Procurement Future Team

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Procurement Future Team

• Andrew Aiello
• Colin Anderson
• Carolynn Blankenship
• Michael Counts
• Sally Czarniecki
• Jay Jahnke
• Joe Meyer
• Ron Trimmer
• Lynette Wright

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M-ProcurementPurchase to Pay!

• Proposed Organizational Model

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Agenda
1. Introduction
2. Current Operation
3. Customer Focused Flow
4. Core Activities and Teams
5. Proposed Operational Model
6. Challenges and Benefits
7. Comments and Feedback
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The Procurement Organizations Vision

• To provide premier procurement and logistical
  services to fulfill customer needs by leveraging
  spend we maximize service and quality through the
  effective use of people, processes and technology.

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The Objective

• To propose an operational concept that provides a
  clearer, less confusing picture for our customers
  and us that better leverages our strengths and
  aligns with our new vision.
• One Org! One Focus!

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Current Functional Flow
PURCH
SLA
Customer
MStores
A/P
SPT
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So what do we look like?

• Welcome To The Machine!

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Problems with the Current Procurement
Organization

• Confusion with who to call and how to buy
• Needs to be more customer focused
• Internal competition has resulted in duplication
  of effort and inefficiencies
• Inconsistent delivery of services across the
  organization
• Hard silo communication flow is only two
  dimensional

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Proposed Organization Deliverables

• One portal
• Customer focused
• Eliminate redundancies and improve efficiency
• End service delivery inconsistencies
• Improve internal and external communication
• Agile and responsive to customer needs

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Where does it begin?

• With you our customer!

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Customer Focused Flow
Customer
Core Activity
Core Activity

• Begins with you and aligns all procurement core
  activities to support you
• Creates interdependencies between the core
  activities of the organization to better serve
  you
• Flow is a linked chain of customer-core
  relationships where the focus is to add value
• Any activity that does not support you is defined
  as waste and will be eliminated

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Defining ProcurementCore Activities and Teams

• In order to move forward we analyzed the existing
  procurement structure, pulled apart the elements
  to identify our core activities and defined the
  teams that would perform those activities.

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Procurement Core Activity Teams

• Tactical Purchasing
• Logistics
• Contract Management
• Payables Billing
• Strategic Contracting
• Customer Service

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Tactical Purchasing Team

• Develop a customer relationship and deliver the
  best supply chain value.
• Your first point of contact if you dont know the
  answer
• Your guide through the procurement process
• Your expert procurement advisor and consultant
• Develop RFP / RFQ and execute purchases for you
• Help determine the best method of procurement for
  you

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Logistics Team

• Provide specialized inventory management,
  warehousing, and delivery solutions across the
  University.
• Expertise in inventory management
• Asset tagging services
• Order fulfillment and distribution services
• Desktop proof of delivery services

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Contract Management Team

• Manage all elements of customer and strategic
  contracts
• Supplier contract issue resolution
• Supplier development / performance measurements
• Resolve disputed SUB charges other billing
  issues related to the contracts
• Focus team and contract marketing coordination

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Payables Billing Team

• Process payments to external and internal
  customers.
• Compliance and P.O. auditing
• Electronic billing
• Administer P-Card program
• Vendor maintenance and 1099 reporting
• Administer A/P satellite offices

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Strategic Contracting Team

• Deliver the best supply chain value to the
  University, working with you, the customer.
• Negotiate contracts global to the University
• Leverage University wide spend
• Identify and implement process efficiencies and
  reduce costs
• Coordinate contract task teams

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Customer Service

• Team Embedded
• Team Commitment
• Must be Consistent
• Must be Clear
• Must be Easy to Access
• It is Not a Person
• It is Not a Place
• It is an Organization Wide Philosophy!

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PROPOSED OPERATIONAL MODEL
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Core Operations
Customer Groups
Leadership
Ann Arbor Campus
Tactical Purchasing
Research
Tactical Purchasing
M-Care
Tactical Purchasing
Technology
Tactical Purchasing
Payables Billing
Strategic Contracting
Contract Management
Logistics
Facilities
Tactical Purchasing
Housing
Tactical Purchasing
Dearborn Campus
Tactical Purchasing
Flint Campus
Tactical Purchasing
Athletics
Tactical Purchasing
Customer Service
TOOLS M-Pathways M-marketsite Training
P-Card Procurement Website Customer Feedback
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CHALLENGES
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Our Challenges

• Customer engagement
• Identify customer needs
• Training and re-training
• Current purchasing organizational culture
• Consistent approach to core activities
• Review current contracts and service level
  agreements

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BENEFITS
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Your Benefits

• One portal for access
• Develop and enhance customer relationships
• Less confusing
• Eliminate redundancies
• Consistent communication and processes for you

• Coordinates activities to a defined customer flow
• Open communication across core teams
• Better customer service
• Kinder and more cooperative organization

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Closing

• One Org
• One Focus
• O n Y o u !

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Comments and Feedback