Georgia State Purchasing Division Improves Statewide Strategic Sourcing with Oracle’s PeopleSoft Enterprise Applications
Redwood Shores, Calif. – August 08, 2011
The Georgia Department of Administrative Services, State Purchasing Division, which serves as the centralized procurement function for state government entities, has implemented Oracle’s PeopleSoft Enterprise applications, running on Oracle’s Sun servers, to improve its supplier relationship management processes and visibility into its purchasing data. With the Oracle system, the division can more easily analyze spending across state agencies and categories, as well as negotiate statewide contracts. The state worked with CherryRoad Technologies on the implementation.
The PeopleSoft system acts as a one-stop shop for procurement processes and integrates with the state’s catalog management system and an existing procurement registry. The state now has line-item detail on purchases, and can pull spending data from across agencies and at the state level – improving statewide accountability and budget optimization. In fiscal year 2011, the PeopleSoft system processed $1.6 billion worth of spending, and the state expects that volume to increase in fiscal year 2012. In addition, as new agencies – in addition to the current 24 – come onto the PeopleSoft system, the state can eliminate license fees it pays on third-party systems – further reducing costs.
The state has also reduced paper use and saved time by eliminating the paper-based payment packages that employees in some departments previously printed and physically delivered to the accounts payable office. These packages include all of the contracts, request for proposals (RFPs) and other documentation necessary for paying a requisition. Today, the PeopleSoft system contains all of this data in an electronic format, enabling users, with just a few clicks, to view the documentation instantly. Additionally, Georgia State Purchasing Division has reduced the average requisition-to-purchase order cycle across agencies from more than 6.07 days to 3.8 days.
Georgia State Purchasing Division has also enhanced the purchasing cards that many employees use. With PeopleSoft, the state was able to increase control by adding multiple approval levels without sacrificing efficiency – by replacing the previously paper-based, labor intensive process with an automated, electronic workflow.
Further, the state implemented PeopleSoft Supplier Contract Management and the PeopleSoft Procure-to-Pay applications to simplify supplier relationships for the state’s major agencies. The system now includes 24,000 participating suppliers statewide. As an example, the Department of Human Services (DHS) benefitted from the wizard technology within PeopleSoft Supplier Contract Management, which quickly walks end users through templates – rather than relying on cutting and pasting – accelerating the supplier contract process and eliminating mistakes. The state hopes to further improve the supplier contracts process with capabilities such as quarterly review reminders in order to improve its supplier relationships and maximize efficiency.
“Georgia’s Governor’s office’s Commission for a New Georgia recognized a need for improved efficiency within state procurement processes. To support this procurement transformation, we deployed an expanded Oracle’s PeopleSoft Enterprise environment that enables us to be more strategic about our purchasing, which ultimately means we are better equipped to optimize taxpayer dollars,” said Gina Tiedemann, assistant commissioner of operations, Georgia Department of Administrative Services.
“Georgia State Purchasing Division needed a solution to significantly improve its supplier relationship management processes and purchasing data. With its expanded Oracle’s PeopleSoft Enterprise environment, the state has been able to streamline business processes, enhance overall efficiency and improve employee satisfaction,” said Mark Johnson, senior vice president, Oracle Public Sector.
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