Ariba Project Outcomes October 2017 Update. Presented by Procurement Department October 2017

Transcription

1 Ariba Project Outcomes October 2017 Update Presented by Procurement Department October

2 Topics 1. P2P Module Transactional Procurement 2. Purchase Requisition Cycle Time 3. Supplier Enablement and Cataloging of Goods Contracts 4. Discount Professional for Cash Management 5. Supplier Information Management 6. Sourcing Professional 7. P2P Module Countywide Training for Transactional Procurement 8. Ariba Training in Various Formats 9. Countywide Help Desk Support Metrics 2

3 P2P Module Transactional Procurement P2P Spend in Ariba $ 140 M $ 120 M $ 100 M $ 80 M $ 60 M $ 40 M $ 20 M $ M $ 7.79 M Jan-Jun, 2016 $ M Jul-Dec, 2016 $ M $ M $ M $ M $ M $ M $ M $ M $ M Jan, 2017 Feb Mar Apr May Jun Jul Aug Sep Oct P2P Transactions in Ariba $ M 35,000 30,000 25,000 20,000 15,000 10,000 9,128 10,468 12,286 14,312 16,780 18,967 21,463 24,239 26,759 29,236 31,047 5,000 1,598 - Jan-Jun, 2016 Jul-Dec, 2016 Jan, 2017 Feb Mar Apr May Jun Jul Aug Sep Oct 3

4 Purchase Requisition Cycle Time 922 3% 566 2% PRs Approved in One Day PRs Approved in Two Days PRs Approved in > 2 Days < a Week 26,695 95% The manual purchase requisition process takes 1 to 4 weeks if paperwork does not get lost. In comparison, requisitions take a day or less to route electronically for approvals and processing. 95% within a day! 4

5 Top 12 Department Transactional Spend ISD 1,164 $ M HHS 4,742 $ M DOC & SHO SSA 4,700 3,677 $ 9.95 M $ M Procurement 235 $ 6.41 M Facilities & Fleet Services Roads & Airports 3,533 1,904 $ 5.40 M $ 5.26 M Spend Transaction Tax Collector 145 $ 3.28 M Probation 2,465 $ 2.60 M Parks 1,230 $ 2.46 M District Attorney 776 $ 1.84 M Communications 275 $ 1.62 M 5

6 Supplier Enablement & Cataloging of Goods Contracts P2P Report Date Total Spend Total Transactions Total Contracts in System Total Suppliers Ready to Transact (RTT) Total Reconciled Invoices Jan-Jun, 2016 $ 7.79 M 1, Jul-Dec, 2016 $ M 9, ,235 January 2017 $ M 10, ,957 February $ M 12, ,772 March $ M 14, ,871 April $ M 16, ,445 May $ M 18, ,401 June $ M 21, ,600 July $ M 24, ,983 August $ M 26, ,790 September $ M 29, ,705 October $ M 31, ,939 6

7 Discount Professional (Dpro) for Cash Management SCC completed a study of payment terms and average payable cycle times. Based on the study, SCC decided on N45 payment term. This was to increase the discount and to leverage cash flow opportunity for County as payments were made beyond 30 days. As part of the Dpro Program, suppliers were given the following options: Select from listed discount payment terms 2.25% 10 Net 45 (provides 35 days of cash acceleration) 2.00% 15 Net 45 (provides 30 days of cash acceleration) 1.75% 20 Net 45 (provides 25 days of cash acceleration) 1.33% 25 Net 45 (provides 20 days of cash acceleration) 1.00% 30 Net 45 (provides 15 days of cash acceleration) Select N45 payment terms Stay with current contract payment term Sign up for dynamic discounting per invoice 7

8 Discount Professional (Dpro) for Cash Management Total number of suppliers contacted as part of the Dpro Program: 3, suppliers signed up for discount term and discounts realized is $623, suppliers signed up for N45 payment term and interest earned is $101, suppliers maintained status quo 633 suppliers were not responsive 1,389 suppliers were non-strategic vendors will move to N45 for future transactions 144 suppliers declined to respond 187 suppliers were removed from outreach due to non-business with the County 8

9 Pre-Ariba Supplier Information Management (SIM) Our current system is not working effectively. Our vendor data was 90% inaccurate in SAP for vendor contact information so cash management process slowed down. This is due to SCC entering vendor information in the system when a supplier is ready to do business with the County. Out of our 10,239 vendors registered to do business with SCC in BidSync, only 1,800+ had addresses. Of the 1,800+ vendors, 500+ had incorrect addresses and Procurement received over 3,500 return mail due to old addresses in our bid management system. This is due to the fact that SCC did not have direct access to the suppliers and had to rely on the bid management vendor. Utilizing the SIM Module in Ariba SCC was able to configure the system with fields for data specific to SCC. SIM allows suppliers to register and provide financial information in one centralized location. Additionally, instead of SCC being responsible for entering supplier information, suppliers will be able to self register in SIM and be responsible for maintaining their current information including socio-economic requirements such as small business etc. Ariba s system is configured in a manner that requires suppliers to update their profile every 6 months so that information is kept current. To date, 1,789 vendors have successfully registered in SIM. 9

10 Pre-Ariba Sourcing Professional The sourcing process is manual for the entire County. Solicitations are published on the bid management system and registered vendors receive notification of the posting. If the vendor wanted to respond to a solicitation, they had to submit a hardcopy bid or proposal. The Procurement Department utilized esourcing only for informal Request for Quotations. Utilizing the Sourcing Module in Ariba SCC has taken a phased approach to design and implement the Sourcing Module for the various types of solicitation. The plan is to have the Procurement Department test and utilize the module prior to release for decentralized contracting. The Procurement Department commenced utilizing the Sourcing Module in July 2015 for Invitation to Bids and Request for Quotations. 338 solicitations have been issued and vendor responses are received electronically and bid abstracts are managed electronically. The Request for Proposal and Request for Statement of Qualifications templates have been designed, configured and tested. The Procurement Department will commence using these templates in July All necessary rules of engagement for solicitations and eterms and Conditions have been incorporated in the system for self selection by contracting staff. All workflow approvals are conducted electronically expediting the process by weeks increasing accountability and transparency. Reduce paper and increase operational efficiencies. 10

11 P2P Module County & Supplier Training for Transactional Procurement Procurement Completed 31 Roadshows Prior to the Rollout to Educate and Engage Departments P2P Training Provided to 1,199 Department Clients by Procurement and Controller-Treasurer/ASAP Teams P2P Requisitioning and Receiving Training: 790 P2P AP Training: 409 Post Trainings Feedback with ISD, HHS, SSA, COB and BOS were attended by 58 Q&A Sessions with PRK, HHS, ESA and FIN were attended by 22 Webinar Training for Supplier Enablement was attended by

12 Ariba Training in Various Formats Module Training Materials & Activity Guides Quick Reference Guides (QRG) Webinars P2P Requisition to Receiving & Invoicing XX Sourcing XX 10 Contract Compliance 6 SIM 4 Contracts XX 15 12

13 Countywide Help Desk Support Metrics Support Category Type Number of Support Requests User Access/Permissions 164 P2P Catalog 297 P2P Requisition/PO/Receipt 673 P2P Requisition to Receipt Trainings 360 P2P Invoicing Trainings 409 P2P Invoice 1,376 P2P Invoice payment inquire directly from vendors 405 Ariba DiscountPro vendor inquiry & webinar training 92 Supplier Enablement 36 Contract Management 126 Procurement Workspace 28 Sourcing 109 Total 4,075 13

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