Transforming Procurement at WKU: A Successful eProcurement Journey

1. Electronic Procurement Year One at WKU Daniel Perry - daniel.perry@unimarket.comKen Baushke - ken.baushke@wku.edu

2. WKU Environment / Before eProcurement • Electronic Requisitions and POs, but clunky and poor quality data • 13,000 suppliers in Banner • 50-60 suppliers for computer peripheral items

3. Goals and Objectives for eProcurement • End User Departments • To make the ordering process easier • To reduce costs/receive better value making budgets stretch farther

4. Goals and Objectives for eProcurement • Purchasing • To increase competition for our business • To improve record keeping to make data retrieval easier • To reduce, paperwork, rework and errors • Reduce Maverick Spend • Build Stronger Relationships with Suppliers

5. Goals and Objectives for eProcurement • Accounts Payable • To improve on-time payment • To secure collection of W-9 and other vendor data • To reduce, paperwork, rework and errors

6. Goals and Objectives for eProcurement • Administration • To get better and more accurate reporting • To reduced spending that does not require adding or cutting staff (same goal is in end user section) • To increase revenue from p-card and other rebates

7. Goals and Objectives for eProcurement • Vendors • Increased volume of orders for contracted vendors • Automation that reduces errors, improves efficiency and lowers costs • More timely payments

8. Procure-to-Pay Life-cycle Strategic Skill-based Tactical Task-based

9. First Look at eProcurement – 2000 • Purchasing looked into eProcurement providers • Quote from Higher Markets $600,000+ • Ariba not focused on Higher Ed.

10. PCARD Program – 2000-2010 • Established procurement card program • 2000 $2mil - Currently $20mil • Created a "shop-around" culture

11. eProcurement RFI - 2010 • Semi-commitment from VP of Finance • Set up Google Form for RFI • 9vendors participated • Plan to narrow down to 2-3

12. 2010 Request for Information Participants • ESM Solutions Corporation, D/B/A Mercury Commerce Solutions • Ion Wave Technologies • Proactis Inc. • Zycus Inc. • Unimarket • Coupa Software Inc. • Perfect Commerce • Ariba Inc. • SciQuest Inc.

13. 2010 Result: VPs delayed project “Your proposal is innovative. Unfortunately, we won’t be able to use it because we’ve never tried something like that before.”

14. Scenarios for project sign-off • Procurement influencing up • Executive influencing down • Ideal situation is that upper administration is equally excited about it

15. eProcurement RFP - 2012 • Commitment from VPs • Sent out RFPto multiple vendors • 6 vendors responded • 2 finalists selected

16. 2012 RFP Participants • Buyer Quest • ESM • Ion Wave • Perfect Commerce • SciQuest • Unimarket

17. Selection Committee • Various participants from multiple departments including: • IT, Finance, Purchasing, Chemistry Lab Supply Manager and Academic Affairs • 2 vendors shortlisted from RFP response to provide demonstrations to the committee • Attendees that attended the demos were surveyed

18. VIDEO Unimarket Demo Day

19. Selection Process • Cost comparison was difficult – Not “apples for apples” • Compared upfront costs and potential on-going costs • Easier to convince a supplier to come on board than to convince the administration to allocate more funding • Finance are more into budgeting and than cost accounting • Survey of attendees tipped the scales for Unimarket

20. Awarded Contract to Unimarket – 2013 Marketed award to campus Marketing campaign to choose name “TopShop” Vendor Fair – Marketing to Suppliers

21. Unimarket Demo – Shopping/Requisition https://wku.unimarket-demo.com/app/login

22. Integration • Elected to go with iEP integration • Budget check, Security, PO - iEP integration points • Approvals integration • Invoice Flat File integration • Future plans: Single Sign On Tip: Be careful how you explain requirements to IT!

23. User Set-up • Reviewed Banner Users and PCard Users • Approximately 1,000 Unimarket Users set up (far more than needed) • Buying Groups – General, Test, Science etc. (more than needed) • Roles – Invoices, Reports, Administration etc. • WKU ID = External User for Banner Interface Tip: Be specific with IT about who you want/need set up!

24. Unimarket Demo – Receiving https://wku.unimarket-demo.com/app/login

25. Testing and Training • Piloted Group / Super Users trained by Unimarket • Used Google Forms to schedule training for other users • 20 sessions - Additional training planned • Demo system works really well Tip 1: Offer a variety of training locations and share the stage! Tip 2: Try to keep Demo environment up-to-date and relevant

26. Roll-Out • Suppliers notified by email and invited to attend Vendor Fair • Unforeseen staffing issues/unavailability delayed Go-Live: • 1st order 1/27/2014 • 2nd order 3/17/2014 • 3rd order 3/21/2014 • 100th order 7/11/2014 • 1,000 order 8/25/2014 Tip: Ensure you have a back-up for important responsibilities in case key staff become unavailable

27. Summary • Electronic Requisitions and PO process • Easy to use, easy to train – 300 users and growing • Full visibility of purchases – Line level, categorized, quality data • Since April-14 there have been 1,729 Orders thru “Top Shop” • 395 suppliers • 107 registered suppliers • 41% of orders are with 17 Premium/Contracted Suppliers