With approximately 55,000 purchase orders taking place across the University in the 2018/19 financial year, it is important that the University has an effective and consistent approach to purchasing. That’s why a new way to make purchases is being developed as part of the Finance Functional Review.
This new Purchase-to-Pay (P2P) aims to make it much easier to purchase goods and ensure value for money in the process. The process also introduces more oversight in how the University is spending its money, helping ensure consistency and appropriate use of suppliers. This process includes everything from identifying products and suppliers (some via an e-marketplace) through to purchasing required goods and services, goods receipting, invoice registration and payment.
You can see the new process by downloading this infographic: How to make a purchase in 6 simple steps .
A new way of working
The changes to the P2P process aren’t just about making the old process electronic. Following extensive consultation and process review, the P2P project team has been working closely with Faculties and subject matter experts to try and improve the process, making it more efficient and providing better oversight to budget holders.
As part of the process, a new electronic approval workflow has been approved by the Finance Functional Review Board and Senior Leadership Team. The approval workflow will be built into Agresso Web, with alerts automatically issued to agreed approvers for action when requests are made to purchase goods and services. Different approvers have been identified for different levels of spend. The adoption of this new approval workflow represents a key change to working practices across the University and will be tested thoroughly during the P2P Pilot to gauge its impact and suitability for wider deployment across the institution.
A more familiar online shopping experience
A large proportion of purchases made at the University are from a relatively small number of suppliers. These tend to be for standard, regularly used items that you would pick out of a catalogue, things like stationary, paper and basic lab equipment. To support purchases such as these, the University will also be introducing an e-marketplace as part of the new P2P process.
Once in place, the e-marketplace will offer staff a purchasing experience comparable to shopping on Amazon, with the ability to select and order a wide range of goods via an online catalogue. Orders placed via the e-marketplace will be subject to the same approval workflow as goods orders via Agresso Web.
The P2P team has successfully completed a competitive tender process to appoint a new e-marketplace provider. The contract has been awarded to Advanced (previously Science Warehouse), who have extensive experience within the Higher Education sector and NHS.
Testing the new process
Currently, there a large number of different local procurement and approval processes across the University. The new process is part of a drive for consistency in procurement, but we have to make sure that the new process fits the requirements of our diverse University community. Because of this, a thorough testing and consultation phase is paramount in successfully introducing the new electronic process.
A pilot will be starting in August 2020 to test each stage of the new P2P process. The pilot will be phased, with phase 1 focusing on requisitioning and phase 2 testing the new e-marketplace. Extensive consultation has been undertaken over the last few months with Faculty and School Finance Teams and designated contacts within PS departments to agree which areas should pilot the new P2P process.
The following areas will be taking part:
- Management School
- School of the Arts
- School of Physical Sciences
- School of Environmental Sciences
- CSD
- FRCS
The findings from the pilot will support and inform ongoing discussions regarding the wider role out of the new P2P process. A common approach taken by other universities is to have central or faculty-based hubs responsible for purchase approval activities. The P2P workstream team is currently exploring all options and potential operational models, assessing the benefits, potential impact on staff, and risks to the University. No changes will be made to roles and responsibilities and/or grades without consultation with staff and the trade unions.
Supporting staff
Training and events will be available to staff as the new P2P process and e-marketplace is rolled out across the University. Further information is available here.
Elsewhere in the Finance Functional Review
Things are also moving forward in the International Student Payments (ISORPS) workstream, with work taking place on identifying a new international online payment system to better support our international students, including those from China.
Initial discussions have already taken place with potential suppliers and a competitive tender process will take place over the summer. The aim is to have this new online payment system in place by spring 2021 to enable international students to pay deposits, tuition fees and accommodation costs more easily and efficiently, prior to joining the University in 2021.