OBJECTIVE: This article provides information on the procedures required to onboard a supplier so that purchases can be made and to ensure the supplier’s demographic and other data is maintained over time.
NOTE: These steps are required by all entities within HAH. Failure to adhere to these procedures or adhere to HAH guidelines and policies may result in consequences, including removal of access/authority to purchase goods/services on behalf of the HAH.
NOTE: If concerns occur as whether to onboard or maintain a supplier record or whether a supplier should be entered into Coupa, please review with your office manager for supplier approval before contacting Supplier Onboarding, submitting an Internal Supplier Request Form, issuing a Coupa Supplier Information Management Portal invitation or committing to conduct business with the supplier.
Table of Contents:
Identify Supplier Type
Procurement and Operations will work collectively to establish national contracts and secure relationships with suppliers that are able to provide goods and services throughout the HAH. It is important to understand that certain requests are owned by the Facilities Management team, while others are to be processed through Coupa.
Refer to the Help at Home Buying Guide for the following services.
-
Branches should contact HAH Facility Management for support in obtaining such services:
- Electrical Repairs or Issues
- Janitorial or Trash Services
- Locks & Keys
- Painting Needs
- Pest Control
- Plumbing Repairs or Issues
- Window or Flooring Needs
-
All other requests are to be submitted through Coupa:
- Office Supplies
- Promotional Materials
- Legal Services
- Consulting Services
- Gifts (Client & Employee)
- Commemorative/Memorial
- Celebration
- Rewards
When this occurs, the department will be required to utilize this supplier wherever feasible. A Supplier Request – Internal form is available within Coupa for this purpose. This should be completed and submitted by the Requestor prior to ordering the service/supplies and creating a requisition. Supplier Onboarding will receive a notification via Coupa, at which time the request will be reviewed, approved, and/or rejected. Once approved, Supplier Onboarding will then begin the onboarding process. This form requires a supplier contact name and email address to begin the onboarding process.
Supplier Onboarding
When HAH Supplier Onboarding receives a request to onboard a new supplier, the following steps will take place. HAH Supplier Onboarding will email a Coupa invite/request for information to the designated supplier contact via the email provided. This invitation includes an explanation about Coupa and instructions on how to join Coupa with user ID, password, and informational links to complete setup of the SIM (Supplier Information Management) and SPA (Supplier Payment Account), beginning the formal registration process.
The supplier registration process can be completed and submitted for approval. There is no fee for the Supplier to enroll in Coupa. The Supplier will login via the link provided and fill out two forms that contain information about the supplier demographics.
Items in bold are required by the Coupa for the Procure-to-Pay tool:
- Supplier Name
- Supplier Number (Coupa)
- Supplier Legal Entity Name/Address (s/b W-9 name/address)
- Supplier Banking Information (ACH preferred and Remit To Street Address)
- W-9 data (TIN, Name, Tax Filing Status)
- Backup Withholding Flag (on/off)
- Payment Term (will default to Net 30 unless different terms are negotiated)
- If possible, the ability to enter a total of 4 addresses (Home, Remit To, Legal Notices, Secondary
Mailing) -
Primary Contact Name (person that has Coupa access and can set up other Coupa portal users
for the supplier) - Primary Contact Email Address
- Primary Contact Phone Number
- If possible, the ability to enter up to 5 contacts
- Organizational data:
- Number of employees
- Number of places of business
- Locations doing business in
- Business classification
- Type of goods/services sold
When Coupa Pay is in use, suppliers are required to set up a “Remit To” address within their own Coupa Portal account. Coupa Pay will confirm the Suppliers’ bank account information within the tool so that it can be validated against submitted invoices.
The Suppliers will also have the ability to attach their current W-9 to this form. This form also indicates that ACH (electronic payment) which is HAH’s preferred payment methodology. If a supplier declines this option or is unable to participate in ACH payments, the supplier should contact a member of the HAH Supplier Onboarding and/or Accounting Team for alternate options.
The HAH Supplier Code of Conduct (“Supplier Code”) may also be attached to the Supplier Information Request form and will require a signature on the Supplier Code’s Acknowledgement Page. The Supplier Code ensures that only suppliers who adhere to the standards and professional ethics of HAH shall be allowed to conduct business with the HAH. Finally, certificates/proof of insurance for all suppliers shall be required to ensure the security of all employees at all locations, as well as to ensure that HAH’s liability is limited should a supplier’s goods or services be faulty and cause harm to any employee.
In the event that Suppliers are able to provide a punch-out catalog for use within Coupa, they will also be provided with a catalog template form from HAH Procurement. This includes suppliers that are able to supply goods via item numbers/SKUs, item descriptions, unit costs (net any discounts agreed to with HAH), and units of measure used for sale. For those suppliers who provide indirect services, may be allowed to submit hourly rate card, a milestone chart (milestone description/due date/milestone payment amount), or a list the services along with estimated service rates.
If a supplier has the capability to provide a punch-out and HAH believes that this is beneficial (i.e. there is no concern for price variability on the supplier site), the process to configure this will be initiated. Because suppliers must code some aspects of the punch-out, this involves their technical support and will therefore require a longer lead-time to approve and use of the suppliers’ goods and/or services.
When Procurement receives the catalog information, they will validate its content against any existing contract agreement and upload the catalog to be used to select goods and services for purchase. If the contract is not already loaded into the Coupa Contract Management module, it will be added. If a contract does not exist with the supplier, the supplier will be required to set up a contract negotiation and formalize the relationship prior to the beginning of any work or services and/or the purchase of direct goods.
As HAH is finalizing the punch-out catalog, Supplier Onboarding will be contacted and will perform a Taxpayer Identification Number (TIN) match with the IRS utilizing the W-9 submitted. If there is a non-match situation, the supplier will be required to submit another W-9 until it does match. No supplier will be paid without a correct/matched/current W-9 on file. Inability to submit a matching W-9 will be cause for termination of contract negotiations and the business relationship with the supplier until valid documentation is provided. Supplier Onboarding will notify the supplier that in the event of any issues with their W-9 submission and will explain that no further progress can be made until it is resolved.
If any required information is not provided, Supplier Onboarding may elect to place the supplier’s registration on hold or reject the registration. Following success completion of the requested documentation, Supplier Onboarding shall approve the supplier for use by HAH and the supplier will appear in Coupa with an active status.
Supplier Maintenance
Once a supplier is on-boarded, they are considered active and can be used for purchases. If a supplier contract lapses, the system will notify users that the contract has lapsed, so that an extension or renegotiation can be completed. Supplier Onboarding, Procurement and/or Legal shall be notified when this message occurs so a new contract can be put in place and HAH pricing and contract terms maintained. From time-to-time, suppliers may also have the need to update demographic data. This will occur when contacts change, if they move locations, update bank accounts, or add/change services provided.
Suppliers shall have access to the SIM form to update this data and can do so without intervention from HAH. Suppliers should be reminded to keep this information updated, as failing to do so may affect their payments. HAH will not rush or expedite payments to suppliers who have failed to keep their banking information updated. The suppliers’ payment terms will be Net 30 from the day HAH receives complete and accurate information. Suppliers should also update the W-9 on file annually to avoid non-match situations.
Suppliers that have the need to update their catalogs shall send their updates through HAH Procurement to confirm that the pricing adheres to contract/agreements and will only upload if acceptable and appropriate. Punch-out suppliers will be able to update pricing on their own websites but will be audited regularly to ensure that the HAH negotiated prices are in line with the agreement between the parties.
Suppliers can be deactivated either when HAH chooses not to conduct business with them any longer (i.e., selects another provider) or because of a dispute related to services or billing. It is at the discretion of HAH whether a supplier is deactivated temporarily or permanently. While deactivated, a supplier cannot be selected for purchases and catalogs and will not be visible. When a supplier is reactivated, their offerings will reappear, including all prior data, and purchases can once again be made from them. Department personnel and HAH Supplier Onboarding will be notified if a supplier is deactivated for any reason. Department personnel should also notify HAH Supplier Onboarding and FP&A Procurement if they would like to deactivate a supplier for any reason (e.g. poor performance).
Source: Coupa Guide for HAH