Cincinnati Children’s Hospital Medical Center The Anatomy of a Decision – CCHMC’s P2P Transformation

Agenda

AP Landscape 1

P2P Challenges 2

Why Taulia? 3

Implementation Insights 4

Project Goals 5

Key Learnings & Next Steps 6

Cincinnati Children’s Hospital Medical

Center (CCHMC)

Cincinnati Children’s, a nonprofit academic medical center established in 1883, is one of the oldest and most distinguished pediatric hospitals in the United States.

We offer comprehensive clinical services, from treatments for rare and complex conditions to well-child care. In the 2015-16 U.S. News & World Report survey of best children’s hospitals, Cincinnati Children’s ranked No. 3 among all Honor Roll hospitals.

600 registered beds

$2 billion in

operating revenue

More than 1.1 million

patient encounters

15,000 employees

Served patients from 50 states

and 57 countries in fiscal year

2014

Largest pediatric

research institution in the

U.S.

AP Landscape

PeopleSoft ERP/GHX and

Transcepta eInvoicing

8,000 suppliers in-

scope

60% of invoices received

electronically

9 employees in AP, with

1.25 devoted to handling

supplier inquiries

Standard payment

terms of 30 days

$600M in-scope spend

What Makes CCHMC’s Structure

Unique?

2 existing eInvoice platforms

Heavy customizations within our ERP (Peoplesoft)

Using a 3rd party for workflow/approvals

Multiple contracted procurement platforms

specific to both clinical and research

procurement

P2P Challenges

The Challenge

No collaboration from existing solutions, limited product enhancements and innovations ONE-SIDED

No way to share internal status with suppliers, they needed to call into payables department INTERNAL

Existing solutions had limited functionality beyond simple eInvoicing LIMITED

Why Taulia?

Great customer and supplier references

Helps small suppliers that aren’t as technologically advanced, because this allows them to flip PO’s and invoice within portal

Expansive dynamic discounting functionality

NO supplier fees!

User-friendly portal focused on catering to the supplier’s unique needs

Looking for more than just an eInvoicing provider

1

2

3

4

5

6

EINVOICING SELF-SERVICE PORTAL/

SUPPLIER VISIBILITY

ACKNOWLEDGEMENT PROCESS

DYNAMIC DISCOUNTING SUPPORT FROM INTERNAL TEAMS

Implementation Insights

4 “Must Haves”

Implementation Strategies

Partnership

1

Insight

2

Alignment

3

Focus

4

Partnership

• Collaboration between CCHMC and Taulia to develop the goals and strategies for how to be successful

• Full support from Taulia to achieve these goals

• Hector (product) for technical expertise & customization

• Brett (implementation) for managing project & ensuring on-time go-live

• Greg (enablement) for developing strategy for to target suppliers and achieve business case

• Taulia did a great job accommodating their existing integrations (POs, POAs, invoices)…they wanted to leverage existing interfaces and Taulia did a great job mapping to them

COLLABORATION SUPPORT ACCOMODATION

Insight Develop a Strategy to Find Supplier Information to Maximize Supplier Exposure to Program

There’s no way to invite suppliers to your portal if

you don’t know how to get ahold of them!

Out of 8,000 in-scope

suppliers, we only had

email addresses for 300

We leveraged Taulia’s

network of enrolled

suppliers to find email

addresses for another

800 suppliers

Work with Taulia to invite

remaining 6,900 suppliers

Alignment Communicate the Value Added to the Organization to Get Buy-In and Support from All Departments

Cross Departmental Participation and Alignment to Ensure Success

• Eliminate incoming paper invoices and calls into payables department

• Streamline processes, focus on more strategic initiatives

• Accelerate AP invoice approval time

• Strengthen supplier relationships by offering them a free portal that’s easy to use and offers value

• Requiring PO confirmations to streamline back-in processing of invoices

• Requiring vendor on-boarding through the Taulia gives the vendor control and eliminates CCHC data input

• Risk-free investment in the supply chain

• Adds to the bottom line

ACCOUNTS PAYABLE PROCUREMENT TREASURY

• Certified add-on that resides within ERP system

• Minimal change management – leveraging existing interfaces

IT

Focus Created a Targeted Onboarding Approach to Most Effectively Convert “Low Hanging Fruit” Early On

Strategic Onboarding Approach

1. Conduct a network match of CCHMC suppliers that are already using Taulia to turn the portal on for CCHMC as well (representative of 18% of spend) – they already use Taulia for their other customers and understand the benefits, so as soon as CCHMC portal is turned on, they’ll be active participants

2. Convert existing Transcepta eInvoicing suppliers to Taulia (100% converted by EOY)

3. Target high volume suppliers where they is a lot of opportunity for operational efficiency and early payment synergies

PHASE 1

1. Change business process for on-boarding all new suppliers

2. Begin inviting suppliers not enrolled during Phase 1

3. Preparing for potential terms extension where appropriate

4. Begin addressing discount opportunity and prioritize accordingly

PHASE 2 PHASE 3

1. Educate suppliers on what dynamic discounting is and how it benefits them

2. Continue inviting suppliers not enrolled during Phase 1 and Phase 2

3. Begin maximizing discount opportunities

4. Reach out to suppliers for terms extension

What Did That Get Us? From start of implementation to go-live:

12 weeks

Key Learnings & Next Steps

Reflection

• Internal delays that challenged resource allocation

• Early project assumptions that challenged vendor transition

• Technical limitations to get a go-live solution that stayed true to project goals – required configuration within the Taulia solution and within our ERP

• The vendor conversion and onboarding testing process

CCHMC Was Able to Overcome CCHMC Struggled With

Advice for Achieving Similar Results

Establish a clear and concise operational road map – What do you want to look like operationally?

Get feedback and buy-in from all impacted areas – i.e. Treasury, Procurement, AP

Establish a clear scope of work in the project plan – Essential that firm project dates are established as resource planning is critical

Make sure all impacted parties are “speaking the same language” and all parties are clear on expectations

Supplier communication and engagement is critical for project success

Adequately document internal changes and train effectively

Key Learnings

Build in test time for supplier on-boarding

Make a determination as to your corporate

philosophy in regards to payment terms and invoice/po delivery

options

Give adequate time to transition existing

e-suppliers

Have an escalation process in place for

unresponsive suppliers

Leverage existing integrations where

possible

Project Goals – Phase 3

Identify & reach out to supplier base for terms extension Finalizing our new vendor on-boarding process – moving out of the pilot phase

Begin analyzing and increasing operational gains Begin utilizing the Taulia portal for high-dollar, high-volume suppliers for supplier/CCHMC customer service benefit Begin maximizing discount opportunities

Questions?