procurement shared services center implementation plan january, 2015

Procurement Shared Services Center Implementation Plan

January, 2015

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Agenda• Project overview• Why shared services?• How did we design the combination?• Benefits?• What are the roles and responsibilities?• What were the overall results?• Questions?

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Project Overview• Combining procurement service centers:

• Office of Academic Affairs• Office of the Board of Trustees• Office of Business and Finance• Office of Government Affairs• Office of Legal Affairs• Office of the President• Office of Student Life

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WHY SHARED SERVICES?

OE@OSU

Pre-emptive Politics

Career Development

Subject Matter Expertise

Procure to Pay

Communication & Collaboration

End to End Process

Lean Ohio

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Feedback Summary• Characteristics

• Understanding of the process and policy• Communicate• Listen and understand needs• Willingness to go the extra mile/customer service

• Feedback• Discrepancies in policy and documentation expectation• Lack of consistency• Lack of communication• More training• More meetings• Take ownership

HOW DID WE DO THIS?

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Workgroups• Processes:

• POs/eStores/Reimbursements/Payments • Vouchers and match exception • IDBs • PCard • Travel

• Exceptions• Worklist • Reconciliation• Communication• Space• Culture and Structure

HOW DID WE DO THIS?

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Executive Committee

Advisory Committee

Procurement Shared Services Center

Workgroup

• Devine, Harris, Wiseley, Plaga

•Dan Huffman; SL•Andrew Crow; SL •Molly Ergezen; SL•Linda Montana; OAA •Lisa Patton-Glinski; OAA

• PSSC Group

HOW DID WE DO THIS?

•Jeff Allen; OAA •Melissa DeAngelo; B&F•Tricia Hohl; B&F•Angela Carter, B&F

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What are the benefits?

Benefits• Standardization of processing

• Common model for future expansion• Elimination of redundant labor

• Compliance improvement• Customer service focus

Cost savings• Approximately $175k in hard cost savings resulting from one open position that was not filled and the other .5 FTE was absorbed into the

unit

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Services to be Provided

Transaction Processing• Purchase Orders (POs)

• eStores Orders• Requisitions

• Payment Requests• Vouchers

• PCards• Travel Payments

• Internal Departmental Transactions

Compliance Review• The business purpose description is complete and reasonable

• The transaction is in compliance with university policies• Appropriate supporting documentation (i.e. receipts, attendee lists, etc.) is included, as

documented in the process flows• The transaction has been properly approved

• The appropriate procurement method was used

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Goals

Goals• Provide quality customer service

• Develop relationships• Understand needs• Timely communication

• Process transactions efficiently and effectively• Ensure compliance and internal control

• Be the procurement expert

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Communication and Feedback

Communication Strategy• Website - u.osu.edu/pssc

• Monthly carmenconnect calls• Quarterly live meetings

Feedback Solicitation• Email surveys every 6 months to our users• Annual live meeting with each department

Workgroup Continuation• Continuation of workgroups, Advisory Committee, and Executive

Committee• Will continue to revise groups and develop a rotation plan for

participation

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Expectations

Units• Be patient – remember these are new processes

• Communicate – let us know what is working and what isn’t• Ask questions

• Communicate changes within your units

PSSC• Communicate

• Timely follow-up• Standard processes

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Roles and Responsibilities

Organization Chart

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PCardProcesses

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WHAT WERE THE OVERALL RESULTS?

PCard – New Application and Maintenance Process Changes

Existing Process New Process Affected Units Efficiencies/Benefits Gained

SC completes the access portion of the application

Access information available on-line

B&F, SL Removed the need to email the application to the SC

New PCard manager picks up card

PSSC team will meet with the new PCard manager for a short training program

B&F, OAA Gives a new PCard manager individual time to ask questions and understand their role. Also provides a connection between the PSSC and the individual which will aid in future communications.

PeopleSoft table access requested through individual departments

All PeopleSoft access should be in the PSSC, no need for departments to have access or manage. The access will be monitored by B&F

B&F, OAA, SL Limits the access in PeopleSoft, which reduces risk.

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PCard – Card Process Changes


Card holders are emailed multiple times with individual transaction needs or inquires as to when the documentation will be available

Weekly emails to the appropriate individual (PCard manager, admin, etc) with open items and questions

B&F, OAA, SL Weekly emails give departments the ability to focus on items missing without being bombarded with emails.

Documentation requests are sent at random intervals and there is not set follow-up or resolution schedule

There will be 3 emails sent over a 10 business day period to request the needed documentation, including escalation features.

B&F, OAA, SL Standard follow-up procedures gives departments an idea of what to expect as well as gives the PSSC the ability to keep transactions organized and prevents them from aging.

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PCard - Things you should know• Make sure to get the itemized receipts

• Ask for sales tax to be removed• If actual cost of the transactions is greater than 20%, with a $10

minimum, we will ask for additional approval• Differences between the bank feed and the receipt:

• <$1 – difference is deminimus

• Between $1 and $10, we will notify the department

• >$10 – we will ask the department to investigate• Guest list

• If there is a specific list, we will follow-up

• If the list is more generic, we will ask for a flyer or invitation to capture the group invited

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TravelProcesses

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Travel Initiation


SC may approve or be a back-up to units

All travel is approved by the unit B&F, OAA, SL Removes the risk of having an approver that might not be fully aware of the transaction or budget.

Removes the inefficiencies when the PSSC is just validating that the unit has approved.

After submitting the travel request, the unit enters an eRequest before making advanced purchases

The eRequest is no longer needed for PCard purchases.

B&F, OAA, SL Eliminates the redundancy of entering the same transaction twice.

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Travel Payment


The unit enters the travel payment

The PSSC will enter the travel payment

SL Reduces access risk.

Provides back-up to individuals entering payments.

Errors are identified and corrected before the travel is entered into the system

Not all travels are summarized and receipts submitted

All travels will be summarized and receipt submitted

B&F, OAA, SL Ensures that all receipts are collected

Ensures that all travels are in compliance with policy

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Travel - Things you should know• When in doubt – ASK!

• Get the itemized receipt• We will ask for –

• Specific business purpose and approval of seat upgrades and other seat/boarding options

• Reasons for per diem when there is a meal provided at a conference

• Appropriate documentation when there is vacation in conjunction with a business travel

• Appropriate documentation when individuals consider driving versus flying

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IDBProcesses

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Internal Departmental Billings

Se

rvic

e C

en

ter

Un

itIn

tern

al

Ve

nd

or

Create eRequest Approve eRequest

Review for compliance and

follow-up with unit for missing information

Dispatch request to the internal vendor,

if neededComplete eRequest

Follow up to obtain receipt or complete documentation in

eRequest

Internal vendor receives the order

Internal vendor fills the order and sends

receipt/invoice to the department

Vendor enters IDB journal to charge Department for

goods or services

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POProcesses

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PO Processing


No consistency on using the eRequest Activity Status to indicate the status of an order. Emailed approvers to approve orders

Utilizing the eRequest Activity statuses to route workflow in the service center and to define which statuses should be used.

OAA, BF Transparency on where an order is in the process and to better utilize workflow processes to approve orders and track progress on an order

Inputting the requisition # in the transaction field when creating a requisition and completing the eRequest

The Transaction field will be populated with the Requisition # until the PO is created. Once the PO # is created, the SC buyer will change the transaction field to the PO#. The eRequest will remain open until the PO is received from Purchasing

SL, BF Allows the depts to search on the PO # in the transaction field search in erequest to better find related orders.

Bid process has had no defined process

Bid process has been defined and mapped. It includes communication from the department to their business office as well as the PSSC so that all parties are involved

BF, OAA, SL All areas will be involved in the discussion so that the PSSC, purchasing, and the departments business office are aware of the need for a bid early in the process to help navigate the entire process

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VoucherProcesses

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Voucher Processing


Change orders and Match exceptions- University expediting runs ME report and notifies units when a C/O is needed

PSSC staff will run ME report on a weekly basis and work with PSSC buyers to determine resolution, notify units. Units will enter an eRequest for the c/o (also can be entered by PSSC if necessary).

BF, OAA Resolution of ME’s should be quicker resulting in more payments being made on time. Expertise in how to fix complicated ME’s resides in PSSC.

Only SC Leads process employee reimbursements and only AP staff process other payments

All staff will be trained on processing all payment types

SL Results in quicker turnaround time for payment processing and allows us to shift more resources in times of high volume

Voucher approvals – multiple processes and methods for getting vouchers approved and attaching voucher images to multiple platforms

New process is clearly defined. For BF and OAA general and blanket vouchers, PSSC will approve vouchers if signature is already received. Image will not be reattached to eRequests but notes will be input into eRequests of the voucher ID as necessary. SL voucher approval process will remain unchanged for now.

BF, OAA, SL Clearly defined process will allow more efficiency in training departments and new staff. May move some OAA and BF units to the SL method to improve efficiencies.

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Questions?

procurement shared services center implementation plan january, 2015

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