January 9, 2010

           Moderated by:
Jack Colletti - CEO, Prodigo Solutions


                  1
Learning Objectives
 • 3 key components of a winning eProcurement strategy
 • How you can cut costs by reducing special re...
Prodigo Solutions is focused on
helping healthcare providers to
drive interoperability and
automation their supply chain
o...
Panelists




  Michael DeLuca           Brian Bichsel                Max Rothwell
  Director, Supply Chain   Director, Ma...
How Healthcare Purchasing Really Works
                       Healthcare purchasing organizations struggle with waste and
...
Pain: Data Management / Standards

                                    Many
                                    providers
...
Pain: Poor Supplier Connectivity
Pain: Internal Services (waste)


                      Catering

                        Print

                      Tel...
Pain: User Experience…
How it Should Be…
How it is today…
Select Clients



      Solutions




Consulting Services
   ProdigoDNA™
Pain Points = Opportunity for Savings

•   Poor contract compliance  waste
•   Data Management and item-level detail is p...
Pain: Resource Constraints
Presenter
                                     3 Key Components of a
                                     Winning eProcure...
What the CFO Wants…

           PO Transactional Productivity




                                           15
What the CFO Wants…
            Procurement’s Cost (or Investment)
            Procurement cost as a percent of spend




...
Component 1:
You Must Improve Data Management

3 Simple Rules for Item
Master Mgmt

 1. Inventory
 2. PAR Cart
 3. Support...
Data Management – Best Practice
A Platform for Driving Automation
                                                        ...
Don’t Let Your ERP/MMIS
 Platform Hold You Back




                          19
Driving Rapid Supplier
     Enablement

     Brian Bichsel
   Becky Walkinshaw
UPMC Marketplace Growth
              Enabling Marketplace Suppliers Drives Compliance and Efficiency

June 2007: UPMC imp...
Component 2:
You Must Drive Automation

 •E-Procurement
 •Lights Out Transactions
 •AP Transactions




       2010 Resolu...
Case Study: Real Results
     Results to date:
                                                         UPMC Purchase Orde...
The Drive for Automation

     Max Rothwell
Component 3:
You Must Get an MVP

   Accountable for Results
   Process Focused
   Technology Savvy




       2010 Goa...
Recap: Learning Objectives
  3 key components of a winning eProcurement strategy
  How you can cut costs by reducing spe...
Contact Info
 Jack Colletti
 412.370.7177 (direct)
 jack@prodigosolutions.com

 Visit: www.prodigosolutions.com
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Dazzle Your CFO: Top Strategies for 2010

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Dazzle Your CFO: Top Strategies for 2010

  1. 1. January 9, 2010 Moderated by: Jack Colletti - CEO, Prodigo Solutions 1
  2. 2. Learning Objectives • 3 key components of a winning eProcurement strategy • How you can cut costs by reducing special requests and match exceptions • How you can rightsize your item master and automate content updates • Where the savings are "hiding" in your supply chain operation • Why telecom expense management needs to be a top priority • How you can get supplier punchout connections enabled in weeks (not months)
  3. 3. Prodigo Solutions is focused on helping healthcare providers to drive interoperability and automation their supply chain operations.
  4. 4. Panelists Michael DeLuca Brian Bichsel Max Rothwell Director, Supply Chain Director, Material Systems Manager, MMIS Solutions & Consulting Services Becky Walkinshaw Manager, Purchasing 4
  5. 5. How Healthcare Purchasing Really Works Healthcare purchasing organizations struggle with waste and inefficiency and are slow to adopt enabling technology. Manual Invoices & Payments Suppliers - Not Approved AP Paper Disbursement Requests ERP system Purchasing ERP Dept. system Paper Requisitions Location Manual Approved Purchasing P.O. Suppliers Contract Match Users are frustrated; Poor data compliance Automation is exceptions result search is slow and eroded by rogue non-existent quality; no data in extensive Opportunity cumbersome standardization spending rework 5
  6. 6. Pain: Data Management / Standards Many providers have item masters that are bloated and full of items that are non-strategic. Savings comes from “right-sizing” the item master.
  7. 7. Pain: Poor Supplier Connectivity
  8. 8. Pain: Internal Services (waste) Catering Print Telecom
  9. 9. Pain: User Experience… How it Should Be…
  10. 10. How it is today…
  11. 11. Select Clients Solutions Consulting Services ProdigoDNA™
  12. 12. Pain Points = Opportunity for Savings • Poor contract compliance  waste • Data Management and item-level detail is poor • Minimal or no automation • Manual processes = unnecessary FTE costs and waste • Large volume of AP exceptions = rework / waste • No Single User Interface  many “one off” connections • Punchout pricing is inaccurate; no way to audit • Excessive Purchase Order-to-Supplier transaction time • Heavy reliance on GPOs  minimal local contracting
  13. 13. Pain: Resource Constraints
  14. 14. Presenter 3 Key Components of a Winning eProcurement Michael DeLuca Strategy Director, Supply Chain Systems & Consulting Services UPMC
  15. 15. What the CFO Wants… PO Transactional Productivity 15
  16. 16. What the CFO Wants… Procurement’s Cost (or Investment) Procurement cost as a percent of spend 16
  17. 17. Component 1: You Must Improve Data Management 3 Simple Rules for Item Master Mgmt 1. Inventory 2. PAR Cart 3. Supports strategic process 17
  18. 18. Data Management – Best Practice A Platform for Driving Automation eCommerce Capable Sites Local Hosted Catalogs •Drive UNSPSC or GS1 standards •Built-in punchout price audit GPO Catalogs Item Master Data Cancer Internal Services / Specialized Processes Item Center Item master Pharmacy master Ops
  19. 19. Don’t Let Your ERP/MMIS Platform Hold You Back 19
  20. 20. Driving Rapid Supplier Enablement Brian Bichsel Becky Walkinshaw
  21. 21. UPMC Marketplace Growth Enabling Marketplace Suppliers Drives Compliance and Efficiency June 2007: UPMC implementation 2008: UPMC grew significant supplier connections 2009: Ecosystem of content keeps growing = significant savings, automation and user adoption 21
  22. 22. Component 2: You Must Drive Automation •E-Procurement •Lights Out Transactions •AP Transactions 2010 Resolution: 30% of all PO activity = Lights Out! 22
  23. 23. Case Study: Real Results Results to date: UPMC Purchase Order Transaction Productivity (Annual) • $3M in estimated annualized hard-dollar savings resulting from improved compliance and automation • 40%+ increase in contract compliance • 100% e-Enabled (all requisitions originate via eprocurement) with 40% of all purchase orders fully automated or “touchless” • 40% reduction in special requests • 40% reduction in time dedicated to item master management • 35 suppliers on-boarded in 24 months
  24. 24. The Drive for Automation Max Rothwell
  25. 25. Component 3: You Must Get an MVP  Accountable for Results  Process Focused  Technology Savvy 2010 Goal: Promote (or hire) Your “E-Procurement MVP” in Q1 25
  26. 26. Recap: Learning Objectives  3 key components of a winning eProcurement strategy  How you can cut costs by reducing special requests and match exceptions  How you can rightsize your item master and automate content updates  Why Telecom Spend needs to be a top priority  Where the savings are "hiding" in your supply chain operation  How you can get supplier punchout connections enabled in weeks (not months)
  27. 27. Contact Info Jack Colletti 412.370.7177 (direct) jack@prodigosolutions.com Visit: www.prodigosolutions.com

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