Supplier Relationship Management

(“SRM”)
SAP Upgrade Project
Phase 2 Information Session #2
August 17, 2006
Agenda

Project Update

Timeline

Cutover

Phase 1 Training
Policy Update
Supplier Enablement
SRM Customer Support Center (CSC)
Phase 2

Summary

Preliminary Training Approach
Discussion

Page 1
SAP SRM Upgrade Project
 Project Update

Timeline
Apr May Jun Jul Aug Sep Oct Nov Dec Jan

Design System PHASE

PHASE 11 (7/24-8/4)

Build System UAT • Scope: EBPro Upgrade,

Supplier Enablement
T3 EUT • Audience: EBPro
(7/24-8/4) (8/7-8/25) Go-Live (late Aug) Requisitioners, Receivers,
Approvers
Support (BP)

SR

PHASE
PHASE 22
• Scope: Bidding, POs, Contracts,
Service Procurement, Supplier Build System
Collaboration (w/ orders &
UAT
invoices)
• Audience: DGS and Agency T3 EUT
Purchasing Agents, Approvers
Go-Live (mid Dec)
(~1200+)
IS IS IS RM AS IS IS
(late-Sep) Support (BP)
Legend
= Supplier Registration (SR)
= Role Mapping (RM)
= Awareness Sessions (AS) HERE’S
HERE’SWHERE
WHERE
WE
WEARE
ARE
= Information Sessions (IS)
Page 2
SAP SRM Upgrade Project
Project Update

Cutover

Timeline
Beginning 8/21,
SRM cutover
— Fri, Aug 25: Current EBPro system ends
messaging will be
— Sat, Aug 26-Wed, Aug 30: Cutover and controlled access
displayed in SAP
— Thu, Aug 31: SRM Go-Live
upon user log-in

Other Important Information
— Approve all shopping carts by 5 PM on 8/25…OR THEY WILL BE LOST!
— Any immediate requirements can be processed in R/3 during cutover period
— Goods receipts can be performed in SRM on carts fully approved in EBPro
— Favorites, Templates and Check Status in EBPro not carried forward to SRM
First-Time
First-Time Log-In Procedures (Posted
Log-In Procedures (Posted to
to SRM
SRM Project
Project website)
website)


End-users
End-users should
should use
use Change Attributes under
Change Attributes under SRM:
SRM: My Settings to
My Settings to set
set specific
specific attributes
attributes


Mandatory
Mandatory Attributes
Attributes
–– Default
Default Ship-To
Ship-To (Delivery)
(Delivery) Address
Address
–– Default
Default Plant
Plant


Optional
Optional Attributes
Attributes
–– Default
Default account
account assignment
assignment numbers
numbers [Cost
[Cost Center
Center (CC),
(CC), Fund,
Fund, Grant,
Grant, Asset,
Asset, WBS,
WBS, Order];
Order]; update
update CC
CC
only if using cost centers other than default from HR org structure; available from agency Fiscal
only if using cost centers other than default from HR org structure; available from agency Fiscal Office Office
–– Default
Default printer
printer
–– Forward
Forward work
work item
item flag,
flag, ifif users don’t want
users don’t want to
to receive
receive shopping
shopping cart
cart approval
approval emails
emails
Page 3
SAP SRM Upgrade Project
Project Update

Phase 1 Training

Train-the-Trainer (T3)
— Complete; 80 trainers from 19 agencies trained over 2-week period (7/24-8/4)
— Received training skills and SRM system training via classroom instruction, hands-on
exercises within training environment, simulations and teach-backs
— Provided with instruction support materials: instructor guides, course slides (all courses),
classroom simulations and exercises, FAQs, supplemental information

End-User Training
— In-Process; 4 separate courses delivered to 8800 end-users over 3-week period (8/7-8/25)
— Delivery methods include: instructor-led, CBT, and facilitated-CBT
Course Delivery Methods Intended Audience
Overview CBT All EBPro users (Requisitioners, Receivers, Approvers)

New User Instructor-Led
All new EBPro users

Infrequent EBPro Requistioners and Receivers
Delta (What’s
CBT Existing, heavy EBPro users
Changed)
Facilitated CBT
Approver CBT Approvers
— E-LMS used for: enrolling in instructor-led course; enrolling and completing all CBT courses
— DGS responsible for training small agencies; larger agencies train themselves
Page 4
SAP SRM Upgrade Project
Policy Update

Auto-Generated POs

Automation of shopping carts for DGS catalog and punch-out contracts

DGS contracts that are automated with catalog and punch-out will only have
shopping cart approval
— Approval will include only agency personnel based on approval option selected for agency
— Purchase orders under $10,000 will automatically be created and sent to suppliers via fax
(short term) and then XML (long term); approval by Comptrollers’ Offices not required
• Will use reports after the fact to determine that account code assignment is correct
— Purchase orders over $10,000 will stop at Comptroller for approval prior to transmittal

Contracts with Auto-Generated POs:
Punch-out Catalog

ASAP
KB Offset
Schaedler/Yesco

Imagistics Copiers
KLC Inc
Xerox

Imagistics Staples (Tama Graphics)
Kardex
Correctional Industries

PIBH
Williams Heinz Map
Computer Aid

Dell
Moore Wallace
Skelly & Loy

Page 5
SAP SRM Upgrade Project
Policy Update

Agency Contracts/Multiple-Year POs

Elimination of encumbered contract document type in SRM (4700XXX)

Agencies can process 3 types of procurement documents
— Agency-wide contract
— Stand-alone PO up to 5 years
— PO created from an agency-wide or DGS contract

Changes Recommended:
— Contract
• Use when areas within organization will cut PO and encumber at time of PO
(agency-wide contract)
— POs
• Use when bid requires funds encumbered immediately
• PO will include language changes for POs less than one year versus multiple
years to allow for extensions
• Workflow for PO will include agency head, comptroller, agency legal and Attorney
General over $25,000 for services

Page 6
SAP SRM Upgrade Project
Policy Update

P-Card

Roles
— Only users with P-Card role can use P-Card; P-Card information pre-loaded into SRM and
available for selection during shopping process
— New role = P-Card Requisitioner (Purchasing Agent w/ P-Card authority); for PAs who will
only process P-Card carts from internal Material/Service Contract Catalog (M/SCC)

Usage
— Can only use P-Card with suppliers who accept it and have been loaded into SRM by IES
— Cannot order P-Card and non-P-card items in same cart (have different approval processes)
— No inventory orders in SRM with P-Card

User/Card Ratios
— One Card/One User: Based on BFM policy and SRM functionality, unique user can only be
associated with one unique card (i.e., 10 people in SRM cannot use same card)
— Single user may have more than one card and can select proper card to use within SRM

Spending Limits
— Cart Limit: Upon Go-Live of SRM (8/31), cart limit increased from $3K to $5K; if transaction
greater than $5K, system will stop cart
— Card Limit: Individual card limits vary; MUST monitor total spend on card as it may be
used for purchasing outside of SRM

Page 7
SAP SRM Upgrade Project
Policy Update

P-Card (cont’d)

Approvals
— Agency determines if approval required for P-Card purchases; if defined by agency, all
carts will follow that process

Other
— Retain all receipts/packing lists for purchases made via SRM (per process currently used)
— Reconciliation process will continue as it does today in WORKS program
— All suppliers accepting P-Card listed on DGS website (see link below), but only those
listed on Slide 10 are enabled via SRM for Phase 1
• http://www.dgs.state.pa.us/procurement/site/default.asp

P-Card Failure Scenarios (i.e., what to do if the following occurs)
— Cancelled Card
• 1) Delete cart; 2) New card issued by BFM/P-Card Coordinator per policy; 3) Update card data in
SRM; 4) Create new requisition with new card (number)
— Card Limit Exceeded
• 1) Delete cart; 2) Request limit increase per policy; 3) Delete cart and create new requisition with
new card limit
— Change P-Card cart to Standard cart that creates PO based on above scenarios
• 1) Delete P-Card cart; 2) Create new standard cart

Page 8
SAP SRM Upgrade Project
Policy Update

Delegations

Requests for delegations of procurements should be exception, rather than normal
operating procedures

Recognize that certain procurements for specialized services will have to be
delegated back to agencies
— Mine Reclamation
— Drug Treatment Services
— Mental Health Services

DGS (procurement process expert) will coordinate efforts with agency (subject
matter expert)

Request for delegation should be made at least 5 days prior to beginning of
procurement process

Service Level Commitment

DGS will respond to request for delegation within 5 business days

Page 9
SAP SRM Upgrade Project
Policy Update
Delegations (cont’d)

Full Delegation
— Agency maintains sole authority

Conditional Delegation
— DGS and Agency share authority
SAP SRM Upgrade Project
Agency DGS

Develop Comprehensive Project
Review Delegation Request
Plan & Timeline
Provide Consultative

Research Needs and Industry Assistance Upon Request

Participate in Group Meetings

Develop RFP/ITB and Release

Conduct and Manage Group
Meetings

Evaluate Scoring

Voting Responsibility

Negotiate on Behalf of Agency

Process Final Contract
Documents
Agency DGS

Research Needs and Industry
Review Delegation Request

Develop RFP/ITB and Release
Provide Consultative
Assistance Upon Request

Conduct and Manage Group
Meetings
Develop Comprehensive Project
Plan & Timeline

Evaluate Scoring

Participate in Group Meetings

Voting Responsibility

Process Final Contract

Negotiate on Behalf of Agency
Documents
Page 10
Supplier Enablement

Summary of “Enabled” Suppliers (Phase 1 and 2)

Material Suppliers Punch-Out M/SCC Project Phase P-Card Auto-PO
ASAP X 1 No Yes

Imagistics Copiers X 1 Yes Yes

Imagistics Staples (Tama Graphics) X 1 No Yes

PIBH X 1 Yes Yes

Dell X 1 Yes Yes

OfficeMax X 2 Yes Yes

ePlus X 2 No Yes
Grainger X 2 Yes Yes
Wesco X 2 Yes Yes
KB Offset X 1 Yes Yes
Williams Heinz X 1 Yes Yes
Moore Wallace X 1 Yes Yes

Kardex X 1 No Yes
Schaedler/Yesco X 1 Yes Yes
Xerox X 1 Yes Yes
KLC Inc X 1 No Yes
Correctional Industries X 1 No Yes

Service Suppliers
Computer Aid X 1 No Yes
Skelly and Loy X 1 No Yes

Page 11
SAP SRM Upgrade Project
SRM Customer Support Center (CSC)

Purpose/Background

Provide professional, accurate and timely single point-of-contact response
system for SRM

Designed to assist internal (requisitioners, receivers, approvers, purchasing
agents) and external (suppliers) users with SRM-related inquiries

To date, IES has been support organization for all SAP questions and issues
(technical and non-technical); will now handle technical inquiries only

DGS now responsible for responding to non-technical (functional and policy)
SRM questions

Begins upon Phase 1 Go-Live; continues through Phase 2 and beyond

Page 12
SAP SRM Upgrade Project
 SRM Customer Support Center (CSC)

Support Process USER

USER ACCESS
ACCESS CHANNELS
CHANNELS
Phone
Phone
•• Internal:
Internal: 717-346-2676;
717-346-2676; 8-4:30
8-4:30
DGS
DGS Support
Support Responsibilities:
Responsibilities: •• External:
External: 1-877-HELP-363; 8-4:30
1-877-HELP-363; 8-4:30
•• All
All non-technical
non-technical web
web && email
email inquiries
inquiries Email
Email
•• Non-technical supplier inquiries
Non-technical supplier inquiries •• SRMHELP@state.pa.us
SRMHELP@state.pa.us
•• All
All small
small agency
agency EBPro/SRM
EBPro/SRM inquiries
inquiries Web
Web
•• Secondary
Secondary SRM
SRM support
support for
for large
large •• Short-Term:
Short-Term: DGS
DGS SRM
SRM FAQ
FAQ
agencies
agencies •• Long-Term: DGS web site
Long-Term: DGS web site → → Remedy
Remedy

  
CATEGORY Supplier SRM Technical/System Process/Policy

• Supplier Registration
• EBPro Use
• Supplier Registration • P-Card
• Workflow
ISSUE TYPE • Contracts • Shopping Cart & Confirm
• Catalogs
• System Access • Workflow
• All Other
• Catalogs

Primary: Select T3s & BAs

CWOPA Primary: Bid Room Personnel
with EBPro Expertise
PERSONNEL
IES Subject Matter Expert
INVOLVED Secondary: BAs & CSs
IN SUPPORT Secondary: CSs, ACMs, CMs
(Phase2), depending upon issue

Remedy System manages trouble ticket workflow

Page 13
SAP SRM Upgrade Project
Phase 2

Summary

Functionality Enabled
— Create bid invitation/electronic bidding
— Create contracts (statewide and agency)
— Bid and contract workflow
— Create PO and workflow
— PO and invoice transmission via XML
— Supplier registration and collaboration
— Live auction
— Service procurement

Affected Roles
— DGS and Agency purchasing agents and approvers (supervisors, managers)
— Estimated Phase 2 end-users = 1200+

Page 14
SAP SRM Upgrade Project
Phase 2

Preliminary Training Approach

T3 = 2 week (Nov); EUT = 3 weeks (Dec)

Draft curriculum includes:

Course Title Target Audience Length Delivery Method

SRM Overview – Phase 2 All Phase 2 users 30 min WBT
Core Purchasing – Agency All Agency Purchasers 3 days ILT
Bids (RFQ, RFI) 1 day
Contracts 1 day
Purchase Orders ½ day
Reporting ½ day

Core Purchasing – DGS All DGS Purchasers 4 days ILT

Bids (RFQ, RFI) 1 day
Contracts (includes statewide) 2 days
Purchase Orders ½ day
Reporting ½ day

Approvers All Phase 2 approvers 1 hour Facilitated WBT

Live Auction Cockpit (LAC) 5-10 DGS Staff; Suppliers ILT*
Supplier Collaboration Suppliers N/A PDF (via web)*
Bidding, Self-Service, Catalog Content Update

*No T3 training required

Page 15
SAP SRM Upgrade Project
Discussion

Next Meeting

Date: Wed, September 20, 2006

Time: 9:00-10:30 AM

Location: DGS, Bureau of Procurement, Conference Room 9

Topics for Future Meetings

Supplier Registration

eBidding

Service Procurement

Supplier Enablement

Document Builder

Policy Updates

Focus Groups

Other…what other topics are you interested in hearing about?

Page 16
SAP SRM Upgrade Project