Procurement Services Forum

1. Procurement Services Forum Winter 2012

2. Agenda for the day Procurement Services Today eReimbursements Cost Study Benchmarking Tools&Templates eProcurement StrategicSourcing Sustainable and Diverse Purchasing NonPO Invoice Information Resources 2

3. Public and Private Sector Best Practices • Grow eProcurement Solutions • Increase spend under management • Reduce costs centrally and in campus units • Leverage data – spend analytics • Strategic Sourcing • Better access to data for campus units (transparency) 3

4. Overview • The Hackett Group was engaged to benchmark procurement and certain finance functions to provide context for current status • Participants selected: • Central procurement • 50 units from colleges & schools • 19 units from administration or central services • Data collection phase: 4 weeks to collect • Time spent on high-level categories • Fully-loaded labor cost and other costs • Transaction volumes and spend data • Compiled and compared with peer group to assess efficiency and effectiveness

5. Comparison to Peer Group Overall procurement costs as a percent of spend are significantly higher than peer group, driven primarily by FTE

6. Comparison to U of Michigan • University of Michigan has larger spend ($2B vs. $1B) yet fewer non-central FTE involved in procurement function 0.9%

7. Components of Procurement Costs As a Percentage of Spend 3.47% Campus Units Outsourcing Purchasing Technology Central Procurement 2.99% 0.91% 0.45% 0.01% 0.15% 0.16% 0.32% 0.31% UW UM

8. eProcurement Before we thought of eProcurement as just catalogs… NonPO Invoice eReimb-ursements Non Catalog Ordering Contract Compliance Sourcing System eProcurement Catalogs As we progress…eProcurement will grow with more modules

9. eProcurement Extension Matrix To monitor the progress on these projects, see http://f2.washington.edu/fm/ps/procurement-project-pipeline/epro-extension-matrix

10. eProcurement Extension Matrix To monitor the progress on these projects, see http://f2.washington.edu/fm/ps/procurement-project-pipeline/epro-extension-matrix

11. Non-PO Invoice now LIVE! BIG THANKS to the following departments for participating in our pilot program: Pilot Participant Testimonial • Elliott Nutt, Disability Services • APL • Biology • Disability Services • UW Medicine – SLU • School of Art • Humanities Shared Services • Dean of Arts and Sciences • Meany Hall Performing Arts • Family Medicine Residency Network • UW Medicine IT Services 11

12. Non-PO Invoice Steps to Gain Access

13. eReimbursementFull Campus Release Feb 27th! eReimbursementsis a new module for reimbursing UW employees for expenditures made on behalf of the University up to $3500. $75 waiver for attaching receipts – depending on department policies Check with your administrator before implementing Department responsible for approving appropriateness of expenditures Pre-loaded “Funding Approver” from eTravel Payment available by direct deposit or check Not for travel expenses or paying vendors Identified on budget with prefix “XR” Attach receipts to XR in Ariba and retain originals in department For more information, see: http://f2.washington.edu/fm/ps/xr-overviewQuestions? Contact payman@uw.edu or call 685-5377 Thank you to our participants on the eReimbursement team and to the 20+ departments who piloted it and gave feedback.

14. Tools & Templates Live Today!!! Procurement Services is pleased to announce 2 new work-process improvements: • Sole Source Justification Statement eforms • PAS Document Attachment Webform Benefits: • Submit sole source justification statement eforms directly to procurement services • Submit PAS documents directly to procurement services • Eliminates lost documents • Eliminates duplication of efforts • Eliminates lost time 14

15. Strategic Sourcing Projects • Campus-wide initiatives • Improved pricing and terms • Ease of use A few of the projects currently underway 15

16. Sustainability Paper Reduction • Compliance with HB 2287 • Only purchase 100% recycled copy paper • Reduce our consumption by 30% • Upgrade your ‘clunker’ printer or fax machine • HP PurchasEdge program, a partnership with Office Depot and HP • Duplex capable and energy efficient printers 16

17. Sustainability Laserjet 4N Laserjet 4015DN No duplex – 8 ppm 52 ppm – duplex - Energy Star 1200 KWH 571KWH 1595 CO2e (lbs) 758 CO2e (lbs) Take the catalyst survey to see whether your office qualifies: https://catalyst.uw.edu/catalyst/chooser/0f4c06593ca225d9074ec03f6d81bf6f 17

18. Sustainability 18

19. Sustainability Get with the program! green.washington.edu/ess/engage/paper-conservation Showcase your best practice! 19

20. Diverse & Sustainable Purchasing 20

21. Resources The following slides are for links for your own reference. We will not be speaking to these items. 21

22. What we’ve accomplished since last time 22

23. Resources for Quick Reference 23

24. Resources for Quick Reference 24

25. Recent Headline News 25

26. How to Stay Informed

27. New Requirements for all New Suppliers • . 27

28. Electronic Payment Methods • ACH is available for those suppliers who cannot accept the payment card, but there are disadvantages to the University. • The University of Washington's number one recommended payment method is by payment card. 28