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ERP E-Procurement and Vendor Self-Service

ERP E-Procurement and Vendor Self-Service. Opening Remarks. Speaker Dale Kress Project Manager Advantage Procurement (CGI ). Moderator R. Kinney Poynter Executive Director NASACT. Speaker Edgar C. (Ed) Ross State Controller (KY ). Speaker Thomas L. White State Comptroller (AL).

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ERP E-Procurement and Vendor Self-Service

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  1. ERP E-Procurement and Vendor Self-Service

  2. Opening Remarks SpeakerDale KressProject ManagerAdvantage Procurement (CGI) ModeratorR. Kinney Poynter Executive Director NASACT SpeakerEdgar C. (Ed) RossState Controller (KY) SpeakerThomas L. WhiteState Comptroller (AL)

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  4. Introductions Thomas L. White, Jr., CPA State Comptroller Department of Finance State of Alabama Agenda Introductions E-Procurement and Vendor Self-Service Edgar C. (Ed) Ross State Controller Commonwealth of Kentucky Case Studies Kentucky | Alabama Dale Kress Product Manager, CGI Advantage Procurement Lessons Learned

  5. E-Procurement and Vendor Self-Service Defined ERP Spend Analysis Source-To-Settle Vendor Self-Service Procure-to-Pay Receiving Three Way Match Vendor Registration Contract Mgmt E-Catalogs E-Invoicing Sourcing

  6. The Solution Market • Market penetration – 5% to 20% of target audience • Maturity – Adolescent • Main stream adoption – 2 to 5 years 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 (Gartner: Hype Cycle for Procurement, 2013)

  7. How Does E-Procurement Impact Spend and Improve Efficiencies? Provides access to consolidated spendinformation 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

  8. Legislative and Policy Mandates and Objectives 1 Support local government entities 2 Increase supplier base (diversified, etc.) programs 3 Increase competition 4 Promote transparency

  9. Case Study: Commonwealth of Kentucky

  10. Current State in Kentucky Single Statewide ERP with Vendor Self Service • Procurement Cards • Contract Management • Procure-to-Pay • Spend Analysis • Sourcing

  11. E-Procurement in Kentucky Catalog Management Solicitation Management Contract Management Buyers Payment Management OrderManagement Requisition Management End Users ContractManagement Opportunity Management AccountManagement Vendors Catalog Management Solicitation Management Contract Management Citizens

  12. Kentucky catalogs support decentralized ordering and leverage buyer power • # of Catalog vs Non-catalog MA’s • # of MA Lines vs Catalog Lines • 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 98% 0 1,842 8,070 0 2,577,270 % of Master Agreements (MA) • % of Spend Total MA Spend = $7.9B* 23% 34% Catalogs Catalogs ($2.7B)* 77% 66% Non-Catalogs Non-Catalogs ($5.2B) *Total MA Spend and Catalog Spend were calculated from FY2007-2012 and do not account for Procurement Card usage

  13. Kentucky catalogs support decentralized ordering and leverage buyer power Top Catalog Spend by Commodity Code $1.44B 96200 Miscellaneous Services (Mostly Medicaid – MCO’s) 91829 $198.5 M Computer Software Consulting $103.6 M 91395 Paving/Resurfacing, Highway and Road Road Maintenance Salt 77545 $72.3 M Computer H/W & Peripherals (for Microcomputers) 20400 $66.9 M Computer H/W & Peripherals (for Mini & Mainframe Computers) 20600 $66.3 M 96130 $52.5 M Employment Agency/Search/Temp Services 95823 $47.4 M Computer Management Services $0 $50M $100M $150M $200M $1.5B *Top Catalog Spend by Commodity Code was calculated from FY2007-2012.

  14. Punch Out Usage and Benefits SPEND Streamlined, efficient ordering process Reduced order cycle time (quicker receipt of materials)    Secure Internet shopping using an online catalog customized with your standards and pricing Increased contract compliance 

  15. Punch Out Risks and Challenges Coordinating an implementation timeline with multiple parties Holding vendors accountable for custom catalog content (auditing) Reliance on vendor Punch Out site stability Educating buyers and users

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  17. Case Study: State of Alabama

  18. History Highly customized solution of on-line and batch processes for Accounting Financial Reporting Payroll Procurement Personnel Functionality

  19. Current System Landscape Agency Accounting System State-wide Payroll/ Personnel System Central Accounting System Additional Agency Accounting Systems Procurement

  20. Financials Proof of Concept Agency The Plan • Went Live October 1, 2013 • Target Go Live date April 1, 2015 Budget Preparation Financial, Procurement and VSS • Target Go Live date October 1, 2015

  21. Future Application Landscape Single Integrated Statewide ERP with Vendor Self Service • Vendor Self Service • Financial Management • Procurement • Business Intelligence • Budgeting • Human Resource Management

  22. 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 Modernization Background: Decision Process GOAL Replace legacy procurement system with state of the art integrated system

  23. Procurement Primary Objectives Benefit Feature • Simple web and mobile enabled solution • Maximize User Adoption • Release upgradable sustainability • Remain Current • Self service vendor portal to simplify vendor updates and catalogue maintenance • Reduce State Support Needs • Modern business intelligence and real-time funds availability check and posting • Immediate Access to Information

  24. Lessons Learned and Mitigation Strategies

  25. Lessons Learned and Mitigation Strategies The importance of a public sector solution • 5 • 1 Define your measures of success The value of ERP integration • 4 • 2 • 3 Vendor outreach is essential Target the right goods and services Mandate usage

  26. Questions? SpeakerDale KressProject ManagerAdvantage Procurement (CGI) ModeratorR. Kinney Poynter Executive Director NASACT SpeakerEdgar C. (Ed) RossState Controller (KY) SpeakerThomas L. WhiteState Comptroller (AL)

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  28. Contact Info ISO 9001 Certified Dale Kress Procurement Product Manager, CGI Advantage CGI State & Local Government/ERP Solutions (703) 267-8778 Dale.Kress@cgi.com • Thomas L. White, JR. • State Comptroller • State of Alabama • 334.242.7050 • Tom.White@Comptroller.alabama.gov • Edgar C. (Ed) Ross • State Controller • Commonwealth of Kentucky • 502.564.2998 • EdC.Ross@ky.gov

  29. Thank you

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