dazzle your cfo: top strategies for 2010
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January 9, 2010
Moderated by:Jack Colletti - CEO, Prodigo Solutions
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• 3 key components of a winning eProcurement strategy
• How you can cut costs by reducing special requests and match exceptions
• How you can rightsize your item master and automate content updates
• Where the savings are "hiding" in your supply chain operation
• Why telecom expense management needs to be a top priority
• How you can get supplier punchout connections enabled in weeks (not months)
Learning Objectives
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Prodigo Solutions is focused on
helping healthcare providers to
drive interoperability and
automation their supply chain
operations.
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Panelists
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Michael DeLucaDirector, Supply Chain
Solutions & Consulting
Services
Brian BichselDirector, Material Systems
Max RothwellManager, MMIS
Becky WalkinshawManager, Purchasing
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How Healthcare Purchasing Really Works
Suppliers -
Not Approved
Purchasing Dept.
AP
Manual
Invoices &
Payments
Manual
P.O.
Manual
Invoices &
Payments
Paper
Requisitions
Paper Disbursement Requests
LocationPurchasing
ERP system
5
Approved
Suppliers
Healthcare purchasing organizations struggle with waste and inefficiency and are slow to adopt enabling technology.
Users are frustrated; search is slow and
cumbersome
Contract compliance
eroded by rogue spending
Automation is non-existent
Poor data quality; no data standardization
Match exceptions result
in extensive rework
Opportunity
ERP system
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Pain: Data Management / Standards
Many
providers
have item
masters that
are bloated
and full of
items that are
non-strategic.
Savings
comes from
“right-sizing”
the item
master.
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Pain: Internal Services (waste)
Catering
Telecom
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Pain: User Experience…How it Should Be…
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How it is today…
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Select Clients
Solutions
Consulting Services
ProdigoDNA™
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• Poor contract compliance waste
• Data Management and item-level detail is poor
• Minimal or no automation
• Manual processes = unnecessary FTE costs and waste
• Large volume of AP exceptions = rework / waste
• No Single User Interface many “one off” connections
• Punchout pricing is inaccurate; no way to audit
• Excessive Purchase Order-to-Supplier transaction time
• Heavy reliance on GPOs minimal local contracting
Pain Points = Opportunity for Savings
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Pain: Resource Constraints
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Presenter3 Key Components of a
Winning eProcurement
StrategyMichael DeLuca
Director, Supply Chain Systems &
Consulting Services
UPMC
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What the CFO Wants…
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PO Transactional Productivity
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What the CFO Wants…
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Procurement’s Cost (or Investment)Procurement cost as a percent of spend
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Component 1: You Must Improve Data Management
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1. Inventory
2. PAR Cart
3. Supports strategic process
3 Simple Rules for Item
Master Mgmt
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Data Management – Best PracticeA Platform for Driving Automation
GPO Catalogs
eCommerce Capable Sites
Internal Services / Specialized Processes
Item Master Data
Item master
Item master
Cancer Center
Pharmacy Ops
•Drive UNSPSC or GS1 standards•Built-in punchout price audit
Local Hosted Catalogs
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Don’t Let Your ERP/MMIS Platform Hold You Back
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Brian Bichsel
Becky Walkinshaw
Driving Rapid Supplier
Enablement
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UPMC Marketplace Growth
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June 2007: UPMC implementation
2008: UPMC grew significant supplier connections
2009: Ecosystem of content keeps growing = significant savings, automation and user adoption
Enabling Marketplace Suppliers Drives Compliance and Efficiency
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Component 2: You Must Drive Automation
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•E-Procurement
•Lights Out Transactions
•AP Transactions
2010 Resolution: 30% of all PO activity = Lights Out!
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• $3M in estimated annualized hard-dollar savings resulting from improved compliance and automation
• 40%+ increase in contract compliance
• 100% e-Enabled (all requisitions originate via eprocurement) with 40% of all purchase orders fully automated or “touchless”
• 40% reduction in special requests
• 40% reduction in time dedicated to item master management
• 35 suppliers on-boarded in 24 months
Case Study: Real Results
UPMC Purchase Order Transaction Productivity (Annual)
Results to date:
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Max Rothwell
The Drive for Automation
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Component 3: You Must Get an MVP
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Accountable for Results
Process Focused
Technology Savvy
2010 Goal: Promote (or hire) Your
“E-Procurement MVP” in Q1
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3 key components of a winning eProcurement strategy
How you can cut costs by reducing special requests and match exceptions
How you can rightsize your item master and automate content updates
Why Telecom Spend needs to be a top priority
Where the savings are "hiding" in your supply chain operation
How you can get supplier punchout connections enabled in weeks (not months)
Recap: Learning Objectives
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Contact Info
Jack Colletti412.370.7177 (direct)
Visit: www.prodigosolutions.com