Procurement Shared Services Center Implementation Plan January 2015

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Procurement Shared Services Center Implementation Plan January, 2015

Procurement Shared Services Center Implementation Plan January, 2015

Agenda • • Project overview Why shared services? How did we design the combination?

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? 2

Project Overview • Combining procurement service centers: • • Office of Academic Affairs Office

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 3

WHY SHARED SERVICES? Subject Matter Expertise OE@OSU Pre-emptive Politics Career Development Lean Ohio Communication

WHY SHARED SERVICES? Subject Matter Expertise OE@OSU Pre-emptive Politics Career Development Lean Ohio Communication & Collaboration End to End Process Procure to Pay 4

HOW DID WE DO THIS? Feedback Summary • Characteristics • Understanding of the process

HOW DID WE DO THIS? 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 5

HOW DID WE DO THIS? Workgroups • Processes: • • • POs/e. Stores/Reimbursements/Payments Vouchers

HOW DID WE DO THIS? Workgroups • Processes: • • • POs/e. Stores/Reimbursements/Payments Vouchers and match exception IDBs PCard Travel Exceptions Worklist Reconciliation Communication Space Culture and Structure 6

HOW DID WE DO THIS? Executive Committee Advisory Committee Procurement Shared Services Center •

HOW DID WE DO THIS? Executive Committee Advisory Committee Procurement Shared Services Center • Devine, Harris, Wiseley, Plaga • Dan Huffman; SL • Andrew Crow; SL • Molly Ergezen; SL • Linda Montana; OAA • Lisa Patton-Glinski; OAA • Jeff Allen; OAA • Melissa De. Angelo; B&F • Tricia Hohl; B&F • Angela Carter, B&F • PSSC Group Workgroup 7

What are the benefits? Benefits • • • Standardization of processing Common model for

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 $175 k in hard cost savings resulting from one open position that was not filled and the other. 5 FTE was absorbed into the unit 8

Services to be Provided Transaction Processing • • Purchase Orders (POs) e. Stores Orders

Services to be Provided Transaction Processing • • Purchase Orders (POs) e. Stores 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 9

Goals • Provide quality customer service • Develop relationships • Understand needs • Timely

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 10

Communication and Feedback Communication Strategy • • • Website - u. osu. edu/pssc Monthly

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 11

Expectations Units • • Be patient – remember these are new processes Communicate –

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 12

Roles and Responsibilities Organization Chart 13

Roles and Responsibilities Organization Chart 13

PCard Processes 14

PCard Processes 14

WHAT WERE THE OVERALL RESULTS? PCard – New Application and Maintenance Process Changes Existing

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 online 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. People. Soft table access requested through individual departments All People. Soft access should be in the PSSC, no need for departments to have access or manage. The access will be monitored by B&F, OAA, SL Limits the access in People. Soft, which reduces risk. 15

WHAT WERE THE OVERALL RESULTS? PCard – Card Process Changes Existing Process New Process

WHAT WERE THE OVERALL RESULTS? PCard – Card Process Changes Existing Process New Process Affected Units Efficiencies/Benefits Gained 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. 16

WHAT WERE THE OVERALL RESULTS? PCard - Things you should know • • Make

WHAT WERE THE OVERALL RESULTS? 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 17

Travel Processes 18

Travel Processes 18

WHAT WERE THE OVERALL RESULTS? Travel Initiation Existing Process SC may approve or be

WHAT WERE THE OVERALL RESULTS? Travel Initiation Existing Process SC may approve or be a backup to units New Process All travel is approved by the unit Affected Units B&F, OAA, SL Efficiencies/Benefits Gained 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 e. Request before making advanced purchases The e. Request is no longer needed for PCard purchases. B&F, OAA, SL Eliminates the redundancy of entering the same transaction twice. 19

WHAT WERE THE OVERALL RESULTS? Travel Payment Existing Process The unit enters the travel

WHAT WERE THE OVERALL RESULTS? Travel Payment Existing Process The unit enters the travel payment New Process The PSSC will enter the travel payment Affected Units SL Efficiencies/Benefits Gained 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 20

WHAT WERE THE OVERALL RESULTS? Travel - Things you should know • • •

WHAT WERE THE OVERALL RESULTS? 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 21

IDB Processes 22

IDB Processes 22

WHAT WERE THE OVERALL RESULTS? 23

WHAT WERE THE OVERALL RESULTS? 23

PO Processes 24

PO Processes 24

WHAT WERE THE OVERALL RESULTS? PO Processing Existing Process New Process Affected Units Efficiencies/Benefits

WHAT WERE THE OVERALL RESULTS? PO Processing Existing Process New Process Affected Units Efficiencies/Benefits Gained No consistency on using the e. Request Activity Status to indicate the status of an order. Emailed approvers to approve orders Utilizing the e. Request 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 e. Request 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 e. Request 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 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 25

Voucher Processes 26

Voucher Processes 26

WHAT WERE THE OVERALL RESULTS? Voucher Processing Existing Process New Process Affected Units Efficiencies/Benefits

WHAT WERE THE OVERALL RESULTS? Voucher Processing Existing Process New Process Affected Units Efficiencies/Benefits Gained 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 e. Request 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 e. Requests but notes will be input into e. Requests 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. 27

Questions? 28

Questions? 28