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

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

Sep 17, 2023 246 likes •530 views

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

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Transforming Agencies’ Procure-to-Pay Process: A Case Study with OMH and BSC

October 23-24, 2018

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Introduction and Objectives

Karen Tyler SFS Executive Director

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SFS Roadmap of System Improvements

Go-Live (2012) Core Financials

  • Billing
  • Budget Control
  • Accounts Payable
  • Contracts/Purchasing
  • Federal Grants
  • General Ledger
  • Travel & Expense

New Modules/Features (2016 – 2017)

  • Maintenance Management
  • eSupplier Improvements
  • Vendor Self-Service
  • Vendor Location
  • eInvoicing Signup
  • Financial Reporting Improvements
  • Fluid Implementation
  • Deal Management
  • Began Regular Ongoing Software

Management Updates New Modules/Features (2013)

  • Inventory

(2014)

  • SSP
  • Full Segregation
  • POs (removal of

two-step contract process)

  • Bulkload Legacy

Formats Retired

  • Accounts

Receivable

  • Federal Grants &

Revenue Contracts

  • Projects
  • Real Estate

Management

  • Email Dispatch
  • eInvoicing
  • Payment Schedule

Projection (PSP)

  • Workcenters
  • Data Warehouse

P2P Streamline Program (2017 – 2018)

  • Automating Debt Service
  • Expanding eInvoicing
  • Improving FBIC
  • Improving Receiving
  • On-time Payment and Discounts
  • Improving Requisitions
  • Expansion of Email Dispatch
  • Buyer Tools
  • Full Invoicing Support in SFS
  • Planning for Strategic Sourcing &

Supplier Contracts Go-Live Apr 2012 New Modules/ Features 2013 - 2014

EE1 Oct 2015 – Nov 2015 New Modules/ Features

(2016 – 2017)

P2P Streamline Program (2017 – 2018) Enterprise Projects / Onboarding (2018 – 2019)

Enterprise Projects/ Onboarding (2018-2019)

  • Travel Improvements
  • P2P Streamline
  • DOT Onboarding
  • SFS Analytics

EE1 Go-Live (2015) Major Upgrade & New Functionality

Future

Future

  • DCJS & DEC
  • nboarding
  • Other Onboardings
  • Additional Process

Improvements

  • New Modules
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Understanding the Streamlined Procure-to-Pay (P2P) Process

Karen Tyler SFS Executive Director

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P2P Streamline Program Goals

Automate work and procurement workflow Increase efficiency with invoices and vouchers in one system Leverage SFS to support agency business processes Collaborate with vendors with a more consistent process Make payments at appropriate time, and save money

Deliver a best practice, end-to-end process that is more efficient for Agencies and Vendors

Better manage transactions with tools, visibility and reporting

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Simplify Requests Improve Purchasing through automation and tools Receive more timely Pay invoices when due Better Collaboration with Vendors

Changes support a Win-Win !

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  • Eliminate paper forms, and

separate systems

  • Track progress and status of

purchase requests

  • Standardize process across

agencies

  • Simplify routine purchases

Benefits of Future Model Process: Requests for Goods and Services

Requests

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Simplified Requesting – Options for Requesters

  • Used to order many items available from NYS Preferred Source and Statewide Contracts.
  • The information selected is then automatically copied to the requisition.

NYS eMarketPlace

  • Requester selects the item(s) they wish to purchase from a set of items tailored for their
  • rganization.
  • The information selected is then automatically copied to the requisition.

Agency Catalogs

  • Requester selects what they want to purchase from a user-defined list of “Favorites.”
  • The information selected is then automatically copied to the requisition.

Favorites

  • Requester selects what they want to purchase based on a recent order.
  • The information selected is then automatically copied to the requisition.

Recently Ordered

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  • Help manage purchasing/sourcing

workload

  • Dispatch orders to vendors by email
  • Automate approval of purchase
  • rders, under certain thresholds
  • Carry credit card info through to

Purchase Order

Benefits of Future Model Process: Orders of Goods and Services

Orders

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  • Enter receipts timely
  • Easily view and track receipts

and rejections

  • Improves timely e-invoicing

and vouchering

Benefits of Future Model Process: Receipts of Goods and Services

Receipts

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  • Manage invoices and attachments

in one system

  • Supports eInvoicing for better

collaboration with vendors

  • Create vouchers automatically from

invoices

  • Schedule payments when due,

consistently paying vendors on time

Benefits of Future Model Process: Invoices/Vouchers for Goods and Services

Invoices and Vouchers

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Case Study: Piloting the Streamlined P2P Process

Alex DeFrancesco, SFS Change Management Kristi Kilmartin, Office of Mental Health

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  • 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
  • ther agencies have worked collaboratively to establish the

model process.

Key Partnership with OMH

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Before P2P: OMH Procure-to-Pay Business Process

Email and paper-based requests and approvals Duplicative buying process Frequent purchases not captured Individuals receiving the goods not entering the receipt Reactive receiving process Multiple systems to manage invoice to voucher process

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OMH Pilot – Participation

Goods shipped to the actual receiving locations, and receipts for goods and services entered by the receivers. Single system used for more timely invoice review and voucher creation.

Requisitions & Orders Receiving Invoice & Vouchers

Ease of requisition entry for basic Requesters. Buying activities done by the staff with the procurement expertise. Currently being piloted by a limited number of OMH locations Currently being piloted by all of OMH Currently being piloted by all of OMH

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OMH Pilot - Process Improvements

Use of eMarketplace & Agency Catalogs Entry of requisitions by basic requestors Addition of new ship-to locations Addition of new receivers Use of Receipt notification to receivers Reliance on automated matching Goods shipped to the actual receiving locations, and receipts for goods and services entered by the receivers. Single system used for more timely invoice review and voucher creation.

Requisitions & Orders Receiving Invoice & Vouchers

Ease of requisition entry for basic Requesters. Buying activities done by the staff with the procurement expertise. Setup of requestor & buyer defaults Use of new receiving role (receipt date entry) Use of buyer tools and auto-approval thresholds

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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

Collaborating with the Business Services Center

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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.
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Change Management Challenges

Challenges

System Access based on Business Process Demonstrating Value Computer Access As-Is Process & Culture Training & User Engagement

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Implementing the Model Process

  • Developed implementation project plan
  • Built core team understanding of model P2P process
  • Distributed executive communications
  • Determined business process handoffs with the BSC

Plan Design & Build Test & Train Deploy & Stabilize

  • Analyzed current state procurement processes
  • Designated agency staff to support the change initiative
  • Developed strategy and planning documents
  • Obtained executive sponsorship and support
  • Actively engaged end users in testing and training
  • Measured readiness through testing and executive surveys
  • Performed targeted outreach
  • Reinforced changes by communicating updated policies
  • Distributed executive communications
  • Monitoring adoption through transaction processing metrics
  • Collecting feedback, experiences, and lessons learned
  • Distributing executive communications
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  • 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.

Metrics to Support & Monitor Implementation

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Lessons Learned

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

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Looking Ahead: Agency Preparation and Implementation

Alex DeFrancesco

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|| Objectives:

  • Build subject matter expertise of the streamlined P2P business process

within agencies

  • Help agencies identify gaps between their current state P2P process and the

streamlined business process

  • Prepare agencies to implement the streamlined P2P business process

Timeframe:

  • TBD

Attendees:

  • P2P representatives designated by Agency Chief Financial Officers (CFOs)

Statewide P2P Workshops

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|| Collection of project plans, templates, and reference documents, to support agency change management activities.

  • Developed based on experience with OMH and BSC.
  • Posted to SFSSecure, and available to all agencies.

Agency Change Toolkit

Implementation Plans Guide to Understanding Your As-Is Business Process Sample Communications Test Scripts & Testing Tips Frequently Asked Questions Reference Guide for SFS Training Material Sample Change Readiness Assessments Sample Go-Live Readiness Assessments

Sample Toolkit Components

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  • Document your current step-by-step P2P business processes.
  • Identify who completes purchase requests, performs buying activities,

and receives goods and services within your agency today.

  • Review your Locations and Ship-to addresses and identify the best

locations for goods and services to be received.

  • Use Receiving and other informational queries.
  • Use eMarketplace where possible to procure goods and services.
  • Identify Purchase Authorization (PA) Contracts and other item lists that

would be good candidates for Agency Catalogs.

Agency Preparation – Things to do now

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Questions and Answers

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