WebBased Supply Chain Management IFAC Conference Commodity Vendors

Web-Based Supply Chain Management IFAC Conference – Commodity Vendors April 7 -8 2009 Prepared by SRA International, Inc. • Confidential

Agenda • Overview – WBSCM Vision – WBSCM Release 1 Program Timeline • How This Benefits You • Commodity Vendor Functionality ** – – – – Master Data Portal Navigation Commodity Bidding Purchase Orders Inspection Lot ASN Invoicing Reporting • WBSCM Summary ** simulations will follow to showcase functionality 2

WBSCM Vision WBSCM will provide new capabilities and functionality to support doing business with USDA! FSA FAS AMS USAID FNS 3

WBSCM Release 1 Program Timeline We are here 0 Strategy & Selection 1 Project Kick Off • Business Requirements Definition • RFIs, RFPs • Product Evaluations & Selection • Scoping • Team Setup • Project Kickoff • Planning & Budgeting 2 Design • Process Design • Configuration Design • RICEFW Functional Design • Data Mgmt Plan • Training & Communication Plan • Technology Design • Planning & Budgeting A Home Building Analogy Search and Selection Requirements, Contract 2009 3 Build / Test 4 Deploy • Configuring • RICEFW Technical Spec • Building: • Processes • Training • Programs • Technology • Testing • Go-live Planning • Communicating • Acceptance Testing • Training • Planning & Budgeting • Communicating • Production Cutover! Step by step process Detail Design Specifications (Blueprint) 5 Go Live • • Go-live! Monitoring Final Revisions Support Moving in!! Final Walk Through Leads to strong structure 4

How This Benefits You Overall Benefits • Easier and faster to do business with USDA • Lower administrative costs • Paperless, non-duplicative processes • Easier, transparent registering, bidding, contracting, shipping, and payment processes Commodity Vendors • Online submission of invoices, Quality Certificates, and Proof of Delivery • Online submission of ASNs (Applicable for Commodity only) • Automation of Bulk Procurement • Easier access to all bid invitations • Simplified submission of bid responses • Visibility of submitted Bids • Electronic notification of purchase awards • Real time status of invoice payments • Online reporting & information access capabilities 5

Commodity Vendor Functionality • Master Data • Portal Navigation • Commodity Bidding • Purchase Orders • Inspection Results • ASN – Advanced Shipping Notification • Invoicing • Reporting 6

Master Data Definition • Current Definition • WBSCM Definition – Commodity – Material Number MATERIAL: 102420 COMMODITY : 682066 COMM GROUP: 68 OIL COMM TYPE : 20 OIL, VEGETABLE PACK SIZE : 66 PLASTIC BOTTLE 6/4 L = DESCRIPTION: OIL, VEGETABLE BOTTLE, PLSTC 6/4 L Other Examples 102418 OIL, VEGETABLE PAIL-20 L 102419 OIL, VEGETABLE CAN-6/4 L – Material Number - Freight – Freight FREIGHT : Not used in current system = MATERIAL: F 102420 DESCRIPTION: OIL, VEGETABLE BOTTLE, PLSTC 6/4 L-F Key Changes Other Examples • Commodity identifiers will be converted to SAP Material numbers • Freight Materials will be defined for Freight Bidding and Booking documents. F 102418 OIL, VEGETABLE PAIL-20 L-F F 102419 OIL, VEGETABLE CAN-6/4 L-F 7

Vendor Master Data Definition • WBSCM Vendor Definition – Business Partner o Definition: Organization (firm, branch office), person or a group of persons or organizations in which USDA/USAID has a business interest. This includes the roles: – – Central Vendor – Based on the DUNS Number • Interface to CCR and ORCA Plant Vendor Shipping Points Contact Person Information – Vendor Qualifications o Request for New Plants and Shipping Points will be managed on-line. – USDA will review the qualifications and send notification to application for acceptance and rejections – Locations o Definition: These types of Business Partners will be used to support the selection of load points in the Price conditions for Commodity Bidding. Based on the evaluation results, the applicable locations will be defined on the Purchase order awards. – Load ports Key Changes – – – Intermodal Bridge Intermodal Plant Terminals/Berths • Vendors will be converted to SAP Business Partners • Request for New plants and Shipping points will be managed on-line. 8

Vendor Self-Service Portal View Key Changes • WBSCM Portal requires Level 1 e-Authentication Key Functionality • Manage Organization • Bid Management • Vendor Self-Service • Reporting Simulation Portal Navigation 9

Master Data: Manage Organization • Manage Organization – This function provides the ability for the vendor to request plant and shipping point definitions to be setup in WBSCM on-line. – USDA will review the request and determine if it will be approved/rejected. 10

Commodity Bid Management Overview • Bid Management Functionality – Enter Bid Response o 1 Bid submitted per vendor plant o Copy from Preferences – Can maintain multiple preferences (Ex: Plant Specific preferences) o Copy Bid functionality from same Solicitation o New AGAR Numbering for Solicitations – Current numbering - Bid Invitation 019 – WBSCM Numbering – AG-INTP-09 -S-0032 – Where • AG – Agriculture • INTP- Office Code for International Process Commodity • INTB – International Bulk Commodity • 09 – Fiscal Year • S – Bid Invitation/Solicitation • XXXX – Sequence Number – Manage Vendor Constraints o Vendor Constraints can be applied to a specific plant/commodity or across multiple plants that have submitted responses to the same invitation 11

Commodity Bid Invitation Preferences Commodity Preference Bid Invitation will be published for the Commodity Vendors to define their default pricing conditions 12

Commodity Bidding Key Changes • Easier access to all Bid Invitations • All USDA Bid Invitations will be available • Vendor can setup multiple preferences and copy from preferences or other submitted bids/offers Key Functionality • Visibility for Submitted Bids Simulation Commodity Bidding 13

Commodity Purchase Orders Key Changes • Paperless, non-duplicative processes Key Functionality • Purchase Orders will be available on the Vendor Self. Service • Email notification (PDF Output) will be sent to the Contact Person information when the PO is approved Simulation Purchase Order 14

Commodity Specifications and Grading Factors • Characteristics will be defined based on the Commodity Requirements Document. Inspection results will be based on the Grading Results from FGIS or Certificate of Analysis (COA). • Quality discounts will be calculated based on the actual results. – Characteristic defined for Vegetable Oil with discounts: o Excess COLOR RED (LOVIBOND) Ranges – – – Discount per CWT (Per 100 lb) 2. 1 – 2. 2 2. 3 – 2. 4 – 2. 6 $. 05 $. 10 $. 15 o Excess Peroxide – – 1. 1 – 1. 3 1. 4 – 1. 5 $. 35 $. 50 o Excess Free Fatty Acid – – – . 06 -. 07. 08 -. 09. 10 -. 11 $. 10 $. 20 $. 30 • Discount Calculation – Inspection Lot quantity : 100 MT – Quality Results: o Color Red: 2. 5 – discount applied for $. 15/CWT o Peroxide: 1. 0 – No Discount applied o Fatty Acid: . 05 - No Discount applied – Calculated Discount: o 100 MT * 2204. 6 lb/MT * $. 15/CWT = $330. 69 Discounted from Invoice 15

Certificate/ Inspection Results Processing • Certificate/ Inspection Results will be required to validate the specifications required by product and also determine if discounts may need to be applied – Commodity Specifications will be included in USDA Commodity Requirements Documents or Grading Specifications. Key Changes • On-line submission of Quality Certificate results to support Invoice Matching process Key Functionality • Actual certificate results will be recorded against material specific characteristics and determine if quality discounts will be applied to the Invoice • Upload functionality available for FGIS Certificates Simulation Certificate Results 16

Inspection Lots Results Discount Key Changes • To streamline invoice verification, online entry • of. Toresults streamline invoice verification, will need to be performedonline entry of results need totobe performed • Optionwill available load FGIS Certificates Key Functionality • Key QMFunctionality data analysis • • Discounts calculated at time of entry QM data analysis • Discounts calculated at time of entry Simulation Purchase Order 17

Advanced Shipping Notification (ASNs) • Advanced Shipping Notification is a follow-on document from the Purchase Order Key Changes • Advanced Shipping Notifications will be required from the vendors when the product has been shipped from their plant or shipping point location Key Functionality • ASN’s can be entered one at a time or use the upload Excel functionality to process multiple ASN’s Simulation ASN 18

Commodity Invoice Matching Overview 4 Way Invoice Matching criteria Purchase Order Quantity USDA – awards Purchase order = Goods Receipt Quantity Recipient Agency performs Goods Receipt = Certificate Results Quantity Vendor – enters Certificate results includes = Invoice Quantity Vendor enters Invoice includes • Proof of Delivery • Certificate of Analysis (COA) Key Functionality • FGIS Certificates • Automated invoice matching, approval, release, of payments for commodity, freight, storage, and other services 19

Invoicing Key Changes • Automated invoice matching, approval of payments for commodity, freight, storage and other services Key Functionality • Real time status of invoice payments Selecting this inspection lot results in a discount of. 95$ Net Value will be adjusted by the Total Discount/Premiums applied Simulation Invoicing 20 • Prepared by SRA International, Inc. • Confidential 20

Vendor Reporting Overview • Reporting – Specific reports will be made available to the Vendors to report on their different types of documents o o o Contracts Purchase orders ASN – Advanced Shipping Notification Certification/ Inspection Results Invoices Vendor Business Partner information 21

WBSCM Summary • Key Changes: – – – Vendor Self-Service functionality Contract award notification Online invoice status review Advanced Shipping Notification Quality Management functionality Online reporting & information access capabilities WBSCM provides new capabilities and functionality to makes it easier to do business with USDA 22

Next Steps • Vendor Testing & Training o Vendor testing to begin in the Summer 2009 o Training materials will be available in the Fall 2009 • Deployment Activities – WBSCM User Administration o Confirm Corporate Admin Contacts o E-Authentication Registration – Data Validation o Business Partner relationships o Contracts and Purchase orders • WBSCM Go-live Dec 2009 For more information visit us online at www. usda. gov Interested in participating or have questions? Contact us at WBSCM@kcc. usda. gov 23