ERP E-Procurement and Vendor Self-Service. Speaker Dale Kress Project Manager Advantage Procurement...
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Transcript of ERP E-Procurement and Vendor Self-Service. Speaker Dale Kress Project Manager Advantage Procurement...
ERP E-Procurement and Vendor Self-Service
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SpeakerDale Kress
Project ManagerAdvantage Procurement (CGI)
Opening Remarks
ModeratorR. Kinney PoynterExecutive Director
NASACT
SpeakerThomas L. White
State Comptroller (AL)
SpeakerEdgar C. (Ed) Ross
State Controller (KY)
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IntentionallyLeft Blank
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Introductions
Dale KressProduct Manager, CGI Advantage Procurement
Thomas L. White, Jr., CPAState ComptrollerDepartment of FinanceState of Alabama
Edgar C. (Ed) RossState ControllerCommonwealth of Kentucky
Agenda
Introductions
E-Procurement and Vendor Self-Service
Case StudiesKentucky | Alabama
Lessons Learned
E-Procurement and Vendor Self-Service Defined
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ERP
Source-To-Settle
Vendor Self-Service
Procure-to-PayContract
Mgmt
Spend Analysis
Vendor Registration
ReceivingThree Way Match
E-CatalogsE-Invoicing
Sourcing
The Solution Market
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Market penetration – 5% to 20% of target audience
Maturity – Adolescent
Main stream adoption – 2 to 5 years
(Gartner: Hype Cycle for Procurement, 2013)
Procure-to-Pay
(indirect spend)
Market penetration – 1% to 5% of target audience
Maturity – Adolescent
Main stream adoption – 5 to 10 years
Source-to-Settle
How Does E-Procurement Impact Spend and Improve Efficiencies?
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Provides access to consolidated spend information
Maximizes buying power
Reduces the costs of goods and services
Brings more spend under management
Leverages procurement card rebates
Increases transaction accuracy and reduces cycle times
Legislative and Policy Mandates and Objectives
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Promote transparency1
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3
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Support local government entities
Increase supplier base (diversified, etc.) programs
Increase competition
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Case Study:
Commonwealth of Kentucky
Current State in Kentucky
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Single Statewide ERP with Vendor Self Service
Contract Management
Sourcing
Procure-to-Pay Procurement Cards
Spend Analysis
E-Procurement in Kentucky
Contract Management
Solicitation Management
Catalog Management
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Buyers
End Users
Vendors
Contract Management
Solicitation Management
Catalog Management
Citizens
Requisition Management
Order Management
Payment Management
Account Management
Opportunity Management
Contract Management
Kentucky catalogs support decentralized ordering and leverage buyer power
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% of Master Agreements (MA)
0 8,0701,842 0 2,577,270
Total MA Spend = $7.9B*
98%
*Total MA Spend and Catalog Spend were calculated from FY2007-2012 and do not account for Procurement Card usage
% of Spend
# of Catalog vs Non-catalog MA’s # of MA Lines vs Catalog Lines
Catalogs
Non-Catalogs
23%
77%
Non-Catalogs ($5.2B)
Catalogs ($2.7B)*
34%
66%
Catalog MA’s 1,842
Non-Catalog MA’s 6,228
Total 8,070
# of MA Catalog Lines 2,577,270
# of MA Commodity Lines 41,408
Total 2,618,678
Kentucky catalogs support decentralized ordering and leverage buyer power
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*Top Catalog Spend by Commodity Code was calculated from FY2007-2012.
$47.4 M
Top Catalog Spend by Commodity Code
Paving/Resurfacing, Highway and Road
$1.44B96200
91829
91395
77545
20400
20600
96130
$0 $50M $100M $150M $200M $1.5B
$52.5 M Employment Agency/Search/Temp Services
Computer Management Services
$66.3 M
$66.9 M
$72.3 M
$103.6 M
Computer Software Consulting
Miscellaneous Services (Mostly Medicaid – MCO’s)
$198.5 M
Computer H/W & Peripherals (for Mini & Mainframe Computers)
Computer H/W & Peripherals (for Microcomputers)
Road Maintenance Salt
95823
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Punch Out Usage and Benefits
Streamlined, efficient ordering process
Secure Internet shopping using an online catalog customized with your standards and pricing
Reduced order cycle time (quicker receipt of materials)
Increased contract compliance
Total PunchOut Spend $2,780,555.07
Dell $2,208,124.91
Grainger $301,616.10
Steelcase $132,216.32
Fastenal $130,175.12
MSC $6,707.34
Software House (SHI) $1,715.28
SPEND
79%
11%
5%
5%
0%0%
Punch Out Risks and Challenges
Coordinating an implementation timeline with multiple parties
Reliance on vendor Punch Out site stability
Holding vendors accountable for custom catalog content (auditing)
Educating buyers and users
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Case Study:
State of Alabama
History
Highly customized solution of on-line and batch processes for
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AccountingFinancial
ReportingPayroll Procurement
Personnel Functionality
Current System Landscape
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Central Accounting
System
State-wide Payroll/
PersonnelSystem
AgencyAccounting
System
AdditionalAgency
AccountingSystems
Procurement
The Plan
Financials Proof of Concept Agency
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2013 2014 2015
Went Live October 1, 2013
Target Go Live date April 1, 2015
Target Go Live date October 1, 2015
Budget Preparation
Financial, Procurement and VSS
Future Application Landscape
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Single Integrated Statewide ERP with Vendor Self Service
Financial Management
Human Resource Management
Procurement Vendor Self Service
Budgeting Business Intelligence
Modernization Background: Decision Process
Reduce the total number of systems, interfaces and analysis required to support an expanding network of disparate systems
Support the complete procure-to-pay cycle
Eliminate the need to re-key transaction information, preventing errors at the point of entry
Allow procurement professionals to spend more time negotiating with vendors, managing contracts and strengthening relationships, thus reducing the cost of goods and services
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Replace legacy procurement system with state of the art integrated systemGOAL
Procurement Primary Objectives
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Benefit Feature
Simple web and mobile enabled solutionMaximize User Adoption
Modern business intelligence and real-time funds availability check and posting
Immediate Access to Information
Self service vendor portal to simplify vendor updates and catalogue maintenance
Reduce State Support Needs
Release upgradable sustainabilityRemain Current
Lessons Learnedand Mitigation Strategies
Lessons Learned and Mitigation Strategies
The importance of a public sector solution
Define your measures of success
The value of ERP integration
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3
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Vendor outreach is essential
Target the right goods and services
Mandate usage
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SpeakerDale Kress
Project ManagerAdvantage Procurement (CGI)
Questions?
ModeratorR. Kinney PoynterExecutive Director
NASACT
SpeakerThomas L. White
State Comptroller (AL)
SpeakerEdgar C. (Ed) Ross
State Controller (KY)
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Contact Info
Dale KressProcurement Product Manager, CGI Advantage
CGI State & LocalGovernment/ERP Solutions
(703) [email protected]
ISO 9001 Certified
Thomas L. White, JR.State Comptroller
State of Alabama
Edgar C. (Ed) RossState Controller
Commonwealth of Kentucky
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Thank you
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