The Procure-to-Pay (P2P) Journey at RMIT - … to Pay System Catalogue Request for quote Panel /...
21
The Procure-to-Pay (P2P) Journey at RMIT Date: 18 November 2015
Transcript of The Procure-to-Pay (P2P) Journey at RMIT - … to Pay System Catalogue Request for quote Panel /...
TheProcure-to-Pay(P2P)JourneyatRMIT
Date:18November2015
Agenda
2
1. ProblemStatement1. Whyarewehere2. Thewrongvalueequa=on–effortmisplaced3. ShiFingtheValueStreamsandEffort4. Whatwillsuccesslooklike
2. ProblemSolving1. Ourapproachtounderstandingcurrentstate2. Whatourstakeholdersiden=fiedaskeypainpoints3. CurrentState
3. Solu=onDesign1. DesignPrinciples2. Integra=onwithERP3. Threestandardprocesspathways
4. ChangeManagement1. Stakeholderiden=fica=on2. UniversityWideApproach3. EngagementApproach4. DeploymentApproach5. Enablers
5. FutureStateExperience6. Wherearewenow7. Ques=ons
1.1.ProblemStatement:Whyarewehere
3
Wecandrivechange Throughfocusedeffort Andanagiledeliveryplan Tocutcost&reduceeffort
THECASEFORCHANGE HOWWEGETTHERE BENEFITP2POBJECTIVES
• Needtoreduceadminburden&cost
• Enablemore=meforvalue-addedac=vity
• Improvefinancialaccuracyandvisibility
• Significantlymoreefficient
• Enhancecontrolsandgovernance
• Managebyexcep=on
• Sustainablebusinesssystems
• Enjoyablebuyingexperience
• Easytodotherightthing
• Simpleselec=on,approvalsandprocesses
• Systemizedgovernance
• Reducecost&numberofvendors
• Drivegreatervalueaddfrompartners
• Increasedtransparency
• ShiFeffortawayfromcustomer
• Oneeasysystem
• Compliancebuiltintosolu=on
• Aggregatevolumeespeciallyinlong-tail
• Onlineshoppingwithbuyerchoice
• Increasemanagerresponsibility
• Reducedstaffeffortatconsump=onpoint
• De-risked,compliant&auditablebuying
• Significantsavings,especiallylongtail
• Sustainablebuyingeco-system
• EnablerforSharedServicesmodel
• Enhancereputa=onwithvendorpartners
1.2.ProblemStatement:TheWrongValueEqua2on–EffortMisplaced
4
VALUE EFFORT
PLANTOBUY MANAGECONSUME
HIGHEFFORTTOBUY
PM
TeacherResearcher
PROCESS
1.3.ProblemStatement:Shi=ingtheValueStreamsandEffort
5
StrategicsourcingCategorymanagement
ContractManagementRela=onshipManagement
CONSUME
Spendaggrega=onPre-approvedvendorsOutsourcedManagedservicesCataloguedgoodsandservicesTechnology&Businesspartners
BENEFITCREATION
TangiblevalueaddEfficiency/produc=vityTransac=onalexcellence
Contractedvalue/savingsExcep=onalservicedelivery
BENEFITREALISATION
PROCESS
INCREASEDVALUE
CREATIONEFFORT
INCREASEDVALUE
DELIVERYEFFORT
VALUE EFFORTHIGHEFFORT
TOBUYPM
TeacherResearcher
REDUCEBUYINGEFFORT
1.4.ProblemStatement:WhatwillSuccesslooklike?
6
StrategicsourcingCategorymanagement
ContractManagementRela=onshipManagement
CONSUME
14monthNPVLargenetannualsaving
Substan=alonlinebuyingSignificantlyreducedefforttobuy
SimpleprocessesPaperless,fullyautomatedClearpurchasingchannelsLessvendorswithmorebusiness
BENEFITCREATION BENEFITREALIISATION
PROCESS
VALUE EFFORT
DataGather
• Exis=ngprocessandprocedureinforma=oncaptured
• SubjectMagerExpertinterviewsheld
Document
• Processmappingworkshops
• Currentstatefindingreportscompleted
Analyse
• ValueStreamMapping
• KeyPainpoints
• Futurestaterequirements
• Processcomparison
Principles
• Processdesignprinciplesagreed
• Level2processdesigncompleted
DetailedDesign
• Futurestateprocessmappingworkshops
• Detailedsystemrequirementsdeveloped
Validate&Assess
• Processdesignvalida=on
• Riskworkshops
2.1.ProblemSolving:OurApproachtoUnderstandingCurrentState
58Stakeholdersacross11
Departments
111differentprocesses
documented 26daystogetaPurchaseOrdertoasupplier
7standardisedprocesses,
300+detailedsystem
requirements
Level2processdefined
30+Focusgroupsheldwithkey
stakeholders
7
2.2.ProblemSolving:WhatourStakeholdersIden2fiedastheKeyPainPoints
8
Complex,nonstandardprocesses
Unclearonpoliciesandprocedures
Poorfinancialandtransac=onaldata
Lackofvisibilityortransparency
Duplica=oninworkeffort
Poordata,errorsfoundatendof
process
Lackofperformancemeasurement
Businessownersandstakeholdersprovidedinforma=oninregardstocurrentstatepainpoints,aswellaskeyinputintothesolu=on,ensuringitssustainabilityandownership
2.3.ProblemSolving:CurrentState
9
ProjectManager
FinanceManager
FinanceOperaZons
Suppliers
Approver
3.1.SoluZonDesign:DesignPrinciples
BenefitsRealisaZon
BuyingCompliantly
EasytoUse
10
3.2.SoluZonDesign:Integra2onwithERP
11
ProcuretoPaySystem
Catalogue
Requestforquote
Panel/Contract
Review Approve PlaceOrder GoodsReceip=ng
InvoicePayment
FinancialDelega=on
FinancialSystem(SAP)
EmployeeData
Fina
ncialD
ata
Vend
orData
Commitm
ent
Accrual
PaymentFile
UNSPSCClassifica=on
Setup
• Integrateddatainputs-Financial,HR,GLclassifica=on• Consump=on-3methods• Drivingworkflow-3pathways• Singlewaytotransact• Integratedoutputs-Commitments,accrualsandpaymentpostedtoFinancialSystem(SAP)at=meofevent• Singlesourceoftruth–ERP(SAP)
• ThreestandardprocesspathwaysofLight,MediumandComplexpurchasing• Sevencoresubprocessesweredeveloped–systemdrivenbasedonvalueandrisk
3.3.SoluZonDesign:ThreeStandardProcessPathways
12
Value/Risk Request FinancialReview
TechnicalReview
BusinessUnit
Approval
OrderPlacement
GoodsReceipZng Payment Channel
Light Low/Low PreSet Automated Automated Catalogue
Medium Any/Any Automated Catalogue/RFQ/Panel
Complex Any/High Automated Catalogue/RFQ/Panel
ChangeImpact:• Everyonehasaccesstothesystemtoconsume• Allquota=onsmustbecreatedwithinthesolu=on• CertaincategoriesmaybepurchasedonaP-Card.CorporatecardforT&Eonly• Create,review,approveanddelegateinonesolu=on• Financialreviewimportant-control,influenceanddownstreamdataaccuracy• Removed18outof22auditissues• Professional/technicalfunc=onswillautoma=callyreviewcertainpurchasecategories• Goodsreceip=ngcri=cal-mustbedonebytherequestor–ornopay!
‘Thesecrettochangeisnottofocusyourenergyonfigh3ngtheold,butonbuildingthenew’-Socrates
13
4.ChangeManagement
4.1.ChangeManagement:StakeholderIden2fica2on
14
Execu=ve
FinanceStaff
Purchase&TechnicalStaff
Suppliers
4.2.ChangeManagement:UniversitywideApproach
Corporate Services
15
CategoryManagement RMITStructure
Property&FaciliZes
InformaZonTechnology
Capital
4.3.ChangeManagement:EngagementApproach
16
Engage
• Prepara=onofschoolbasedplan• Engagementofexecu=vesandinschoolstakeholders• Confirma=onofschoolimplementa=onplanandforma=onofimplementa=onteam
GapAnalysisandPlanning
• Gapanalysisbetweencurrentandfuturestate,ac=onplanningtoaddressgaps• Prepara=onforsystemsetupup• Rolloutprepara=onofcommunica=onandtrainingplans
Valida=onandSetup
• Datavalida=oncomplete• Datauploadcompletedinsystem• Ac=onsfromplantoaddressgapscompleted
Rollout
• Trainingcompleted• Communica=onscompleted• Implementa=onchecklistcompleted
Track
• Trackingmechanismsunderway,includinguserfeedback• Feedbackandtrackingresultsfedbackintodesignanddevelopment• RegularHealthCheckmee=ngsheld
Prep
araZ
on
Rollo
ut
Engagement• Execu=veEngagementmee=ng
• InSchoolConsulta=onmee=ng
• GapAnalysisworkshops• Signoffmee=ng
• Workshopsandmee=ngs(asrequired)
• Go/NoGomee=ng• Rolloutmee=ng
• HealthCheckmee=ngs
4.4.ChangeManagement:DeploymentApproach
17
October November December Jan
7/10 14/10 21/10 28/10 4/11 11/11 18/11 25/11 2/12 9/12 16/12 23/12 30/12 6/1
SEH SEH SEH DSC DSCBUS
BUS
SMS SHSVHS
COSAS
SCSITSMGS
SAMMESECESCECE
A&DPCPMEdu
M&CGUSS
COF&T
COSEFMBITL
SBESMSBLSA
TrainingSessions S.E.H.Rollout D.S.C.Rollout BusinessRollout
4.5.ChangeManagement:Enablers
18
• BrandingoftheProject• EngagementandDeploymentlargelyledbyinternalstaffwho
willbeeventuallybeownersinBAU• Understandingtheenvironmentthateachcollegeoperatesin• Consulta=on–listeningandapplyingfeedbacktodesignand
approach
5.TheFutureStateExperience
19
Rememberthis...
1.4.ProblemStatement:WhatwillSuccesslooklike?
20
StrategicsourcingCategorymanagement
ContractManagementRela=onshipManagement
CONSUME
14monthNPVLargenetannualsaving
Substan=alonlinebuyingSignificantlyreducedefforttobuy
SimpleprocessesPaperless,fullyautomatedClearpurchasingchannelsLessvendorswithmorebusiness
BENEFITCREATION BENEFITREALIISATION
PROCESS
VALUE EFFORT
7.QuesZons
21
