1. Procurement Transformation Maximizing the Potential of Procure-to-Pay Technology Jack D. Zencheck, Chief Procurement Officer, Yeshiva University

2. Yeshiva University (YU)
Celebrating its 125th year.
YU is the country’s oldest and most comprehensive institution combining Jewish scholarship with academic excellence and achievement in the liberal arts and sciences, medicine, law, business, social work, psychology, Jewish studies, and education.
Students: 7,232 
Annual sponsored research: $225 million
Operating Budget: ~$648 million
Campuses: Locations throughout New York City and Israel

3. What is Procure-to-Pay?
Strategic rather than tactical
Acquiring best contract pricing and terms vs. just buying (Procure)
Cost-effective methods of processing payments through technology. (Pay)

4. Why Procure-to-Pay? Executive Level Support Strategy Cost Benefit
Risks
Separation of Duties
Controls
Manual vs Systematic
Governance

5. YU Procurement Services at a Glance
Purchasing
90,000 purchase orders processed
80% ≤ $2,000
67,000 purchase orders processed electronically
$300,000,000 in spend
Accounts Payable
179,623 total invoices processed
116,182 on Purchase Orders
27,364 not on Purchase Orders
36,077 processed thru EDI

6. Procure-to-Pay - Table of Organization
A. Basilone
Receptionist
Jack D. Zencheck
Chief Procurement
Officer
G. Gillott
Assistant to
CPO
Open
Director, E-Commerce
(P Cards)(B2B)
Tova Ackerman
Director,
Purchasing
Natalia Volodarsky
Purchasing Manager,
Scientific
Thomas Cannon
Director of
Accounts Payable
Michael Winkler
Director of Energy
Mgmt & Sustainability
T. Singh AP
Supervisor
A. Butta
Administrator,
E-Commerce
B. O’Farrell
Construction
Buyer
R. Labrew
Freezer Program
Clerk
A. Moore
Sustainability
Coordinator
J. Iurato
Travel &
Expense
L. James
Bookkeeper
G. Braithwaite
Systems Analyst
T. Brown
Contracts
Administrator
N. Franco
Acquisition
Clerk
E. Teehan
AP Clerk
H. Nonnon
Acquisitions Clerk
R. Osi
Contracts
Administrator
K. Neufville
AP Clerk
R. Gandolfo
Contract Admin. IT
A. Villamar
Bookkeeper
V. Mew
Asst. Contract
Adm, MRO
H. Martinez
Bookkeeper
P-2-P
S. Gonzalez
AP Clerk

7. P-2-P System Banner for Higher Markets
SciQuest Full Suite (Higher Markets)
Requisition Manager
Order Manager
Spend Director
A/P Director
Sourcing Manager
Contract Manager

8. P-2-P System JPMorgan PaymentNet System
P-Card
Enzyme Freezer Program, Alcohol Ordering, Reporting and Inventory System
A/P Director e-Invoicing and Digital Mailroom Automation System

9. P2P Process 2) A/P DIRECTOR 1B) SCAN & 3 WAY MATCH (5k+)
2 WAY (<5K)
1B) SCAN &
CONVERT TO
DIGITAL FORMAT
& IMPORT DIT DIGITAL MAILROOM

10. Accounts Payable Automation – E Invoicing
E-Invoice
Banner
SciQuest
ACH
3 Way Match

11. Accounts Payable Automation – E Invoicing
E-Invoice
SciQuest
Banner
Direct Data Extraction
CXML
Conversion
ACH
3 Way Match
Lock Box
Fax

12. Procurement Transformation Project
Outline
We hired E&I Consulting to assess and recommend the following:
Technology Assessment
Organization & Operations
Marketing & Communications
Supplier Enablement

13. Technology
Performed a thorough evaluation of technology implementation
Banner and SciQuest full suite
Identified post-implementation issues
system workflow (configuration and performance)
functionality deficiencies that impact
performance
client satisfaction
Documented and categorized appropriate solutions
Implemented recommended solutions
Documented and categorized outstanding Banner/SciQuest issues
Reinforced the values and benefits of compliance and utilization

14. Technology Completed process mapping of the procure-to-pay process
Validated each process step and decision point
Identified opportunities to:
streamline workflow
reduce process time and effort for the campus users
maintain appropriate level of control and oversight
Increase operational efficiencies by implementing reengineered processes resulting from the following mapping exercises:
Processing non-catalog small dollar purchases | Processing Requests greater than $7,500
Processing Change Orders | Vendor Set Up
Remit-to-Addresses | Processing Invoices
Monitoring Sub-Recipient Process

15. Organization & Operations
Conducted a formal organizational review to determine alignment with objectives of senior leadership and key internal business partners
Determined need for more formalized strategic vision supported by senior leadership
Developed a 3-5 year strategic plan
Expressed to senior management the role of Procurement to:
Project ROI
Address budget and staff requirements
Identify dependencies in order to achieve the strategy
Recommended utilization of CPO’s skills to concentrate on:
Higher value
Strategic objectives
Delegated appropriate contractual signing authority to:
Increase efficiencies
Minimize risks

16. Organization & Operations
Established standard institutional procurement terms and conditions and a standard Master Supplier Agreement
Obtained cooperation from the other internal stakeholders including:
Human Resources
Business Affairs
Finance
Environmental Health and Safety
Insurance and Risk Management
Established a formal Procure-to-Pay strategy and structure with shared ownership among: IT
Procurement

17. Organization & Operations
Reviewed the skillsets and capabilities of Procurement staff and determine
Skills and staffing levels were sufficient to meet goals and expectations
Technology related skills were inadequate and needed improvement

18. Organization & Operations
Performed a Procurement Customer Satisfaction Survey
determined current level of satisfaction
identified key areas of concerns
Survey Results:
82% satisfied with content and supplier enablements in eMarketplace
59% satisfied/very satisfied with service and support received from the Procurement Services organization
68% understand approval levels
29% understand competitive bid threshold

19. Supplier Enablement
Performed supplier enablement to ensure successful hosted or punch-out catalog content for preferred contract suppliers.
Enabled additional SciQuest science pack suppliers to further streamline ordering process for the campus community
Initiated process change requiring suppliers to sign a written agreement to pay the 1.5% technology fee upfront vs. after the fact (current practice)
Deactivated infrequently used suppliers to drive business to the preferred, contract and marketplace enabled suppliers

20. Marketing & Communications
Developed a formal Marketing and Communications Plan (MCP) to communicate
Vision
Direction
Goals
Collaboration
Invested in the redesign of the Procurement Services website to become the central repository of all procurement and disbursement related information
customer support resources
policies & procedures
how-to-buy
commodity and supplier information
redesigned process documents
Ensured regular communication and collaboration with key procurement stakeholders:
Human Resources
Controller Office
Risk Management
Finance
Environmental Health and Safety

21. Supplier Enablement
Implemented new process to formally track and report all cost reduction accomplishments
Developed and provided formal cost containment savings and criteria for tracking results
Developed formal and regular communications with senior leadership and the campus community the monthly results of cost reduction initiatives

22. General Observations Staff
Highly respected by peers in higher education
Skilled and motivated
Frustrated with pace of transition to more strategic and value-added activities
Burdened by non-value duties and responsibilities
Would embrace and benefit from regular professional development opportunities

23. General Observations Impact of Procurement
Procurement function should be elevated to the highest levels of the organization to support its the strategic objectives of the institution
Designate Procurement as an institutional priority, because it:
Represents second largest percentage of annual operating budget
Interacts with and can positively impact operational efficiencies in virtually every department
Can dramatically impact the Institution's bottom-line by reducing costs and extending the value and potential of every dollar of available funding
Procurement Services should be separated from non-core procurement activities

24. Internal Challenges & Solutions
This all requires change management
“We can't solve problems by using the same kind of thinking we used when we created them.”
- Albert Einstein

25. Ralph Maier and Melánie Lund
Acknowledgement
Ralph Maier and Melánie Lund
E&I Consulting Group
(267)

26. Conclusion