4. UPMC’s Supply Chain Environment
Spend Managed:
• $1.8 billion
Transaction Volumes:
• Process 70,000+ invoices per month
• Process 4,000+ purchase requisitions per week
• Manage over 600 point of consumption material carts
• Receive 1.1M packages per year; central distribution center
6. UPMC Supply Chain
7.9 Million cellular phone minutes
355 Million KWh of electricity
956 Miles of rolled paper towels
11 Million minutes of audio conferencing
26 Million lbs municipal solid waste
33,739 lbs of ground coffee
8.1M Clorox wipes
84 Million exam gloves
2.2 Million alcohol prep pads
1.6 Million syringes used
4.1 Million isolation & cover gowns
542,523 lbs of poultry
31,035 Miles of toilet paper
6,495 Airline tickets
7. Agenda
• UPMC Overview
• Introduction to sPro
• Project Goals / Benefits / Scope / Methodology
• Business Process Design & setup
• Using sPro
– eProcurement Requisitions for Services
– Processing Work Orders
– External Supplier Portal (Viewing Work Orders, Entering Progress Logs, Inquiry)
– Approving/denying Progress Logs and Inquiry
• Challenges
• Lessons Learned
• Supplier Deployment Plans / Next Steps
• Questions
8. sPro Overview
• Overview
– Enables control and oversight of services spend
– Reduces excessive service costs
– Creates visibility and enforces compliance
– Allows effective management of the process from request through settlement
9. sPro Overview
Requestor Service
Request Procure Manage Settle Analyze Providers
Standardized Templates Centralized Information Supplier Collaboration
• ePro requisition • Approved suppliers • View Work Orders
Secure
• sPro Work Order • Negotiated contracts and rates • Submit progress logs
Access
Projects Financials
• PO Integration • Electronic bill
presentment
• Plan and budget
10. sPro Enables Flexible Progress Payments and Approvals
• Supplier enters payment amount in progress
logs
• Multiple entries permitted for partial completion
Fixed Amount
• Require approval from
• Payment is made when the agreed upon
milestones are completed
requesters
• Suppliers can designate a milestone complete • Enforce contracted
Milestone once payment schedules and
rates
• Supplier enters the percentage of completion
• Eliminate premature,
• Payment amount based on percentage
completion of the total work order amount excessive and/or
Percentage
incorrect payment
requests
• Payment amount based on the agreed rate for
the activity
• Payment based on the quantity entered in the
progress log
Rate Based
11. Agenda
• UPMC Overview
• Introduction to sPro
• Project Goals / Benefits / Scope / Methodology
• Business Process Design & setup
• Using sPro
– eProcurement Requisitions for Services
– Processing Work Orders
– External Supplier Portal (Viewing Work Orders, Entering Progress Logs, Inquiry)
– Approving/denying Progress Logs and Inquiry
• Challenges
• Lessons Learned
• Supplier Deployment Plans / Next Steps
• Questions
12. UPMC sPro Deployment - Project Benefits / Goals
sPro is helping UPMC to achieve the following goals:
• Increase control over our services spend
• Automate invoice activity and put the onus on the vendor to start the process to collect
their payments
• Reduce the use of blanket orders for services
• Accommodate progress payments driven by milestones or the percentage of a total dollar
value
• Capture/definition of rates for services
• Better management of Project-related services
Benefits of sPro deployment include:
• Leverage existing eProcurement application and workflow
• Ensure use of contracted rates and suppliers
• Increase control by introducing “invoice” approvals that are performed by the original
requester of the service
• Eliminate match exceptions and related rework
• Automate manual invoice processes
• Earn discounts through early payments
• Provide self-service inquiry capability to help suppliers apply payments correctly
13. UPMC sPro Deployment - Project Scope
• In-Scope
– Configuration, testing and deployment of sPro for deliverable-based Work
Orders with the following settlement methods:
• Fixed Amount
• Percentage
• Milestone
• Rate-Based
– Integration with Project Costing through the Purchasing module
– Supplier interaction with Services Procurement via the External Supplier Portal
– Initial pilot with a small group of users / one vendor
– Subsequent vendor by vendor roll-out
• Out-of-scope
– Resource-based Work Orders with timesheet reporting/approval
– Integration with Strategic Sourcing (customized to eliminate this)
– Integration with Purchasing Contracts
14. UPMC sPro Deployment - Project Methodology
•Investigated functionality in Demo and conducted initial testing - delivered functionality did not meet UPMC’s needs or function
fully
•Determined that UPMC would customize portions of the application
Plan •Developed the project plan based on the Functional and Technical Design Documents
•Gathered and documented business requirements & process for sPro and the External Supplier Portal
•Developed Functional Design Documents for customizations needed to support business requirements
Design •Created Technical Design Documents to establish a record of the technical changes needed
•Completed and documented sPro configuration
•Created prototypes of various page changes/pages
Build •Executed technical development required to build customizations/custom processes and ready the External Supplier Portal
•Initial testing was required after applying a large patch from Oracle
•Conducted multiple rounds of testing (shakedown, unit, integration, regression) with sPro and all related modules with DEV,
TST, PRD migration
Test •Self-Service Portal, eProcurement, sPro, PO, External Supplier Portal, AP, GL, Project Costing
•Conducted intro/overview sessions for each user group
•Developed process documents for each section of sPro, organized by user function/tasks
Train •Created and delivered training for End Users, Purchasing Staff and Vendor Contacts
•Initiated a pilot deployment with a small group of users (~30-60 days)
•Identified a list of target suppliers for future deployment and initiated planning
Deploy
15. Agenda
• UPMC Overview
• Introduction to sPro
• Project Goals / Benefits / Scope / Methodology
• Business Process Design & setup
• Using sPro
– eProcurement Requisitions for Services
– Processing Work Orders
– External Supplier Portal (Viewing Work Orders, Entering Progress Logs, Inquiry)
– Approving/denying Progress Logs and Inquiry
• Challenges
• Lessons Learned
• Supplier Deployment Plans / Next Steps
• Questions
17. Set up steps required prior to use of sPro
Complete configuration and security setup
Select the Vendor
– Complete Checklist / Supplier Review – Is sPro a good fit?
• Includes review of ongoing orders/end users throughout UPMC
• Goods, services or a combination?
– Evaluate current invoicing methods and possible settlement method types
– Assess taxability and other unique requirements for doing business with the supplier
Communication to End Users and Vendors - ID contacts & gather details; overview
of tools & related process
Complete Vendor and End User Access Requests and related setup
Contract review / addendum (including rates if needed) and sign tech agreements
Complete category/Service Type, Vendor and Activity setup in ePro/sPro
Conduct Vendor and End User Training
Cutover planning (from old Purchase Orders to sPro) and coordination of new
order creation – particularly critical with Projects
18. Agenda
• UPMC Overview
• Introduction to sPro
• Project Goals / Benefits / Scope / Methodology
• Business Process Design & setup
• Using sPro
– eProcurement Requisitions for Services
– Processing Work Orders
– External Supplier Portal (Viewing Work Orders, Entering Progress Logs, Inquiry)
– Approving/denying Progress Logs and Inquiry
• Challenges
• Lessons Learned
• Supplier Deployment Plans / Next Steps
• Questions
19. eProcurement Requisitions for Services
Requisitions begin in the
same way…
New Links!
•Manage Progress Logs
•sPro Inquiry
20. eProcurement Requisitions for Services
Selecting “Services Requisition”
defaults the origin code to SPC
Selecting “Services Requisition”
also makes a new link available
on the Special Request tab
21. eProcurement Requisitions for Services
By clicking the “Fixed Cost Service” link, we can enter details about the service requisition.
23. eProcurement Requisitions for Services
Services requisitions follow the same, established eProcurement workflow as all other requisitions.
24. Agenda
• UPMC Overview
• Introduction to sPro
• Project Goals / Benefits / Scope / Methodology
• Business Process Design & setup
• Using sPro
– eProcurement Requisitions for Services
– Processing Work Orders
– External Supplier Portal (Viewing Work Orders, Entering Progress Logs, Inquiry)
– Approving/denying Progress Logs and Inquiry
• Challenges
• Lessons Learned
• Supplier Deployment Plans / Next Steps
• Questions
25. Processing Work Orders – Accessing Work Orders
Primary menu option for
Service Coordinators
New Navigation to sPro
26. Processing Work Orders - Searching for Work Orders
Search for Work Orders
Select Work Orders to
review/take action
27. Processing Work Orders (Service tab)
WO header details
Defaulted Info from the ePro
req
Service information is
defaulted from the req,
including:
•Service Type (Category)
•Initial settlement type
•High-level scope of work
•Requesting dept and location
28. Processing Work Orders (Service tab, continued)
Populated with Service
information from req,
including:
•Projected start date
•End date
•Vendor information
29. Processing Work Orders (Approvals and Alerts tab)
The Progress Log Approver is
the ePro Requester!
30. Processing Work Orders (Comments tab)
Comments from ePro req will
appear on the WO; additional
comments can be added
31. Processing Work Orders (Cost tab)
Value of WO defaults from req
total
Progress Log Template (type of
settlement method) and Activities
(how progress is reported)
determine WO structure and how
vendor will invoice
Chartfield information defaults
from req
If project-related, a “ghost” PO
will be created upon release
32. Processing Work Orders (Cost tab) - Activities
Activities must be set up in sPro
before they can be selected on a
Work Order.
After an activity is picked, Service
Coordinators enter a number of
hours to be worked (rate-based) or
total value (fixed amount) or amount
upon completion (milestone).
30.00
33. Processing Work Orders (Consumption tab)
The Consumption tab
appears after the WO is
released and shows the
amount consumed,
remaining and invoiced.
34. Processing Work Orders - Key Items to Note
• Service Coordinators determine the appropriate service/settlement
method/activities and update the WO accordingly
• Service Coordinators use a work instruction to determine taxability and
associate activities if needed to capture sales tax
• After a WO is finalized, it must be submitted and released
• Service Coordinators can only manage/process their own WOs
• WOs cannot be modified at all after release
– If the funds are completely depleted, a new requisition must be entered
• A “ghost” PO will be created for project-related WOs only
– This is necessary to facilitate integration with Project Costing
– No action required by Service Coordinators – POs build as approved and
dispatched
35. Agenda
• UPMC Overview
• Introduction to sPro
• Project Goals / Benefits / Scope / Methodology
• Business Process Design & setup
• Using sPro
– eProcurement Requisitions for Services
– Processing Work Orders
– External Supplier Portal (Viewing Work Orders, Entering Progress Logs, Inquiry)
– Approving/denying Progress Logs and Inquiry
• Challenges
• Lessons Learned
• Supplier Deployment Plans / Next Steps
• Questions
36. External Supplier Portal – Logging In
Service Provider
Contacts receive a
personal User ID and
Password
37. External Supplier Portal – Navigation
This is the main Navigation screen
within the External Supplier Portal
Selecting “Services Requisition”
Initially, the Portal will be used for
defaults the origin code to SPC
Services Procurement only but future
deployments of other tools are planned
38. External Supplier Portal – sPro Navigation / Menu Options
After clicking on “Services
Procurement,” additional menu options
are available
39. External Supplier Portal – sPro - View Work Order
Suppliers can search within their list of
Work Orders
To select a Work Order, click the blue
underlined link
40. External Supplier Portal – sPro - View Work Order
The Work Order Details tab provides
overview information
High-level detail includes the name of
the Requester
More detailed Service Information
covers the type of service, requesting
location and high-level scope of work
41. External Supplier Portal – sPro - View Work Order
Duration Information provides the
length of the service term
Supplier information is displayed here
The Progress Log approver is the
same person as the Requester
42. External Supplier Portal – sPro - View Work Order
Work Order details (such as the total
value) are visible, but cannot be edited
by the Vendor
42
43. External Supplier Portal – sPro - Maintain Progress Logs
Suppliers can search for WOs to enter
Progress Logs , or can search existing
Progress Logs
45. Submit Progress Logs (rate-based)
The Vendor’s
invoice number is
entered here
Select an Activity to indicate
the work performed, Input the
number of hours worked
45
46. Submit Progress Logs (fixed amount)
The Vendor’s
invoice number is
entered here
Add comments to
send to the
Approver; may
include dates of
service or other
details
Select an Activity to indicate
the work performed, Input a
Complete Date and the
Billable Amount
47. External Supplier Portal – sPro - Submit Progress Logs
The “Details” link
launches a page
that covers the
details/history of
this Progress Log
The “History
Information” link
displays the status
of all Progress Logs
submitted against
the Work Order
48. External Supplier Portal – sPro - Submit Progress Logs
After clicking “Submit
for Approval” a
confirmation is
requested
After clicking OK, we return
to the “Maintain Progress
Logs” screen and see the
new Progress Log
displayed in the list
49. External Supplier Portal – sPro - Vendor Invoice Inquiry
A custom sPro Inquiry page can be used to track the status of Progress Logs from submission to payment
This page can be used by multiple contacts within the Vendor’s organization
50. External Supplier Portal – sPro - Key Items to Note
• Each contact at a Vendor company will have their own User ID and Password
• Only one “Service Provider Contact” can be assigned to a Work Order – this is
the only person who can submit Progress Logs for that Work Order
• The SCM Sourcing Specialist works closely with the Vendor to construct the
Work Order and explain how progress will be submitted (settlement method)
• Once the value of the Work Order is fully consumed, no Progress Logs can be
submitted and the process must begin again with a new requisition/Work Order
• If a Progress Log is denied, the Vendor has the opportunity to modify and
resubmit for approval
• UPMC is treating the Progress Log as the Vendor’s “Invoice” to UPMC
• This is the only method to invoice UPMC and be paid for the specified services -
no paper invoices may be submitted
51. Agenda
• UPMC Overview
• Introduction to sPro
• Project Goals / Benefits / Scope / Methodology
• Business Process Design & setup
• Using sPro
– eProcurement Requisitions for Services
– Processing Work Orders
– External Supplier Portal (Viewing Work Orders, Entering Progress Logs, Inquiry)
– Approving/denying Progress Logs and Inquiry
• Challenges
• Lessons Learned
• Supplier Deployment Plans / Next Steps
• Questions
52. Progress Log Review / Approval
Approvers begin the process
to approve Progress Logs on
the eProcurement Homepage
52
53. Progress Log Review / Approval
Progress Log Approvers can
search for specific Progress
Logs, or work from a list
54. Progress Log Review / Approval
Approvers can review
comments and the work
completed by Activity, and
can approve or deny the
Progress Log
55. Progress Log Review / Approval
Additional detail is available
for each Activity line,
including the approval history
of the progress log
56. Progress Log Review / Approval
If the Progress Log is denied,
users are trained to enter a
comment.
Whether the Progress Log is
approved or denied, a
confirmation is required.
56
57. sPro Inquiry – Internal UPMC Users
A custom sPro Inquiry page can be used to track the status of Progress Logs from submission to payment.
58. Key Items to Note – Progress Log Approval
• UPMC is treating the Progress Log as the supplier’s invoice of record
• Approvers have the ability to review any supporting documentation that
the Vendor attached to the Progress Log
• Progress Log Approvers may only approve or deny a Progress Log – we
do not permit edits
• If the work is not fully completed or there are other issues with the
Progress Log, Approvers are instructed to deny the Progress Log and
enter detailed comments
• The Vendor receives notifications when Progress Logs are approved or
denied
59. Agenda
• UPMC Overview
• Introduction to sPro
• Project Goals / Benefits / Scope / Methodology
• Business Process Design & setup
• Using sPro
– eProcurement Requisitions for Services
– Processing Work Orders
– External Supplier Portal (Viewing Work Orders, Entering Progress Logs, Inquiry)
– Approving/denying Progress Logs and Inquiry
• Challenges
• Lessons Learned
• Supplier Deployment Plans / Next Steps
• Questions
60. Challenges
• Few organizations have deployed sPro focusing on Deliverable-based
Work Orders/Progress Logs
– Not many opportunities existed to compare notes and benchmark
• sPro configuration offers an overwhelming number of options
– Narrowing this down to the appropriate setup for UPMC was time-intensive and
involved “trial by error” investigation
• Testing revealed that a relatively large patch was needed from Oracle in
order for the deliverable-based Work Orders to function properly
– This required a fair amount of additional development and testing that was not
anticipated
• A significant development effort and time investment was required to
complete all customizations
• Defining security and properly establishing user setup was an iterative
process
– sPro user setup differs from all other PSFT modules that we are aware of and the
order of events is extremely important
61. Lessons Learned
• Engagement from operational areas is critical in the early stages of requirements
development to validate the business process that is created and ensure it will
meet operational needs
– eProcurement users, Strategic Sourcing, Purchasing, Accounts Payable, Project Costing, Project
Finance, Finance/Accounting, Construction Accounting, General Ledger
• Very detailed configuration documentation proved to be a worthwhile
expenditure of time and resources
– Reconfiguration was required many times over the course of the project due to refreshes and
migration to other instances – small differences in config can produce major issues
• Significant custom development on a new module will generally take longer than
anticipated
• An external consulting resource was very helpful in researching sPro
capabilities/issues and assisting with development/testing
• Thoughtful and thorough unit/integration/regression testing identified issues
early and provided critical feedback to development
– Approximately 500 test scripts were executed
62. Supplier Deployment Plans / Next Steps
• Complete the pilot deployment with our initial supplier
– Feedback from end users and the Vendor is extremely positive
• Eliminated blanket orders, paper invoices and related processing time (including
lost invoices)
• Greater visibility for End Users into consumption against the Work Order
• Vendors are enthusiastic about the ability to review progress log and payment
status on their own
– A pilot wrap-up session will help identify opportunities for improvement and future
enhancements
• Extended roll out plans
– Developed process documents for future vendor deployments
• Example suppliers include: Linen, Landscaping, Snow Removal, Cabling, IT
consulting, IT services, recruiting services, equipment repair
– Created a list of initial priority vendors for roll out
– Future deployments will be vendor by vendor
