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Procurement, Payables and Commercial Card Strategies

Learn strategies & successes in optimizing financial processes & payment systems at major universities ASU & UW. Explore methods for efficient accounts payable, procurement, and commercial card management.

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Procurement, Payables and Commercial Card Strategies

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  1. Financial Services Procurement, Payables and Commercial Card Strategies

  2. Arizona State University Panelist • Lily Tram • Financial Services – Accounts Payable • Director Financial Services • Patty Taylor • Procurement • Purchasing Technology Manager Financial Services/Procurement

  3. { 5 campuses Over 90,000 students enrolled Graduated over 20,000 students About 14,000 faculty/staff ASU

  4. Accounts Payable and Purchasing: Where do they fall under at ASU?

  5. ASU Structure Financial Services/Procurement

  6. Payments

  7. FY 2015 Accounts Payable Highlights 140,000 AP payments - $604.3M 4,300 wire payments - $506.8M Over 55,000 AP checks issued 41,000 AP Vendors

  8. AP Card Payment: Why use the AP Card Payment Process?

  9. AP card payment program can • Reduce the number of printed AP checks • Scrub the vendor table • Vendor receives payment faster • Financial Incentive

  10. Strategy: How did we do it?

  11. JPMC – AP TracProgram • Upper management support of the program • Identified vendors to seek program participation • Created communication letters • Piloted one vendor • Full Implementation

  12. After Implementation: What’s next?

  13. How can we grow the program? • RFP for AP Card Payment program • ACH • Single Use Card – secure format • Reduced merchant fee program

  14. { Quick implementation Supplier on-boarding Single use virtual card Easy to access ASU policies incorporated Commerce Bank

  15. One Accounts Payable Card Payment Program

  16. ASU moved to one AP Card Payment Program Commerce Bank

  17. Some Challenges… • Impact of Vendor merchant fees • Large dollar payments • Merchant fees passed to ASU • Training and turnover of AP staff

  18. Efficiencies and Successes Reduced the number of checks issued Vendors receive payments faster Program volume of spend increased Onboarding vendors monthly Rebate

  19. Travel Card Program

  20. US Bank Travel Card Program • Implementation July 2015 • Company billed company paid card • 1,500 travel card issued • Over 700 cards used • Ghost card for airfare • $2.6M in spend through September 2015 o

  21. Procurement Procurement, Payables and Commercial Card Strategies

  22. Standard Purchase Orders eProcurement System PCard Limited Value Purchase Order Request for check or Payment Voucher Employee Reimbursement Travel Card Internal Purchase Orders { Procurement Methods

  23. Standard Purchase Orders

  24. FY 2015 Standard Purchase Order Highlights 27,950 Transactions $709M Purchase Orders Issued

  25. FY 2015 Standard Purchase Order Goals eProcurement System Less than 5K Consultants Technology

  26. eProcurement System “SunRISE”

  27. FY 2015 eProcurement Highlights 36,606 Transactions $17.5M Spend

  28. eProcurement: Why use the eProcurement System?

  29. eProcurement program can: • Reduce the number of orders routing to the buyer • Less time for order distribution to the supplier • Departments receive their product quicker • cXML orders are not retyped • Contract Repository

  30. Strategy: How did we do it?

  31. SciQuest – eProcurement Program • Gained support of upper management • Contracted with the supplier • Created an Advisory Board • Started with Scientific community • Full Implementation

  32. Challenges… • Identifying Board Members • PI’s didn’t want to inventory their labs • Users didn’t want to use the system TODAY, USERS ARE ASKING TO DO MORE IN THE e-PROCUREMENT SYSTEM!

  33. eProcurement Optimization Project: What’s next?

  34. How can we optimize the program? • Non-Catalog Ordering • Forms • Buyer routing • Sourcing • Contract Routing ALL PROCUREMENT FUNCTIONALITY WITHIN ONE SYSTEM!

  35. Purchasing Card (PCard) Program

  36. FY 2015 PCard Highlights 155,892 PCard Transactions $67M Spend

  37. PCard: Why PCard?

  38. Procurement Card (PCard) program benefits • Users can place orders with greater ease • Reduced Buyer workload • Grant Account purchases vs other funding • Rebate

  39. Strategy: How is the Program Structured?

  40. Purchasing Card (PCard) Program • Cardholders/PCard Managers/Allocators • Cardholder limit – 5K • Exceptions Granted • Reconciliation Process • 1 PCard per university account • Reconciliation Manual PCARD LANGUAGE IS WRITTEN INTO ALL CONTRACTS!!!

  41. Partnership WORKING TOGETHER FOR OVERALL SUCCESS!

  42. Procurement , Payables Commercial Card Stratégies at the University of Washington Aris GempesawManager of Accounts Payable and Card Services

  43. Who is the University of Washington The UW is a multi-campus university in Seattle, Tacoma and Bothell, as well as a world-class academic medical center We have 16 colleges and schools and offer 1,800 undergraduate courses each quarter. We confer more than 12,000 bachelor’s, master’s, doctoral and professional degrees annually. Ranks among the top schools in the country in providing U.S. Peace Corps volunteer Receives more federal research funding than any other American public university

  44. Our Organization • UW Bothell: • 4,605 students enrolled • 6 Schools offering more than 35 undergraduate, post-baccalaureate and graduate degrees • UW Tacoma: • 4,501 students enrolled • 6 Undergraduate Programs and 7 graduate programs • Campus consists of 20 buildings on 46 acres with a total of 557,664 square feet of active campus space • UW Seattle: • 44,786 students enrolled • 11 Schools /Programs • Offer 180 majors

  45. Our Medical Partnerships

  46. UW Financials- June 30, 2014 - Total Revenues Assets $9,898,206 Revenues $3,913,971 Operating Expenses Salaries $ 2,026,646 Benefits $ 661,999 Goods/Services $ 1,698,731

  47. Our Structure: Procurement Services

  48. Procurement Services Goals

  49. Our Strategic Framework RELEASE POTENTIAL QUALITYDELIVERYCOST Create Value for Customer Provide Constancy of Purpose Enhance Stakeholder Experience Eliminate Administrative Burden Reduce Cost/Increase Revenue TRANSFORM SERVICE SAFETY MORALE Lead with Humility Respect Individuals Assure Quality at the Source Embrace Innovation Organization & Resources Implement 100% supplier scorecard with strategic contracted suppliers by January 2016 Reduce cost to campus by 50% my moving PAS transactions into Ariba by Dec 2016 Migrate all transactions to electronic processes by January 2016 (PAS PO to Ariba) Idea watch: 2 implemented idea per employee per month Meet Lean Assessment: Goal 100% by 2015

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