Agenda

1. Supplier Relationship Management (“SRM”) SAP Upgrade ProjectPhase 2 Information Session #3September 29, 2006

2. Agenda • Project Update • Phase 1 Go-Live Report • Phase 2 Timeline • Supplier Enablement • Introduction • Web-Enablement • Supplier Registration • Bidding • Follow-Up • Actions from 8.17.06 Information Session • Next Steps • Topics for Future Information Sessions • Appendix

3. Project Update • Phase 1 Go-Live Report: Transactional Data (8/31-9/27) • 8,934 Shopping Carts were processed • 2,132 Shopping Carts passed to R/3 for Purchasing Agent approval (carts were either greater than $10,000 or had describe requirements) • 147 Shopping Carts were sent to suppliers via Auto-PO • 4,849 Shopping Carts were processed as Stock Transfer Orders (STOs) • 6 P-Card orders • 9,048 Confirmations went through • First SRM 5.0 Go-Live in US • First SRM 5.0 Go-Live in Public Sector

4. Project Update • Phase 1 Go-Live Report: Summary of Help Desk Calls PUTTING IT IN PERSPECTIVE • 70% = User-related calls • 30% = System-related calls • SUPPLEMENTAL INFORMATION • No cost distribution on STOs • Single delivery address req’d for Warehouse orders • For contracts w/out firm pricing (require quote), use Describe Requirements function (e.g., ePlus, ASAP, Print)

5. Project Update • Phase 1 Go-Live Report: Help Desk Call Detail Web-Based Delivery (Ship-To) Address Form Delivery Address (25%) • Description: Incorrect delivery address displayed or none available • Impact: Enterprise-wide • Cause(s): • Inaccurate address info captured during initial data-gathering activity • Some agencies had no AIT representation (OIG, General Counsel, etc.) • Resolution: • Users can enter correct address info in Vendor Note field • Communication sent to all end-users with link to new web-based address change/ addition form • AIT listing review/revised to include missing agencies http://www.ies.state.pa.us/srm/cwp/view.asp?a=3&Q=200980&PM=1

6. Project Update • Phase 1 Go-Live Report: Help Desk Call Detail Position Tab Screen Position Tab (20%) • Description: Position tab shows enterprise-level info for personnel not in same physical location as Plant • Impact: Enterprise-wide • Cause(s): • Result from mapping activities from HR Organization • Resolution: • Communication sent to all end-users with clarification on difference between position tab info and delivery address • Investigating option of removing position tab info from user’s view • Information displayed here is from HR Org structure • May differ from actual physical location of user • Remains static, even if changes to attributes made (e.g., delivery address)

7. Project Update • Phase 1 Go-Live Report: Help Desk Call Detail Duplicate Purchaser (15%) • Description: End-users cannot see data created from last log-in • Impact: Enterprise-wide • Cause(s): • SRM receives daily updates from the HR Org structure. If a change was made to a position (Record A in SRM), a duplicate record (Record B) may be created in SRM. Carts created by Record A will not be visible to the user if SRM is recognizing the user as Record B at the time of log-on • Resolution: • IES Team has stopped HR replication until SAP provides a fix. Users are being manually fixed when the problem is identified • SAP Trouble Ticket submitted & in process

8. Project Update • Available Support Resources SRM Start-Up Kit contains valuable resources for end-users DGS Customer Support Center (CSC) provides multiple channels for getting SRM help SRM Resource Center also houses valuable info & links for end-users

9. HERE’S WHERE WE ARE Project Update • Phase 2 Timeline SEP OCT NOV DEC JAN FEB MAR PHASE 2 1/15-1/26 (2 weeks) BUILD SYSTEM TEST SYSTEM 2/5-2/23 (3 weeks) UAT T3 EUT 1/29-2/2 (1 week) Phase 2 Go-Live (2/22) SUPPORT (BP) Supplier Registration Go-Live (Dec) XMLGo-Live (2/1)

10. Open Bid Evaluate Bid Award View Bid Respond/ Submit Bid Collaborate/ Manage Supplier Enablement • Introduction FOCUS OF TODAY’S MEETING Supplier Agency Supplier/Agency Register View Bid Respond/ Submit Bid Contract Collaborate/ Manage • REGISTRATION ALLOWS SUPPLIERS TO: • View and respond to bids • Manage their organization’s information • Collaborate with Commonwealth, after contract awarded and finalized

11. Supplier Enablement • Web-Enablement The SRM website (portal) provides Commonwealth suppliers with a “one-stop shop” for procurement • BENEFITS FOR • PURCHASING AGENTS • Registration allows search for suppliers to build bid list • All bid info & supporting docs now available in one location (i.e., do not have to know where to go to find info) • Standardized bid responses = forces suppliers to meet mandatory requirements upfront • Elimination of paper orders • Suppliers can enter data for delivery & invoices for COPA approval • BENEFITS FOR SUPPLIERS • Electronic access to all COPA bid opportunities • Ability to submit respond to bid electronically • Ability to manage catalog info • Electronic access to purchase orders, delivery notifications, & invoices • Can manage own company info & provide info about capabilities

12. Supplier Enablement • Supplier Registration: Rationale • Why do Supplier Registration? • Commonwealth is continuing to move toward paperless business; examples on SRM project include: • Electronic bidding • Electronic PO reviewing/acknowledgement & invoicing • Auto-generated Purchase Orders (Auto-POs) • eCatalogs (internal and punch-out) • Registration is a pre-requisite for eBidding • All bidders must be registered in SRM to create/submit bids electronically WHAT IS THE IMPACT OF NOT REGISTERING? • Lack of full visibility to Commonwealth bids; still in-process of determining if 100% electronic bids required • Business as usual for suppliers currently under contract; no impact to goods/services being provided or ability to be paid • SUPPLIER GAINS • Increased visibility to bid opportunities • Ability to more easily manage and update their company data • Access to enhanced purchase order and invoicing functionality • COMMONWEALTH GAINS • Less work for COPA to maintain supplier list and related info • Provides “real-time” listing of active and interested supplier base • Assists in targeting bid opportunities to appropriate suppliers

13. SO WHAT? • Registration allows receipt/processing of bids w/out a vendor master • Creates one-stop for registration & bid notifications • Reduces lag-time for processing bids • At time of award, if supplier doesn’t have vendor master, agency responsible for initiating workflow to CVMU for required financial info; allows vendor master or PO to be created • Suppliers can create multiple bidders on behalf of their org to respond to bids Bidding Contracting SRM Invoicing Upon contract award, agency must initiate with CVMU to obtain supplier financial info (W-9, payment terms, etc.) • CVMU is channel for non-procurement registration only • DGS is channel for all procurement activity, including registration • Upon award, registration info pushed to R/3 for vendor master creation • Supplier now registered; access to bidding, PO & invoicing functionality Supplier Enablement • Supplier Registration: Conceptual View CURRENT FUTURE • SO WHAT? • To process bids in R/3, supplier must have vendor master set-up by CVMU • To receive bid notifications, must be registered for DGS eAlerts • This creates confusion around where to go (CVMU v. DGS), since registration with CMVU has nothing to do with bid announcements • Potential for lag-time in bid processing due to need for supplier to have vendor master CVMU DGS Upon registration submittal, supplier must provide CVMU with financial info (W-9, payment terms, etc.) Procurement Registration Grantee Registration R/3 • CVMU is channel for procurement supplier registration • Supplier accesses CVMU web-based form & submits • CVMU manually validates submission; accepts or rejects • If rejected, notifies supplier • If accepted, creates R/3 vendor master record • Supplier now has vendor master record • Supplier should sign-up for eAlerts via DGS to receive bid notifications

14. Supplier Enablement • Supplier Registration: MBE/WBE • BMWBO will continue to certify suppliers • Upon certification, data provided to DGS by BMWBO to update SRM supplier information • Allows agencies to search for suppliers with certification for bidding purposes • Suppliers already in vendor master with such certification will have it carried forward

15. Supplier Enablement • Supplier Registration: Process View (Supplier Perspective) Receives letter with link to initial web-based registration form (Initial Form) Existing Suppliers Accesses link & prompted to enter Vendor # & EIN/SSN Upon submittal, SRM auto-flags as Portal Vendor SRM Supplier is officially registered; can now bid & manage info via SRM website Prompted to enter other required Business Partner fields (email, phone, etc.) Generates email with registration ID & URL to User Registration Form (Form 2) Completes Form 2 & submits Does EIN/SSN exist? SRM Yes SUS No Completes all required fields on Form 1 & submits DGS manually flags as Portal Vendor Redirected to standard New Supplier Registration Form (Form 1) New Suppliers DGS Approves? Yes No SRM SRM Notify Supplier

16. Supplier Enablement • Supplier Registration: Supplier Change Process • Questions • Who monitors & authorizes changes when supplier modifies their information? • If grantee supplier, then CVMU responsible for validating, approving or rejecting information • If procurement supplier, then CVMU monitors changes made in SRM • What if existing non-procurement supplier wants to become procurement supplier? • Will need to go through supplier registration process as previously outlined • Next Steps • Confirm data update linkage (process, frequency) between SRM, R/3 and CVMU • Confirm process with CVMU for required internal changes to supplier information • Example: Supplier enters address one way, but master data has different address = Treasury blocks payment due to mismatch (How are updates made? Who is responsible?)

17. Supplier Enablement • Supplier Registration: Preliminary Timeline SEP OCT NOV DEC JAN Cleanse CVMU Supplier Data More detail info on cleansing activities available in Appendix Finalize Design Rqmnts Develop & Test Application 11/20 – Forward approved outreach letter to DGS Print Shop Walk-through of support materials (SRM/SR Overview, SR Quick Reference Guide) 12/4 – Distribute agency awareness communication/ Conduct agency awareness session(s) 12/4 – Conduct Go-Live Support Mtg (Agency PAs, CSC, CSs) KEY TAKE-AWAY DGS will coordinate & conduct all required outreach & support efforts for suppliers (external) & appropriate Commonwealth personnel (internal) 12/8 – Post support materials to website 12/8 – Distribute approved outreach letter to “active” suppliers Messaging to advise suppliers when & where registration will be available 12/12 – Distribute approved outreach email to eAlert suppliers  12/15 – GO-LIVE 1/5 – Distribute reminder (email & letter) Follow-up message to encourage suppliers to register

18. Supplier Enablement • Bidding: Rationale • Why do eBidding? • Standardizes and simplifies bid preparation by establishing bid document templates with bid attributes = reduced preparation time • Reduces data entry • Minimizes controversy about bid time/date stamps • Eliminates rejections for bids not being signed by supplier • Allows for bid comparisons • Enables weighting of criteria • Provides suppliers with single point-of-access to all Commonwealth bid documents • Automatically notifies suppliers and provides immediate access to available bid documents

19. Post full RFx info for agency? Yes Supplier receives ID & Password Supplier Enablement • Bidding: Advertising and Invitation CURRENT FUTURE (DGS Website Only) Agency creates RFx documents Agency creates/saves RFx in SRM RFx goes through workflow/approval Agency approves RFx documents Approved? No Agency submits Request to Advertise (STD 179) Agency submits Request to Advertise (STD 179); Minimum bid info published on general public website Yes Visible to Registered Suppliers after RFx Approvals Post to agency website OR Supplier contacts agency for bids No Can Supplier Register Technically? Is Supplier Registered? No Yes Yes No Post on DGS website Supplier logs into SRM website Supplier downloads bid, completes & submits (Hard-Copy) Supplier Completes eBid Supplier contacts CS for RFx (non-SRM)

20. Supplier Enablement • Bidding: Summary of Changes

21. Follow-Up • Actions from 8.17.06 Information Session • Parking Lot • Covered supplier registration & a portion of bidding process (advertising, invitation & receipt) as part of this meeting • Other Parking Lot items to be discussed at subsequent meetings, as appropriate • Procurement Handbook • Now available on-line via BOP website (http://www.dgs.state.pa.us/Proc-handbook) • To be updated based on changes identified by teams working on Parking Lot items • Settlement Agreements (SAs) • Legal Review Process will remain outside of SRM as it is currently • If SAs approved for payment by Agency Legal, payment processed through R/3 • Contractor Responsibility Program (CRP) • Automation is part of IES development process • Transition of Expiring Contracts • If PO in R/3:Receive against it in SRM; additions, changes, etc. must occur in R/3 • If Contract in R/3:Bring over to SRM automatically • If Funds Commitment in R/3:Allow contract to expire & bid new contract in SRM

22. Next Steps • Topics for Future Information Sessions • Bid Opening, Tabulation/Evaluation and Award • Contracting (Local and Global) • Order Collaboration • Services Procurement

23. APPENDIX

24. Appendix • Supplier Registration: CMVU Access & Form BACK

25. Appendix • Supplier Registration: Initial Supplier Registration Form BACK

26. Appendix • Supplier Registration: Initial Supplier Registration Form BACK

27. Appendix • Supplier Registration: New Supplier Registration Form (Form #1) BACK

28. Appendix • Supplier Registration: User Registration Form (Form #2) BACK

29. Appendix • Supplier Registration: Supplier Database Cleansing Activities • Step 1: Generate list of Commonwealth suppliers Finished • RESULT: ~150,000 suppliers (procurement, accounting & grantee) • Step 2: Identify accounts Never Used, Duplicates & Non-Procurement Finished • RESULT: 96,122 accounts found by CVMU • Step 3: Delete these accounts In-Process • RESULT: 53,878 accounts remaining • Step 4: Identify accounts dormant for 18 or more months Open • Step 5: Delete these accounts Open • Step 6: Upload to SRM Open Why Are We Doing This? • Provide us with a more manageable supplier list • Help us focus outreach & communications efforts with suppliers BACK