cistech, inc. 220 n ames street, matthews, nc 28105 704-849-6717 1 lean procure to pay david...

CISTECH, Inc. 220 N Ames Street, Matthews, NC 28105 704-849-6717 www.cistech.net 11

Lean Procure to Pay

David Kemp Senior Consultant

CISTECH, Inc. 220 N Ames Street, Matthews, NC 28105 704-849-6717 www.cistech.net 22

Lean Procurement Process

22

Create PO -Reqs -Approval -MRP Recs

Communicate with Supplier -Terms, date, quantity -Specifications -Shipping information

Receive Material -Planning -Identify PO/item -Receive to MAPICS

Pay Invoice -Status -EFT

Collect Quotes -Distribute RFQ -Analyze Response

CISTECH, Inc. 220 N Ames Street, Matthews, NC 28105 704-849-6717 www.cistech.net 33

Lean Procurement Process

33

Create PO -Reqs -Approval -MRP Recs

Communicate with Supplier -Terms, date, quantity -Specifications -Shipping information

Receive Material -Planning -Identify PO/item -Receive to MAPICS

Pay Invoice -Status -EFT

Collect Quotes -Distribute RFQ -Analyze Response

CISTECH, Inc. 220 N Ames Street, Matthews, NC 28105 704-849-6717 www.cistech.net

Electronic Requisition Approval

• Integrated into PowerLink with Integrator

CISTECH, Inc. 220 N Ames Street, Matthews, NC 28105 704-849-6717 www.cistech.net 55

• Hierarchy based on user/purchase type

Electronic Requisition Approval

55

CISTECH, Inc. 220 N Ames Street, Matthews, NC 28105 704-849-6717 www.cistech.net 66

eReq: Visibility in Power Link

CISTECH, Inc. 220 N Ames Street, Matthews, NC 28105 704-849-6717 www.cistech.net 77

eReq: E-mail approval

Requisition can be approved directly from email

CISTECH, Inc. 220 N Ames Street, Matthews, NC 28105 704-849-6717 www.cistech.net 88

Lean Procurement Process

88

Create PO -Reqs -Approval -MRP Recs

Communicate with Supplier -Terms, date, quantity -Specifications -Shipping information

Receive Material -Planning -Identify PO/item -Receive to MAPICS

Pay Invoice -Status -EFT

Collect Quotes -Distribute RFQ -Analyze Response

CISTECH, Inc. 220 N Ames Street, Matthews, NC 28105 704-849-6717 www.cistech.net 99

• …can be inefficient– Systems are usually manual– Our orders may be lost in their swamp– They get back to us eventually– Their communications get lost in our swamp

• …can be error prone– Orders, lines, dates, quantities get mixed up– Drawings get lost– Scraps of paper get misplaced

99

The Problem: Supplier Communications

CISTECH, Inc. 220 N Ames Street, Matthews, NC 28105 704-849-6717 www.cistech.net 1010

• Higher staff costs– Buyer resource spent administering paperwork, following up

to confirm orders, calling suppliers for ship dates, updating spreadsheets, faxing…

• Higher production costs– Extra inventory to buffer unreliable suppliers and

communication failures– Increased expedited shipping costs– Production delays or shutdowns due to unexpected

stockouts

• Higher cost of quality– Out-of-date specs and requirements

1010

Operational Concerns:

CISTECH, Inc. 220 N Ames Street, Matthews, NC 28105 704-849-6717 www.cistech.net 1111

For the supplier…• Notification that we placed an order• Online access to real time orders and forecasts• One-click VA (vendor acknowledgment)• Create ASN’s (Advanced Shipment Notification)

For the buyer…• Prompt, two-way communication• Instant visibility of supplier commitments• Instant visibility of shipments• All integrated into Power-Link

1111

Our Solution

CISTECH, Inc. 220 N Ames Street, Matthews, NC 28105 704-849-6717 www.cistech.net 12121212

Supplier Portal: Simple PO scenario

Buyer Place the PO See Supplier

Accept See Shipping

Notification

Supplier• View PO• Vendor Acknowledgement

(VA)• Shipping Notification (ASN)

CISTECH, Inc. 220 N Ames Street, Matthews, NC 28105 704-849-6717 www.cistech.net 13131313

Supplier Portal: ‘Negotiation’ scenario

Buyer Place the PO Review change Accept change See Supplier

Accept

See Shipment Notification

Supplier• View the PO• Propose change (qty, date)• See Customer Accept• Vendor Acknowledgement (VA)

– Currently VA done by BAE

• Shipping Notification (ASN)

CISTECH, Inc. 220 N Ames Street, Matthews, NC 28105 704-849-6717 www.cistech.net

eReq & Supplier Portal

A live demo

Using

PowerLink & the Internet

CISTECH, Inc. 220 N Ames Street, Matthews, NC 28105 704-849-6717 www.cistech.net 1515

Lean Procurement Process

1515

Create PO -Reqs -Approval -MRP Recs

Communicate with Supplier -Terms, date, quantity -Specifications -Shipping information

Receive Material -Planning -Identify PO/item -Receive to MAPICS

Pay Invoice -Status -EFT

Collect Quotes -Distribute RFQ -Analyze Response

CISTECH, Inc. 220 N Ames Street, Matthews, NC 28105 704-849-6717 www.cistech.net 1616

Receiving

• Visibility of Shipment Notifications (ASN’s) enables planning

• Easy to find correct shipment

• Receive Shipment Notification including multiple PO’s and lines with ‘1 click’.

• Bar code packages speed receipt and putaways

CISTECH, Inc. 220 N Ames Street, Matthews, NC 28105 704-849-6717 www.cistech.net 1717

Receiving

• Immediate Visibility of shipments

CISTECH, Inc. 220 N Ames Street, Matthews, NC 28105 704-849-6717 www.cistech.net

Receive Utilizing Shipment Notification

CISTECH, Inc. 220 N Ames Street, Matthews, NC 28105 704-849-6717 www.cistech.net 1919

Lean Procurement Process

1919

Create PO -Reqs -Approval -MRP Recs

Communicate with Supplier -Terms, date, quantity -Specifications -Shipping information

Receive Material -Planning -Identify PO/item -Receive to MAPICS

Pay Invoice -Status -EFT

Collect Quotes -Distribute RFQ -Analyze Response

CISTECH, Inc. 220 N Ames Street, Matthews, NC 28105 704-849-6717 www.cistech.net 2020

Invoice Status

CISTECH, Inc. 220 N Ames Street, Matthews, NC 28105 704-849-6717 www.cistech.net 2121

Electronic Funds Transfer ACH

• Provides Electronic Distribution of Accounts Payable payments

• Enhances the IFM EFT process by providing editing and ‘pre-note’ capabilities

• Creates ACH formatted file and extracts to IFS Drive for transfer to your bank

CISTECH, Inc. 220 N Ames Street, Matthews, NC 28105 704-849-6717 www.cistech.net 2222

EFT -- Workflow

• Process starts after regular IFM approval process

• IFM setup provides vendor settlement method and account number

• Generates ACH Bank File– Provides creation of ‘Pre-notes’ for additional

instructions to the bank• Account Verification

CISTECH, Inc. 220 N Ames Street, Matthews, NC 28105 704-849-6717 www.cistech.net 2323

Lean Procurement Process

2323

Create PO -Reqs -Approval -MRP Recs

Communicate with Supplier -Terms, date, quantity -Specifications -Shipping information

Receive Material -Planning -Identify PO/item -Receive to MAPICS

Pay Invoice -Status -EFT

Collect Quotes -Distribute RFQ -Analyze Response

CISTECH, Inc. 220 N Ames Street, Matthews, NC 28105 704-849-6717 www.cistech.net 2424

Quoting – coming in R2

• Extension of XA-Enter quote data in Power Link– Enterprise Integrator

• Deliver quote requests via Supplier Portal

• Consolidate quote replies in Power Link

• Analyze data with views, sub

CISTECH, Inc. 220 N Ames Street, Matthews, NC 28105 704-849-6717 www.cistech.net 2525

Quoting- Buyer Quote Entry

CISTECH, Inc. 220 N Ames Street, Matthews, NC 28105 704-849-6717 www.cistech.net 2626

Quoting-Supplier Portal Entry

From Buyer Quote Entry

Entered by Supplier

CISTECH, Inc. 220 N Ames Street, Matthews, NC 28105 704-849-6717 www.cistech.net 2727

Quote Analysis

CISTECH, Inc. 220 N Ames Street, Matthews, NC 28105 704-849-6717 www.cistech.net 2828

Lean Procurement Process

2828

Create PO -Reqs -Approval -MRP Recs

Communicate with Supplier -Terms, date, quantity -Specifications -Shipping information

Receive Material -Planning -Identify PO/item -Receive to MAPICS

Pay Invoice -Status -EFT

Collect Quotes -Distribute RFQ -Analyze Response

CISTECH, Inc. 220 N Ames Street, Matthews, NC 28105 704-849-6717 www.cistech.net 2929

• Lean Procurement: Quote to Pay• Transform effectiveness of Buyers

– Power Link is the single source for all information• Quotes• Supplier Commitments• Attachments, Comments• Ship Notices

• Improved visibility and control of Materials– Better information, better decisions

Summary:

CISTECH, Inc. 220 N Ames Street, Matthews, NC 28105 704-849-6717 www.cistech.net 3030

• MAPICS ‘Module’

• Power Link for internal users

• Technology: R7 Enterprise Integrator and System Link

• Low Risk

• Fast Implementation and ROI

• Low ongoing maintenance– Standard XA components

Summary: Quick ROI

CISTECH, Inc. 220 N Ames Street, Matthews, NC 28105 704-849-6717 www.cistech.net 3131

• Quotes (coming in R2)

• Invoice Status

• Upload Invoices

• Supplier Scorecard

• Non Disclosure Agreements

• Other Documents (Engineering)

Enhancements?

CISTECH, Inc. 220 N Ames Street, Matthews, NC 28105 704-849-6717 www.cistech.net 3232

Questions?Questions?