Ontario Education Cooperative Marketplace Leading Change in Supply Chain Management Ontario Universi

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Ontario Education Cooperative Marketplace Leadin
g Change in Supply Chain Management Ontario
University Purchasing Management Association May
29, 2006 Franca Gemignani, OECM Project
Coordinator
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Agenda

• What is OECM? Our key objectives
• Who is OECM? The institutions currently
  involved
• Why OECM? The value for institutions,
  purchasing professionals, suppliers
• OECM Progress Update
• OECM Next Steps
• Participating Institutions Representatives
• OECM Contact Information

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Speaker Introduction
May 29, 2006

• Began my career in Strategic Sourcing in 1997 at
  RBC as Senior Manager-Telecom Sourcing
• Left RBC and have spent the last year as a
  telecom sourcing consultant with a financial
  institution in Cincinnati
• Heard about the OntarioBuys initiative and its
  goal to reduce the Broader Public Sector (BPS)
  spend approximately a year ago and was interested
  in joining at that time
• I was thrilled when this opportunity emerged
  because, as a sourcing professional, I believe
  the SCU will truly benefit from implementing a
  marketplace

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What is OECM?
May 29, 2006

• OECM is an electronic marketplace that connects
  buyers and suppliers together to facilitate more
  effective, efficient procurement
• OECM is buyer-led (our institutions are key
  beneficiaries)
• OECMs longer term operating and governance
  models are currently under consideration
• OECM development costs are/will be funded by
  Government of Ontario

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Who is OECM?
May 29, 2006

• Current OECM participating institutions generate
  an estimated 1.3B in annual spending

Significant Buying Power Ontario schools,
colleges, universities represent approximately
2B in annual spending.
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Who is OECM?
May 29, 2006

• And the momentum is growing

• Expressions of Support
• Brock University
• Carleton University
• Dufferin-Peel Catholic District School Board
• Fleming College
• George Brown College
• Georgian College
• Lakehead University
• Laurentian University
• Queens University
• University of Guelph
• University of Windsor
• Wilfrid Laurier University
• McMaster University

• Expressions of Interest
• Conseil scolaire catholique Franco-Nord
• Huron Superior Catholic District School Board
• Board of Governors of the Niagara College of
  Applied and Technical Arts
• Upper Grand District School Board

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Why OECM?
May 29, 2006

• Within the education sector, institutions have
  long been sharing ideas for better ways to manage
  procurement activities
• Want to leverage procurement best practices,
  success stories from U of T and public sector
  (eVA)

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Why OECM? The Value for Institutions
May 29, 2006

• Will meet the needs of the majority of
  institutions regardless of size, governance,
  geography
• Design, development, implementation of the
  marketplace fully funded by MoF for institutions
  signing commitment letters
• Institutions willingness to participate is very
  positively viewed by MoF, MTCU, MoE

Coming this Fall 2006 Institutional Membership
Campaign OECM looks forward to welcoming new
institutional members from universities, colleges
and school boards! We will provide the Ministry
of Finance with an updated membership list, as
per its request.
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Why OECM? The Value for Institutions
May 29, 2006

• Maximize efficiency in the back office make
  complex processes more user-friendly, less costly
• Better buying experience for researchers,
  administrators, teachers, etc.
• Improved leverage with suppliers greater
  standardization, better processing services
• Reduced supply chain technology investments for
  each participating institutions

What will you do with your share of the
savings? OECM is projected to result in process
efficiency and strategic sourcing savings of over
85 million by FY 2009/2010.
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Why OECM? The Value for Purchasing Professionals
May 29, 2006

• Ensure purchasing policies are followed OECM
  workflow will ensure applicable policies,
  legislation/approvals are followed
• Free up time OECM will simplify purchasing
  process, and reduce manual, paper-based tasks
• Facilitate accountability, full audit trail
  OECM will record actions, decisions taken for
  every transaction
• Stretch budget dollars
• Automation will reduce cost/buying transaction
• Stronger collective buying power will result in
  lower prices for those on the marketplace
• reinvested in education

OECM supports OUPMA missions and goals OECM
directly supports OUPMAs mission to foster
closer cooperation and exchange of information
(e.g. purchasing best practices), AND goal of
cooperative purchasing ventures to leverage
institutional spending.
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Why OECM? The Value for Purchasing Professionals
May 29, 2006

• Receive goods services sooner e-Marketplace
  will reduce transaction processing time
• Improve order accuracy via OECM online,
  supplier-maintained catalogues on the
  e-Marketplace
• Find better products and services OECM can
  connect institutions with a wider range of
  suppliers
• Gain better insight into purchasing activities
• Order the right amount at the right time
• Better leverage for contract negotiations
• Better management reporting capability
• Stay up-to-date OECM will bring product
  updates/changes via supplier maintained catalogues

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Why OECM? The Value for Suppliers
May 29, 2006

• Ability to grow revenues common access point
  for universities, colleges, schools with 2B in
  total annual spend
• Minimize cost of goods sold OECM provides one
  common procurement process for all participating
  buyers
• Improve competitive position suppliers of all
  sizes, geographic locations can compete to supply
  same buyers

One-Stop Access to a 2B Market OECMs
significant value proposition to suppliers will
facilitate larger product selection at the best
possible prices for participating institutions.
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OECM Progress Update
May 29, 2006
August 2005 OECM begins Phase 1 to evaluate
potential for implementation of e-procurement
marketplace
March 2004 Province makes formal commitment to
OntarioBuys
April 2006 OECM Phase 2 funding of 1.2M received
November 2005 OECM completes Phase 1,
identifying significant economic, operational
savings
May 2006 OECM begins Phase 2 Software Selection
and Detailed Design
March 2005 Small group of procurement
professionals from universities, colleges, school
boards (SCU) develop joint funding proposal to MoF
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OECM Next Steps
May 29, 2006

• Spring/Summer 2006
• Phase 2 Software Selection and Detailed Design
  begins (CGI engaged)
• Develop communications and marketing plan to
  ensure all stakeholders are continually updated
• Develop buyer, supplier adoption strategies
• Develop future OECM governance model
• Deliver four (4) regional in-depth workshops to
  universities, colleges, schools on OECM project

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Next StepsYour involvement is key to our
sectors success
May 29, 2006

• Raise the profile of our sectors initiative
  within your respective institutions
• Include IT, Finance, Audit, etc. in discussions
  on the capability of the marketplace
• Actively support the change management process
  required to transition from the existing state to
  the electronic marketplace environment
• Avoid investing in standalone entity-specific
  solutions that do not transition well to the
  marketplace
• Review and begin transition of existing P2P
  processes in Purchasing and Accounts Payable
  departments
• Confirm your participation in the Phase 3
  implementation
• Costs associated with on-boarding and
  implementation are covered by funding made
  available by the Ministry of Finance

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OECM Next Steps
May 29, 2006

• Fall 2006
• Institutional Membership Campaign begins
• Supplier Membership Campaign continues
• Begin design of marketplace
• Attend OUPMA fall meeting to provide an update of
  OECM progress

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Participating Institutions Representatives
May 29, 2006
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OECM Contacts
May 29, 2006

• Renata Faverin,
• Chair, OECM Steering Committee and Director,
  Procurement Services,
• York University
• [phone]
• Franca Gemignani,
• Project Coordinator, OECM
• fmgeminan_at_rogers.com
• [phone]

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Thank You