P&G Tier 2 Reporting System. Prime Supplier Reporting Guide

Transcription

1 P&G Tier 2 Reporting System Prime Supplier Reporting Guide Copyright by CVM Solutions, Inc. All Rights Reserved. The material contained in this document is proprietary data and is the intellectual property of CVM Solutions, Inc. This document shall not be reproduced in whole or in part, or disclosed to any persons without the express written consent of CVM Solutions, Inc.

2 Table of Contents Introduction... 2 Getting Help... 2 What do I need?... 2 How do I get started?... 3 Reporting your Tier 2 Expenditures... 4 Spend Pool Allocation - Overview... 6 Spend Pool Allocation - Procedure... 6 Create New Tier 2 Payments... 8 My Suppliers User Maintenance Profile Maintenance Modify Contact Information Update Company Profile Supplier Tier 2 Reporting Guide Log out Glossary/FAQs APPENDIX A Diverse Supplier Information APPENDIX B Prime Supplier Profile Information CVM Solutions Page 1

3 Introduction The P&G Tier 2 reporting system has been created by CVM Solutions Inc in partnership with P&G. The Tier 2 reporting system supports P&G s commitment to supplier diversity by providing a more efficient method to capture, analyze, and consolidate diverse spend. This tool enables prime suppliers to report Tier 2 spend to P&G via a single web portal. This document will help you quickly get started using the system. (Please Note that individuals who will be submitting tier 2 reports are referred to as reporting prime administrators in this guide and in the reporting system as well.) Getting Help You can get help in either of the following ways: Contact Ellen Scott, P&G s 2 nd Tier Coordinator, at or scott.ee@pg.com for questions regarding Tier-2 Reporting requirements, or Contact CVM Solutions for technical issues at X2 or pgsupport@cvmsolutions.com. What do I need? In order to use the P&G Tier 2 Reporting system, you need a browser and access to the internet. For best performance, it is recommended that you use Internet Explorer 5.0 or higher on the Microsoft Windows platform. The application currently does not support other operating systems or browsers. In order to report your expenditure through the system, you must be part of the Tier 2 Reporting program for P&G. You also must already have been provided a User Name and Password to access the application. If you do not have this information or would like to be part of this program, please send an to scott.ee@pg.com. And finally, you need to have your Tier 2 expenditure information for the reporting period ready, including: Your spend with minority and women suppliers during the period, divided into two categories: o Direct Spend with P&G spend with a diverse supplier that can be directly tied o to the product or service that was provided to P&G Indirect Spend with P&G spend with diverse suppliers that can t be tied to any one customer (e.g., lawn care, janitorial services, office supplies.) Total US sales for your company (including sales to Puerto Rico) for the reporting period Total sales for your company to P&G for the reporting period Information on the P&G Spend Pools you sell to: o o For your company s total sales to P&G the percentage allocation to each of the P&G Spend Pools. For direct spend the P&G Spend Pool that received each of the services or products. You will need to have this information for each supplier for which you report direct spend. CVM Solutions Page 2

4 How do I get started? Once you have all the information you need, you can access the application at pg.cvmsolutions.com. Type this address in the address window of your browser, and press enter. You will be directed to the secure login page of the P&G Tier 2 Reporting System. On this page, enter the User Name and Password provided to you and click the Login button to sign in. Forgot Password? button If you have forgotten your Password, please enter your User Name and click on the Forgot Password? button to have a system generated password sent to your registered address. If you have forgotten your User Name, contact P&G technical support team at pgsupport@cvmsolutions.com to request access to the system. CVM Solutions Page 3

5 Reporting your Tier 2 Expenditures There are two components involved in reporting diverse spend to P&G: 1. The P&G Reporting system allows you to report both Direct and Indirect spend dollar amounts. 2. The Reporting system goes one step further, and has users identify the P&G Spend Pool that ultimately received the product/service from your company that had components supplied by diverse suppliers. Before you begin reporting in the system, it is important to understand how Direct and Indirect spend are defined in the tier 2 Reporting system: Direct Spend is spend with diverse suppliers that can be directly tied to the product or service that your company provided to P&G. All of this spend (100%) will be attributed to P&G in the Tier 2 Reporting system. Direct spend will be reported on a supplier-bysupplier basis. NOTE: If you do not have any indirect spend to report, you may click the Skip Indirect button on Step1. You may also skip the Spend Pool Allocation step that precedes Step1. Indirect Spend is spend with diverse suppliers that cannot be tied to any one customer (e.g., lawn care, janitorial services, office supplies.) Only a portion of this spend will be allocated to P&G in the Reporting system. The system will determine what percentage of your total sales for the period are sales to P&G, and will allocate this same percentage of your total Indirect Spend to P&G. The percentage that the system determines should be allocated to P&G is known as the Indirect Allocation Factor, or IAF. More information on the Indirect Allocation Factor can be found in the table located in the Create New Tier 2 Payments section below. Indirect spend will be reported on an aggregate basis - the indirect spend for all diverse supplier will be rolled together into a single number for each diversity category. When you log into the Tier 2 Reporting system, you will go to the Tier 2 Report History screen: Click here to get to the Tier 2 Reporting Screen Click here to do spend pool allocation Report Filters Main Navigation Menu Begin Reporting Button This screen can also be accessed by clicking on the Tier 2 Program option on the Main Navigation Menu and then selecting Manage Reports. This page displays the history of your past Tier 2 reports to P&G. The first time you report in the system, there won t be any history to display, and the screen will look like the one depicted above. All of the Tier 2 reports that you create in the system are archived for approximately three years and can be viewed or printed at CVM Solutions Page 4

6 any time during this period. Once you have begun reporting and have historical reports in the system, this screen will look like the one below: Report Filters Report Link Report Link This page provides you the ability to do the following: 1. Filter saved or submitted information based on the following criteria: a. Reporting Period b. Year c. Submission Status (submitted or not submitted) All filters are provided as drop down lists. You can select one item from the list. The screen will automatically refresh to show the results. 2. View Tier 2 Reports by: a. Year b. Reporting Period To view a report, click on the Report Link for the period of interest. 3. Print Tier 2 Reports: While viewing a report, users have the option of printing or downloading the data (see below.) Click here to print or export a report 4. Begin reporting your Tier 2 spend: To begin reporting, click on either of the two Begin Reporting buttons. CVM Solutions Page 5

7 Spend Pool Allocation - Overview NOTE: If you are only reporting Direct Spend, you may skip the Spend Pool Allocation step and proceed to the next section Create New Tier 2 Payments. Before you start reporting your Tier 2 spend, you need to specify how the Reporting system should allocate the Indirect Spend that is allocated to P&G across the P&G Spend Pools. We have already defined Indirect Spend as your spend (purchases) with diverse suppliers that cannot be tied to goods or services that you delivered to any one of your customers. Instead, these purchases support the operation of your company as a whole. As a result, your entire customer base, by virtue of being the reason your company exists, is responsible for this diverse spend. For tier 2 reporting purposes, a portion of the indirect spend can be allocated to each of your customers. The portion that is allocated to each customer is determined by the percentage of your company s total sales for the reporting period that comes from each of the customers your company made sales to during the reporting period. After the system determines the percentage of your total Indirect Spend that should be allocated to P&G, the system will need to know how to allocate that spend across P&G Spend Pools. Because the Indirect spend isn t associated with any particular good or service purchased by P&G, P&G asks that you allocate the spend to Spend Pools by determining the percentage of your company s total sales to P&G that went to each of the Spend Pools. Spend Pool Allocation - Procedure The first step you will take in the system will be to put this Spend Pool allocation in the Reporting system. To do this, click on Tier 2 Program in the Main Navigation Menu and then on Spend Pool Allocation. This will bring you to the following screen: Spend pool Allocation Icon for Fiscal Q1-06 This screen will allow you to enter the percentage of your total sales to P&G that went to each of the P&G Spend Pools. CVM Solutions Page 6

8 NOTE: Spend Pool Allocations must be done for every Tier 2 reporting period individually. The allocation entered in the system for one period is NOT carried over in the system to any other period. (There are tool tips in the system that will remind you to do this prior to starting each period s Tier 2 reporting process.) To begin the Spend Pool Allocation process, go to the table on this screen and locate the line that has data for the current reporting period. Click on the appropriate Edit Spend Pool Allocation icon on the right side of the table. This will take you to the following screen: Enter the % of business done with each of the P&G Spend Pool here Must total 100% Click here to submit Allocation Enter the percentage of business that your company did with each of the P&G Spend Pools. For example, if your company sold a total of $100 worth of products to P&G during the open reporting period, and $50 of this total was sold to the Capital Spend Pool, $30 was sold to the Global Business Services Spend Pool, and $20 was sold to the Packaging Spend Pool, you would enter percentages on this screen as shown in the screenshot above. The total percentage that you allocate must sum to 100% or the system will not allow you to save the data. When you have completed your Spend Pool Allocation for this period, click on the Submit button. The system will give you a message in green at the top of the screen indicating that the update was made successfully. CVM Solutions Page 7

9 Allocation update was accepted by the system Create New Tier 2 Payments You are now ready to begin entering the dollar amount of your Tier 2 spend. Tier 2 spend reporting is a multi-step process. In the first step, you will provide basic sales information for the open reporting periods that will allow the system to determine the percentage of your total Indirect Tier 2 spend that should be allocated to P&G. In the next step, you will enter the total amount of your Indirect Tier 2 spend. (You will enter ALL of your indirect spend. The system will determine the dollar amount that should be allocated to P&G, and will further allocate that portion across the P&G Spend Pools, according to the percentage you entered in the previous step described above.) In the subsequent steps, you will then enter your Tier 2 Direct expenditures. Step 1 Enter US Sales and Sales to P&G To create a new Tier 2 Payment, select Tier 2 Program on the Main Navigation Menu and then select the Manage Reports option. This will bring you back to the Tier 2 Report History screen: Begin Reporting Button Click on the Begin Reporting button to start the reporting process. This will bring you to Step 1 of the Tier 2 Reporting Process - Enter US Sales, and Sales to P&G. CVM Solutions Page 8

10 Click here to skip the Indirect R steps and go to the Direct Repo Click here to save the data and move to the next reporting step The table below explains the information required during this step of the reporting process: Reporting Period Total US Sales Customer Sales Indirect Allocation Factor Periods for which 2 nd Tier Expenditure must be submitted. Periods which are open have a background of white. Periods that are not opened are grayed out. Total US Sales for the reporting period, including sales to Puerto Rico Sales to P&G for the reporting period. The percentage of your Indirect 2 nd tier expenditure that is attributed to P&G. This value is automatically calculated by the system as (Total sales to P&G)/ (Total US sales). For example, in the above screen, in Q1, 2005, the indirect allocation factor for P&G is 30/100 or 30%. CVM Solutions Page 9

11 Note: 1. All figures to be entered are for the reporting period. Please do not enter cumulative numbers. 2. It is highly recommended that you provide US Sales information. If you cannot provide this information, enter 100 for US Sales and percentage of sales to the customer so that the indirect allocation factor can be calculated. For example, if sales to Acme Inc. constitute 10% of overall sales, enter 10 for the Sales to Acme and enter 100 for US Sales. The indirect allocation factor for Acme will then be calculated by the system as 10%. 3. If you do not have any Indirect Spend to report you will be able to click the Skip Indirect button. After you enter your company s total sales for the reporting period and sales to P&G for the same period, the system will use this information to calculate the Indirect Allocation Factor (IAF) that will be used to allocate a portion of your total Indirect spend to P&G. When you are satisfied with the amounts that you have entered on this page, click Save & Next to move to the next reporting step. This screen lets you report your indirect purchases by diversity categories defined by P&G MBE or WBE. For purposes of reporting to P&G, a diverse supplier that is both an MBE and a WBE should be counted as an MBE only. Enter the total amount you spent for the category, for the reporting period. The system will determine the amount attributable to P&G based on the Indirect Allocation Factor (IAF). The system will also allocate the Indirect Spend across P&G Spend pools using the percentages you entered during Spend pool Allocation process. This completes the reporting process for your Indirect spend. Once you have reported all of your indirect spend for the open reporting period click Save & Next. CVM Solutions Page 10

12 Note: 1. A diverse supplier that is both an MBE and a WBE should be counted as an MBE only. This means that only companies owned by non-ethnic (Caucasian) women should have their spend reported in the WBE category. DO NOT DOUBLE COUNT by including a company in both the MBE and WBE categories. These categories should be mutually exclusive. 2. All figures entered in this step (and all other steps in the reporting process) are for this reporting period only. Please do not enter cumulative numbers. 3. Do not double count by reporting any spend included as Indirect Spend in the dollars you record when reporting your Direct Spend in the next steps. These spend categories are mutually exclusive - Indirect spend plus your Direct spend will equal total diverse spend. 4. Cells for open reporting periods have a white background. Cells for closed reporting period have a gray background. The spend that you reported in the prior reporting period is displayed in a view only format so that you can see what you reported in the past. 5. To be able to report spend by diversity category (MBE, WBE), it is important that you have a Tier 1 spend reporting system that gives you diversity spend reports at these levels. It is important that you have gone through a data classification process to identify diverse suppliers and their diversity categories to enable accurate reporting. After you click Save & Next in step two outlined above, you will come to this screen: If you have direct spend - Click here to report it If you have no direct spend to report - Click here to review and submit Report Step 3A Preview and Report Indirect Spend (If you have no Direct Spend) If you don t have any direct spend to report, you have completed the Tier 2 reporting process. Click on the Preview Button on this screen to review your report, and if it is satisfactory, submit it to P&G. (Please see Step 6 below for instructions on reviewing and submitting a spend report.) Step 3B Report Direct Spend By selected the Edit button on any open reporting period, you can report your direct spend with diverse suppliers. This will bring you to the following screen which allows you to select the diverse suppliers that you wish to report direct spend against for the reporting period. CVM Solutions Page 11

13 Step 4 Choose Suppliers for Direct Purchases Search within previously identified suppliers Click here to move a selected identified supplier from the left box to the selected supplier box so that you can report spend against the supplier Click here to add a new diverse supplier to the previously identified supplier box Once all of the suppliers you had spend with are in the selected suppliers box, click here to go to the next reporting step This step allows you to select and add suppliers for direct reporting. While this process can become tedious, once a supplier has been added, it will be in the selection list for future reporting. This screen consists of two lists: a. Previously Identified Suppliers b. Selected Suppliers The Previously Identified Suppliers list consists of suppliers that were selected in previous reporting periods. You will also add new suppliers that you are reporting spend against for the first time to the Previously Identified Suppliers list. The Selected Suppliers list consists of suppliers that are selected for reporting in the current reporting period. You can add to the Selected Suppliers list by highlighting a supplier in the Previously Identified Suppliers list and clicking on the Add button. You can remove a supplier from the Selected Suppliers list by highlighting the required supplier and clicking on the Remove button. Suppliers in Red font in the Selected Suppliers list cannot be removed as they have spend reported in the current open period. You will need to set spend to zero to remove these suppliers. You can search for a supplier included in the Previously Identified Suppliers list by entering all or part of the supplier s name in the Search box that is directly above the gray list box. A % represents a wildcard in the search. If you do not find a supplier that you need to report diverse purchases for, click the Add New Supplier button. This will bring up the Search/Invite Diverse Suppliers screen. CVM Solutions Page 12

14 Enter the name of the supplier that you want to find. Providing the state in which the supplier is located will further focus the search. To get a list of suppliers, click on the Search button. A search will be performed against a database of diverse suppliers. Click here to select a supplier Click here to add the selected new supplier Click here to create a new diverse supplier You can select a supplier by clicking on the box to the left of the supplier name. To add the selected supplier to the Previously Identified Suppliers list, click on the Add Selected Supplier button. If you do not find the required diverse supplier, click on the link at the bottom of the page to add the supplier to the system. This will bring up a Create New Diverse Supplier page. You will provide basic information about the supplier, including diversity information. Note that fields with a red asterisk are required and must be filled before you can complete the Create New Diverse Supplier process. CVM Solutions Page 13

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16 Note: Please refer to the Appendix A for information that you need to provide while creating a diverse supplier. Once the supplier is created, it is available for selection in the Previously Identified Suppliers list box on the Choose Suppliers for Direct Purchases screen. Select each of the suppliers that you wish to report spend for in the Previously Identified Suppliers box and use the Add button to move them to the Selected Suppliers box. After all of the suppliers have been moved to this box, click on Save & Next to go to the next step in the process. Step 5 Create/Modify Direct Purchases Report The next step in the Tier 2 Reporting process is to report your direct spend. Enter direct spend for each supplier in this column Click here to select the P&G spend pool that received this supplier s product/service Click here to select a supplier that provided products/services to more than one P&G spend pool Direct purchases are reported by customer for each reporting period. In addition to reporting the dollar amount of the diverse spend, the P&G Spend pool that purchased the good/service should also be specified. To do this, click on the three dots in the light-gray shaded box in the Spend pool column. This will bring up a list box of all of the P&G Spend pools. Select the appropriate Spend pool and click Done. Then click the red box in the top right corner of the drop box to close it and return to the Create/Modify Direct Purchases Report screen. Only one P&G spend pool can be selected on each of the direct reporting lines. If you have suppliers that provided goods/services for more than one P&G spend pool, follow the steps below to report the business that is associated with the other spend pools by adding the supplier s name to the reporting list a second time: o Click on the Select Supplier Button and choose the appropriate supplier from the drop down box o Click on the Add button to add supplier to the report an additional time o Repeat this process as many times as necessary Follow the instructions listed above to report the direct spend for these suppliers/spend pools. CVM Solutions Page 15

17 Note: 1. All figures to be entered are for the reporting period. Please do not enter cumulative numbers. 2. DO NOT DOUBLE COUNT do not include any spend here that was included in the Indirect reporting process. Indirect spend plus your direct spend should equal total diverse spend. 3. DO NOT DOUBLE COUNT if a supplier provided products/services to more than one P&G spend pool, do not report the total spend with that supplier for both spend pools. Instead, for each spend pool, report only the amount of the total spend that was associated with that spend pool. 4. Cells for open reporting periods have a white background. Cells for closed reporting periods have a gray background. Once you have entered the direct purchase, click the Save and Next button. This will take you back to the screen for Step 3 Direct Purchases Reporting/Submission where you will be able to review and submit your Tier 2 report. Step 6 Review and Submit Tier 2 Report Click here to review and submit the Tier 2 report Click the Preview button to view your Tier 2 report for a specific reporting period. CVM Solutions Page 16

18 Export report Print button Submit button Once you are satisfied with the information, you must submit the report to P&G by clicking the Submit button. You can also print a copy of the report for your records by clicking the Print button. You may also save a local copy of the report in Excel format by clicking the Export button. CVM Solutions Page 17

19 My Suppliers The list of suppliers selected for Tier 2 reporting can be maintained by selecting the My Diverse Suppliers option on the Main Navigation Menu. This will bring you to the following screen: You can search for suppliers on a combination of Supplier Name, State, Ethnicity, and Diversity Category. Enter the search criteria and hit the Lookup button. You can also add new suppliers by clicking on the Add New Supplier function. The Add New Supplier function works in the same manner as adding a new supplier via the Tier 2 Reporting process. CVM Solutions Page 18

20 User Maintenance Reporting Prime Administrators have the ability to create a new user to report for your company in the event that this role is transferred to someone else in your company. To access this function, select User Maintenance on the Main Navigation menu and then select Manage Prime Users. Link to view and or modify user profile You can search for reporting contacts by First Name, Last Name, or User ID. Enter the search criteria and click Search to bring up a list of users that match the criteria. Click on the link in the Id field to modify the user s profile. To add a new user, click on the Add New link. If the new User is going to report tier 2 spend for your company, select Reporting Prime Admin as the Role in the User Profile. CVM Solutions Page 19

21 Profile Maintenance Profile Maintenance provides the user the ability to do modify their profile. Reporting Prime Administrators can also use this function to modify their company profile. Modify Contact Information This screen provides users the ability to modify their profiles and change their passwords. It is important to keep the address in the profile current as this is where messages and notices about the Tier 2 reporting system will be sent. CVM Solutions Page 20

22 Update Company Profile This screen provides Prime Administrators with the ability to update their company profiles. There are three pages of information that are required. Details of the information are provided in the Appendix. Suppliers can also view their details via a Summary View which can be accessed by clicking on the Summary View link. Supplier Tier 2 Reporting Guide This link brings up the supplier guide in.pdf format. Log out This link logs you out of the system. CVM Solutions Page 21

23 Glossary/FAQs Direct Purchases: Direct Purchases are those material and service acquisitions from small businesses directly attributable to a P&G contract or purchase order. For example -- your company provides general construction services to P&G and you subcontract earthmoving and painting to a small business. In this instance, 100% of the painting and earthmoving expenditures should be reported to P&G. Another example your company provides P&G office supplies under a blanket purchase order and you purchase pens, pencils and stationery from a small business. Expenditures for the volumes of these pens, pencils and stationery furnished to P&G should be reported at 100%. Indirect Purchases: Indirect Purchases are those material and service acquisitions from small businesses that cannot be identified for or apportioned to any specific customer. For example overhead items such as paper, computing expenses, or office maintenance incurred by your company. Also included would be any and all materials and services purchased from small businesses that are used in the direct production of your product or service. These indirect expenditures should be proportionately allocated and reported to P&G. Reporting Period: Periods for which 2 nd Tier Expenditure must be submitted. These are broken out by quarters. Q1 is from Jan Mar, Q2 is from April June, Q3 is July September, Q4 is October - December Total US Sales: Total US Sales for the reporting period. Please note that this figure should not be cumulative. It should be reported for the specific reporting period. Total US Purchases: Total US Purchases for the reporting period. Please note that this figure is not cumulative. It should be reported for the specific reporting period. Customer Sales: Sales to a Customer for a reporting period. It should be reported for the specific reporting period. Indirect Allocation Factor: The percentage of your Indirect MBE and WBE 2 nd tier expenditure that is attributed to P&G. This value is automatically calculated by the system as (Total sales to P&G)/ (Total US sales). CVM Solutions Page 22

24 APPENDIX A Diverse Supplier Information Enter the following information to create a diverse supplier. Note: 1. * indicates mandatory field 2. Provide as much information about the company as possible, even if it s not required. General Company Information 1. Company Name* 2. Address 1* 3. Address 2 4. City* 5. State* 6. Zip Code* 7. Phone* 8. Federal Tax ID Primary Contact 1. Name * 2. * 3. Phone * Business and Financial Information 1. Year Established (must be after 1752) 2. Gross Sales for last 3 years 3. Number of Employees Diversity Information 1. Ethnicity* 2. Gender* 3. Diversity categories and certification * (Select at least one) CVM Solutions Page 23

25 APPENDIX B Prime Supplier Profile Information Enter the following information to update your company profile. Note: 1. * Indicates mandatory field 2. Provide as much information about your company as possible, even if it s not required. General Company Information 1. Company Name* (Must match the name filed with the federal government associated with the federal tax ID.) 2. Former Company Name(s) 3. Doing Business As 4. Company Web site 5. Federal Tax ID* 6. Dun & Bradstreet Number 7. Parent Company Name 8. Parent Federal Tax ID 9. Currently Doing Business with P&G? (Yes/No) * 10. If yes, enter P&G Contact 11. Are you a Diverse Supplier or Small Business? (Yes/No)* Headquarters Information 1. Address 1* 2. Address 2 3. City* 4. State* 5. Country 6. Zip Code* 7. Phone * 8. Fax Primary Contact 1. Name * 2. Title * 3. * 4. Phone * 5. Fax Executive Contact 1. Name* 2. Title* 3. * 4. Phone* 5. Fax Business/Financial Information 1. Year Established (must be after 1752) * 2. Gross Sales for last 3 years * (Last Year required, previous years optional) 3. Number of Employees * 4. Legal Structure* CVM Solutions Page 24

26 Product/Service Information 1. P&G Commodity Supplied* 2. SIC Code of Commodity Supplied* 3. NAICS Code of Commodity Supplied 4. Specific Product/Service Description* 5. Geographic Service Area (Local, Regional, National, Global) 6. Gender of Majority Ownership* Diversity Information (Applicable only to diverse suppliers) 1. Classification (Select the appropriate Diversity classifications) 2. Certifications* (Select the classification, Council(s), Certificate Numbers, and Expiration Dates) 3. Gender of Majority Ownership* 4. Ethnicity* 5. Upload your Diversity Certifications 6. % of Minority Ownership 7. % of Women Ownership References (one reference is required; up to three may be listed) 1. Company* 2. Product/Service Provided* 3. Contact Name* 4. Phone Number* 5. * CVM Solutions Page 25