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Its Not All About eProcurement

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... to the integrity of our back office accounting: Purchasing ... Tax. Identifying Our Requirements. Everyone defines ... Deploy software upgrades ... – PowerPoint PPT presentation

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Title: Its Not All About eProcurement


1
  • Its Not All About eProcurement
  • Catherine M. Colemire, CPPO, CPPB
  • Purchasing Agent
  • Western Southern Financial Group
  • NAPP Conference
  • Marina Del Rey February 2008

2
Agenda
  • Corporate Overview
  • WSFG Procurement Group
  • Where We Were Why We Needed Change
  • Project Differentiators
  • Our Requirements
  • Selection Process
  • Challenges Opportunities
  • Changing Purchasings Role
  • Results
  • Benefits
  • Lessons Learned
  • Next Steps
  • Questions Answers

3
The Western Southern Financial Group
  • Chairman, President CEO John F.
    Barrett
  • Local employees 1,810
  • Total employees 4,519
  • Year established 1888 (The Western and
    Southern Life Insurance Company)
  • Number of local locations 14
  • Number of worldwide locations 189
  • Most current fiscal year revenue 4.8 billion
    (2006)

4
The Western Southern Financial Group
5
WSFG Procurement Group
  • Annual Spend 91 million

What We Buy And Who We Buy For Printing - paper,
supplies, equipment General Office Management -
furniture, facilities management, MRO Equipment -
lease and purchase Relocations IT - hardware,
software, services
6
Where We Were
  • Problems we were facing
  • Lack of efficient and appropriate checks
    balances for purchasing, receiving and accounts
    payable
  • No standards resulting in total misunderstanding
    of processes
  • Their impact
  • Lost productivity with inefficient processes
  • Lack of collective buying ability
  • Change was needed
  • New Director of Purchasing brought to the
    attention of upper management the problems, their
    impact and the savings that were being lost with
    splintered buys, duplicate buying and duplicate
    contracts.

7
Project Differentiators
  • The project had its own characteristics
  • Within the company
  • Purchasing Inventory Management touched
    affiliates and every facet of the group.
  • Compared to companies
  • Critical to all the groups distribution channels
  • If product could not get to our distribution
    channels in an timely, efficient and effective
    manner result would be no sales.
  • Project was imperative to the integrity of our
    back office accounting
  • Purchasing
  • Materials Management
  • Accounts Payable
  • Tax

8
Identifying Our Requirements
  • Everyone defines eProcurement differently
  • To us, eProcurement is part of the procurement
    process, not a total replacement, which is a
    common misperception.
  • We needed an eProcurement solution to provide
  • On-line catalogs, punch-outs, approval workflow
  • as well as general Procurement support
  • Ordering process, sourcing, contracting,
    receiving, settlement
  • and also Inventory and Asset Management
  • Document management uniforms, print-on-demand
  • and lets not forget environmental considerations
  • Reducing waste through reduced inventories
    (obsolete forms)

9
Selection Process
  • Defining the requirements
  • Set up a cross functional team to identify
    critical paths
  • Requirement must haves
  • Systematically able to open and close the
    purchasing circle with the appropriate checks and
    balances
  • A total and autonomous audit trail within the
    system modules.
  • Potential to expand/grow with the industry
  • Adaptable with affiliates within our group
  • Soliciting Initial Candidates
  • Using a Request For Information (RFI) process,
    solicit suppliers who could provide a complete
    Procurement solution meeting the criteria as
    defined by members of the team
  • Getting to the short list
  • Final selection process

10
Overcoming Challenges
  • Security
  • Peace of mind of associates with the changes
  • Common misperception was that the goal was to
    reduce FTEs
  • Educate the need to elevate employees to more
    productive and strategic roles
  • Change
  • Getting people to understand a new way of working
  • Education
  • Why the changes in peoples jobs were important
  • Politics
  • Enhancing company culture

11
Changing Purchasings Role
Procurement software provides buyers the ability
to move away fromroutine tasks and become more
strategic in their supplier management
Corporate Strategy
Supply
Contracting
Profit Center
Supplier Management
Bid Analysis
RFQs
Supplier Performance
Supply Assurance
Zero line
Overdue orders
Creating Purchase Orders
Cost Center
Arranging returns
Processing paperwork
Invoice Queries
Confirmation Orders
Expediting
12
The Results
  • Accountability
  • Checks and balances are much more advanced and
    clearly defined
  • Productivity
  • Processes are streamlined
  • We even found some we didnt know we had!
  • Consolidation without total centralization
  • Total view of corporate spend
  • Standard practices throughout the organization
  • For example, a unified invoice matching process
  • Professionalism
  • Purchasing has moved to a higher level from where
    we started

13
Benefits
  • Significant reduction in duplication and
    potential areas of fraud
  • Better invoice management - less errors, faster
    cycle times
  • Requisitioners have their own one-stop shopping
    capability and the ability to systematically
    track their orders
  • In turn, taking purchasing professionals out of
    routine processes to operate more strategically
  • Utilize the procurement information the
    application provides
  • Focus more on decision support and sourcing
  • Take a longer view to supplier management and
    total value

14
Lessons Learned
  • Tackle the project one step at a time
  • Break down each module
  • Simulate current processes with system processes
  • Rework internal processes as needed
  • Recognize the role of users change with
    automation
  • Align your internal processes with the software
  • Put the software into your company . . .
  • . . . rather than put your company into the
    software

15
Doing Things Differently
  • If we had to do it again
  • Develop and follow a Project Plan
  • Phase in the software modules
  • Requisitions and approval workflows
  • Purchasing
  • Materials and Asset Management
  • Invoice Matching
  • Watch for scope creep
  • Follow the project plan
  • Stick to initial requirements, avoid
    customization
  • Stay current
  • Deploy software upgrades as they happen
  • Dont apply multiple levels of upgrades at the
    same time

16
Next Steps
  • Reach out work closer with our internal
    customers
  • Subsidiary Affiliate Companies
  • Related Business Units
  • Individual departments
  • Cafeteria Services
  • Corporate Graphics
  • Printing Services
  • Help our customers use the software solution more
    effectively
  • Service Templates, Navigator, Reporting
  • Form strategic partnerships between the
    procurement group and the individual customer
    groups

17
Its Not All About e-Procurement
  • Questions Answers
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