Welcome to UShop!

• Sub 70% contract compliance

• Paper-based

• Inefficient

• Not transparent

• Dysfunctional vendor management

• $70M annual Pcard spend that requires paper processing of each

transaction

CurrentProcurement

• Annual paper-based transaction volume

• 92,000 Suppliers

• 25,000 Purchase Orders

• 315,000 Invoices

• 56,000 Direct Payments

• Majority of payments made by paper check

• Overall lack of data availability

CurrentProcurement

• Too many different ways to procure and pay – all paper based

• Requisition and Purchase Order

• PCard

• Limited Purchase Order

• Payment Request

• UShop replaces all of these

CurrentProcurement

• Eleven of the twelve schools utilize some form of electronic

workflow for procurement, and nine of these use SciQuest.

• SciQuest is used extensively throughout Division 1 schools.

• Ushop is a low risk/high impact project.

What about our peers?

• Electronic workflow – Requisitions, PO’s, and Invoices

• Increased velocity and transparency

• Reduction of paper

• Detailed audit trail for all transactions

• Directs spend to existing contracts

• Allows better vendor management and strategic sourcing

• UShop integrated with University electronic approvals

UShop – how will it help?

• State of Utah procurement code

• University procurement regulations

• Required approvals for financial transactions

• Accountability for funds

What remains the same?

SELECTGOODS

SUBMITREQUISITION

ISSUEPURCHASE

ORDER

FULFILLORDER

PROCESSINVOICE

ISSUEPAYMENT

PROCUREMENT PROCESS

Efficiency & Cost Savings

OUR GOAL: IMPROVE EFFICIENCY AT EACH STEP OF THE PROCUREMENT PROCESS

Efficiency & Cost Savings

OUR GOAL: IMPROVE EFFICIENCY AT EACH STEP OF THE PROCUREMENT PROCESS

Inefficiency in action

Clear Process Improvement

• We have analyzed current state versus UShop procurement,

step by step.

• We have documented both processes.

• When viewed side-by-side, the advantages of UShop, and

the reduced effort and steps are very clear.

Steps Eliminated

SELECTGOODS

SUBMITREQUISITION

ISSUEPURCHASE

ORDER

FULFILLORDER

PROCESSINVOICE

ISSUEPAYMENT

PROCUREMENT PROCESS

SUBMIT REQUISITION FOR APPROVALINCLUDING FUNDING DESIGNATION

DEPARTMENT APPROVAL

ISSUE PURCHASE ORDERPAPER

SHOP FOR ITEMS

ELECTRONIC

Step 1 – Create a marketplace…

• UShop Catalog Suppliers allow us to capture spend

and leverage contracts, plus provide;

• Contract pricing

• E-Invoicing

• Free shipping

• Very easy and positive user experience

• Updated shipping and delivery information

• Biochemistry

• Human Genetics

• Mechanical Engineering

• University Information Technology (UIT)

Phase 1 Departments

• 408 Requisitions, totaling $7,675,101

Phase 1 Dept Statistics

• Positive

• University financial approvals and routing are integrated

• Funding sources validated at time of entry

• Catalog supplier marketplace very easy to use

• Areas of concern

• The availability of preferred suppliers in UShop

• System provides too many notifications

• Transparency of the system has revealed some lags both in individual

departments and central administration

• Need for internal suppliers (e.g. Campus Store)

Phase 1 - Feedback

• Chemistry

• Financial & Business Services

• Human Resources & Payroll

• Academic Outreach Continuing Education

• College of Architecture

• Marriott Library

• College of Nursing

• College of Pharmacy

• University Student Apartments

Phase 2 Departments

• Phase 1 completed

• Phase 2 – now through August 24

• Onboard and train new departments

• Increase UShop utilization in Phase 1 departments

• Collect department feedback and provide support

• Phase 3 – September 2015 into 2016

• Onboard and train new departments

• Add new functionality, such as internal suppliers

• Consider large systems, such as Hospital, HCI, Facilities

Project Timeline

• Electronic workflow – Requisitions, PO’s, and Invoices

• Ease of use

• Transparent processing

• Reduced paper volume

• Faster processing

• Strategic sourcing

• Data-driven analytics

Review of the Benefits

• This is a large-scale change management project.

• A recognition that the current process is very expensive, inefficient, and does

not represent good stewardship of the funds entrusted to the University.

• Documented increase in contract compliance and strategic sourcing.

• UShop must provide fast transaction processing - high velocity.

• Consistent communication of the benefits of UShop to the departments, the

University, and the suppliers.

• Demonstrated savings to the institution

Critical Success Factors

Questions?