1

Transforming Agencies’

Procure-to-Pay Process:

A Case Study with OMH and BSC

October 23-24, 2018

2

Introduction and Objectives

Karen Tyler

SFS Executive Director

3||

SFS Roadmap of System ImprovementsGo-Live (2012)

Core Financials

• Billing

• Budget Control

• Accounts Payable

• Contracts/Purchasing

• Federal Grants

• General Ledger

• Travel & Expense

New Modules/Features

(2016 – 2017)

• Maintenance Management

• eSupplier Improvements

• Vendor Self-Service

• Vendor Location

• eInvoicing Signup

• Financial Reporting Improvements

• Fluid Implementation

• Deal Management

• Began Regular Ongoing Software

Management Updates

New Modules/Features

(2013)

• Inventory

(2014)

• SSP • Full Segregation

• POs (removal of

two-step contract

process)

• Bulkload Legacy

Formats Retired

• Accounts

Receivable

• Federal Grants &

Revenue Contracts

• Projects

• Real Estate

Management

• Email Dispatch

• eInvoicing

• Payment Schedule

Projection (PSP)

• Workcenters

• Data Warehouse

P2P Streamline Program

(2017 – 2018)

• Automating Debt Service

• Expanding eInvoicing

• Improving FBIC

• Improving Receiving

• On-time Payment and Discounts

• Improving Requisitions

• Expansion of Email Dispatch

• Buyer Tools

• Full Invoicing Support in SFS

• Planning for Strategic Sourcing &

Supplier Contracts

Go-Live

Apr 2012New Modules/

Features

2013 - 2014

EE1

Oct 2015 –

Nov 2015

New Modules/

Features

(2016 – 2017)

P2P Streamline

Program

(2017 – 2018)Enterprise

Projects /

Onboarding

(2018 – 2019)

Enterprise Projects/

Onboarding

(2018-2019)

• Travel Improvements

• P2P Streamline

• DOT Onboarding

• SFS Analytics

EE1 Go-Live (2015)

Major Upgrade & New Functionality

Future

Future

• DCJS & DEC

onboarding

• Other Onboardings

• Additional Process

Improvements

• New Modules

4

Understanding the Streamlined

Procure-to-Pay (P2P) Process

Karen Tyler

SFS Executive Director

5||

P2P Streamline Program Goals

Automate work and

procurement workflow

Increase efficiency with invoices and

vouchers in one system

Leverage SFS to support

agency business processes

Collaborate with vendors

with a more consistent process

Make payments atappropriate time, and save money

Deliver a best practice, end-to-end process that is

more efficient for Agencies and Vendors

Better manage transactions with

tools, visibility and reporting

6||

SimplifyRequests

Improve Purchasing through

automation and tools

Receive more timely

Pay invoices when due

Better Collaboration with Vendors

Changes support a Win-Win !

7||

• Eliminate paper forms, and separate systems

• Track progress and status of purchase requests

• Standardize process across agencies

• Simplify routine purchases

Benefits of Future Model Process:

Requests for Goods and Services

Requests

8||

Simplified Requesting –

Options for Requesters

• Used to order many items available from NYS Preferred Source and Statewide Contracts.

• The information selected is then automatically copied to the requisition.

NYS eMarketPlace

• Requester selects the item(s) they wish to purchase from a set of items tailored for their organization.

• The information selected is then automatically copied to the requisition.

Agency Catalogs

• Requester selects what they want to purchase from a user-defined list of “Favorites.”

• The information selected is then automatically copied to the requisition.

Favorites

• Requester selects what they want to purchase based on a recent order.

• The information selected is then automatically copied to the requisition.

Recently Ordered

9||

• Help manage purchasing/sourcing workload

• Dispatch orders to vendors by email

• Automate approval of purchase orders, under certain thresholds

• Carry credit card info through to Purchase Order

Benefits of Future Model Process:

Orders of Goods and Services

Orders

10||

• Enter receipts timely

• Easily view and track receipts and rejections

• Improves timely e-invoicing and vouchering

Benefits of Future Model Process:

Receipts of Goods and Services

Receipts

11||

• Manage invoices and attachments in one system

• Supports eInvoicing for better collaboration with vendors

• Create vouchers automatically from invoices

• Schedule payments when due, consistently paying vendors on time

Benefits of Future Model Process:

Invoices/Vouchers for Goods and Services

Invoices and

Vouchers

12

Case Study:

Piloting the Streamlined P2P Process

Alex DeFrancesco, SFS Change Management

Kristi Kilmartin, Office of Mental Health

13||

The Office of Mental Health is a large state agency,

employing over 13,000 staff and operating 24 hospitals.

OMH Executive Leadership embraced the opportunity to

make improvements to their financial operations.

Since Fall 2017, OMH, the BSC, SFS, DOB, OSC, and

other agencies have worked collaboratively to establish the

model process.

Key Partnership with OMH

14||

Before P2P: OMH Procure-to-Pay Business Process

Email and paper-based requests and

approvals

Duplicative buying process

Frequent purchases not

captured

Individuals receiving the

goods not entering the

receipt

Reactive receiving process

Multiple systems to manage invoice to

voucher process

15||

OMH Pilot – Participation

Goods shipped to the

actual receiving locations,

and receipts for goods

and services entered by

the receivers.

Single system used for

more timely invoice

review and voucher

creation.

Requisitions &

OrdersReceiving Invoice & Vouchers

Ease of requisition entry

for basic Requesters.

Buying activities done by

the staff with the

procurement expertise.

Currently being piloted

by a limited number of

OMH locations

Currently being piloted

by all of OMH

Currently being piloted

by all of OMH

16||

OMH Pilot - Process Improvements

Use of eMarketplace & Agency Catalogs

Entry of requisitions by basic requestors

Addition of new ship-to locations

Addition of new receivers

Use of Receipt notification to receivers

Reliance on automated matching

Goods shipped to the

actual receiving locations,

and receipts for goods

and services entered by

the receivers.

Single system used for

more timely invoice

review and voucher

creation.

Requisitions &

OrdersReceiving Invoice & Vouchers

Ease of requisition entry

for basic Requesters.

Buying activities done by

the staff with the

procurement expertise.

Setup of requestor & buyer defaults Use of new receiving

role (receipt date entry)

Use of buyer tools and auto-approval thresholds

17||

The BSC collaborates with agencies in many ways, including:

Creating Agency Catalogs

Using the BSC Buy Desk

Interacting in the Purchase Order workflow

Performing invoice reviews and approvals

Resolving voucher exceptions

Conducting vendor outreach

Collaborating with the Business Services Center

18||

Examples of Benefits & Feedback to Date

Increased user visibility into the status of purchase requests

directly in SFS.

Use of queries to monitor receipt entry, rather than printing

receipts, sending emails, or making phone calls.

Improvements in the average number of days to receive goods

and services.

Better vendor communication through the Purchase Order.

Preference to use a single system for invoice review & approval.

19||

Change Management Challenges

Challenges

SystemAccess

based on Business Process

Demonstrating

Value

Computer

Access

As-Is Process

& Culture

Training &

User

Engagement

20||

Implementing the Model Process

• Developed implementation project plan

• Built core team understanding of model P2P process

• Distributed executive communications

• Determined business process handoffs with the BSC

Plan

Design & Build

Test & Train

Deploy & Stabilize

• Analyzed current state procurement processes

• Designated agency staff to support the change initiative

• Developed strategy and planning documents

• Obtained executive sponsorship and support

• Actively engaged end users in testing and training

• Measured readiness through testing and executive surveys

• Performed targeted outreach

• Reinforced changes by communicating updated policies

• Distributed executive communications

• Monitoring adoption through transaction processing metrics

• Collecting feedback, experiences, and lessons learned

• Distributing executive communications

21||

Metrics provide insight into adoption of the model process, process

improvements, and efficiencies realized over time.

• Requisition and Purchase Order Lifecycle

• Requisition Process Dashboard

• Average Number of Days to Enter Receipts

• Invoice and Voucher Lifecycle

• Voucher Dashboard

Metrics enable OMH to identify which areas of each process need more focus,

and which locations need targeted outreach.

Metrics provide OMH with data to support more informed and insightful follow up

discussions with their locations.

Metrics help identify which locations are making consistent improvement toward

adoption, and may share valuable lessons learned.

Metrics to Support &Monitor Implementation

22||

Lessons Learned

Executive sponsorship and reinforcement

Building core team of agency subject matter experts

Demonstration of quick wins

Targeted engagement

Metrics

23

Looking Ahead:

Agency Preparation and Implementation

Alex DeFrancesco

24||

Objectives: • Build subject matter expertise of the streamlined P2P business process

within agencies

• Help agencies identify gaps between their current state P2P process and the

streamlined business process

• Prepare agencies to implement the streamlined P2P business process

Timeframe:• TBD

Attendees:• P2P representatives designated by Agency Chief Financial Officers (CFOs)

Statewide P2P Workshops

25||

Collection of project plans, templates, and reference documents, to support

agency change management activities.

• Developed based on experience with OMH and BSC.

• Posted to SFSSecure, and available to all agencies.

Agency Change Toolkit

Implementation Plans

Guide to Understanding

Your As-Is Business Process

Sample Communications

Test Scripts & Testing Tips

Frequently Asked Questions

Reference Guide for SFS Training

Material

Sample Change Readiness

Assessments

Sample Go-Live Readiness

Assessments

Sample Toolkit Components

26||

Document your current step-by-step P2P business processes.

Identify who completes purchase requests, performs buying activities,

and receives goods and services within your agency today.

Review your Locations and Ship-to addresses and identify the best

locations for goods and services to be received.

Use Receiving and other informational queries.

Use eMarketplace where possible to procure goods and services.

Identify Purchase Authorization (PA) Contracts and other item lists that

would be good candidates for Agency Catalogs.

Agency Preparation – Things to do now

27

Questions and Answers

||