Procure-to-Pay Process: A Case Study with OMH and BSC October - PowerPoint PPT Presentation

Transforming Agencies’ Procure-to-Pay Process: A Case Study with OMH and BSC October 23-24, 2018 1

Introduction and Objectives Karen Tyler SFS Executive Director 2

SFS Roadmap of System Improvements Go-Live (2012) New Modules/Features Core Financials • Contracts/Purchasing (2013) • Billing • Federal Grants • Inventory EE1 Go-Live (2015) • Budget Control Go-Live • General Ledger (2014) Major Upgrade & New Functionality • Accounts Payable Apr 2012 • Travel & Expense • SSP New Modules/ • Full Segregation • Projects Features • POs (removal of • Real Estate 2013 - 2014 two-step contract Management • Email Dispatch process) • Bulkload Legacy • eInvoicing New Modules/Features EE1 • Payment Schedule Formats Retired (2016 – 2017) Oct 2015 – • Accounts Projection (PSP) • Workcenters • Maintenance Management Nov 2015 Receivable • Federal Grants & • Data Warehouse • eSupplier Improvements • Vendor Self-Service Revenue Contracts New Modules/ • Vendor Location Features • eInvoicing Signup (2016 – 2017) • Financial Reporting Improvements • Fluid Implementation • Deal Management • Began Regular Ongoing Software Management Updates Enterprise Projects/ Future Onboarding • DCJS & DEC P2P Streamline Program (2018-2019) onboarding (2017 – 2018) • Travel Improvements • Other Onboardings • P2P Streamline • Additional Process • Automating Debt Service • DOT Onboarding Improvements • Expanding eInvoicing • SFS Analytics • New Modules • Improving FBIC P2P Streamline • Improving Receiving Program • On-time Payment and Discounts (2017 – 2018) • Improving Requisitions Enterprise • Expansion of Email Dispatch Projects / Future • Buyer Tools Onboarding • Full Invoicing Support in SFS (2018 – 2019) • Planning for Strategic Sourcing & || Supplier Contracts 3

Understanding the Streamlined Procure-to-Pay (P2P) Process Karen Tyler SFS Executive Director 4

P2P Streamline Program Goals Deliver a best practice, end-to-end process that is more efficient for Agencies and Vendors Automate work Leverage SFS Better manage and to support transactions with procurement agency business tools, visibility and workflow processes reporting Collaborate with Increase efficiency Make payments at vendors with invoices and appropriate time, vouchers with a more and save money in one system consistent process || 5

Changes support a Win-Win ! Better Collaboration with Vendors Pay invoices when due Receive more timely Improve Purchasing through automation and tools Simplify Requests || 6

Benefits of Future Model Process: Requests for Goods and Services • Eliminate paper forms, and Requests separate systems • Track progress and status of purchase requests • Standardize process across agencies • Simplify routine purchases || 7

Simplified Requesting – Options for Requesters NYS eMarketPlace • Used to order many items available from NYS Preferred Source and Statewide Contracts. • The information selected is then automatically copied to the requisition. Agency Catalogs • Requester selects the item(s) they wish to purchase from a set of items tailored for their organization. • The information selected is then automatically copied to the requisition. Favorites • Requester selects what they want to purchase from a user- defined list of “Favorites.” • The information selected is then automatically copied to the requisition. Recently Ordered • Requester selects what they want to purchase based on a recent order. • The information selected is then automatically copied to the requisition. || 8

Benefits of Future Model Process: Orders of Goods and Services • Help manage purchasing/sourcing Orders workload • Dispatch orders to vendors by email • Automate approval of purchase orders, under certain thresholds • Carry credit card info through to Purchase Order || 9

Benefits of Future Model Process: Receipts of Goods and Services Receipts • Enter receipts timely • Easily view and track receipts and rejections • Improves timely e-invoicing and vouchering || 10

Benefits of Future Model Process: Invoices/Vouchers for Goods and Services • Manage invoices and attachments Invoices and in one system • Supports eInvoicing for better Vouchers collaboration with vendors • Create vouchers automatically from invoices • Schedule payments when due, consistently paying vendors on time || 11

Case Study: Piloting the Streamlined P2P Process Alex DeFrancesco, SFS Change Management Kristi Kilmartin, Office of Mental Health 12

Key Partnership with OMH  The Office of Mental Health is a large state agency, employing over 13,000 staff and operating 24 hospitals.  OMH Executive Leadership embraced the opportunity to make improvements to their financial operations.  Since Fall 2017, OMH, the BSC, SFS, DOB, OSC, and other agencies have worked collaboratively to establish the model process. || 13

Before P2P: OMH Procure-to-Pay Business Process Email and Frequent paper-based Duplicative purchases not requests and buying process captured approvals Individuals Multiple systems receiving the Reactive to manage goods not receiving invoice to entering the process voucher process receipt || 14

OMH Pilot – Participation Requisitions & Receiving Invoice & Vouchers Orders Ease of requisition entry Goods shipped to the Single system used for for basic Requesters. actual receiving locations, more timely invoice Buying activities done by and receipts for goods review and voucher and services entered by the staff with the creation. procurement expertise. the receivers. Currently being piloted Currently being piloted Currently being piloted by a limited number of by all of OMH by all of OMH OMH locations || 15

OMH Pilot - Process Improvements Requisitions & Receiving Invoice & Vouchers Orders Goods shipped to the Ease of requisition entry Single system used for for basic Requesters. actual receiving locations, more timely invoice Buying activities done by and receipts for goods review and voucher the staff with the and services entered by creation. the receivers. procurement expertise. Entry of requisitions by Use of Receipt Addition of new basic requestors notification to receivers ship-to locations Use of eMarketplace & Reliance on Addition of new Agency Catalogs automated matching receivers Setup of requestor & Use of new receiving buyer defaults role (receipt date entry) Use of buyer tools and auto-approval thresholds || 16

Collaborating with the Business Services Center The BSC collaborates with agencies in many ways, including:  Creating Agency Catalogs  Using the BSC Buy Desk  Interacting in the Purchase Order workflow  Performing invoice reviews and approvals  Resolving voucher exceptions  Conducting vendor outreach || 17

Examples of Benefits & Feedback to Date  Increased user visibility into the status of purchase requests directly in SFS.  Use of queries to monitor receipt entry, rather than printing receipts, sending emails, or making phone calls.  Improvements in the average number of days to receive goods and services.  Better vendor communication through the Purchase Order.  Preference to use a single system for invoice review & approval. || 18

Change Management Challenges Demonstrating Value Training & Computer User Access Engagement Challenges System Access As-Is Process based on & Culture Business Process || 19

Implementing the Model Process • Analyzed current state procurement processes • Designated agency staff to support the change initiative Plan • Developed strategy and planning documents • Obtained executive sponsorship and support • Developed implementation project plan Design & • Built core team understanding of model P2P process Build • Distributed executive communications • Determined business process handoffs with the BSC • Actively engaged end users in testing and training • Measured readiness through testing and executive surveys Test & • Performed targeted outreach Train • Reinforced changes by communicating updated policies • Distributed executive communications • Monitoring adoption through transaction processing metrics Deploy & • Collecting feedback , experiences, and lessons learned Stabilize • Distributing executive communications || 20

Metrics to Support & Monitor Implementation  Metrics provide insight into adoption of the model process, process improvements, and efficiencies realized over time. • Requisition and Purchase Order Lifecycle • Requisition Process Dashboard • Average Number of Days to Enter Receipts • Invoice and Voucher Lifecycle • Voucher Dashboard  Metrics enable OMH to identify which areas of each process need more focus, and which locations need targeted outreach.  Metrics provide OMH with data to support more informed and insightful follow up discussions with their locations.  Metrics help identify which locations are making consistent improvement toward adoption, and may share valuable lessons learned. || 21

Lessons Learned Executive sponsorship and reinforcement Building core team of agency subject matter experts Demonstration of quick wins Targeted engagement Metrics || 22