University of Dundee eProcurement Scotl@nd

eProcurement Scotl@ndsupplier briefing

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eProcurement Scotl@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@nd More than 14,600 users 1million transactions per month Annual value around £2.5billion

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The aim of eProcurement Scotl@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.

The eProcurement solution chosen by the eProcurement Scotl@nd is called PECOS 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

Advanced Procurement for Universities & Colleges (APUC)

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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:APUC

ePS Implementation

Policy & GovernanceCollaborative Procurement

Implementation of ePS in the institutions

Adoption of suppliers onto the new system and the co-ordination of content management activity

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

Development and implementation of effective collaborative procurement arrangements

This will be based on consultation with institutional customers through a network of user intelligence groups

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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

Benefits to Suppliers

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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

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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.

Select a mix of suppliers

to adopt, which are:

•Core

•Common

•Local

High Spend?

High invoices

/PO’s?

Contract or/and collaborative

contract supplier?

Initiate supplier rationalisation

CRITERIA

YES

YES

YES

YES

YES

NO

NO

NO

NO

Can products/Services be standardised for a catalogue?

Set up on system and request

catalogue / punch out content/connection

Determine alternative means of trading on ePs

NO

Can supplier trade through fax/email or

cXML?

Is the supplier already trading

via ePS?

Initiate Full Adoption of

Supplier onto ePS

YES

NO

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The order suppliers receive will look like

extremely familiar,

something like this…

Buying Org Logo

Implications for suppliers

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Decision Tree for Connection Options

Catalogue“Punch Out” Non-Catalogue Trading

Do you have a transactional

website through which orders can

be placed?

Do you have a range of standard

items?

Is it cXML compliant?

Are the products or prices particularly

volatile?

Yes

No No

Yes

Yes No

Discuss feasibility of Punch Out

Development with Elcom

YesNo

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Option 4:Secure e-mail

Optional Methods of Purchase Order Transfer

Advantages Disadvantages

•No Process Improvement•Re-inputting of Information•Reliant on fax line & manual collection

Option 1:Fax

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

Option 2:e-mail

(Default Option)

• Little process improvement• Reliant on e-mail efficiencies

Option 3:cXML (Advanced

Connection)

• Can be directly run into back office systems (removes the need for manual inputting)

•Can be directly run into back office Systems (removes the need for manual order inputting

Option 5:EDI

(Outdated Method)

• EDI is old technology

• Instant receipt of Purchase Order• Purchase Order can be forwarded

• Cost to set up first cXML connection

Preferred methods

• 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

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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

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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

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