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					Supplier Relationship Management

Presentation Overview
September 26, 2005

SRM Agenda

Business Drivers for the Commonwealth of PA What is SRM? Related Initiatives Agency Human Resources (HR) and Training Involvement Next Steps Contacts

Business Drivers

 The Commonwealth spends approximately $4.5 billion annually in goods, services and equipment.  Recent strategic sourcing efforts have saved over $120 Million.

Business Drivers

The current supply chain model has several opportunities to adapt best practices  Leverage the knowledge gained through the strategic sourcing initiative to institutionalize the process through technology  Reduce transaction costs for creating and paying for purchase orders by reducing touch points and time spent on each touch point  Implement electronic procurement via an aggregate catalog, directing users first to suppliers with negotiated contracts

Business Drivers

End Users have expressed a desire for a procurement process that will  Simplify purchasing  Reduce processing costs by increasing department productivity  Provide a fast, efficient and dependable process for order placement, receipt of confirmation, delivery of goods, and invoice accuracy  Reduce costs of goods and services

SRM Agenda

Business Drivers for the Commonwealth of PA What is SRM? Related Initiatives Agency HR and Training Involvement Next Steps Contacts

mySAP Supplier Relationship Management

Strategic Purchasing & Sourcing

Supply Strategy Development

Spend Analysis

Supplier Selection

Contract Management

Catalog Management

Operational Procurement

Self-Service Procurement

Service Procurement

Plan-Driven Procurement

Supplier Collaboration

Supplier Registration

Design Collaboration

Order Collaboration

Collaborative Replenishment

Self-Service Procurement Process

mySAP SRM EBP Upgrade
Shopping Cart Creation Invoice Handling

Workflow Approval

Operat. Sourcing

Ordering

Goods Receipt

SAP Enterprise Buyer

EBP Requisitioner

EBP Requisition Approver

R3 Purchaser Agency & Central

R3 Receiver EBP Receiver

Invoice Processor

PO Approver

Anticipated Benefits

Web-based:  Simplifies the purchasing process, improves accuracy and productivity by minimizing manual administrative tasks  Allows purchasing professionals to focus on managing relationships instead of transactions

Anticipated Benefits

 A friendly user interface, allowing the user to view contracted pricing  An electronic catalog with correct prices to reduce purchase order corrections  Enhanced workflow capabilities for approvers  The ability to order items from multiple suppliers at the same time  Electronic submission of orders and invoices to select suppliers  Better purchasing data reporting capabilities

Bidding & Contract Creation

Transfer of Demand

RFI/RFQ Creation

Auction Creation

Response Handling

PO/Contract Award

Approvals

mySAP SRM
R3 Purchaser Agency & Central Purchaser PO/Contract Approvers

Anticipated Benefits

Workflow  Streamlined requisition assignments based on purchasers commodities  Ability to combine requisitions across agencies to leverage demand

Anticipated Benefits

 Purchase Desktop with top contract, expirations, work lists, and reports  Improved spend visibility

 Workflow for bid invitations and contract approvals
 Increased ability to use of standard templates for bid invitations and contracts  Automatic upload and download capabilities  Automatic electronic bid notification and receipt of bid documents  Ability to convert bid into Reverse Auction  Service Procurement

Supplier Self-Services Process (Overview)

Supplier Registration

Content upload and maintenance

Order Handling

Confirmation

Invoice Handling

SAP Supplier Self-Services

mySAP SRM
Supplier Roles R3 Purchaser Agency & Central Purchaser R3 Receiver EBP Receiver Invoice Processor

Anticipated Benefits

 Ability for suppliers to self register and become bidders  Ability for suppliers to load catalogs with Commonwealth approval

 Ability for suppliers to acknowledge orders
 Ability for suppliers to enter goods confirmations with Commonwealth approval

 Ability for suppliers to enter invoice information
 Reduced data entry for Commonwealth employees  Improved visibility for suppliers

SRM Project Plan

SAP Methodology  Project Preparation, in which the project team is identified and mobilized, the project standards are defined, and the project work environment is set up  Blueprint, in which the business processes are defined and the business blueprint document is designed;

 Realization, in which the system is configured, knowledge transfer occurs, extensive unit testing is completed, and data mappings and data requirements for migration are defined

SRM Project Plan

SAP Methodology  Final Preparation, in which final integration testing, stress testing, and conversion testing are conducted, and all end users are trained  Go-Live and Support, in which the data is migrated from the legacy systems, the new system is activated, and post-implementation support is provided

SRM Project Plan

 RFQ Update  RFQ Responses are due October 4th  Project Implementation will follow SAP Methodology

SRM Agenda

Business Drivers for the Commonwealth of PA What is SRM? Related Initiatives Agency HR and Training Involvement Next Steps Contacts

Related Initiatives

 Supplier survey to determine catalog / punch out capabilities and extensible mark-up language (XML) capabilities  Agency survey to determine business process variations  Purchase Order Cost Analysis  Cycle Time Analysis

 Cleaning Material Groups

Related Initiatives

 Reviewing options on cleaning vendor master data  DGS contract analysis  Policy Workgroup – updating Management Directives  Mapping General Ledger to Material Groups  General Ledger Training

Supplier Relationship Management
Presentation Overview

General Ledger (G / L) Training The Basics

End users to be trained
 EBPro Users  Approvers  Purchasers

When
 2 to 3 hour presentations  Scheduled to take place mid November 2005

Course Content

 Master Data Elements  Account Codes and G / L Accounts  Account Assignment Category  Fixed Assets  Material Groups

SRM Agenda

Business Drivers for the Commonwealth of PA What is SRM? Related Initiatives Agency HR and Training Involvement Next Steps Contacts

Agency HR and Training Involvement

Apply lessons learned and enhanced system functionality resulting from HR / Payroll implementation in

 Role Mapping Practices
 Training Approach

Agency HR and Training Involvement

Role Mapping  Initially – identify de-map roles for agency employees/positions who were/are assigned procurement roles but have not used the transactions associated with the roles


Work with SAP Agency Security Administrator to remove the role assignments as soon as possible but no later than December 1st

Agency HR and Training Involvement

Role Mapping  Eventually SRM roles will be identified through the project –


HR will utilize SAP to map identified SRM roles within each agency for positions that will actually be assigned the work Map roles to positions conservatively (only positions that will perform the work in SRM should be mapped)



Roles Likely Affected by SRM R3 Purchaser Agency R3 Purchaser R3 Receiver EBPro Receiver (RV0180) Approver – Contract Agency Head Approver – Contract Agency Legal Approver – DGS Legal Approver – Director, Bureau of Purchases Approver – OGC – General Counsel Approver – PO Agency Head Approver – PO Agency Legal Approver – Secretary of DGS Approver – Sole Source Board

EBPro Requisitioner
EBPro Requisition Approver (RV0100) RFQ Waiver Approver Approver – Attorney General Approver – Comptroller

Agency HR and Training Involvement

Training  A “Train the Trainer” approach will be utilized to deliver training to agency procurement users

 Agencies will be asked to identify subject matter experts from their agencies who can serve as agency trainers
 Training will be provided to all subject matter experts  DGS will assist small agencies (parameters to be determined) in satisfying their training needs  Employees scheduled to receive training will be identified based on mapped SAP roles

Agency HR and Training Involvement

Training  The Commonwealth’s Learning Management System will be utilized to:


Deploy and track Web based training (as appropriate) Schedule instructor-led SRM training



 Agencies are responsible for monitoring and encouraging completion of SRM training courses

Agency HR and Training Involvement

Training  The Commonwealth’s Learning Management System will be utilized to


Deploy and track Web based training (as appropriate)
Schedule instructor-led SRM training



 Agencies are responsible for monitoring and encouraging completion of SRM training courses

SRM Agenda

Business Drivers for the Commonwealth of PA What is SRM? Related Initiatives Agency HR and Training Involvement Next Steps Contacts

Next Steps

 Review list for G / L training and return employees to attend training to Roz East by October 7  By December 1st, de-map all employees assigned the target roles that are not currently using the roles as part of their work. The remaining number will determine training requirements and resources for the agency  Begin to identify agency resources that may serve as agency lead trainers  Continue to get updates as the SRM initiative evolves

SRM Agenda

Business Drivers for the Commonwealth of PA What is SRM? Related Initiatives Agency HR and Training Involvement Next Steps Contacts

SRM Contacts
Bob Nosworthy Project Manager - Systems for Procurement, DGS Ralph Perez-Bravo rperezbrav@state.pa.us rnosworthy@state.pa.us

Role mapping, De-mapping, Training
Ronnie Botts General Ledger Training Roz East Business Owners Training Liaison reast@state.pa.us vbotts@state.pa.us


				
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