My Florida Market Place Electronic Invoicing e Invoicing

My. Florida. Market. Place Electronic Invoicing (e. Invoicing) Overview June 9, 2010 (888) 808 -6959, Passcode 9766076#

Agenda q q q Agenda MFMP Overview What is e. Invoicing Ø Benefits Ø Methods to e. Invoice Ø Ariba Supplier Network (ASN) Ø Return on Investment (ROI) Ø e. Invoicing summary Vendor Tools Ø Electronic Funds Transfer (EFT) Ø Automated Clearing House (ACH) Resources Contact Us Page - 2

MFMP Overview q MFMP Overview My. Florida. Market. Place (MFMP) is the State of Florida’s online eprocurement system, the single e-commerce conduit between state agency buyers and vendors to conduct public purchasing on a daily basis Ø Designed to streamline interactions between vendors and state government entities that purchase goods and services Ø Provides a user-friendly Internet portal where vendors can register, receive information on upcoming bids, post information on products and services, receive purchase orders electronically and submit invoices electronically Page - 3

MFMP Overview q MFMP Overview We at MFMP pride ourselves on public and private partnerships; our award-winning technology applications create easier and faster transactions for both buyers and vendors Ø Ø Ø Excellence in IT Leadership Award from IT Florida Excellence in Public Service Leadership from IT Florida Honorable Mention given by the National Institute of Governmental Purchasing Achievement for Excellence in Procurement (2004, 2005, 2006, 2007, 2008, 2009) Computer. World Laureate 2008 Page - 4

MFMP Overview MFMP Vendor Benefits q Equal access for small-, disabled-veteran, women- and minority-owned businesses q Electronic Invoicing (e. Invoicing) q 24/7 access to more bid opportunities and information Ø Vendor Bid System (VBS) Ø Sourcing Ø e. Quote q Improved quality and accuracy of interactions with the state q Customer service support available to provide real time assistance q Green catalog and product listing options Page - 5

Agenda q q q Agenda MFMP Overview What is e. Invoicing Ø Benefits Ø Methods to e. Invoice Ø Ariba Supplier Network (ASN) Ø Return on Investment (ROI) Ø e. Invoicing summary Vendor Tools Ø Electronic Funds Transfer (EFT) Ø Automated Clearing House (ACH) Resources Contact Us Page - 6

e. Invoicing q e. Invoicing is presenting an invoice electronically to agencies for payment Ø e. Invoicing enables vendors to conduct business in a more cost effective way that automates and streamlines some processes Ø e. Invoices are audited and approved electronically through MFMP Ø Vendors are able to monitor invoices’ approval flow for tracking Ø Any invoice disputes are electronically returned to vendors Ø No paper is submitted to the agency for payment processing Page - 7

Agenda q q q Agenda MFMP Overview What is e. Invoicing Ø Benefits Ø Methods to e. Invoice Ø Ariba Supplier Network (ASN) Ø Return on Investment (ROI) Vendor Tools Ø Electronic Funds Transfer Ø ACH Resources Contact Us Page - 8

Vendor Benefits to e. Invoicing Vendor Benefits of e. Invoicing q q q Reduce costs: Create, present, manage, and archive invoices electronically, eliminating the need for paper documents and associated printing and shipping costs Save Time: Eliminate the production of print invoices and time spent preparing documents for mail Manage more effectively: Create invoices that automatically reconciles orders, invoices, payments, and related key documents associated with the financial supply chain Collaborate with less effort: Use fewer resources to collaborate with customers and track communications, documents, and payments Faster Payments: Encourages prompt and accurate processing of invoices by improving data accuracy which can reduce payment cycle times Green: Submitting invoices electronically does not generate paper Page - 9

Buyer Benefits to e-Invoicing Buyer Benefits to e. Invoicing q Faster Processing Times: saves a good amount of time for payment processing in accounts payable offices by eliminating manual processes such as manual data entry, reducing processing errors and payment cycle times q Reduction in paper: e-Invoicing substantially reduces paper flow and associated costs such as copying and filing q Reduction in cost: Reduces costs by eliminating manual audit, eliminating need to research for duplicate payments, and eliminating scanning requirements Page - 10

Paper Invoices submitted for payment Paper Invoices Submitted for Payment q. Vendor q. Agency prepares invoices scans invoice q. Vendor q. Agency prints invoices q. Vendor mails invoice q q q receives invoice q. Mail processing q. Invoice is entered into MFMP q. Invoice audited q. Warrant is issued Involves printing and mailing efforts Lose tracking control Involves scanning and recreating the invoice and shuffling paper Page - 11

e. Invoices submitted for payment e. Invoices Submitted for Payment q. Invoices entered into the ASN q. Invoices are received electronically q q q. Warrant is Issued q. Invoice is audited Eliminates several activities including courier/mail and scanning processes Allows for quicker receipt of invoice Invoice can be tracked systematically Improves data accuracy which reduces cycle payment times Page - 12

Agenda q q q Agenda MFMP Overview What is e. Invoicing Ø Benefits Ø Methods to e. Invoice Ø Ariba Supplier Network (ASN) Ø Return on Investment (ROI) Ø e. Invoicing summary Vendor Tools Ø Electronic Funds Transfer (EFT) Ø Automated Clearing House (ACH) Resources Contact Us Page - 13

Methods of e. Invoicing q Methods of e. Invoicing State of Florida vendors have multiple ways to provide state agencies electronic invoices via the Ariba Supplier Network (ASN) Ø Ø q PO Flip via the ASN Straight Through Processing (STP) Vendors can select the method that best meets their capabilities Page - 14

Methods of e. Invoicing q Methods of e. Invoicing PO Flip via the ASN Ø Vendors submit invoices electronically via the ASN Ø Invoices are created directly from the ASN Inbox by simply “flipping” the PO into an invoice Ø The PO Flip option does require manual intervention to flip the invoice Ø This option also does not require any special software or technical capabilities Page - 15

Methods of e. Invoicing q Methods of e. Invoicing Straight Through Processing (STP): Ø c. XML (commerce e. Xtensible Markup Language) Ø EDI (Electronic Data Interchange) q Requires special software or technical capabilities Page - 16

Electronic Invoicing Option Comparison c. XML EDI PO Flip Speed to Implement Ease of Implementation Scalability High Medium Low Page - 17

Agenda q q q Agenda MFMP Overview What is e. Invoicing Ø Benefits Ø Methods to e. Invoice Ø Ariba Supplier Network (ASN) Ø Return on Investment (ROI) Ø e. Invoicing summary Vendor Tools Ø Electronic Funds Transfer (EFT) Ø Automated Clearing House (ACH) Resources Contact Us Page - 18

Ariba Supplier Membership q Electronically invoicing with MFMP is facilitated through membership in the Ariba Supplier Network (ASN) Ø The fee is only assessed if certain thresholds are met Ø Certified Minority Business Enterprises can apply to have the ASN Fees waived 1 http: //www. ariba. com/suppliermembership/en/smp_pricing. cfm Page - 19

How to Register with ASN How to Register with the ASN q Registering for the ASN allows vendors to create an electronic invoice online and send these invoices back to the state q Basic Registration - Register at http: //supplier. ariba. com and click on the "Register Here" button in the middle of the screen. Follow the online instructions. Note that basic registration requires a DUNS number. There are two ways to obtain a DUNS number: Ø Online at http: //www. dnb. com Ø Over the phone by calling 1 -888 -814 -1435 q Additional information is available off of the vendor toolkit at http: //dms. myflorida. com/business_operations/state_purchasing/myflori da_marketplace/mfmp_vendors/vendor_toolkit/ariba_supplier_network_ asn Page - 20

Ariba Supplier Membership 1 Ariba Supplier Membership q Membership fees are based on the transaction volume: Ø Ø Buyer-supplier relationships with over $100, 000 USD in transaction volume and 15 or more documents q Fees are assessed as a small percentage (0. 1%) of volume Ø Relationships with fewer than 15 documents or transaction volume of less than $100, 000 are exempt from fees q Fees apply to only the first $10 M USD in qualifying transaction volume for any relationship 1 http: //www. ariba. com/suppliermembership/en/smp_pricing. cfm Page - 21

Ariba Supplier Membership 1 Ariba Supplier Membership Quick Reference Table: Supplier Membership Program Fees Annual Volume Per Buyer-Supplier Relationship Fees < $100, 000 USD FREE $100, 000 to $10 M and 15+ documents sent 0. 1%* Annual qualifying volume >$10 M will NOT be charged Less than 1. 2% of suppliers hit the cap of $10 K 1 http: //www. ariba. com/suppliermembership/en/smp_pricing. cfm Page - 22

Example ASN Membership Fee Calculation Table 1 Example ASN Membership Fee Calculation Volume Documents (POs & Invoices) Fee (USD) Company 1 $25, 000 15 $0 Company 2 $99, 999 20 $0 Company 3 $150, 000 121 $150 Company 4 $1, 000 2, 000 $1, 000 Company 5 $7, 000 8, 500 $7, 000 Company 6 $250, 000 10 $0 Company 7 $250, 000 110 $10, 000 1 http: //www. ariba. com/suppliermembership/en/smp_pricing. cfm Page - 23

Agenda q q q Agenda MFMP Overview What is e. Invoicing Ø Benefits Ø Methods to e. Invoice Ø Ariba Supplier Network (ASN) Ø Return on Investment (ROI) Ø e. Invoicing summary Vendor Tools Ø Electronic Funds Transfer (EFT) Ø Automated Clearing House (ACH) Resources Contact Us Page - 24

Return on Investment (ROI) Return on Investment Inefficient manual processing can cost $20 or more per invoice, but companies can cut this to $5 or less using electronic invoicing 2 Using $20 per Invoice for manual paper processing and $5 per invoice for electronic invoicing (STP and PO Flip) we developed three case studies to identify possible savings based on Invoice volumes in MFMP A case study was developed for each of the following: Ø High Invoice Volume / Large Company Ø Medium Invoice Volume / Medium Sized Company Ø Low Invoice Volume / Small “Mom & Pop” Company Ø Certified Minority Business Enterprise (CMBE) 2 Forrester: Best Practices: Invoice-To-Pay Process Automation, November 19, 2008 Page - 25

Return on Investment (ROI) Return on Investment High Invoice Volume / Large Company q q q Volume/ Spend Data Ø Invoices in FY 2008: 20, 472 Ø Total Invoice Amount: $5, 597, 350 Ø PO Spend: $7, 173, 831 Ø Estimated ASN Fees: $7, 174 Invoicing Costs Ø Manual/Paper : $409, 440 Ø Electronic : $102, 360 Estimated e. Invoicing Savings Ø (Manual Costs- e. Invoicing Costs) - ASN Fees = $299, 906 Page - 26

Return on Investment (ROI) Return on Investment Medium Invoice Volume / Medium Sized Company q q q Volume/ Spend Data Ø Invoices in FY 2008: 802 Ø Total Invoice Amount: $958, 446 Ø PO Spend: $1, 204, 160 Ø Estimated ASN Fees: $1, 204 Invoicing Costs Ø Manual/Paper : $16, 040 Ø Electronic : $4, 010 Estimated e. Invoicing Savings Ø (Manual Costs- e. Invoicing Costs) - ASN Fees = $10, 826 Page - 27

Return on Investment (ROI) Return on Investment Low Invoice Volume / Small “Mom & Pop” Company q q q Volume/ Spend Data Ø Invoices in FY 2008: 126 Ø Total Invoice Amount: $106, 891 Ø PO Spend: $111, 994 Ø Estimated ASN Fees: $112 Invoicing Costs Ø Manual/Paper : $2, 520 Ø Electronic : $630 Estimated e. Invoicing Savings Ø (Manual Costs- e. Invoicing Costs) - ASN Fees = $1, 778 Page - 28

Return on Investment (ROI) Return on Investment Certified Business Enterprise (CBE) q q q Volume/ Spend Data Ø Invoices in FY 2008: 758 Ø Total Invoice Amount: $2, 309, 264 Ø PO Spend: $2, 483, 620 Ø Estimated ASN Fees: $0 (Waived $2, 484 as a CMBE) Invoicing Costs Ø Manual/Paper : $15, 160 Ø Electronic : $3, 790 Estimated e. Invoicing Savings Ø (Manual Costs- e. Invoicing Costs) - ASN Fees Ø = $11, 379 (Unwaived: $8, 886) Page - 29

Agenda q q q Agenda MFMP Overview What is e. Invoicing Ø Benefits Ø Methods to e. Invoice Ø Ariba Supplier Network (ASN) Ø Return on Investment (ROI) Ø e. Invoicing summary Vendor Tools Ø Electronic Funds Transfer Ø ACH Resources Contact Us Page - 30

e. Invoicing Summary e. Invoicing summary When deciding to e. Invoice, consider: q How many invoices are created for orders with State of Florida Executive Agencies in the past year q Determine if you are invoicing these agencies on a frequent basis and look at how many invoices were created during this calendar year thus far q The cost of time, research, and production of print invoices for your customers Page - 31

e. Invoicing Summary q e. Invoicing summary To become an e. Invoicing vendor: Ø Ø Obtain a DUNS number - http: //www. dnb. com Obtain an ASN account - http: //supplier. ariba. com Contact MFMP to set up your trading partnership - vendorhelp@myfloridamarketplace. com Start e. Invoicing! Page - 32

e. Invoicing Summary e. Invoicing summary Did you Know? q e. Invoicing vendors are advertised on the MFMP Web site Page - 33

Agenda q q q Agenda MFMP Overview What is e. Invoicing Ø Benefits Ø Methods to e. Invoice Ø Ariba Supplier Network (ASN) Ø Return on Investment (ROI) Ø e. Invoicing summary Vendor Tools Ø Electronic Funds Transfer (EFT) Ø Automated Clearing House (ACH) Resources Contact Us Page - 34

Electronic Funds Transfer (EFT) EFT (Direct Deposit) q When pairing e. Invoicing with EFT, a vendor will receive funds substantially faster q Direct Deposit enables all payment monies to be available on the desired payment date q Advantages include: Ø Ø Peace of Mind — No mail delays or lost check worries Prompt Payment — Deposits will be available on the payment date Convenience — Avoid special trips to your financial institution Freedom — Your payment will be automatically deposited to your account Page - 35

Electronic Funds Transfer (EFT) q To find out more about EFT, contact DFS: Ø Direct Deposit E-mail address: directdeposit@fldfs. com Ø Direct Deposit phone number (850) 413 -5517 q To sign up for EFT, complete and submit the form located here: http: //myfloridacfo. com/aadir/dd_vendor. pdf q To receive funds electronically, please ensure your name on the Direct Deposit System and the name in your MFMP vendor registration account match directly q At any time you can access DFS’ vendor payment Web site and look for a pending payment: https: //flair. dbf. state. fl. us Page - 36

Automated Clearing House (ACH) 1% Transaction Fee q The State instituted a 1% transaction fee to provide vendors with electronic access to State buyers and to provide vendor support ACH q q Similar to EFT, Debit Automated Clearing House (ACH) is another form of electronic payment ACH electronically transfers funds from your bank account to the My. Florida. Market. Place account Vendors can sign up for ACH and pay the 1% transaction fee electronically To have your MFMP vendor transaction fee set up as an ACH: Ø Visit the vendor toolkit http: //dms. myflorida. com/vendortoolkit and download the ACH form for vendors Ø Complete the form and e-mail it directly to the Department of Management Services (DMS) Page - 37

Agenda q q q Agenda MFMP Overview What is e. Invoicing Ø Benefits Ø Methods to e. Invoice Ø Ariba Supplier Network (ASN) Ø Return on Investment (ROI) Ø e. Invoicing summary Vendor Tools Ø Electronic Funds Transfer (EFT) Ø Automated Clearing House (ACH) Resources Contact Us Page - 38

Resources: MFMP Vendor Web pages q The MFMP Vendor Web pages include a vendor toolkit and additional information to assist vendors on a daily basis http: //dms. myflorida. com/business_operations/state_purchasing/myflorida_ marketplace/vendors Page - 39

Resources: Vendor Toolkit q The vendor toolkit includes: Ø Vendor Training opportunities CBE (Certified Business Enterprise) Information Ø ASN (Ariba Supplier Network) Ø Page - 40

Resources: Vendor Web pages Resources- Vendor Web Pages q The Vendor Communication Bulletin Board displays vendor hot topics and the e. Newsletter with focus on different, important subject matter, relevant to everyday business Page - 41

Frequently Asked Questions (FAQs) http: //dms. myflorida. com/business_operations/state_purchasing/myflorida_ marketplace/vendors/vendor_frequently_asked_questions_faqs Vendor FAQ section specifically for ASN (Ariba Supplier Network) Page - 42

Agenda q q q Agenda MFMP Overview What is e. Invoicing Ø Benefits Ø Methods to e. Invoice Ø Ariba Supplier Network (ASN) Ø Return on Investment (ROI) Ø e. Invoicing summary Vendor Tools Ø Electronic Funds Transfer (EFT) Ø Automated Clearing House (ACH) Resources Contact Us Page - 43

Resources Contact Us q Additional information about the ASN can be found http: //www. ariba. com/suppliermembership/en/smp_pricing. cfm Ø To register as an ASN vendor: http: //supplier. ariba. com q For technical questions concerning solicitations, please contact Vendor Help at: Vendor. Help@myfloridamarketplace. com or 1 -866 -352 -3776 Ø Web site: http: //myfloridamarketplace. com Ø Monday – Friday, 8: 00 am – 5: 30 pm EST q For questions about becoming a certified minority vendor, please contact the DMS Office of Supplier Diversity (OSD) at: OSDHelp@dms. myflorida. com or 850 -487 -0915: Ø Web site: http: //www. osd. dms. state. fl. us Page - 44

Resources q Today’s presentation is available on MFMP vendor toolkit Ø http: //dms. myflorida. com/vendormeetings q Future teleconferences: Ø 7/15/10: MFMP / VIP Overview Ø 8/12/10: 1 Percent Transaction Fee / Fee Reporting Ø 9/15/10: How to find Business Opportunities - Register at http: //dms. myflorida. com/vendormeetings q Questions / Comments q Be on the lookout for a participant survey! Page - 45

Wrap-Up Contact Us Team Member E-mail Phone Number Communications Analyst Amy. Zeigler@dms. myflorida. com (850) 294 -3080 F&A Process Analyst Anne. Rabon@dms. myflorida. com (850) 294 -0739 Operations Manager Rachael. Lieblick@dms. myflorida. com (850) 414 -6735 Purchasing Process Kasey. Bickley@dms. myflorida. com Analyst (850) 294 -0494 Vendor Management Analyst (850) 445 -3894 Eric. Swanson@dms. myflorida. com 46