NAEP: E-Commerce Best Practices

1. NAEP: E-Commerce Best Practices

2. Agenda • Session and Marketplace Overview: • Welcome and Introductions • Agenda Review • Industry Benchmarks • Technology Adoption Trends • Overview of the U.S. Communities Marketplace • Customizations and Extensions of this Marketplace • Case Studies: Fairfax County Public Schools and Portland Public Schools

3. P2P (Procure-to-Pay) Process Defined Procurement workflow—The transactional workflow to find, request, purchase, and receive product Search—Meta-search capabilities that access internal and external catalogs and preferred supplier websites and contracts Catalog—Types of catalogs maintained may be internal or external punch out; internally maintained by the buying organization or serviced by the supplier Payment—The extension of the settlement of a supplier invoice after a good or service has been received Source: AMR Research 2009

4. Public Sector P2P (Procure-to-Pay) Adoption Source: October 2011 NIGP Member Survey: “Use of Procurement Software in the Public Sector” Early Adopters of Procurement Workflow (eRequisitioning) Now Focused on Procurement Marketplaces to Aggregate/Manage Spend

5. P2P ROI Improvement Opportunity Aberdeen Group research has found that even mature e-Procurement programs (average 5+ years) typically have failed to achieve targeted goals, largely due to user adoption: “User adoption continues to be a challenging aspect of an e-procurement initiative and an intuitive, easy to use procurement system is required to drive user adoption.” Source: Aberdeen Group - Effective E-Procurement 2010, E-Procurement Benchmark Report 2008, E-Procurement Trials and Triumphs 2007

6. P2P Solutions Market Landscape

7. What is the USC Marketplace? • Free online system • Single login to access many different vendor catalogs, increasing purchasing efficiency • Ability to place purchases with pcard or PO • Quick visibility into products and pricing • Standardization for decentralized purchasing • Provides comprehensive reporting on past purchases • New “Browse Now” function for non-registered agencies

8. Marketplace Homepage

9. Results from USC Contracts

10. Product Detail Page

11. Payment Screen

12. Customization of Marketplace • Marketplaces can be customized for specific agency needs • Free services to get started • Help with registration of users • Training/webinars for end users • Some punchout connections from existing systems • Other customizations can address: • Approvals/workflows • Branding/customized UI • Inclusion of an agency’s specific contracts • Full integration with ERP systems

13. Customization of Marketplace

14. Case Studies • Stand Alone System- Portland Public Schools • Integration with existing ERP System- Fairfax County Public Schools

15. Portland Public Schools Marketplace Model Model: Stand-Alone Marketplace Catalogs: Punchout Catalogs Content Management: Outsourced Supplier Enablement Requisition Management: Marketplace Workflow Approval (Grant Funds) Transaction Management: Marketplace-Managed Electronic Order Delivery

16. Consolidated Spending Through Single Portal to Reduce Maverick Buying and Increase Spend Visibility • Enabled Users to Comparison Shop Multiple Co-Operative Contracts and Suppliers to Identify “Best Value” Purchases at the Item Level • Increased P-Card Utilization and Rebates by Capturing Millions in Federal Grants Dollars with Workflow Approval Support • Eliminated Warehouse Operations and Buffer Inventories by Empowering End-Users to Order Directly and Receive Timely Delivery Case Study: Portland Public Schools Overview • Portland Public Schools (PPS) is the largest school district in the Pacific Northwest, with approximately 47,000 students in 85 schools • Mandate for process automation driven by District-wide budget cuts and headcount reductions • Deployed Stand-alone, PPS-branded Private Marketplace platform solution in 30 days with no IT support required • End-to-end process support with fully transparent shopping across multiple cooperative contracts , workflow approval for Grants Fund purchases, and electronic PO delivery/status Results

17. Fairfax County Marketplace Model Model: ERP Integrated Marketplace (SAP) Catalogs: Punchout Catalogs Content Management: Outsourced Supplier Enablement Requisition Management: ERP (SAP) Transaction Management: Marketplace –Managed Electronic Order Delivery

18. Case Study: Fairfax County FOCUS Marketplace

19. FOCUS Marketplace Goals • Single portal for County and Schools • One stop shop for commodities and commoditized services • Increase utilization of cooperative contracts • Reduce off-contract or Maverick Spend • Generate revenue to the county through higher rebates (P-Cards and Co-Ops) • Improve operating efficiencies • Enhanced reporting – NIGP commodity codes more specific to public procurement – provides map to GL account coding and spend analysis reporting

20. SAP Integration • Single-Sign On (SSO) access from SAP SRM • Shopping Cart returned to SAP for approval workflow with NIGP codes mapped from UNSPSC • Approved SAP orders delivered electronically (cXML) to suppliers with PCI compliant “ghosted” P-Card payment information encrypted in PO • User Experience • Amazon-like , comparison shopping for “best value” • “Walk-Up” or “Shop Only” access for Non-SAP users • “Touchless” orders (95% require no purchasing involvement) • Supplier Enablement • Maximize supplier managed “punchout ”catalogs • Enable large and small, local vendors for E-Commerce including punchout catalogs and Level III P-Card transactions • IT Support • Minimize IT resources with “cloud” solution • IT views single firewall punchout as more secure FOCUS Marketplace Requirements

21. FOCUS Marketplace P2P Process Flow Shopper Full Cart Approver One Invoice FOCUS Auto PO Match & Payment One Payment Supplier Many Payments Many Invoices PO with P-Card Receiver Deliver Pcard Bills Receipts Reconciler

22. Questions? Private Marketplace