MyFloridaMarketPlace Electronic Invoicing (eInvoicing) Overview

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MFMP Overview

MyFloridaMarketPlace (MFMP) is the State of Florida’s online e-procurement system, the single e-commerce conduit between state agency buyers and vendors to conduct public purchasing on a daily basis

Designed to streamline interactions between vendors and state government entities that purchase goods and services

Provides a user-friendly Internet portal where vendors can register, receive information on upcoming bids, post information on products and services, receive purchase orders electronically and submit invoices electronically

MFMP Overview

MFMP Overview

We at MFMP pride ourselves on public and private partnerships; our award-winning technology applications create easier and faster transactions for both buyers and vendors

Excellence in IT Leadership Award from IT Florida Excellence in Public Service Leadership from IT Florida Honorable Mention given by the National Institute of Governmental

Purchasing Achievement for Excellence in Procurement (2004, 2005, 2006,

2007, 2008, 2009) ComputerWorld Laureate 2008

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MFMP Overview

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MFMP Overview

MFMP Vendor Benefits Equal access for small-, disabled-veteran, women- and minority-owned

businesses Electronic Invoicing (eInvoicing) 24/7 access to more bid opportunities and information

Vendor Bid System (VBS) Sourcing eQuote

Improved quality and accuracy of interactions with the state Customer service support available to provide real time assistance Green catalog and product listing options

MFMP Overview

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eInvoicing

eInvoicing is presenting an invoice electronically to agencies for payment

eInvoicing enables vendors to conduct business in a more cost effective way that automates and streamlines some processes

eInvoices are audited and approved electronically through MFMP

Vendors are able to monitor invoices’ approval flow for tracking

Any invoice disputes are electronically returned to vendors

No paper is submitted to the agency for payment processing

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eInvoicing

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Benefits Methods to eInvoice Ariba Supplier Network (ASN) Return on Investment (ROI)

Vendor Tools Electronic Funds Transfer ACH


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Vendor Benefits to eInvoicing

Reduce costs: Create, present, manage, and archive invoices electronically, eliminating the need for paper documents and associated printing and shipping costs

Save Time: Eliminate the production of print invoices and time spent preparing documents for mail

Manage more effectively: Create invoices that automatically reconciles orders, invoices, payments, and related key documents associated with the financial supply chain

Collaborate with less effort: Use fewer resources to collaborate with customers and track communications, documents, and payments

Faster Payments: Encourages prompt and accurate processing of invoices by improving data accuracy which can reduce payment cycle times

Green: Submitting invoices electronically does not generate paper

Vendor Benefits of eInvoicing

Buyer Benefits to e-Invoicing

Faster Processing Times: saves a good amount of time for payment processing in accounts payable offices by eliminating manual processes such as manual data entry, reducing processing errors and payment cycle times

Reduction in paper: e-Invoicing substantially reduces paper flow and associated costs such as copying and filing

Reduction in cost: Reduces costs by eliminating manual audit, eliminating need to research for duplicate payments, and eliminating scanning requirements

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Buyer Benefits to eInvoicing

Paper Invoices submitted for payment

Involves printing and mailing efforts Lose tracking control Involves scanning and recreating the invoice and shuffling paper

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Paper Invoices Submitted for Payment

eInvoices submitted for payment

Eliminates several activities including courier/mail and scanning processes

Allows for quicker receipt of invoice Invoice can be tracked systematically Improves data accuracy which reduces cycle payment times

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eInvoices Submitted for Payment

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Methods of eInvoicing

State of Florida vendors have multiple ways to provide state agencies electronic invoices via the Ariba Supplier Network (ASN)

PO Flip via the ASN

Straight Through Processing (STP)

Vendors can select the method that best meets their capabilities

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PO Flip via the ASN

Vendors submit invoices electronically via the ASN

Invoices are created directly from the ASN Inbox by simply “flipping”

the PO into an invoice

The PO Flip option does require manual intervention to flip the invoice

This option also does not require any special software or technical capabilities

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Straight Through Processing (STP):

cXML (commerce eXtensible Markup Language)

EDI (Electronic Data Interchange)

Requires special software or technical capabilities

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Electronic Invoicing Option Comparison

cXML

Scalability

Ease of Implementation

Speed to Implement

PO FlipEDI


High LowMedium


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Ariba Supplier Membership

Electronically invoicing with MFMP is facilitated through membership in the Ariba Supplier Network (ASN)

The fee is only assessed if certain thresholds are met

Certified Minority Business Enterprises can apply to have the ASN Fees waived

1http://www.ariba.com/suppliermembership/en/smp_pricing.cfm


How to Register with ASN

Registering for the ASN allows vendors to create an electronic invoice online and send these invoices back to the state

Basic Registration - Register at http://supplier.ariba.com and click on the "Register Here" button in the middle of the screen. Follow the on-line instructions. Note that basic registration requires a DUNS number. There are two ways to obtain a DUNS number: Online at http://www.dnb.com Over the phone by calling 1-888-814-1435

Additional information is available off of the vendor toolkit at http://dms.myflorida.com/business_operations/state_purchasing/myflorida_marketplace/mfmp_vendors/vendor_toolkit/ariba_supplier_network_asn

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How to Register with the ASN

Ariba Supplier Membership1

Membership fees are based on the transaction volume:

Buyer-supplier relationships with over $100,000 USD in transaction volume and

15 or more documents

Fees are assessed as a small percentage (0.1%) of volume Relationships with fewer than 15 documents or transaction volume

of less than $100,000 are exempt from fees

Fees apply to only the first $10M USD in qualifying transaction volume for any relationship

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Ariba Supplier Membership1

Annual qualifying volume >$10M will NOT be charged

Less than 1.2% of suppliers hit the cap of $10K

0.1%*$100,000 to $10M and 15+ documents sent

FREE< $100,000 USD

Fees Annual Volume Per Buyer-Supplier Relationship

Supplier Membership Program Fees

Quick Reference Table:



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Example ASN Membership Fee Calculation Table1

VolumeDocuments

(POs & Invoices)Fee (USD)

Company 1 $25,000 15 $0

Company 2 $99,999 20 $0

Company 3 $150,000 121 $150

Company 4 $1,000,000 2,000 $1,000

Company 5 $7,000,000 8,500 $7,000

Company 6 $250,000,000 10 $0

Company 7 $250,000,000 110 $10,000


Example ASN Membership Fee Calculation

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Return on Investment

Using $20 per Invoice for manual paper processing and $5 per invoice for electronic invoicing (STP and PO Flip) we developed three case studies to identify possible savings based on Invoice volumes in MFMP

A case study was developed for each of the following: High Invoice Volume / Large Company Medium Invoice Volume / Medium Sized Company Low Invoice Volume / Small “Mom & Pop” Company Certified Minority Business Enterprise (CMBE)

2 Forrester: Best Practices: Invoice-To-Pay Process Automation, November 19, 2008

Inefficient manual processing can cost $20 or more per invoice, but companies can cut this to $5 or less using electronic invoicing2

Return on Investment (ROI)

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Volume/ Spend Data Invoices in FY 2008: 20,472Total Invoice Amount: $5,597,350 PO Spend: $7,173,831Estimated ASN Fees: $7,174

Invoicing CostsManual/Paper : $409,440Electronic : $102,360

Estimated eInvoicing Savings (Manual Costs- eInvoicing Costs) - ASN Fees

= $299,906

High Invoice Volume / Large Company


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Medium Invoice Volume / Medium Sized Company

Volume/ Spend Data Invoices in FY 2008: 802Total Invoice Amount: $958,446 PO Spend: $1,204,160Estimated ASN Fees: $1,204



= $10,826


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Low Invoice Volume / Small “Mom & Pop” Company

Volume/ Spend Data Invoices in FY 2008: 126Total Invoice Amount: $106,891 PO Spend: $111,994Estimated ASN Fees: $112

Invoicing CostsManual/Paper : $2,520Electronic : $630


= $1,778


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Certified Business Enterprise (CBE)

Volume/ Spend Data Invoices in FY 2008: 758Total Invoice Amount: $2,309,264 PO Spend: $2,483,620Estimated ASN Fees: $0 (Waived $2,484 as a CMBE)


Estimated eInvoicing Savings (Manual Costs- eInvoicing Costs) - ASN Fees = $11,379 (Unwaived: $8,886)


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Vendor Tools Electronic Funds Transfer ACH


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eInvoicing summary

When deciding to eInvoice, consider:

How many invoices are created for orders with State of Florida Executive Agencies in the past year

Determine if you are invoicing these agencies on a frequent basis and

look at how many invoices were created during this calendar year thus far

The cost of time, research, and production of print invoices for your customers

eInvoicing Summary

eInvoicing summary

To become an eInvoicing vendor:

Obtain a DUNS number http://www.dnb.com

Obtain an ASN account http://supplier.ariba.com

Contact MFMP to set up your trading partnership [email protected]

Start eInvoicing!

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eInvoicing Summary

eInvoicing summary

Did you Know?

eInvoicing vendors are advertised on the MFMP Web site

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eInvoicing Summary

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Electronic Funds Transfer (EFT)

EFT (Direct Deposit) When pairing eInvoicing with EFT, a vendor will receive funds

substantially faster Direct Deposit enables all payment monies to be available on the

desired payment date

Advantages include: Peace of Mind — No mail delays or lost check worries Prompt Payment — Deposits will be available on the payment date Convenience — Avoid special trips to your financial institution Freedom — Your payment will be automatically deposited to your

account


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To find out more about EFT, contact DFS: Direct Deposit E-mail address: [email protected] Direct Deposit phone number (850) 413-5517

To sign up for EFT, complete and submit the form located here: http://myfloridacfo.com/aadir/dd_vendor.pdf

To receive funds electronically, please ensure your name on the Direct Deposit System and the name in your MFMP vendor registration account match directly

At any time you can access DFS’ vendor payment Web site and look for a pending payment: https://flair.dbf.state.fl.us


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Automated Clearing House (ACH)

1% Transaction Fee The State instituted a 1% transaction fee to provide vendors with electronic

access to State buyers and to provide vendor support

ACH Similar to EFT, Debit Automated Clearing House (ACH) is another form of

electronic payment ACH electronically transfers funds from your bank account to the

MyFloridaMarketPlace account Vendors can sign up for ACH and pay the 1% transaction fee electronically To have your MFMP vendor transaction fee set up as an ACH:

Visit the vendor toolkit http://dms.myflorida.com/vendortoolkit and download the ACH form for vendors

Complete the form and e-mail it directly to the Department of Management Services (DMS)

Automated Clearing House (ACH)

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Resources: MFMP Vendor Web pages

The MFMP Vendor Web pages include a vendor toolkit and additional information to assist vendors on a daily basis

http://dms.myflorida.com/business_operations/state_purchasing/myflorida_marketplace/vendors

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Resources: MFMP Vendor Web pages

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Resources: Vendor Toolkit

The vendor toolkit includes:

Vendor Training opportunities

CBE (Certified

Business Enterprise) Information

ASN (Ariba Supplier Network)

Resources: Vendor Toolkit

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Resources: Vendor Web pages

The Vendor Communication Bulletin Board displays vendor hot topics and the eNewsletter with focus on different, important subject matter, relevant to everyday business

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Resources- Vendor Web Pages

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Frequently Asked Questions (FAQs)

http://dms.myflorida.com/business_operations/state_purchasing/myflorida_marketplace/vendors/vendor_frequently_asked_questions_faqs

Vendor FAQ section specifically for ASN (Ariba Supplier Network)

Frequently Asked Questions (FAQs)

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Contact Us

Additional information about the ASN can be found http://www.ariba.com/suppliermembership/en/smp_pricing.cfm To register as an ASN vendor: http://supplier.ariba.com

For technical questions concerning solicitations, please contact Vendor Help at: [email protected] or 1-866-352-3776 Web site: http://myfloridamarketplace.com Monday – Friday, 8:00 am – 5:30 pm EST

For questions about becoming a certified minority vendor, please contact the DMS Office of Supplier Diversity (OSD) at: [email protected] or 850-487-0915: Web site: http://www.osd.dms.state.fl.us

Resources

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Resources

Today’s presentation is available on MFMP vendor toolkit http://dms.myflorida.com/vendormeetings

Future teleconferences: 7/15/10: MFMP / VIP Overview 8/12/10: 1 Percent Transaction Fee / Fee Reporting 9/15/10: How to find Business Opportunities

Register at http://dms.myflorida.com/vendormeetings

Questions / Comments

Be on the lookout for a participant survey!

Resources

Wrap-Up

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Contact Us

Team Member E-mail Phone Number

Communications Analyst

[email protected] (850) 294-3080

F&A Process Analyst


Operations Manager [email protected] (850) 414-6735

Purchasing Process Analyst


Vendor Management Analyst


MyFloridaMarketPlace Electronic Invoicing (eInvoicing) Overview

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