# Presentation: 829181

## Supply Chain ManagementPresented by Anil Moreat Finance NetworkDecember 14, 2005 

**Supply Chain Management**Presented by Anil Moreat Finance NetworkDecember 14, 2005** **

## Supply Chain Management

- A management system that coordinates and integrates all of the activities performed by supply chain members into a seamless process, from the source to the point of consumption.

## LBNL SUPPLY CHAIN MANAGEMENT 

**Receiving**

**Transportation**

**Property**
**Management**

**Accounts**
**Payable**

**General Ledger**
**(Property Accounting)**

**Shipping**

**Salvage**

**Requestor**
**(customer)**

**Facilities**

**Finance**

**Division**

**Suppliers**

**Suppliers**

**Procurement**

**LBNL SUPPLY CHAIN MANAGEMENT **

## Supply Chain Management

- Contract Provision – Save $30M over 5 years
- Small Business subcontracting goals (40%)
- Objective - Enhance the Laboratory's scientific competitiveness through optimization of business resources, processes and activities
- Series of initiatives focusing on the entire process from source-to-pay
- Organizational Transformation

## Benefits of Supply Chain Management

## FY 2005 Procurement Profile

**FY 2005 Procurement Profile**

## Procurement Transformation

**Procurement Transformation**

- Enable end users to make their own buys
- Move high transaction level, low dollars into one consistent way of doing business lab wide – B2B
- Establish reasonable and consistent controls. Eliminate Requisition approval for any item <$500
- Consolidate and reduce one off buys
- Negotiate contracts
- Lab Supplies and Equipment
- Computers and Supplies
- Office Supplies

## Accounts Payable Transformation

**Accounts Payable Transformation**

- 60,000 transactions/year
- Highly Manual Process – Only 42% invoices (25,000 transactions)
- Only 12% of payments are made electronically. Majority of payments are made by check
- As contracts are established all invoices and payments to be electronic
- Establish reasonable and consistent controls
- Blankets and certification process broken and need to be fixed

## 3

**3**
**Manager approval**

**2**
**Find & complete form**

**1**
**Find catalogue**

**16**
**Payment is mailed**

**11**
**Mail PO to Supplier**

**10**
**Buyer checks catalogue, creates PO**

**9**
**Enter into PO**

**12**
**Supplier ships**

**13**
**Receiving department delivers to you**

**4**
**Maybe more approvals**

**14**
**AP Matching**

**15**
**Cheque is written**

## Slide 10

## Slide 11

## Slide 12

## Slide 13

## Automating our Supply Chain

**Automating our Supply Chain**

## The eProcurement Vision

- Seek state-of-the-art desktop buying solution. Direct Connect
- Reduce procure-to-pay time and internal processing cost
- Leverage key supplier spend
- Decrease purchase price
- Simplify product purchasing
- Improve customer satisfaction

## Direct Connect

**Direct Connect**

- Users

- Users

- Users

- Suppliers

- eProcurement
- Application

- Punch-out Session

- Items

## Proposed eProcurement “Punch-Out” Process

- Finance Network

*December 14, 2005*

- Access through the BLIS Portal

## Authentication 

## Vendor Selection 

## Vendor’s B2B Home Page

## Search on “voltmeter”

## Product selection

## Select Item and Enter Quantity

## View Shopping Cart and Check Out

## Verify Information and Submit

## Confirmation 

- 20
- 522.00

## Can Print Summary Requisition