Procurement to Payables Improvement Initiative

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					Procurement to Payables
 Improvement Initiative

     Awareness Training
         May 2003
      This presentation will provide:
       An overview of the changes made to
        Procurement and Accounts Payable,
        their purpose and benefit
       The timeline for implementation
       Answers to common questions and
        sources for support
       The future of the Integrated Financial
        System (IFS) and the interim
        strategy

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      But, let’s be honest... What
      are we experiencing?
                Frustration in purchasing
                 items and paying for them
                Slow response to your
                 questions or in providing
                 assistance
                Late payments to vendors
                Lost discounts
                Increasing backlogs
                Credit holds




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      It’s a Procurement to Payables
      problem, not just an “AP” problem
       Problem extends
        through the entire    Requisition

        “procurement to            Purchase
        payables” workflow           order

       Stakeholders and
        participants in this               Delivery

        process include schools,
        procurement staff, vendors,         Receiver   Invoice
        delivery personnel, accounts
        payable staff, and LA County
        Office of Education                              Payment
       To make a payment, we need three
        things (i.e., the 3-way match)
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      Introducing….
          Procurement
                To
            Payables
          Improvement
            Initiative


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      Immediate Objectives
       Implement high-benefit/low-cost solutions
       Conduct a “catch-up” effort to bring
        Accounts Payable obligations up to date
       Re-evaluate current practices
       Implement short-term improvements by
        June 30, 2003




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      Long-term objective is the...
          Acquisition and implementation of an
          integrated, enterprise-wide
          financial/human resource system to
          support LAUSD procure-to-pay solutions

                         BUT
       We can’t wait that long
       Schools need better support NOW
       We need to continue to improve



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          What’s Changing?




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      So long SPO… Hello P-Card!
              Why:
               Overuse – 40% of all
                purchase orders result in
                7% of dollars spent
               Labor and paper intensive
               Expensive to administer
               Major contributor to the
                Accounts Payable backlog
                of unpaid invoices



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      So long SPO…Hello P-Card!
      What Changes:
       Eliminating the School Purchase Order by
        7/1/2003
       Using credit card with controls
       Increased P-Card Limits to $10K per month
       Automated P-Card
        reconciliation
       Up to two (2) P-Cards
        issued to each school



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      Book Purchase Orders (BPO)
   What Changes?
    Books ordered with BPOs, not SPOs
    New PO monitoring and tracking, more
     comprehensive data editing and validation.

   Benefits?
    Simplified workflow – fewer errors, less
     redundancy
    Improved accountability
    Better vendor management
    Improved dollar value, program code and object
     of expenditure edits and validations

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      More Master Agreements
         Volume discounts means lower
          prices
         Reduced liability with
          standardized contract language
         More control and accountability
         Consolidated vendor base with
          few invoices to be paid
         Reduce “after the fact” contracts




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       Warehouse Purchases
         July 1, 2003, required to purchase Top 30
          Categories (e.g., office supplies)
         Most simple and cost effective transaction
         Schools and offices can save over 30% on
          the top selling categories
         100% satisfaction guaranteed on all products
         Will meet or beat any vendor’s
          prices
         Standardized supplies
          and equipment

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      Leveraging Technology
         Notification of:
             processing errors requiring your attention
             invoices awaiting receipt of goods
         Web enabled P-Card reconciliation
         Reports to manage vendor performance,
          e.g., Fill/Kill Report
         Electronic Data Interchange to automate
          and streamline invoice processing
         Automated creation of annual POs for
          certain items so you just need to review
          and approve (e.g., copier POs)


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      Customer Service Focus
         Accounts Payable
          Customer Service Team
             Reallocating personnel to
              improve support
             Tracking of call trends to
              highlight problem areas
         Website – access to support materials
          and email feedback




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      In Summary . . .
         SPOs eliminated
             Enhanced P-Card and Imprest Fund use
             Revised textbook purchasing procedures –
              BPO
             Required Warehouse purchases for top
              30 selling categories
             More Master Agreements
         Improved customer support
         Leverage automated tools – P-Card
          reconciliation, invoice tracking,
          exception/error reporting

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      We need your help!
     Training Options                  Requisition

             Optional Open Houses             Purchase
             Available Materials and           order
              Resources
             P-Card Reconciliation                   Delivery
     Everyone plays a role, which
      impacts efficiency and                            Receiver
      effectiveness
     We want your feedback
                                                           Invoice
             “Constructively” provide input
             Highlight potential problem
              areas
                                                            Payment
             Feedback on Website

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      Who can I talk to?
                  Contact List
                  Local District PSC
                  Accounts Payable
                   Customer Service
                   (213) 241-2726
                  ITD Help Desk
                   (866) 633-8110



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      Additional Materials
         Handouts
             Romer Letter
             Information Guide
             FAQs
             Procurement Transactions
             Procedure Bulletins
         Website (http://bsd.lausd.net/p2p)




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      Thank you!


           Questions?




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