Upload
nyssa-garrison
View
29
Download
0
Tags:
Embed Size (px)
DESCRIPTION
Procurement Transformation Maximizing the Potential of Procure-to-Pay Technology Jack D. Zencheck, Chief Procurement Officer, Yeshiva University. Yeshiva University (YU). Celebrating its 125th year. - PowerPoint PPT Presentation
Citation preview
Procurement TransformationMaximizing the Potential of Procure-to-Pay Technology
Jack D. Zencheck, Chief Procurement Officer, Yeshiva University
• Celebrating its 125th year.• YU is the country’s oldest and most
comprehensive institution combining Jewish scholarship with academic excellence and achievement in the liberal arts and sciences, medicine, law, business, social work, psychology, Jewish studies, and education.
• Students: 7,232 • Annual sponsored research: $225 million• Operating Budget: ~$648 million • Campuses: Locations throughout New York
City and Israel
Yeshiva University (YU)
What is Procure-to-Pay?
• Strategic rather than tactical
• Acquiring best contract pricing and terms vs. just buying (Procure)
• Cost-effective methods of processing payments through technology. (Pay)
Why Procure-to-Pay?
• Executive Level Support• Strategy• Cost Benefit
• Risks• Separation of Duties• Controls
oManual vs Systematic• Governance
YU Procurement Services at a Glance
• Purchasing• 90,000 purchase orders processed
• 80% ≤ $2,000• 67,000 purchase orders processed electronically• $300,000,000 in spend
• Accounts Payable• 179,623 total invoices processed
• 116,182 on Purchase Orders• 27,364 not on Purchase Orders• 36,077 processed thru EDI
Procure-to-Pay - Table of Organization
OpenDirector, E-Commerce
(P Cards)(B2B)
A. Butta Administrator,E-Commerce
G. BraithwaiteSystems Analyst
A. MooreSustainabilityCoordinator
R. GandolfoContract Admin.
IT
Jack D. ZencheckChief Procurement
Officer
Tova Ackerman Director,
Purchasing
T. SinghAP
Supervisor
T. BrownContracts
Administrator
H. NonnonAcquisitions Clerk
A. VillamarBookkeeper
L. JamesBookkeeper
Michael WinklerDirector of Energy
Mgmt & Sustainability
G. GillottAssistant to
CPO
J. IuratoTravel &Expense
B. O’FarrellConstruction
Buyer
R. LabrewFreezer Program
Clerk
R. OsiContracts
Administrator
N. FrancoAcquisition
Clerk
H. MartinezBookkeeper
E. TeehanAP Clerk
K. NeufvilleAP Clerk
Thomas CannonDirector of
Accounts Payable
A. BasiloneReceptionist
Natalia VolodarskyPurchasing Manager,
Scientific
P-2-P
V. MewAsst. Contract
Adm, MRO
S. GonzalezAP Clerk
P-2-P System
• Banner for Higher Markets
• SciQuest Full Suite (Higher Markets)• Requisition Manager• Order Manager • Spend Director• A/P Director• Sourcing Manager• Contract Manager
P-2-P System
• JPMorgan PaymentNet System• P-Card
• Enzyme Freezer Program, Alcohol Ordering, Reporting and Inventory System
• A/P Director e-Invoicing and Digital Mailroom Automation System
P2P Process
2) A/P DIRECTOR3 WAY MATCH (5k+)2 WAY (<5K)
1B) SCAN & CONVERT TO DIGITAL FORMAT & IMPORT DIT DIGITAL MAILROOM
Accounts Payable Automation – E Invoicing
E-Invoice
SciQuest
3 Way Match
Banner
ACH
E-Invoice
Direct Data Extraction
Fax Lock Box
CXML Conversion
SciQuest
3 Way Match
Banner
ACH
Accounts Payable Automation – E Invoicing
Outline• We hired E&I Consulting to
assess and recommend the following:• Technology Assessment• Organization & Operations• Marketing & Communications• Supplier Enablement
Procurement Transformation Project
• Performed a thorough evaluation of technology implementation• Banner and SciQuest full suite
• Identified post-implementation issues • system workflow (configuration and performance) • functionality deficiencies that impact
• performance • client satisfaction
• Documented and categorized appropriate solutions • Implemented recommended solutions • Documented and categorized outstanding Banner/SciQuest issues• Reinforced the values and benefits of compliance and utilization
Technology
• Completed process mapping of the procure-to-pay process • Validated each process step and decision point • Identified opportunities to:
• streamline workflow• reduce process time and effort for the campus users • maintain appropriate level of control and oversight
• Increase operational efficiencies by implementing reengineered processes resulting from the following mapping exercises:• Processing non-catalog small dollar purchases | Processing Requests greater
than $7,500• Processing Change Orders | Vendor Set Up• Remit-to-Addresses | Processing Invoices• Monitoring Sub-Recipient Process
Technology
• Conducted a formal organizational review to determine alignment with objectives of senior leadership and key internal business partners
• Determined need for more formalized strategic vision supported by senior leadership• Developed a 3-5 year strategic plan• Expressed to senior management the role of Procurement to:
• Project ROI• Address budget and staff requirements• Identify dependencies in order to achieve the strategy
• Recommended utilization of CPO’s skills to concentrate on:• Higher value• Strategic objectives
• Delegated appropriate contractual signing authority to:• Increase efficiencies• Minimize risks
Organization & Operations
• Established standard institutional procurement terms and conditions and a standard Master Supplier Agreement
• Obtained cooperation from the other internal stakeholders including:
• Human Resources• Business Affairs• Finance• Environmental Health and Safety• Insurance and Risk Management
• Established a formal Procure-to-Pay strategy and structure with shared ownership among:
• IT • Finance• Procurement
Organization & Operations
Organization & Operations
• Reviewed the skillsets and capabilities of Procurement staff and determine
• Skills and staffing levels were sufficient to meet goals and expectations
• Technology related skills were inadequate and needed improvement
• Performed a Procurement Customer Satisfaction Survey• determined current level of satisfaction• identified key areas of concerns
• Survey Results:• 82% satisfied with content and supplier enablements in
eMarketplace• 59% satisfied/very satisfied with service and support received
from the Procurement Services organization• 68% understand approval levels • 29% understand competitive bid threshold
Organization & Operations
• Performed supplier enablement to ensure successful hosted or punch-out catalog content for preferred contract suppliers.
• Enabled additional SciQuest science pack suppliers to further streamline ordering process for the campus community
• Initiated process change requiring suppliers to sign a written agreement to pay the 1.5% technology fee upfront vs. after the fact (current practice)
• Deactivated infrequently used suppliers to drive business to the preferred, contract and marketplace enabled suppliers
Supplier Enablement
• Developed a formal Marketing and Communications Plan (MCP) to communicate• Vision• Direction• Goals • Collaboration
• Invested in the redesign of the Procurement Services website to become the central repository of all procurement and disbursement related information
• customer support resources• policies & procedures• how-to-buy• commodity and supplier information• redesigned process documents
• Ensured regular communication and collaboration with key procurement stakeholders:• Human Resources• Controller Office• Risk Management • Finance• Environmental Health and Safety
Marketing & Communications
• Implemented new process to formally track and report all cost reduction accomplishments
• Developed and provided formal cost containment savings and criteria for tracking results• Developed formal and regular communications with senior leadership
and the campus community the monthly results of cost reduction initiatives
Supplier Enablement
Staff• Highly respected by peers in higher education • Skilled and motivated• Frustrated with pace of transition to more strategic and value-
added activities • Burdened by non-value duties and responsibilities• Would embrace and benefit from regular professional
development opportunities
General Observations
Impact of Procurement• Procurement function should be elevated to the highest levels
of the organization to support its the strategic objectives of the institution
• Designate Procurement as an institutional priority, because it:• Represents second largest percentage of annual operating budget• Interacts with and can positively impact operational efficiencies in
virtually every department• Can dramatically impact the Institution's bottom-line by reducing
costs and extending the value and potential of every dollar of available funding
• Procurement Services should be separated from non-core procurement activities
General Observations
• This all requires change management• “We can't solve problems by using the
same kind of thinking we used when we created them.”
- Albert Einstein
Internal Challenges & Solutions
Ralph Maier and Melánie LundE&I Consulting Group
(267) [email protected]
www.eandiconsulting.org
Acknowledgement
Conclusion