Sustainability Benefits of using iBuy
The main purpose to transition to iBuy is it will promote a sustainable process (e.g. no more paper, toner, postage, delivery, etc). Purchase Orders (PO) through Banner have historically been printed and mailed to vendors. For scope, here are Banner PO number over the last four fiscal years FY17 = 7,804, FY18 = 7,368, FY19 = 7,537, and FY20 = 5,669 (2 months remain in the fiscal year). In a conservative estimation, say each PO is 10 pages. This alone would have been 75,370 sheets of paper. This doesn’t consider the toner, postage or delivery emissions. In comparison, iBuy POs FY17 = 2,785, FY18 = 2,618, FY19 = 2,843, and FY20 = 3,179. Years FY17-FY19 were a 74% to 26% ratio. The efforts purchasing has made this year has shown positive movement towards higher utilization of this system as the current ratio for FY20 is 64% to 36%. Putting an exact percentage is difficult because we’re dependent on the systems abilities and the modifications Jaggaer can implement for us. Historically we have been limited in our abilities to work towards a transition to iBuy because of software limitations.
We are currently in the process of updating functionality which will enable higher system utilization. Here are some of the updates currently being worked on:
· Addition of Contracts Plus. Historically, purchase orders which were tied to a contract or solicitation had to be submitted through Banner. The addition of Contracts Plus will eventually replace iCS and everything will be housed in the same system which would eliminate this limitation.
· We’ve also been limited on a method that clearly allows us to process a Standing PO in iBuy. It is technically possible; however, the process is convoluted. We anticipate having the ability to process standing POs by FY21. In FY19, we processed over 3,000 standing POs in Banner. Not all of these will transition to iBuy immediately, but we could potentially see a large reduction here in FY21.
· We’re also in the process of implementing the America To Go punchout catalog in iBuy which will reduce the amount of restaurant and catering order that will come through Banner. For scope, UIUC spends about $12 million dollars in this market.