Supplier Collaboration Introduction - Isupplier Portal and ERS_PDF

Revision 8 - 9 June 2009

Supply Chain Collaboration via

iSupplier Portal & ERS (Evaluated Receipts Settlement)

Insert Footer2 Introduction – iSupplier Portal & ERS

Table of Contents

• iSupplier Portal Purpose 3

• iSupplier Portal Capabilities 4

• ERS Defined 5

• Business Drivers 6

• ERS Process 7

• ERS Advantages & Disadvantages 12

• Key considerations for Suppliers 15

• Instructions for Signing-Up

for iSupplier Portal & ERS 16


Purpose: Supplier Collaboration

• Ingersoll Rand made an

investment to implement a

true partnership with our

vendors through an Oracle

product called the iSupplier

Portal.

• At the end of this presentation, we will provide you

with tools you need in order to take advantage of the

portal and collaborate effectively with Climate Control

Technologies.


iSupplier Portal Capabilities

• Suppliers can view:– Forecast

– Purchase Orders

Orders to be acknowledged

Past Due Orders

Purchase Order History

– Receipts

– Delivery Performance

– Invoices Logged & Payments

– Defects & Returns

– Product History

• Supplier actions:– Acknowledge Orders

– Enter Advanced Ship Notices

– Reschedule Orders

– Cancel Orders

Insert Footer5 ERS Processing

• Evaluated Receipts Settlement (ERS) = business process in which invoices for supplier payments are auto-created based on goods received from supplier.

ERS: Defined

• ERS eliminates need for suppliers to send invoices –instead, relies on pre-negotiated price agreements between supplier and Ingersoll Rand (IR).

• With ERS, payment generated based on receipt transaction processed by IR.


Traditional Transaction Process:

1. IR places a Purchase Order (PO)

with supplier.

2. Supplier ships goods and bills IR

by sending invoice to Accounts

Payable (AP) department .

3. IR receives goods.

4. AP department then enters all

invoice information into accounting

system and matches invoice to

goods received and/or the PO.

5. Payment is made to supplier

based on the match.

Business Drivers

Insert Footer7 ERS ProcessingERS Processing

The Traditional Procure-to-Pay Process


• Disadvantages

Traditional Process

Manual

Processing

• Invoice processing is largely manual.

• Results in data entry errors that could be very costly, sometimes

resulting in unauthorized payment disbursements.

• Results in inconsistent application of business rules resulting in an

increased risk of process non-compliance.

High Procure-

to-Pay cycle

time

• Much time lost when mailed invoices on the way from the supplier

to the IR’s AP dept.

• Invoices entered into system in batch process.

• By the time the invoices entered and approved in system, 1st

discount terms usually missed.

• Invoices may be put on hold if issues arise in matching process –

can result in payment delays to suppliers.

High admin

costs for IR

and Supplier

• High cost inefficiencies.

• Admin costs of manual processing are typically quite high,

particularly for IR, from activities related to the manual data entry.

• For supplier, the costs associated with billing activities originate

from non-value added activities like mailing the invoices, etc.


• The ERS Process

– In the ERS process IR places a Purchase Order (PO) with

supplier.

– The supplier ships the goods.

– IR receives the goods.

– The system automatically generates an invoice number based

on the receipt transaction and the actual delivery of

goods/services.

– Payment is made to supplier based on the receipt transaction.

Business Drivers


ERS in the Procure to Pay process

ERS Process

In the ERS

process, the

invoice creation

process gets

automated. The

receipt

transactions are

used as the basis

for the creation of

these auto-

invoices.


• The ERS process differs

from the traditional process

in that the supplier invoices

no longer form the basis for

payment in IR’s system.

• After goods or service

delivered, the buying

organization processes a

receipt transaction which

automatically generates an

invoice number.

• The receipt transaction

facilitates the payment.

ERS Process

Not equal to

Invoices

Basis for Payment


ERS Advantages for Suppliers

Assurance of timely

payments

Reduced costs associated with billing

Increased cost efficiencies

Advanced visibility using

iSP to view receipts,

payments, purchase order

information


ERS Advantages for IR

Lower invoice processing cost associated with

payables administration and increased

efficiencies

Increased payment accuracy

resulting from the automation

Better utilization of

vendor discounts

Better supplier relationships


ERS Disadvantages for Suppliers

Supplier needs to do a business process

change to eliminate distribution of paper

invoice to buying organization.

Supplier needs to reconcile between our

payment and their receivables.

Supplier should regularly review PO

receipts and payments in iSupplier Portal in

addition to their internal process.

Supplier needs to actively communicate address changes to IR for remittance address

changes.


Key considerations for Suppliers

Training

• Need adequately trained personnel who understand ERS process at IR and supplier facility

Pricing

• IR and suppliers must maintain accurate pricing on POs to eliminate payment discrepancies

Addresses

• Change in “remit-to” addresses: suppliers will need to contact their supply manager directly (update from invoices is no longer valid).

Reconcile

• Use packing slip to reconcile account – include Blanket PO and Release Number

Detailed Instructions:Signing Up for iSupplier Portal and ERS


Steps for Sign-Up (Overview)

Step #1 – Download and Complete the Access Agreement

Step #2 – Gather the appropriate supplier and user’s information for your

company.

Step #3 – Each user MUST review and understand the training material

Step #4 – Ensure that each user / stakeholder has reviewed the training

material and is comfortable with launching.

DO NOT PROCEED: If ANY user has questions or concerns about the

process. Please contact your IR Supply Manager for further support.

Step #5 – Sign-up at the registration website.

Step #6 – Receive log-in details.

Step #7 – Begin using the iSupplier Portal and ERS tools.

PLEASE REFERENCE THE FOLLOWING SLIDES FOR DETAILS ON EACH STEP

Please utilize the Supplier Readiness Worksheet


Steps for Sign-Up (#1 – Access Agreement)


The Access Agreement is REQUIRED for your company. Without this

document, you will not be allowed to access the iSupplier portal or ERS.

1. Download the Access Agreement(s) from the following link:– http://cct.ingersollrand.com/Suppliers/Documents/Access%20Agreement_Portal-ERS_7-18-08.pdf

2. Please complete the appropriate Access Agreement (s) , including all

applicable signatures.

3. Scan the completed agreement(s) into an electronic format for

submission. Any common image format may be used (i.e. .pdf, .jpg, .gif)

http://cct.ingersollrand.com/Suppliers/Documents/Access Agreement_Portal-ERS_7-18-08.pdf








Steps for Sign-Up (#2 – Supplier & User Information)

Step #2 – Gather the appropriate supplier and user information for your company:

1. Supplier Name and Locations

– Primary Location (City, State/Province & Country)

– Also include all other locations or branches of your company that will be using the iSupplier Portal and ERS

(Location Name, City, State/Province, Country) for each location.

2. An electronic copy of the signed “Access Agreement”.

– This may be in any common image format (i.e. .pdf, .jpg, .gif)

3. Name of your primary Ingersoll Rand Supply Manager

4. User information (Name, Email and phone) for each of the following:

– Person(s) who will receive the ERS (Evaluated Receipts Settlement) Payment Report One person is required, but two or more are strongly recommended

– Person(s) who will receive the Forecast report One person is required, but two or more are strongly recommended

– Please note: Each of these names will receive access to the iSupplier portal and

the corresponding report. You may list a name under both heading and they will receive both reports.

• NOTE: Please keep this information available, you will enter it on a

registration website in a subsequent step.


Steps for Sign-Up (#3 – Training Material)


1. EACH USER MUST access the self-paced training material at the

following link.

– READ THIS FIRST: Explanation for using the training portal (http://cct.ingersollrand.com/Suppliers/PublishingImages/UPK%20Instructions.jpg)

– Click here to access the training material page (http://cct.ingersollrand.com/SupplierTraining/toc.html)

2. EACH USER MUST spend as much time as necessary to review the

material and thoroughly familiarize themselves with EVERY aspect

of the material.

3. If you would like further information or assistance, please do not

hesitate to contact your INGERSOLL RAND SUPPLY MANAGER.

http://cct.ingersollrand.com/Suppliers/PublishingImages/UPK Instructions.jpg



http://cct.ingersollrand.com/SupplierTraining/toc.html





Steps for Sign-Up (#4 – Ensure Understanding)

Step #4 – Ensure that each user fully understands the training material.

The iSupplier portal is a powerful and simple collaboration tool with many

benefits for both parties. However, realizing these benefits CANNOT result in

service interruptions. Therefore…


process. Please contact your IR Supply Manager for further support.

Actions Taken to Minimize Risk to both Suppliers and Ingersoll Rand:Lean Principles: The goal is to allow you, the supplier, to pace the implementation of the

supplier portal at your location.

Preventative Actions: To reduce usage errors, Ingersoll Rand wants to provide each supplier

with as much support as possible before the upgrade to the iSupplier Portal.

Education and Prevention is More Effective than Corrective Action.

Support is Available: To maintain a rapid pace of implementation, resources are available to

assist you with all of your questions.

• Please contact your Ingersoll Rand Supply Manager to obtain training assistance.

Proceed to Step #5 when EVERY user is comfortable with the tool...


Steps for Sign-Up (#5 – Registration via Web)


1. After you have ensured that EACH USER is comfortable with the training

material, then you should proceed to the sign-up step.

2. Gather the names and contact information from Step #2.

– NOTE: The sign-up page DOES NOT allow for saving a session. Therefore, having the appropriate

information will help to create a quick and error-free entry.

3. Navigate to the following link to access the sign-up screen.

– Contact your IR Supply Manager for link to the Sign-Up webpage.

4. Complete all of the necessary

information and click “SUBMIT”.

5. After submitting, you will see a

screen that looks like this:


Steps for Sign-Up (#6 & 7 – Begin)

Step #6 – Receive login details.

• You will receive your log-in information via email.

Step #7 – Begin using the iSupplier Portal and ERS tool

• Use the following link access the log-in page:

https://cctisupplier.ingersollrand.com

• Enter you user name and password and begin using the iSupplier Portal.

• Please refer back to the training material for detailed instructions on

each of the many functionalities in the iSupplier portal.

– Please contact your IR Supply Manager for training material.

https://cctisupplier.ingersollrand.com/


Steps for Sign-Up (Review)


Step #2 – Gather the appropriate supplier and user’s information for your

company.


Step #4 – Ensure that each user / stakeholder has reviewed the training

material and is comfortable with launching.


process. Please contact your IR Supply Manager for further

support.


Step #6 – Receive log-in details.

Step #7 – Begin using the iSupplier Portal and ERS tools.

Insert Footer25 ERS Processing (revision: 02 Feb 2009)