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UShop: Transforming Procurement Efficiency

UShop aims to streamline procurement processes by introducing electronic workflows, reducing paper usage, enhancing transparency, and improving vendor management. The project targets cost savings and efficiency improvements throughout the procurement process.

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UShop: Transforming Procurement Efficiency

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Presentation Transcript

  1. Welcome to UShop!

  2. Current Procurement • Sub 70% contract compliance • Paper-based • Inefficient • Not transparent • Dysfunctional vendor management • $70M annual Pcard spend that requires paper processing of each transaction

  3. Current Procurement • Annual paper-based transaction volume • 92,000 Suppliers • 25,000 Purchase Orders • 315,000 Invoices • 56,000 Direct Payments • Majority of payments made by paper check • Overall lack of data availability

  4. Current Procurement • Too many different ways to procure and pay – all paper based • Requisition and Purchase Order • PCard • Limited Purchase Order • Payment Request • UShop replaces all of these

  5. What about our peers? • Eleven of the twelve schools utilize some form of electronic workflow for procurement, and nine of these use SciQuest. • SciQuest is used extensively throughout Division 1 schools. • Ushop is a low risk/high impact project.

  6. UShop – how will it help? • Electronic workflow – Requisitions, PO’s, and Invoices • Increased velocity and transparency • Reduction of paper • Detailed audit trail for all transactions • Directs spend to existing contracts • Allows better vendor management and strategic sourcing • UShop integrated with University electronic approvals

  7. What remains the same? • State of Utah procurement code • University procurement regulations • Required approvals for financial transactions • Accountability for funds

  8. Efficiency & Cost Savings OUR GOAL: IMPROVE EFFICIENCY AT EACH STEP OF THE PROCUREMENT PROCESS

  9. Efficiency & Cost Savings OUR GOAL: IMPROVE EFFICIENCY AT EACH STEP OF THE PROCUREMENT PROCESS

  10. Inefficiency in action

  11. Clear Process Improvement • We have analyzed current state versus UShop procurement, step by step. • We have documented both processes. • When viewed side-by-side, the advantages of UShop, and the reduced effort and steps are very clear.

  12. Steps Eliminated

  13. Step 1 – Create a marketplace… • UShop Catalog Suppliers allow us to capture spend and leverage contracts, plus provide; • Contract pricing • E-Invoicing • Free shipping • Very easy and positive user experience • Updated shipping and delivery information

  14. Phase 1 Departments • Biochemistry • Human Genetics • Mechanical Engineering • University Information Technology (UIT)

  15. Phase 1 Dept Statistics • 408 Requisitions, totaling $7,675,101

  16. Phase 1 - Feedback • Positive • University financial approvals and routing are integrated • Funding sources validated at time of entry • Catalog supplier marketplace very easy to use • Areas of concern • The availability of preferred suppliers in UShop • System provides too many notifications • Transparency of the system has revealed some lags both in individual departments and central administration • Need for internal suppliers (e.g. Campus Store)

  17. Phase 2 Departments • Chemistry • Financial & Business Services • Human Resources & Payroll • Academic Outreach Continuing Education • College of Architecture • Marriott Library • College of Nursing • College of Pharmacy • University Student Apartments

  18. Project Timeline • Phase 1 completed • Phase 2 – now through August 24 • Onboard and train new departments • Increase UShop utilization in Phase 1 departments • Collect department feedback and provide support • Phase 3 – September 2015 into 2016 • Onboard and train new departments • Add new functionality, such as internal suppliers • Consider large systems, such as Hospital, HCI, Facilities

  19. Review of the Benefits • Electronic workflow – Requisitions, PO’s, and Invoices • Ease of use • Transparent processing • Reduced paper volume • Faster processing • Strategic sourcing • Data-driven analytics

  20. Critical Success Factors • This is a large-scale change management project. • A recognition that the current process is very expensive, inefficient, and does not represent good stewardship of the funds entrusted to the University. • Documented increase in contract compliance and strategic sourcing. • UShop must provide fast transaction processing- high velocity. • Consistent communication of the benefits of UShop to the departments, the University, and the suppliers. • Demonstrated savings to the institution

  21. Questions?

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