Engaging SMEs in E-Procurement with Sage: A Path to Efficiency and Growth

1. Engaging SMEs in e-procurement Kevin HartBusiness Development Manager Sage e-Services

2. Today • Overview of Sage and why we are in this space of ‘e-Procurement’ • What we are doing to connect SMEs into the supply chain • SMEs’ reaction and feedback to date • How we can help you achieve SME adoption

3. A few things about Sage • British company est. 1981 (Newcastle-u-T) • Only remaining IT company in FTSE 100 • More than Accounting & Payroll • Over 500,000 UK SMEs • Also support mid-market customers • Major service organisation • Over 1 million calls/year by over 300 staff • Recommended by over 92% accountants • Focus = needs & market drivers of SMEs • Connected world mission

4. Sage’s connected world • Connect our SME’s back office, electronically, to their key trading partners and 3rd parties • Drive up their efficiency & effectiveness • Ensure SMEs ready to meet emerging market needs (e.g. e-procurement [K/A]) • Both retain and grow their business

5. Why change the way SMEs trade? • Already seeing: • Electronic payments (Private & Public) • Electronic trading (mainly Private) • Electronic filing (mainly Public) • Greater use of the internet for marketing, customer relationship management & electronic trading • e-Government & Economic Development objectives

6. SME Adoption initiatives

7. Bristol City Council Key drivers for e-procurement rollout: • Positive feedback from initial trial • Best value performance targets – need to engage all 19,000 suppliers (£342m) • Evolving ‘e-government’ targets • Emerging Economic Development objectives • Ensure the community served by Bristol CC fully benefit by these initiatives

8. BCC’s Solution • Aggregation portal – SME focused • Open standards approach • Wanted integration ‘end-to-end’ – benefits • Researched customer base accountancy systems – found large Sage match • Sage provision of Transaction e-mail • Sage integrated with the ‘Bristol e-business’ portal – open standards & a first • Joint launch to suppliers, inc. support agencies, achieving >75% sign-up.

9. Buyers Product catalogues Web sites e-Marketplace System (‘Bristol e-business’) Management Information Bristol City Financial System (Bristol’s in-house) Payments Interface Suppliers Sage user with Transaction e-mail Sage user with Transaction e-mail Sage user with Transaction email Non-Sage user e-Purchasing System (Bristol’s e-purchasing front end)

13. Sales Order Sales Invoice

15. Bristol City Council Trade electronicallywith KEY tradingpartners 19,000 SMEs

16. Bristol City Council Trade electronicallywith ALLbusinesspartners 19,000 SMEs

17. What Non-Sage trading partners see

18. Transaction e-mail – suppliers benefits • Uses the ‘familiar’ e-mail as a delivery mechanism • Ease and accuracy of online catalogue set-up • Virtually eliminates errors – direct data in & out • Speeds-up order processing • Faster, more accurate delivery = payment • Addresses demand to trade electronically • Open standards based • Raises the profile of the businesses • Enables companies to retain & build business • Used for ALL trading partners • Time to focus on key business or lifestyle needs.

19. Transaction e-mail – suppliers benefits • Uses the ‘familiar’ e-mail as a delivery mechanism • Ease and accuracy of online catalogue set-up • Virtually eliminates errors – direct data in & out • Speeds-up order processing • Faster, more accurate delivery = payment • Addresses demand to trade electronically • Open standards based • Raises the profile of the businesses • Enables companies to retain & build business • Used for ALL trading partners • Time to focus on key business or lifestyle needs. POSTAL STRIKE

20. What SME suppliers are saying Timothy Squires, Managing Director, Aquarius “Sage’s Transaction e-Mail is a godsend; it enables us to simply & quickly exchange orders & invoices with our customers and suppliers. This means we can save the time and cost of handling documents, envelopes, postage, etc. along with ensuring no keying errors and so we can do more important things like selling.”

21. What SME suppliers are saying Debbie Wright, Director, Brunel Engravings “We have always used Sage Software to run our accounts and have introduced Transaction e-Mail for customer invoices, supplier remittance advices, etc. We welcome online trading and feel that it is more cost effective and efficient and we look forward to doing more business in this way.”

22. What the industry is saying Peter Court, Director, Office of Government Commerce “Sage is making a major commitment enabling ease of electronic trading with the Public Sector.”

23. How Sage can help • Share with you key learning points • Identify mutual suppliers/customers: • Initial ‘cut’ based upon postal codes • Confidentiality • Supplier/Customer database match • Identify key targets & propositions • Linkage with your trading hub/marketplace • Collaborative approach with support agencies • Partnership marketing (mailings, events, etc.) • Co-ordination support

24. Public/Private sector partnership • Sage’s footprint in the SME suppliers • Sage’s connected world • Commitment to e-Procurement • Focus upon public sector • Established a ‘blue-print’ (review & refine) • Work together to create a win-win-win

25. Engaging SMEs in e-procurement THANK YOUKevin Hart Business Development Manager Sage e-Services

26. Engaging SMEs in e-procurement THANK YOUKevin Hart Business Development Manager Sage e-Services