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BEN Buys & the Penn Marketplace A Competitive Advantage for Participating Suppliers Ralph Maier & Vira Homick Purchasing Services November 11, 2005. Presentation Agenda. BEN Buys Purchasing System About the Penn Marketplace

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Presentation Agenda

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  1. BEN Buys & the Penn MarketplaceA Competitive Advantage for Participating Suppliers Ralph Maier & Vira Homick Purchasing Services November 11, 2005

  2. Presentation Agenda • BEN Buys Purchasing System • About the Penn Marketplace • Benefits to Penn & Participating Suppliers • Supplier Enablement Strategy • Community & Diversity Supplier Inclusion • Diversity Supplier Manager • Supplier Requirements & Statistics • Penn Marketplace Demo • Supplier Showcase Demo • Next Steps

  3. BEN Buys Purchasing System • Electronic purchasing system that provides point-of-demand ordering for authorized faculty and staff • Delegated order creation and final approval for orders <$5,000 to over 1,700 system users • Requires suppliers to be in the approved supplier database • All purchase orders are transmitted to suppliers via auto-fax or electronic data interchange (EDI) • At a minimum, suppliers must be able to receive fax orders • Suppliers must plan for a future of electronic document transition and electronic invoicing • www.purchasing.upenn.edu/buytools/benbuys.php

  4. About the Penn Marketplace • Penn’s private online supplier exchange containing preferred supplier catalog contract & Penn specific pricing • Launched in January 2002, a third party application hosted by SciQuest Incorporated • www.sciquest.com • Over 5M items from 136 suppliers available to 1,700 authorized faculty and staff • Integrated into the BEN Buys electronic purchasing system

  5. Benefits to Penn • Makes purchasing easy for faculty and staff which drives utilization of approved buying methods and preferred suppliers • Provides easy access to products, product availability, and related information • Automated purchase-to-pay process reduces effort, cycle time, and administrative costs • Increases accuracy of data and dramatically reduces errors and rework • Enables Penn to leverage buying power and shift spend to participating suppliers resulting in lower cost for products and services

  6. Benefits to Participating Suppliers • Provides product visibility to authorized buyers in the Schools and Centers • Opportunity to develop new or enhance existing business relationships • No-charge business model with flexibility of hosted catalog content or punch-out to supplier’s Penn specific ordering site • Opportunity to participate in the Supplier Showcase for internal web based marketing of new products and Penn specific promotions • Participation in the annual Penn Marketplace Supplier Show

  7. Supplier Enablement Strategy • Provide maximum value to the Penn buying community by targeting suppliers for all major commodities • Primary focus on Penn’s high transaction volume suppliers • Recruitment of targeted “mission critical” suppliers • Recruitment of local community based and diversity owned suppliers

  8. Community & Diversity Inclusion • Participation in Penn’s eBusiness initiatives is a challenge for most small and diversity suppliers • Gap between Penn’s eBusiness requirements and supplier capabilities • Required innovative approach to community and diversity supplier inclusion • Basis for a partnership between Penn and SciQuest for the Diversity Supplier Manager Project

  9. Diversity Supplier Manager Project • Partnership launched in July 2004 • Penn was SciQuest’s 1st DSM customer • SciQuest to provide supplier specific training and content development assistance to targeted suppliers • Penn assumed cost for supplier specific training • Target of five new suppliers per fiscal year • Suppliers to develop skills to assume responsibility after one year • Five Phase I suppliers successfully enabled in FY 2005 • Details available at: www.purchasing.upenn.edu/buytools/div_manager.php

  10. Supplier Requirements • Participating suppliers must partner with SciQuest to manage Penn specific catalog content and pricing • Designated supplier resource to work with Penn Purchasing and technology business partner • Requires the development and on-going management of electronic catalog content and price files • Timely content and price file updates in accordance with the terms and conditions of negotiated pricing agreement • Hosted catalog content or punch-out to Penn specific ordering site for high product volatility commodities

  11. Supplier Statistics • 136 participating BEN Buys suppliers as of November 1, 2005 • 25 of 136 are diversity owned suppliers • Participating suppliers received 68% of all purchase order transactions in FY 2005 • Approaching 70% in FY 2006 (YTD) • Purchase dollars with participating suppliers was approximately $115M in FY2005 • $27M in FY2002 • No enabled supplier has ever dropped out of the Penn Marketplace

  12. Next Steps! • Suppliers interested in establishing a new or expanding an existing business relationship with Penn should contact Vira Homick, Associate Director for eBusiness • E-Mail: homickv@pobox.upenn.edu • How to Join the Penn Marketplace Web Site • www.purchasing.upenn.edu/for_suppliers/pm_invitation.php • An electronic copy of this presentation is available in the “Purchasing Presentations” section of Purchasing in the News web site • www.purchasing.upenn.edu/about/in_news.php

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