FY2009 P2P Process Initiative Year End Report

Overview

The P2P project team is pleased to provide the June and FY2009 year end process exception report. We have experienced success during FY2009 achieving a supplier payment performance of 80%. To reduce the administrative time and expense caused by exceptions to the P2P process, additional process improvement must occur in FY2010. 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 you for your efforts. This has definitely been our most successful and consistent year since the inception of the P2P initiative. Let's work together to ensure continue process performance improvements in FY2010.

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 did achieve greater than 80% of their PO invoices paid within terms for FY2009. Also, three of the Schools/Centers met or exceeded the 85% targeted performance.

The following should be applauded for their accomplishment:

• Annenberg Center For Performing Arts
• Business Services
• Facilities and Real Estate Services
• 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

FY2009 Year End Results

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

Supplier payment performance for June 2009 was 81% and 80% for the fiscal year. The fiscal year performance represents an increase of 7 percentage points versus FY2008. Payment within 45 days in FY2009 was 88%. To obtain our FY10 goal of 88% supplier payment performance, continued improvement is required in this area.

Goal #2: Clear invoice matching holds within 7 days - Goal is 50% reduction in exceptions (greater than 7 days)

Invoice holds not cleared within 7 days during June were 365 holds. The FY2009 average monthly exceptions were 544, an increase of 5% versus FY2008 and 110% greater than the FY2009 goal of 259 average monthly exceptions. Significant performance improvement in FY2010 is required in this area.

Goal #3: Reduce the number of invoices not entered into BEN within 15 days of the supplier invoice date by 50%

The number of exceptions for invoice not entered into BEN within 15 days was 4,028 in June. The FY2009 average monthly exceptions were 6,556, a 17% decrease versus FY2008 and 66% greater than the FY2009 goal of 3,948 average monthly exceptions. While progress was achieved during FY2009, performance improvement in FY2010 is still required in this area.

Goal #4: Reduce the number of purchase orders approved after the supplier invoice date by 50%

The number of exceptions for purchase orders approved after the supplier invoice date was 733 in June. The FY2009 average monthly exceptions were 854, a 20% decrease versus FY2008 and 60% greater than the FY2009 goal of 534 exceptions. While progress was achieved during FY2009, performance improvement in FY2010 is still required in this area.

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

The number of C-Forms processed in June was 8,552. The FY2009 average of 7,065 is virtually unchanged versus FY2008. Significant performance improvement in FY2010 is required in this area.

Goal #6: Reduce invoice rejections by 50% due to PO cancels and PO final closes

The number of invoice rejections in June was 384. The FY2009 average of 312 is an increase of 14% versus FY2008. These invoice rejections are caused by PO cancellations or final closes prior to receipt and processing of all invoices. Significant performance improvement in FY2010 is required in this area.