MyFloridaMarketPlace Electronic Invoicing (eInvoicing) Overview

1. MyFloridaMarketPlace Electronic Invoicing (eInvoicing) Overview January 20, 2010(888) 808-6959, Passcode 9766076#

2. Agenda • MFMP Overview • What is eInvoicing • Benefits • Methods to eInvoice • Ariba Supplier Network (ASN) • Return on Investment (ROI) • eInvoicing summary • Vendor Tools • Electronic Funds Transfer (EFT) • Automated Clearing House (ACH) • Resources • Contact Us

3. MFMP Overview • MyFloridaMarketPlace (MFMP) is the State of Florida’s online e-procurement system, the single e-commerce conduit between state agency buyers and vendors to conduct public purchasing on a daily basis • Designed to streamline interactions between vendors and state government entities that purchase goods and services • 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

4. 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 • 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) • ComputerWorld Laureate 2008

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

6. Agenda • MFMP Overview • What is eInvoicing • Benefits • Methods to eInvoice • Ariba Supplier Network (ASN) • Return on Investment (ROI) • eInvoicing summary • Vendor Tools • Electronic Funds Transfer (EFT) • Automated Clearing House (ACH) • Resources • Contact Us

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

8. Agenda • MFMP Overview • What is eInvoicing • Benefits • Methods to eInvoice • Ariba Supplier Network (ASN) • Return on Investment (ROI) • Vendor Tools • Electronic Funds Transfer • ACH • Resources • Contact Us

9. Vendor Benefits to eInvoicing 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

10. Buyer Benefits to e-Invoicing • 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 • Reduction in paper: e-Invoicing substantially reduces paper flow and associated costs such as copying and filing • Reduction in cost: Reduces costs by eliminating manual audit, eliminating need to research for duplicate payments, and eliminating scanning requirements

11. Paper Invoices submitted for payment • Involves printing and mailing efforts • Lose tracking control • Involves scanning and recreating the invoice and shuffling paper

12. eInvoices submitted for payment • 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

13. Agenda • MFMP Overview • What is eInvoicing • Benefits • Methods to eInvoice • Ariba Supplier Network (ASN) • Return on Investment (ROI) • eInvoicing summary • Vendor Tools • Electronic Funds Transfer (EFT) • Automated Clearing House (ACH) • Resources • Contact Us

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

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

16. Methods of eInvoicing • Straight Through Processing (STP): • cXML (commerce eXtensible Markup Language) • EDI (Electronic Data Interchange) • Requires special software or technical capabilities

17. Electronic Invoicing Option Comparison High Medium Low Electronic Invoicing Option Comparison cXML EDI PO Flip Speed to Implement Ease of Implementation Scalability

18. Agenda • MFMP Overview • What is eInvoicing • Benefits • Methods to eInvoice • Ariba Supplier Network (ASN) • Return on Investment (ROI) • eInvoicing summary • Vendor Tools • Electronic Funds Transfer (EFT) • Automated Clearing House (ACH) • Resources • Contact Us

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

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

21. Ariba Supplier Membership1 • Membership fees are based on the transaction volume: • Buyer-supplier relationships with over $100,000 USD in transaction volume and • 15 or more documents • Fees are assessed as a small percentage (0.1%) of volume • Relationships with fewer than 15 documents or transaction volume of less than $100,000 are exempt from fees • Fees apply to only the first $10M USD in qualifying transaction volume for any relationship 1http://www.ariba.com/suppliermembership/en/smp_pricing.cfm

22. Ariba Supplier Membership1 Supplier Membership Program Fees Annual Volume Per Buyer-Supplier Relationship Fees < $100,000 USD FREE $100,000 to $10M and 15+ documents sent 0.1%* Annual qualifying volume >$10M will NOT be charged Less than 1.2% of suppliers hit the cap of $10K Quick Reference Table: 1http://www.ariba.com/suppliermembership/en/smp_pricing.cfm

23. Example ASN Membership Fee Calculation Table1 1http://www.ariba.com/suppliermembership/en/smp_pricing.cfm

24. Agenda • MFMP Overview • What is eInvoicing • Benefits • Methods to eInvoice • Ariba Supplier Network (ASN) • Return on Investment (ROI) • eInvoicing summary • Vendor Tools • Electronic Funds Transfer (EFT) • Automated Clearing House (ACH) • Resources • Contact Us

25. Return on Investment 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: • High Invoice Volume / Large Company • Medium Invoice Volume / Medium Sized Company • Low Invoice Volume / Small “Mom & Pop” Company • Certified Minority Business Enterprise (CMBE) Inefficient manual processing can cost $20 or more per invoice, but companies can cut this to $5 or less using electronic invoicing2 2 Forrester: Best Practices: Invoice-To-Pay Process Automation, November 19, 2008

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

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

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

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

30. Agenda • MFMP Overview • What is eInvoicing • Benefits • Methods to eInvoice • Ariba Supplier Network (ASN) • Return on Investment (ROI) • eInvoicing summary • Vendor Tools • Electronic Funds Transfer • ACH • Resources • Contact Us

31. eInvoicing summary When deciding to eInvoice, consider: How many invoices are created for orders with State of Florida Executive Agencies in the past year 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 The cost of time, research, and production of print invoices for your customers • Page - 31

32. eInvoicing summary • To become an eInvoicing vendor: • 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 eInvoicing!

33. eInvoicing summary Did you Know? • eInvoicing vendors are advertised on the MFMP Web site

34. Agenda • MFMP Overview • What is eInvoicing • Benefits • Methods to eInvoice • Ariba Supplier Network (ASN) • Return on Investment (ROI) • eInvoicing summary • Vendor Tools • Electronic Funds Transfer (EFT) • Automated Clearing House (ACH) • Resources • Contact Us

35. Electronic Funds Transfer (EFT) EFT (Direct Deposit) When pairing eInvoicing with EFT, a vendor will receive funds substantially faster Direct Deposit enables all payment monies to be available on the desired payment date Advantages include: 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

36. Electronic Funds Transfer (EFT) To find out more about EFT, contact DFS: Direct Deposit E-mail address:  directdeposit@fldfs.com Direct Deposit phone number (850) 413-5517 To sign up for EFT, complete and submit the form located here: http://myfloridacfo.com/aadir/dd_vendor.pdf To receive funds electronically, please ensure your name on the Direct Deposit System and the name in your MFMP vendor registration account match directly 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

37. Automated Clearing House (ACH) 1% Transaction Fee • The State instituted a 1% transaction fee to provide vendors with electronic access to State buyers and to provide vendor support ACH • Similar to EFT, Debit Automated Clearing House (ACH) is another form of electronic payment • ACH electronically transfers funds from your bank account to the MyFloridaMarketPlace 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: • Visit the vendor toolkit http://dms.myflorida.com/vendortoolkit and download the ACH form for vendors • Complete the form and e-mail it directly to the Department of Management Services (DMS)

38. Agenda • MFMP Overview • What is eInvoicing • Benefits • Methods to eInvoice • Ariba Supplier Network (ASN) • Return on Investment (ROI) • eInvoicing summary • Vendor Tools • Electronic Funds Transfer (EFT) • Automated Clearing House (ACH) • Resources • Contact Us

39. Resources: MFMP Vendor Web pages • 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

40. Resources: Vendor Toolkit • The Vendor Toolkit includes: • Vendor Training opportunities • CMBE (Certified Minority Business Enterprise) Information • ASN (Ariba Supplier Network) Page - 40

41. Resources: Vendor Web pages • The Vendor Communication Bulletin Board displays Vendor Hot Topics and the eNewsletter with focus on different, important subject matter, relevant to everyday business Page - 41

42. 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

43. Additional Resources • Today’s presentation is available on MFMP Vendor Toolkit • http://dms.myflorida.com/vendormeetings • Future teleconferences: • 2/10/10: 1% Transaction Fee / Fee Reporting • 3/10/10: Searching VBS • 4/7/10: MFMP Overview • 5/12/10: Solicitations • 6/9/10: eInvoicing • Register at http://dms.myflorida.com/vendormeetings • Participants will receive a survey today- we appreciate your feedback • Questions / Comments

44. Agenda • MFMP Overview • What is eInvoicing • Benefits • Methods to eInvoice • Ariba Supplier Network (ASN) • Return on Investment (ROI) • eInvoicing summary • Vendor Tools • Electronic Funds Transfer (EFT) • Automated Clearing House (ACH) • Resources • Contact Us

45. Contact Us • Additional information about the ASN can be found http://www.ariba.com/suppliermembership/en/smp_pricing.cfm • To register as an ASN vendor: http://supplier.ariba.com • For technical questions concerning solicitations, please contact Vendor Help at: VendorHelp@myfloridamarketplace.com or 1-866-352-3776 • Web site: http://myfloridamarketplace.com • Monday – Friday, 8:00 am – 5:30 pm EST • 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: • Web site: http://www.osd.dms.state.fl.us