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2 eProcurement Scotl@nd
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
3 eProcurement Scotl@nd
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
5 eProcurement Scotl@nd
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
6 eProcurement Scotl@nd
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
8 eProcurement Scotl@nd
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 eProcurement Scotl@nd
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
10 eProcurement Scotl@nd
The order suppliers receive will look like
extremely familiar,
something like this…
Buying Org Logo
12 eProcurement Scotl@nd
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
13 eProcurement Scotl@nd
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
14 eProcurement Scotl@nd
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 eProcurement Scotl@nd
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