMEX partnership is the vPayment solution which is SciQuest-enabled

P2P improvements

Digital Mailroom

Invoice capture for all paper invoices electronically

feeds into OSCAR

Live – March 2014

AP Director

SciQuest module that

allows for automating processing

Live – March 2014

TSM

Total Supplier Manager

allows suppliers to set-up and

control their information

Go-live Fall 2014

Non-PO Banner

Integration

SciQuest Solutions

Supplier Set-up

Purchase

Invoice

Banner Integration

Pay

Non-PO invoices will

be fed electronically into Banner.

This functionality

will be available with

Banner 8.9 patch

Date - TBD

P2P improvements

Digital Mailroom [DMR]• Will use for both PO and

Non-PO invoices• Improved controls for

non-PO invoices– At least two levels of approval required for all

non-PO invoices– Audit on non-PO invoice activity

• Match failure workflow improvements for PO Invoices

AP Director:

• Invoices available within 2 business days

• PO invoices will be matched and routed for approval

• Non-PO invoices will route to the invoice owner

Partnerships and solutions

Check and ACH

BIP

vPay CPC

New Forms of Payment

AMEX SolutionsSupplier Set-up

Purchase

Invoice

Banner Integration

Pay

vPay on Demand

Still considering

use

Amex payment solutions

BIPSimilar to ACH

Supplier is responsible for their own bank

information

Payment terms

vPayment

Embedded, secure credit card solution

Pay on ship – credit card sent via PO process

JV upload into ERP

Both solutions provide rebate on spend

Phase I – march 2014 - COMPLETE

Digital Mailroom

AP Director BIP vPay

phASE 2 – SummER / Fall 2014

Non-PO Banner

Integration

Invoice Status

Update

PO Workflow

on FOAPAL

TSMvPay on Demand & CPC

challenges

• High number of “Active” Suppliers • % of PO Invoices vs. Non-PO invoices• 1st Non-PO Digital Mailroom Client– Working with SciQuest to develop non-PO invoice workflow

using ADW

SuccessesSo Far

• Documented Cost Savings $4.8M+• Purchasing Revenue $200k• As a result of these numbers, our President granted an

increase in the project budget

Overall Project Success

• Original P-Card Rebate $100k• New Savings / Revenue $5M+– Sourcing– Travel– P2P

• Efficiencies• Visibility

QUESTIONS

Ron Moraski

morasr@rpi.edu518-276-8439