FY2009 P2P Process Exception Report for May

Overview

The P2P project team is pleased to provide the May 2009 process exception report. While May 2009 overall supplier payment performance is at 83%, we continue to ask that all School & Center P2P Champions continue to employ a "proactive" focus for managing process exceptions as defined in the P2P Exception Reports User Guide.

Thanks to all of your efforts, this has definitely been our most successful and consistent year since the inception of the P2P initiative. Let's finish the year strong and move overall supplier performance back to the 80% level.

Ralph Maier - Chief Procurement Officer
Tom Slavinski - Associate Comptroller

FY2009 P2P Recognition

In recognition of the stellar effort demonstrated during FY2009, the following Schools/Centers will achieve greater than 80% of their PO invoices paid within terms. Also, three of the Schools/Centers met or exceeded the 85% targeted performance.

They should be applauded for their accomplishment:

• Annenberg Center For Performing Arts
• Law School
• Provost's Center
• School of Arts and Sciences
• School of Engineering and Applied Science
• School of Medicine
• School of Veterinary Medicine
• Student Activities
• Student Services

Also deserving recognition for "most improved" is Facilities and Real Estate Services (FRES). Focused efforts to reduce process exceptions in FRES resulted in supplier payment performance which has increased by nearly 25 percentage points.

FY2010 P2P Goals

The FY2010 P2P key performance metrics were discussed in the presentation at the last P2P Champions meeting held on May 20th. We will continue our focus of continuing process improvements using process performance metrics established at the onset of the P2P process initiative to guide our improvement efforts. Reducing the number of process exceptions is key to reducing administrative time and effort in the Schools and Centers, and in the central processing offices, as well as improving supplier payment performance.

FY2009 Results Though May

GOAL 1: Increase supplier payment within 30 day terms to 85%

Supplier payment performance for May 2009 was 83% and 79% YTD. We continue to pay 87% of our invoices within 45 days and we need to push this to below 30 days.

GOAL 2: Clear invoice matching holds within 7 days

Performance improvement is required in this area. The FY09 year-to-date average through May is 560, an increase of 8%.

GOAL 3: Complete invoice entry in BEN within 15 days of the supplier invoice date: reduce these exceptions by 50%

The FY09 year-to-date average for these exceptions is 6,786, a reduction of 14%.

GOAL 4: Purchase Orders approved after the supplier invoice date; reduce these exceptions by 50%

The FY09 year-to-date average for these exceptions is 865, a decrease of 19%. This continues to be our most consistent area for exception reduction throughout FY09.

GOAL 5: Reduce the number of C-Forms processed by 25%

Performance improvement is required in this area. The FY09 year-to-date average for these exceptions is 6,930, a decrease of 2%.

GOAL 6: Reduce invoice rejections by 50% in FY09

Performance improvement is required in this area. The FY09 year-to-date average . for these exceptions is 306, an increase of 12%.