AUTOMATION 101: MANAGING THE RFP PROCESS FROM START TO FINISH 10/18/2016. The Accounts Payable & Procure-To-Pay Conference & Expo is produced by:

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1 AUTOMATION 101: MANAGING THE RFP PROCESS FROM START TO FINISH The Accounts Payable & Procure-To-Pay Conference & Expo is produced by:

2 WHAT IS AN RFP A request for proposal (RFP) is a process utilized by organizations to elicit bids from vendors for a particular product or service. A RFP can clarify the proposal process which makes it easier to accept as requirements are clearly stated and openly discussed. The Accounts Payable & Procure-To-Pay Conference & Expo is produced by: 2

3 WHY UTILIZE AN RFP? Provides key elements in the decision making process. Allows you to select a vendor who provides the greatest value. It can define the end product and the investment and/or benefits to be gained. It can facilitate the approval process of the product/service your are trying to obtain. The Accounts Payable & Procure-To-Pay Conference & Expo is produced by: 3

4 Identify the process that you are are trying to improve. Build a business case explaining why you should do the process improvement. Define a problem statement. The problem statement should be specific, concise and include what is wrong with the current process. It should be focused on the pain points and how they should be eliminated. The Accounts Payable & Procure-To-Pay Conference & Expo is produced by: 4

5 List your project goals. Identify the stakeholders who should be involved in the process. Depending on your organization it can be the CFO, Legal Department, IT Department, Review Committee, and the end users. Create a detailed process map of the current process to be improved. The process map should include all the steps needed to get to the end product. Include the time it takes to complete the process steps. The Accounts Payable & Procure-To-Pay Conference & Expo is produced by: 5

6 X.XX.X Invoice Integration Into Oracle STEP NEED WHO Vendor Need Payment On Invoice Before ImageRight Accounts Payable Staff Accounts Payable Manager X.XX.X Invoice Integration Into Oracle STEP NEED WHO Vendor Need Payment On Invoice Prepare Invoice Before ImageRight Accounts Payable Staff Oracle Accounts Payable Manager Approving Manager.01 PREPARE Prepare Invoice.01 PREPARE Invoice Sent Via Mail? YES NO.02 MANUALLY Invoice Sent Via Mail? YES NO Manually Scans Invoice Into ImageRight.02 MANUALLY Invoice Sent Via Mail Scan Into ImageRight By Henderson Imaging Manually Scans Invoice Into ImageRight.03 INVOICE Invoice Sent Via Mail.03 INVOICE Index Invoices For Processing Enter Invoice Into Oracle.04 SCAN Scan Into ImageRight By Henderson Imaging.04 SCAN Triggers AME Approval.05 INDEX Index Invoices For Processing.05 INDEX Receive Request From Oracle For Approval Review Request.06 ENTER Enter Invoice Into Oracle.06 ENTER NO Approved? YES Reviews Approval Send PDF Invoice For Approval.07 SEND Send Invoice To Manager To Review.07 SEND Received With Image Of Invoice Review Request Review For Accuracy NO Approved Via AME?.08 REVIEW.08 REVIEW Reviews Approval YES NO Is It Accurate? Scans Approval Into Invoice Document YES Force Approve In Oracle.09 REVIEW Reviews Approval.09 REVIEW Send Invoice To Manager To Review Reviews Force Approval.10 RUN Run Check/ACH Payment Process In Oracle.10 RUN Task Request For Approval NO Within Approval Limits? YES ISSUED Issued Payment ISSUED Runs Check/ACH Payment Process In Oracle SOURCE Revised: 10/23/2015 Prepared By: Elizabeth Limon Issued Payment SOURCE Revised: 10/23/2015 Prepared By: Elizabeth Limon The Accounts Payable & Procure-To-Pay Conference & Expo is produced by: 6

7 Perform a quantitative analysis by creating a Data Collection Form The Accounts Payable & Procure-To-Pay Conference & Expo is produced by: 7

8 Perform a preliminary research of the potential vendors by networking with other colleagues. Setup a meeting with each potential vendor. The purpose of these meetings is to provide an outline to the vendors of your requirements. Follow up with a demo of the product offered by the vendor. Be prepared to ask questions on how this product would best fit the organization s requirements. Define your expected outcome, clarifying your requirements, delivery timeframe and any other key elements. The Accounts Payable & Procure-To-Pay Conference & Expo is produced by: 8

9 Allow the vendor to develop a thorough proposal which should include the pricing, a delivery timeline based on the magnitude of the project and the breadth of services included. Include system requirements for both your organization and theirs. Evaluate each proposal carefully. Do a comparison by listing Pros and Cons. Evaluate each vendor with a rating of your requirements and pricing. The Accounts Payable & Procure-To-Pay Conference & Expo is produced by: 9

10 Meet with your stakeholders and review the vendor selection and identify which vendor you are considering. Setup a meeting with stakeholders and selected vendor to review the product/services offered. Include your Infrastructure Department to discuss all technical capabilities and requirements. Once all parties agree on the terms and conditions of the proposal and the statement of work, the next step is the contract signing. The Accounts Payable & Procure-To-Pay Conference & Expo is produced by: 10

11 Once the contract is signed, coordinate with your IT department and vendor a timeframe to create a testing environment (pilot plan). Create an Action Plan for rolling out all improvements The Accounts Payable & Procure-To-Pay Conference & Expo is produced by: 11

12 ACTION PLAN HOW WHO JUL Legend WHEN AUG SEP OCT NOV DEC = Proposed = Actual JAN FEB Prepare a detail action plan to roll out the implementation of improvements. 1. Develop process flow chart / indicators. 2. Perform qualitative analysis and identify weaknesses and countermeasures. 3. Develop data collection and countermeasures. A1- Plan team to print final invoice. A2- Develop automatic program to print final invoice. B1 - Enforce late paymt penalty. B3- Encourage automatic draw payments. C1- Have sponsor complete "contact person" sheet. D1 - Credit overpayments to client acct. Team Team Al / Bob Vince / Dan Keith / Al / Kevin Carolyn / Samantha Pat Al / Dunreath Pat / Carolyn Completed 7/30/99 Completed 7/30/99 Canceled On hold indefinitely 10/25 Completed 10/1/99 Canceled On Hold (Y2K) On Hold (Y2K) 12/31 1/00 2/1 2/1 2/28 D4 - Encourage fed fund wires. Keith On hold 11/15 E1 - Initiate "work rqst" task team. Al / Bob Data collection Team 11/15 4. Review / revise / approve countermeasures. Team 11/30 5. Implement countermeasures and check initial results. Team On-Going 6. Monitor and perform quantitative analysis. The Accounts Payable & Procure-To-Pay Conference & Expo is produced by: 12

13 Create a process map after implementation so you can do a before and after comparison. This document can be utilized in training of your employees. After Before Process Steps: 40 After Process Steps: 19 Total Process Steps Removed: 21 The Accounts Payable & Procure-To-Pay Conference & Expo is produced by: 13

14 Prepare a savings calculations of soft and hard benefits. The Accounts Payable & Procure-To-Pay Conference & Expo is produced by: 14

15 QUESTIONS? The Accounts Payable & Procure-To-Pay Conference & Expo is produced by: 15