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The Administrative Application That Could

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Presentation on theme: "The Administrative Application That Could"— Presentation transcript:

1 The Administrative Application That Could
E-Procurement The Administrative Application That Could Anthony Rotoli Channel Sales Manager SciQuest, Inc. Copyright Anthon Rotoli This work is the intellectual property of the author. Permission is granted for this material to be shared for non-commercial, educational purposes, provided that this copyright statement appears on the reproduced materials and notice is given that the copying is by permission of the author. To disseminate otherwise or to republish requires written permission from the author

2 Agenda About SciQuest Tactical vs. Strategic Procurement HigherMarkets Solution Case Studies

3 What is the innovation supply chain?
About SciQuest

4 About SciQuest SciQuest's secure on-demand solutions integrate organizations with their suppliers to enable comprehensive spend management for the life sciences and higher education markets. SciQuest's suite of modular applications helps to automate the source-to-settle process. When used with the SciQuest Supplier Network, these solutions reduce redundant tasks and maintain data integrity throughout the cycle of finding, acquiring and managing goods to increase efficiency, reduce cost and provide total spend visibility.

5 SciQuest Customers Higher Education University of Chicago
University of New Mexico Rensselaer Polytechnic Institute University of Edinburgh Emory University University of Michigan University of Notre Dame University of Arizona Indiana University University of Nottingham University of Nevada Reno Pace University Moody Bible College University of Pennsylvania University of Kentucky Arizona State University Penn State University Industrial Research Air Products GE Corporate Research Johnson & Johnson Life Science GlaxoSmithKline Schering-Plough Amgen Biogen Memorial Sloan Kettering Corixa Theravance Aventis Pharmaceuticals Burnham Institute Boehringer Ingelheim Lexicon Pharmaceuticals Genentech Ciba Vision Inspire Pharmaceuticals Dendreon Corporation Ambit Biosciences The Salk Institute Epix Medical Roche Enanta Pharmaceuticals OSI Pharmaceuticals

6 Current State of Higher Education
DECREASE IN BUDGETS Dramatic reductions in state and federal funding INCREASED COST PRESSURES Plunging endowments and restricted grants Increased Demands on Campus Services INCREASE IN REGULATIONS Patriot Act regulations, increased EPA fines, threat of bad press INCREASE IN STUDENTS Serving more people with less resources

7 Overall Increase in Indirect Spend
Traditional Approach FIND BUY MANAGE MANAGE FIND BUY Manual searches Limited selection of suppliers No integrated visibility into inventory Manual requisitioning High volume of orders to multiple suppliers No tracking beyond receipt Separate process from purchasing Redundant purchases Manual tracking, limited chemical information Manual compliance reviews and reporting Overall Increase in Indirect Spend Increased cost of goods Increased Processing Costs Increased Risks & Inventory Costs

8 Integrated Solutions for Higher Education
FIND The smartest purchase is the one that isn’t made. Change what they buy, not just how they buy. Integrated Inventory Integrated Sourcing Cost of Goods Processing Costs Inventory Costs Integrated Processes MANAGE BUY Maximize productivity, minimize risk.

9 Reaching Your Strategic Procurement Goals
What is the innovation supply chain? Reaching Your Strategic Procurement Goals

10 Tactical vs. Strategic Procurement
Focused on transactions Set and achieve short term goals React to departmental purchasing needs Perceived as a cost center Focused on spend management Set and achieve long term goals Proactively working with departments and suppliers Perceived as a value creator

11 Procurement Continuum
MOST ARE HERE TACTICAL STRATEGIC Managing manual processes effectively Disparate data Using human resources to fullest capacity See opportunities for improvement Desire to make an impact Unsure of the best approach

12 What is the innovation supply chain?
Bridging the Gap


14 E-Procurement Enables Best Practices
Improve Productivity Automate Manual Tasks Better Decisions Capture Comprehensive Data Right Results Influence Buyer Behavior

15 Gain more resources to devote to strategic initiatives
Automate Manual Tasks Enable and Configure Catalog and non-catalog suppliers Select and Compare Products User friendly shopping experience SPEND DIRECTOR REQUISITION MANAGER Electronic Routing Approval Workflow ORDER MANAGER Order Parsing & Distribution Process Orders SETTLEMENT MANAGER Receiving Electronic Invoicing Gain more resources to devote to strategic initiatives

16 Capture Comprehensive Data
Purchasing Data Supplier Data Transaction Data Better data helps you make better decisions

17 Achieve your strategic goals by helping end users
Influence Behavior How end users buy What they buy Who they purchase it from Achieve your strategic goals by helping end users

18 The Experts Agree… Aberdeen Research survey concluded the typical post-implementation benefits of e-procurement include: 5--10% reduction in indirect / non-production spend 73% reduction of costs per purchase order ($114 to $31 per order) Andersen Consulting estimated that the typical organization will reduce its indirect spend by 7% by using e-procurement Giga predicts e-procurement solutions will deliver 5-15 percent cost savings in the first year. Gartner estimates that small and mid-tier life science companies can achieve savings of 15-20% annually by using e-procurement solutions “that help researchers make smarter buying decisions.”

19 E-Procurement Solutions Deliver Financial and Productivity Savings
Increase contract compliance Promote preferred vendors in search results Promote “Organizational best buys” Provide detailed data for auditing user and supplier compliance Identify new savings opportunities By Supplier and Commodity using detailed spend reports Realize significant productivity savings Increase efficiency of end users and procurement Minimize IT commitments

20 Spending Trend With Preferred Suppliers
54.4% % (7.1% increase) Began using preferred positioning for key suppliers Preferred positioning of key suppliers increases on-contract spending and decreases materials purchase by %

21 Order Distribution Trend with Preferred Suppliers
Began using preferred positioning for key suppliers Preferred positioning also consolidates client’s supplier base by 20% resulting in less work for accounts payable

22 Productivity Savings Avg Cost* of a PO: = $114 (per NAPM/ISM)
Avg E-Procurement PO Cost: = $31 (per Aberdeen) Savings with e-procurement: = $83 per PO * Primarily based upon total allocated labor costs from sourcing through payment Example: 2,000 orders per year x $83 savings per order $166,000 productivity savings (~ equivalent to recouping the productivity of two to three staff members) By minimizing the unproductive time that users spend sourcing, requisitioning and procuring products, they will have more time for value-added activities such as research and negotiating savings.

23 Introduction to HigherMarkets
What is the innovation supply chain? Introduction to HigherMarkets

24 Connect with Existing Systems & Suppliers

25 Flexible Supplier Enablement Options
NETWORK Key Supplier Punch-outs Your Preferred Suppliers Your Local Inventory Approved Network Suppliers Hosted Configurable Catalog

26 Partnership with SCT Jointly develop and market “HigherMarkets for SCT Banner” Fully-integrated, comprehensive procurement solution Works with Banner Finance 6.0 and Luminis Data Integration Suite SCT is the leading global provider of technology solutions for colleges and universities of all sizes and complexity. The Company supports more than 1,300 client institutions worldwide with administrative and academic solutions.                               

27 HigherMarkets for SCT Banner
SciQuest Higher Markets SCT Banner Luminis Data Integration for eProcurement Higher Markets Adapter Luminis Message Broker Luminis Message Gateway Higher Markets for SCT Banner

28 Integration with Luminis Data Integration
LDI for e-Procurement is a built on LDI’s Publish and Subscribe architecture LDI for e-Procurement is standards based (JMS, HTTPS, XML, IMS Enterprise Specification, OpenEAI, etc.) HigherMarkets for SCT Banner and LDI for e-Procurement allows these systems to behave as if they were one application Leverages the current investment into Banner Eases burden on IT staff and resources An open, interoperable, and extensible solution

29 HigherMarkets Benefits All Stakeholders
End Users Procurement One-stop shopping experience Freedom of choice: wide range of suppliers and products from which to choose Fast, easy requisitioning Control and visibility of spending Contract compliance Paperless process Error-free requisitions                                                 Senior Management Information Technology Reduced materials costs Increased purchasing and user productivity Better budgeting information Low maintenance software Secure, reliable access Straight-forward integration

30 HigherMarkets Product Introduction
What is the innovation supply chain? HigherMarkets Product Introduction

31 Search Hosted Catalogs or Punch-Out to Suppliers
Use parametric criteria to search hosted catalog content Punch-out to suppliers’ e-commerce Web sites

32 Quick Order Enter catalog number or SKU and immediately add to cart

33 Favorites Manage personal favorites
Administer organizational “Best Buys”, approved items and supplier specials

34 Search by Keyword Refine searches by limiting searches to specific subcategories Search using parameters

35 Product ReSources Antibody ReSource Column ReSource
Chemical ReSource with structure searching Oligo ReSource also available

36 View Search Results Refine search by supplier or category
Basic product information with your contract pricing. Access to complete product descriptions Search results from preferred suppliers appear first Select multiple products to compare

37 Side-by-side Product Comparisons
Add to cart from product compare screen Compare detailed product information

38 Accurate Requisitions
Pre-populated item information from shopping cart Pre-populated ship to/bill to information

39 Customized Approval Workflow
End users can preview approvals Customize approval workflow based on any requisition field

40 Track Order Status Access all order online Track order status

41 What is the innovation supply chain?
Case Studies

42 University of Pennsylvania
Challenges: Supplier enablement User adoption Solution: Spend Director Supplier Promotion Module Location: Philadelphia, PA Enrollment: 18,913 Client Since: ERP: Oracle                               

43 University of Pennsylvania Results
Campus-wide implementation to 1,600 users Enabled 75 preferred suppliers, representing 3 million SKUs and cover 68% of all transactions within 120 days Realized $2.1 million in documented cost savings from 16 renegotiated contracts

44 Rensselaer Polytechnic Case Study
Challenges: Inefficient purchasing processes Inability to control “maverick spending” Solution: Spend Director Requisition Manager Order Manager SciQuest Supplier Network Business Intelligence Location: Troy, NY Undergrad Enrollment: 5100 Client Since: ERP: SCT Banner

45 Rensselaer Return on Investment
YEAR CONTRACT SAVINGS PROCESS SAVINGS TOTAL SAVINGS 1 $130,000 $40,000 $170,000 2 $220,000 $65,000 $285,000 3 $370,000 $110,000 $480,000 4 $525,000 $155,000 $680,000 TOTAL $1,245,000 $370,000 $1,615,000

46 E-Procurement should be a critical component of an e-business strategy
Conclusion E-Procurement should be a critical component of an e-business strategy Benefits are real Cost Savings Process Efficiency Renegotiated Contracts Integration with ERP can extend value

47 Questions Q & A

48 "What people need to realize is that purchasing can have a direct impact on the bottom line. The economy is very bad, the state institutions are not getting funded, and there are cutbacks. But there’s a multiplier effect through smart purchasing: Every dollar we save though smart purchasing translates to 10 or 15 dollars that’s not needed in revenue. …You really can’t afford not to pursue an e-procurement initiative.” Tim Gibney Assistant Vice President for Procurement Services University of Notre Dame “Taking the Pain Out of Purchasing,” University Business. April 2003

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