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  • 1. Controlling Services Spend at a $9 Billion Organization
  • 2. Agenda• UPMC Overview• Introduction to sPro• Project Goals / Benefits / Scope / Methodology• Business Process Design & Setup• Using sPro – eProcurement Requisitions for Services – Processing Work Orders – External Supplier Portal (Viewing Work Orders, Entering Progress Logs, Inquiry) – Approving/denying Progress Logs and Inquiry• Challenges• Lessons Learned• Supplier Deployment Plans / Next Steps• Questions
  • 3. UPMC Overview  $9 billion in revenue  20+ hospitals, operating nearly 4,000 beds  400+ service locations  50,000+ employees  200,000 admissions3
  • 4. UPMC’s Supply Chain EnvironmentSpend Managed:• $1.8 billionTransaction Volumes:• Process 70,000+ invoices per month• Process 4,000+ purchase requisitions per week• Manage over 600 point of consumption material carts• Receive 1.1M packages per year; central distribution center
  • 5. UPMC’s Supply Chain Team Single SCM Organization: • 370 team members…
  • 6. UPMC Supply Chain 7.9 Million cellular phone minutes 355 Million KWh of electricity 956 Miles of rolled paper towels 11 Million minutes of audio conferencing 26 Million lbs municipal solid waste 33,739 lbs of ground coffee 8.1M Clorox wipes 84 Million exam gloves 2.2 Million alcohol prep pads 1.6 Million syringes used 4.1 Million isolation & cover gowns 542,523 lbs of poultry 31,035 Miles of toilet paper 6,495 Airline tickets
  • 7. Agenda• UPMC Overview• Introduction to sPro• Project Goals / Benefits / Scope / Methodology• Business Process Design & setup• Using sPro – eProcurement Requisitions for Services – Processing Work Orders – External Supplier Portal (Viewing Work Orders, Entering Progress Logs, Inquiry) – Approving/denying Progress Logs and Inquiry• Challenges• Lessons Learned• Supplier Deployment Plans / Next Steps• Questions
  • 8. sPro Overview• Overview – Enables control and oversight of services spend – Reduces excessive service costs – Creates visibility and enforces compliance – Allows effective management of the process from request through settlement
  • 9. sPro Overview Requestor Service Request Procure Manage Settle Analyze Providers Standardized Templates Centralized Information Supplier Collaboration • ePro requisition • Approved suppliers • View Work Orders Secure • sPro Work Order • Negotiated contracts and rates • Submit progress logs Access Projects Financials • PO Integration • Electronic bill presentment • Plan and budget
  • 10. sPro Enables Flexible Progress Payments and Approvals • Supplier enters payment amount in progress logs • Multiple entries permitted for partial completionFixed Amount • Require approval from • Payment is made when the agreed upon milestones are completed requesters • Suppliers can designate a milestone complete • Enforce contracted Milestone once payment schedules and rates • Supplier enters the percentage of completion • Eliminate premature, • Payment amount based on percentage completion of the total work order amount excessive and/or Percentage incorrect payment requests • Payment amount based on the agreed rate for the activity • Payment based on the quantity entered in the progress logRate Based
  • 11. Agenda• UPMC Overview• Introduction to sPro• Project Goals / Benefits / Scope / Methodology• Business Process Design & setup• Using sPro – eProcurement Requisitions for Services – Processing Work Orders – External Supplier Portal (Viewing Work Orders, Entering Progress Logs, Inquiry) – Approving/denying Progress Logs and Inquiry• Challenges• Lessons Learned• Supplier Deployment Plans / Next Steps• Questions
  • 12. UPMC sPro Deployment - Project Benefits / Goals sPro is helping UPMC to achieve the following goals: • Increase control over our services spend • Automate invoice activity and put the onus on the vendor to start the process to collect their payments • Reduce the use of blanket orders for services • Accommodate progress payments driven by milestones or the percentage of a total dollar value • Capture/definition of rates for services • Better management of Project-related services Benefits of sPro deployment include: • Leverage existing eProcurement application and workflow • Ensure use of contracted rates and suppliers • Increase control by introducing “invoice” approvals that are performed by the original requester of the service • Eliminate match exceptions and related rework • Automate manual invoice processes • Earn discounts through early payments • Provide self-service inquiry capability to help suppliers apply payments correctly
  • 13. UPMC sPro Deployment - Project Scope• In-Scope – Configuration, testing and deployment of sPro for deliverable-based Work Orders with the following settlement methods: • Fixed Amount • Percentage • Milestone • Rate-Based – Integration with Project Costing through the Purchasing module – Supplier interaction with Services Procurement via the External Supplier Portal – Initial pilot with a small group of users / one vendor – Subsequent vendor by vendor roll-out• Out-of-scope – Resource-based Work Orders with timesheet reporting/approval – Integration with Strategic Sourcing (customized to eliminate this) – Integration with Purchasing Contracts
  • 14. UPMC sPro Deployment - Project Methodology •Investigated functionality in Demo and conducted initial testing - delivered functionality did not meet UPMC’s needs or function fully •Determined that UPMC would customize portions of the application Plan •Developed the project plan based on the Functional and Technical Design Documents •Gathered and documented business requirements & process for sPro and the External Supplier Portal •Developed Functional Design Documents for customizations needed to support business requirementsDesign •Created Technical Design Documents to establish a record of the technical changes needed •Completed and documented sPro configuration •Created prototypes of various page changes/pagesBuild •Executed technical development required to build customizations/custom processes and ready the External Supplier Portal •Initial testing was required after applying a large patch from Oracle •Conducted multiple rounds of testing (shakedown, unit, integration, regression) with sPro and all related modules with DEV, TST, PRD migration Test •Self-Service Portal, eProcurement, sPro, PO, External Supplier Portal, AP, GL, Project Costing •Conducted intro/overview sessions for each user group •Developed process documents for each section of sPro, organized by user function/tasks Train •Created and delivered training for End Users, Purchasing Staff and Vendor Contacts •Initiated a pilot deployment with a small group of users (~30-60 days) •Identified a list of target suppliers for future deployment and initiated planningDeploy
  • 15. Agenda• UPMC Overview• Introduction to sPro• Project Goals / Benefits / Scope / Methodology• Business Process Design & setup• Using sPro – eProcurement Requisitions for Services – Processing Work Orders – External Supplier Portal (Viewing Work Orders, Entering Progress Logs, Inquiry) – Approving/denying Progress Logs and Inquiry• Challenges• Lessons Learned• Supplier Deployment Plans / Next Steps• Questions
  • 16. High-Level Process Design
  • 17. Set up steps required prior to use of sPro Complete configuration and security setup Select the Vendor – Complete Checklist / Supplier Review – Is sPro a good fit? • Includes review of ongoing orders/end users throughout UPMC • Goods, services or a combination? – Evaluate current invoicing methods and possible settlement method types – Assess taxability and other unique requirements for doing business with the supplier Communication to End Users and Vendors - ID contacts & gather details; overview of tools & related process Complete Vendor and End User Access Requests and related setup Contract review / addendum (including rates if needed) and sign tech agreements Complete category/Service Type, Vendor and Activity setup in ePro/sPro Conduct Vendor and End User Training Cutover planning (from old Purchase Orders to sPro) and coordination of new order creation – particularly critical with Projects
  • 18. Agenda• UPMC Overview• Introduction to sPro• Project Goals / Benefits / Scope / Methodology• Business Process Design & setup• Using sPro – eProcurement Requisitions for Services – Processing Work Orders – External Supplier Portal (Viewing Work Orders, Entering Progress Logs, Inquiry) – Approving/denying Progress Logs and Inquiry• Challenges• Lessons Learned• Supplier Deployment Plans / Next Steps• Questions
  • 19. eProcurement Requisitions for Services Requisitions begin in the same way… New Links! •Manage Progress Logs •sPro Inquiry
  • 20. eProcurement Requisitions for Services Selecting “Services Requisition” defaults the origin code to SPC Selecting “Services Requisition” also makes a new link available on the Special Request tab
  • 21. eProcurement Requisitions for Services By clicking the “Fixed Cost Service” link, we can enter details about the service requisition.
  • 22. eProcurement Requisitions for Services The “Review and Submit” page in ePro is the same for service requisitions.
  • 23. eProcurement Requisitions for Services Services requisitions follow the same, established eProcurement workflow as all other requisitions.
  • 24. Agenda• UPMC Overview• Introduction to sPro• Project Goals / Benefits / Scope / Methodology• Business Process Design & setup• Using sPro – eProcurement Requisitions for Services – Processing Work Orders – External Supplier Portal (Viewing Work Orders, Entering Progress Logs, Inquiry) – Approving/denying Progress Logs and Inquiry• Challenges• Lessons Learned• Supplier Deployment Plans / Next Steps• Questions
  • 25. Processing Work Orders – Accessing Work Orders Primary menu option for Service Coordinators New Navigation to sPro
  • 26. Processing Work Orders - Searching for Work Orders Search for Work Orders Select Work Orders to review/take action
  • 27. Processing Work Orders (Service tab) WO header details Defaulted Info from the ePro req Service information is defaulted from the req, including: •Service Type (Category) •Initial settlement type •High-level scope of work •Requesting dept and location
  • 28. Processing Work Orders (Service tab, continued) Populated with Service information from req, including: •Projected start date •End date •Vendor information
  • 29. Processing Work Orders (Approvals and Alerts tab) The Progress Log Approver is the ePro Requester!
  • 30. Processing Work Orders (Comments tab) Comments from ePro req will appear on the WO; additional comments can be added
  • 31. Processing Work Orders (Cost tab) Value of WO defaults from req total Progress Log Template (type of settlement method) and Activities (how progress is reported) determine WO structure and how vendor will invoice Chartfield information defaults from req If project-related, a “ghost” PO will be created upon release
  • 32. Processing Work Orders (Cost tab) - Activities Activities must be set up in sPro before they can be selected on a Work Order. After an activity is picked, Service Coordinators enter a number of hours to be worked (rate-based) or total value (fixed amount) or amount upon completion (milestone). 30.00
  • 33. Processing Work Orders (Consumption tab) The Consumption tab appears after the WO is released and shows the amount consumed, remaining and invoiced.
  • 34. Processing Work Orders - Key Items to Note• Service Coordinators determine the appropriate service/settlement method/activities and update the WO accordingly• Service Coordinators use a work instruction to determine taxability and associate activities if needed to capture sales tax• After a WO is finalized, it must be submitted and released• Service Coordinators can only manage/process their own WOs• WOs cannot be modified at all after release – If the funds are completely depleted, a new requisition must be entered• A “ghost” PO will be created for project-related WOs only – This is necessary to facilitate integration with Project Costing – No action required by Service Coordinators – POs build as approved and dispatched
  • 35. Agenda• UPMC Overview• Introduction to sPro• Project Goals / Benefits / Scope / Methodology• Business Process Design & setup• Using sPro – eProcurement Requisitions for Services – Processing Work Orders – External Supplier Portal (Viewing Work Orders, Entering Progress Logs, Inquiry) – Approving/denying Progress Logs and Inquiry• Challenges• Lessons Learned• Supplier Deployment Plans / Next Steps• Questions
  • 36. External Supplier Portal – Logging In Service Provider Contacts receive a personal User ID and Password
  • 37. External Supplier Portal – Navigation This is the main Navigation screen within the External Supplier Portal Selecting “Services Requisition” Initially, the Portal will be used for defaults the origin code to SPC Services Procurement only but future deployments of other tools are planned
  • 38. External Supplier Portal – sPro Navigation / Menu Options After clicking on “Services Procurement,” additional menu options are available
  • 39. External Supplier Portal – sPro - View Work Order Suppliers can search within their list of Work Orders To select a Work Order, click the blue underlined link
  • 40. External Supplier Portal – sPro - View Work Order The Work Order Details tab provides overview information High-level detail includes the name of the Requester More detailed Service Information covers the type of service, requesting location and high-level scope of work
  • 41. External Supplier Portal – sPro - View Work Order Duration Information provides the length of the service term Supplier information is displayed here The Progress Log approver is the same person as the Requester
  • 42. External Supplier Portal – sPro - View Work Order Work Order details (such as the total value) are visible, but cannot be edited by the Vendor42
  • 43. External Supplier Portal – sPro - Maintain Progress Logs Suppliers can search for WOs to enter Progress Logs , or can search existing Progress Logs
  • 44. Submit Progress Logs – Pick an activity44
  • 45. Submit Progress Logs (rate-based) The Vendor’s invoice number is entered here Select an Activity to indicate the work performed, Input the number of hours worked45
  • 46. Submit Progress Logs (fixed amount) The Vendor’s invoice number is entered here Add comments to send to the Approver; may include dates of service or other details Select an Activity to indicate the work performed, Input a Complete Date and the Billable Amount
  • 47. External Supplier Portal – sPro - Submit Progress Logs The “Details” link launches a page that covers the details/history of this Progress Log The “History Information” link displays the status of all Progress Logs submitted against the Work Order
  • 48. External Supplier Portal – sPro - Submit Progress Logs After clicking “Submit for Approval” a confirmation is requested After clicking OK, we return to the “Maintain Progress Logs” screen and see the new Progress Log displayed in the list
  • 49. External Supplier Portal – sPro - Vendor Invoice Inquiry A custom sPro Inquiry page can be used to track the status of Progress Logs from submission to payment This page can be used by multiple contacts within the Vendor’s organization
  • 50. External Supplier Portal – sPro - Key Items to Note• Each contact at a Vendor company will have their own User ID and Password• Only one “Service Provider Contact” can be assigned to a Work Order – this is the only person who can submit Progress Logs for that Work Order• The SCM Sourcing Specialist works closely with the Vendor to construct the Work Order and explain how progress will be submitted (settlement method)• Once the value of the Work Order is fully consumed, no Progress Logs can be submitted and the process must begin again with a new requisition/Work Order• If a Progress Log is denied, the Vendor has the opportunity to modify and resubmit for approval• UPMC is treating the Progress Log as the Vendor’s “Invoice” to UPMC• This is the only method to invoice UPMC and be paid for the specified services - no paper invoices may be submitted
  • 51. Agenda• UPMC Overview• Introduction to sPro• Project Goals / Benefits / Scope / Methodology• Business Process Design & setup• Using sPro – eProcurement Requisitions for Services – Processing Work Orders – External Supplier Portal (Viewing Work Orders, Entering Progress Logs, Inquiry) – Approving/denying Progress Logs and Inquiry• Challenges• Lessons Learned• Supplier Deployment Plans / Next Steps• Questions
  • 52. Progress Log Review / Approval Approvers begin the process to approve Progress Logs on the eProcurement Homepage52
  • 53. Progress Log Review / Approval Progress Log Approvers can search for specific Progress Logs, or work from a list
  • 54. Progress Log Review / Approval Approvers can review comments and the work completed by Activity, and can approve or deny the Progress Log
  • 55. Progress Log Review / Approval Additional detail is available for each Activity line, including the approval history of the progress log
  • 56. Progress Log Review / Approval If the Progress Log is denied, users are trained to enter a comment. Whether the Progress Log is approved or denied, a confirmation is required.56
  • 57. sPro Inquiry – Internal UPMC Users A custom sPro Inquiry page can be used to track the status of Progress Logs from submission to payment.
  • 58. Key Items to Note – Progress Log Approval• UPMC is treating the Progress Log as the supplier’s invoice of record• Approvers have the ability to review any supporting documentation that the Vendor attached to the Progress Log• Progress Log Approvers may only approve or deny a Progress Log – we do not permit edits• If the work is not fully completed or there are other issues with the Progress Log, Approvers are instructed to deny the Progress Log and enter detailed comments• The Vendor receives notifications when Progress Logs are approved or denied
  • 59. Agenda• UPMC Overview• Introduction to sPro• Project Goals / Benefits / Scope / Methodology• Business Process Design & setup• Using sPro – eProcurement Requisitions for Services – Processing Work Orders – External Supplier Portal (Viewing Work Orders, Entering Progress Logs, Inquiry) – Approving/denying Progress Logs and Inquiry• Challenges• Lessons Learned• Supplier Deployment Plans / Next Steps• Questions
  • 60. Challenges• Few organizations have deployed sPro focusing on Deliverable-based Work Orders/Progress Logs – Not many opportunities existed to compare notes and benchmark• sPro configuration offers an overwhelming number of options – Narrowing this down to the appropriate setup for UPMC was time-intensive and involved “trial by error” investigation• Testing revealed that a relatively large patch was needed from Oracle in order for the deliverable-based Work Orders to function properly – This required a fair amount of additional development and testing that was not anticipated• A significant development effort and time investment was required to complete all customizations• Defining security and properly establishing user setup was an iterative process – sPro user setup differs from all other PSFT modules that we are aware of and the order of events is extremely important
  • 61. Lessons Learned• Engagement from operational areas is critical in the early stages of requirements development to validate the business process that is created and ensure it will meet operational needs – eProcurement users, Strategic Sourcing, Purchasing, Accounts Payable, Project Costing, Project Finance, Finance/Accounting, Construction Accounting, General Ledger• Very detailed configuration documentation proved to be a worthwhile expenditure of time and resources – Reconfiguration was required many times over the course of the project due to refreshes and migration to other instances – small differences in config can produce major issues• Significant custom development on a new module will generally take longer than anticipated• An external consulting resource was very helpful in researching sPro capabilities/issues and assisting with development/testing• Thoughtful and thorough unit/integration/regression testing identified issues early and provided critical feedback to development – Approximately 500 test scripts were executed
  • 62. Supplier Deployment Plans / Next Steps• Complete the pilot deployment with our initial supplier – Feedback from end users and the Vendor is extremely positive • Eliminated blanket orders, paper invoices and related processing time (including lost invoices) • Greater visibility for End Users into consumption against the Work Order • Vendors are enthusiastic about the ability to review progress log and payment status on their own – A pilot wrap-up session will help identify opportunities for improvement and future enhancements• Extended roll out plans – Developed process documents for future vendor deployments • Example suppliers include: Linen, Landscaping, Snow Removal, Cabling, IT consulting, IT services, recruiting services, equipment repair – Created a list of initial priority vendors for roll out – Future deployments will be vendor by vendor