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					  eProcurement at the
University of Pennsylvania

SciQuest “Find, Buy & Manage” Seminar
        Princeton, New Jersey
           October 23, 2003
    Presentation Agenda

•   About Procurement at Penn
•   eProcurement Business Objectives
•   Phase I Key Accomplishments
•   Phase II Business Objectives
•   Critical Success Factors
•   Conclusion
•   Contact Information
•   Q&A
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 About Procurement at Penn

• Delegated buying environment - 1,900
  purchasing system users creating requisitions
  at the point-of-demand and approving orders
  <$5,000
• Oracle Financials - Oracle Release 11i
  Purchasing, Payables & General Ledger with
  iProcurement electronic requisition
• Penn Marketplace - Penn’s private supplier
  exchange launched in January 2002 for most
  commonly order products and services
• Annual Purchase Volume - 275,000
                                            3
  transactions & $700M in spend
 eProcurement Business Objectives

• Make purchasing easy - increase customer
  satisfaction, compliance and utilization by
  reducing time & effort related to buying
  activities
• Focus on core competencies - enable
  purchasing staff to focus on customer and
  supplier relationship management, contract
  negotiations, sourcing, and cost saving
  opportunities
• Leverage technology for ROI - implement
  technology to achieve process efficiencies by
                                             4
  reducing effort, cycle time, and costs
 Phase I Key Accomplishments

• Efficiencies - 92% of all purchase orders
   created, approved, and electronically
   transmitted to suppliers in less than one
   hour
• Utilization - 54% of purchase orders issued
   to the 32 Penn Marketplace suppliers
   (25,000+ in supplier database) and 42% of
   invoices received via EDI
• Cost Savings - $67 Million in documented
   hard dollar product & service cost savings
• Compliance - 78% reduction in maverick
   buying                                       5
  Phase II Business Objectives

• Enhanced Penn Marketplace - implement
   SciQuest hosted Penn Marketplace on
   January 5, 2004
• Supplier Enablement - increase supplier
   and content enablement to approximately
   75 suppliers and over 3M SKUs
• Utilization - increase utilization rates to
   70% of transactions & 50% for EDI invoices
• Customer Satisfaction - introduce new
   functionality at the point-of-demand to
   further streamline the buying process
                                                6
 Critical Success Factors

• Strategic Business Partner - utilization of
  SciQuest’s Spend Director product, supplier
  and content enablement capabilities
• Supplier Participation - further promote
  eProcurement as a competitive advantage for
  suppliers resulting in the opportunity for a
  significant increase in market share
• Content Enablement - offer customers a
  combination of third party hosted content and
  punch-out to key contract supplier web sites
• Content Management - enhance buyer and
  supplier collaboration for management of
  Penn specific content & contract pricing   7
 Strategic Business Partner

• Implementation of SciQuest’s Spend
  Director product provides new and
  enhanced functionality
   • Individual & Corporate favorite lists
   • Quick order functionality
   • Robust search capability
   • Online configuration and searching for
     researchers
   • Ability to “private label” site presentation
     and terminology
                                                8
 Supplier Participation

• Competitive advantage for Penn
  Marketplace suppliers
   • Participating suppliers enjoyed a 16 to
     42% increase in business in 2002
   • Product exposure to all buyers within
     Penn
   • Effective platform for internal web based
     marketing of new products and
     promotions
   • Positions minority-owned and small
     businesses on a level plying field with
                                               9
     major suppliers
 Content Enablement

• Opportunity for Penn to significantly
  increase product & service offerings
   • Hosted content for low turnover product
     catalogs
   • Punch-out to configurable suppliers &
     high volume – high turnover product
     catalogs
   • Line item attributes for “preferred
     product”, “supplier diversity” and “green
     products”

                                             10
 Content Management

• Streamlined process for managing
  supplier content
   • SciQuest provides web based
     administrative tools for reviewing &
     approving new supplier content
   • Quicker approval of changes to existing
     supplier content
   • Helps ensure compliance with terms of
     supplier pricing agreement


                                             11
 Conclusion

• At Penn, the successful adoption of
  eProcurement & significant ROI has
  been realized by the….
   • campus wide utilization of eProcurement
     buying tools
   • increased customer satisfaction with
     redesigned business processes and
     recommend suppliers
   • reallocation of central resources to value
     added activities
   • success of strategic supply chain and   12
     cost savings initiatives
 Contact Information

• Ralph Maier
     Associate Director, Purchasing Services
     University of Pennsylvania


• Phone: (215) 898-1452

• E-Mail:   maierr@pobox.upenn.edu


• Internet:   www.purchasing.upenn.edu


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