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eProcurement Scotl@nd supplier briefing

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eProcurement Scotl_at_nd supplier briefing University of Dundee eProcurement Scotl_at_nd eProcurement Scotl_at_nd - The Vision ...to create an electronic ... – PowerPoint PPT presentation

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Title: eProcurement Scotl@nd supplier briefing


1
eProcurement Scotl_at_ndsupplier briefing
University of Dundee
eProcurement Scotl_at_nd
2
eProcurement Scotl_at_nd - The Vision
  • ...to create an electronic procurement service,
    accessed via a web browser from across a range of
    platforms potentially accessible by all public
    sector buyers in Scotland and their suppliers
  • digitising all purchasing activities from
    requisition to payment
  • supporting the process from advertising to
    awarding public sector contracts
  • interacting seamlessly with legacy finance systems
  • The implementation has been progressing
    successfully
  • APPROXIMATELY
  • Over 100 Public Sector Organisations already live
  • Over 22,500 Suppliers registered to eProcurement
    Scotl_at_nd
  • More than 14,600 users
  • 1million transactions per month
  • Annual value around 2.5billion

3
The eProcurement solution chosen by the
eProcurement Scotl_at_nd is called PECOS
The aim of eProcurement Scotl_at_nd is to be
  • Service of choice for procurement for the public
    sector in Scotland
  • Implemented in all Universities Colleges,
    Health Boards, Local Authorities and Scottish
    Executive
  • Therefore, the only e-procurement service which
    suppliers need to join in order to do business
    with any public sector organisation in Scotland.
  • Standard connection is free to suppliers
  • It is a hosted solution, accessed by the user via
    a web browser therefore there is no need for
    specialised hardware or software on either side
  • It is a simple and easy to use full circle
    procurement system
  • It supports electronic catalogues hosted
    internally and punch out to suppliers websites

4
  • Advanced Procurement for Universities Colleges
    (APUC)

5
Overview of APUC (Ref. http//apuc-scot.ac.uk/)
  • Established January 2007, with Efficient
    Government Funding, to serve as a procurement
    Centre of Expertise delivering advanced and
    collaborative procurement across the 62
    universities and colleges in Scotland
  • APUC is based around three workstreams
  • Implementation of ePS in the institutions
  • Adoption of suppliers onto the new system and the
    co-ordination of content management activity
  • Development and implementation of effective
    collaborative procurement arrangements
  • This will be based on consultation with
    institutional customers through a network of user
    intelligence groups
  • Will work closely with the universities and
    colleges to establish the overall strategy for
    advanced procurement
  • Will set up effective policy and procedural
    arrangements
  • Will implement procedures for performance
    monitoring and benefits tracking

6
What exactly will APUC do?
  • Provide guidance on good governance of
    procurement in institutions
  • Enable extended collaboration across all
    institutions and other sectors
  • Establish collaborative contracts of value to
    institutional customers based upon consultation
    and needs assessment through user groups
  • Work with the business community to identify and
    reduce barriers to business, conducted through a
    fair and open approach to tendering
  • Promote the use of e-procurement tools and
    methodologies
  • Identify and disseminate good practice
  • Increase the procurement expertise available to
    institutions

7
  • Benefits to Suppliers

8
From our experience, implementing eProcurement
can support suppliers
  • Factors important to suppliers
  • Improve profit margins
  • Increase turnover
  • Reduce internal costs
  • Become more efficient
  • Expand business
  • Strengthen customer base
  • Improve relationships with customers
  • Brand image
  • How this solution can help
  • Increase spend on contract
  • Decrease maverick spend with competitors
  • Improve accuracy of orders
  • Provide full details of products automatically
    reduce need for questions
  • Orders through to email / fax reduces the need
    for order clarification
  • Focus staff efforts to deliver value
  • Prompt payment - due to reduced invoice/price
    queries
  • Be a leading supplier in embracing eProcurement
    especially with Government organisations

9
Supplier Selection For eEnablement onto ePS
There are some key attributes which should help
you to identify good candidates for adoption
during a standard implementation.
Determine alternative means of trading on ePs
CRITERIA
High invoices /POs?
YES
NO
NO
  • Select a mix of suppliers to adopt, which are
  • Core
  • Common
  • Local

NO
Can products/Services be standardised for a
catalogue?
Can supplier trade through fax/email or cXML?
YES
High Spend?
YES
NO
YES
Contract or/and collaborative contract supplier?
Set up on system and request catalogue / punch
out content/ connection
YES
Is the supplier already trading via ePS?
YES
NO
Initiate Full Adoption of Supplier onto ePS
Initiate supplier rationalisation
NO
10
The order suppliers receive will look like
extremely familiar, something like this
Buying Org Logo
11
  • Implications for suppliers

12
Decision Tree for Connection Options
Do you have a transactional website through which
orders can be placed?
Do you have a range of standard items?
No
No
Yes
Yes
Is it cXML compliant?
Are the products or prices particularly volatile?
Yes
No
No
Yes
Discuss feasibility of Punch Out Development with
Elcom
Catalogue
Non-Catalogue Trading
Punch Out
13
Optional Methods of Purchase Order Transfer
Preferred methods
Disadvantages
Advantages
  • No Process Improvement
  • Re-inputting of Information
  • Reliant on fax line manual collection

Option 1Fax
  • May not have to purchase any technology or
    procure any further hardware

Option 2e-mail (Default Option)
  • Little process improvement
  • Reliant on e-mail efficiencies
  • Instant receipt of Purchase Order
  • Purchase Order can be forwarded

Option 3cXML (Advanced Connection)
  • Can be directly run into back office systems
    (removes the need for manual inputting)
  • Cost to set up first cXML connection

Option 4Secure e-mail
  • Little process improvement
  • Reliant on e-mail efficiencies
  • Software required for encryption
  • Instant receipt of Purchase Order
  • Data encrypted for security
  • Purchase Order can be forwarded
  • Can be directly run into back office
  • Systems (removes the need for manual
  • order inputting

Option 5EDI (Outdated Method)
  • EDI is old technology

14
The impact on suppliers?
  • Suppliers will continue to contract as normal
  • Suppliers will be able to increase the use of
    already developed electronic catalogues or
    websites
  • No joining fees, no transaction fees, no
    maintenance fees, no subscription fees
  • However, Suppliers would bear the cost of any
    internal development or interfaces required,
    external marketplaces, cXML orders, or
    connections via secure email
  • Orders will be received by one pre-agreed route
  • Suppliers need to review how they communicate
    price and content changes

15
Implications for suppliers
  • Suppliers will have to supply their catalogue in
    a very precise format, suitable for upload
  • Suppliers need to ensure catalogue content and
    price updates are communicated in a timely
    fashion in the required format to ensure
    integrity and avoid invoice queries
  • UNSPSC coding for all items is mandatory
  • Costs - to develop Punch Out website, technical
    interfaces and/or cXML message handling and
    integration capability. Providing 24 x 7 support
    for the website if applicable

16
Detailed information can also be found on the
suppliers page of www.eprocurementscotland.com
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