Procure 2 Pay Implementation, Benefits & Savings

Transcription

1 University Service Improvement Conference UniSA Procure 2 Pay Implementation, Benefits & Savings Victoria University of Wellington (VUW) 11th May 2012 Wayne Morgan CFO

2 VUW Metrics 2011 EFTS Domestic 15,173 International (full fee) 1,698 16,871 Students Total 24,394 FTE Academic 912 Administration 1,062 1,974 Financials $m Revenue 337 Total Assets 747 Surplus 15 Capex 57 Procurement $140m

3 VUW Shared Services Operations Payments Procurement Systems Payments Team Leader Manager Procurement System Accountant Payments Senior Administrator Procurement Officer Systems Analyst Payments Administrators P Card Administrator A/R Administrator

4 VUW Shared Services Staff in Payments Payments Payments Team Leader Payments Senior Administrator Payments Administrators P Card Administrator

5 Pressures to Mechanise Procurement / Payments Slow turnaround of supplier invoices Huge year end catch up Poor coding University in growth phase higher volume Oracle introduced iprocurement Spendvision for P Card became available

6 Finance s challenges Where does Finance spend its time? 100% 80% 28% 26% 40% 39% 60% 40% 22% 25% 25% 27% 28% Decision support Control activities Transactional activities 20% 50% 49% 33% 33% 0% Today In 3 years time Today 3 Years time 6 N = 1,881 Note: Executives asked: How do you see the Finance workload distributed in percentage terms? Source: IBM Institute for Business Value, The Global CFO Study 2010

7 Finance s challenges Where does Finance spend its time? 100% 80% 28% 26% 40% 39% 46% more IBM 70% Decision support 60% 40% 22% 25% 25% 27% 28% Decision support Control activities Transactional activities 20% 50% 49% 33% 33% 33% less 0% Today In 3 years time Change will drive the criticality of decision support. Therefore, we must find better ways to do transaction support and control activities with improved processes and more automation. Bob Driessnack CFO, Intermec Inc. 7 N = 1,881 Note: Executives asked: How do you see the Finance workload distributed in percentage terms? Source: IBM Institute for Business Value, The Global CFO Study 2010

8 Shared Services - Principles Use standard system functionality Eliminate manual functions Central systems User Self Service Distributed user input and control

9 VUW Structure Education Commerce Science, Architecture and Engineering Shared Services Finance Law Humanities Central Services CSU CSU CSU

10 Procure 2 Pay Payment Channels Petty Cash PCard iprocurement Supplier Users Owner Payment Reimbursement

11 iprocurement and Pcard Annual Metrics Users Transactions Annual Spend Average Transaction Spend Month Year iprocurement 620 1,700 20,400 $113m $5540 PCard 930 3,700 44,400 $7m $150

12 iprocurement Operates across Multi Organisations University Grant Management System (GMS) Subsidiaries Joint Ventures Finance ORACLE FMIS Suppliers

13 Implementing iprocurement Challenges: Major change management exercise Started with pilot groups Gradually rolled out by Department 1 st Action - take away order books! Observations: Our take we are empowering you Their take we are doing your work! Training, training, TRAINING Oracle user interface okay but not great!

14 iprocurement Processes Order - Fulfilment - Payment User Raise requisition Request for Approval Purchase Order Completed Raise Purchase Receipt System Approval Given Image to Procurement Cleared for payment No Yes 20 th month Scanning Agent Supplier Supply Goods Raise Invoice Payment to Supplier

15 Innovations in iprocurement Self approval to $2,000 (auditors not happy) Invoice scanning huge leap forward Customised workflow helped process flow

16 Implementation of Purchase Card Poor control history NZ Public Sector Tight control paramount VUW audits 100% P Card statements! Spendvision brilliant system

17 Purchase Card Process Flow Timeline Start Month Month end m/e + 2 days m/e + 10 days + User Finance - Ops - GL Spreadsheet Stat and vouchers to manager Scanned and batched Spendvision Bank Vendor

18 Innovations in P Card Bar code scanning of statements Workflow generating communications to card holders Online credit limit changes

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21 Contacts If you wish to follow up with any queries following this presentation please contact: Marianna Nicolaou Manager Finance Operations Jonathan Winkworth Manager Procurement Wayne Morgan CFO