eProcurement Scotl@nd supplier briefing

1. eProcurement Scotl@ndsupplier briefing University of Dundee eProcurement Scotl@nd

2. ...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 eProcurement Scotl@nd - The Vision 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. The eProcurement solution chosen by the eProcurement Scotl@nd is called PECOS 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. • 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

4. Advanced Procurement for Universities & Colleges (APUC)

5. APUC ePS Implementation Collaborative Procurement Policy & Governance 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: Implementation of ePS in the institutions Adoption of suppliers onto the new system and the co-ordination of content management activity Development and implementation of effective collaborative procurement arrangements This will be based on consultation with institutional customers through a network of user intelligence groups 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

6. 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

7. Benefits to Suppliers

8. 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 From our experience, implementing eProcurement can support suppliers… 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. 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. Determine alternative means of trading on ePs CRITERIA High invoices /PO’s? YES NO NO Select a mix of suppliers to adopt, which are: • Core • Common • Local NO Can products/Services be standardised for a catalogue? Can supplier trade through fax/email or cXML? YES High Spend? YES NO YES Contract or/and collaborative contract supplier? Set up on system and request catalogue / punch out content/ connection YES Is the supplier already trading via ePS? YES NO Initiate Full Adoption of Supplier onto ePS Initiate supplier rationalisation NO

10. The order suppliers receive will look like extremely familiar, something like this… Buying Org Logo

11. Implications for suppliers

12. Decision Tree for Connection Options Do you have a transactional website through which orders can be placed? Do you have a range of standard items? No No Yes Yes Is it cXML compliant? Are the products or prices particularly volatile? Yes No No Yes Discuss feasibility of Punch Out Development with Elcom Catalogue Non-Catalogue Trading “Punch Out”

13. Optional Methods of Purchase Order Transfer Preferred methods Disadvantages Advantages Option 1:Fax • No Process Improvement • Re-inputting of Information • Reliant on fax line & manual collection • 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 • Instant receipt of Purchase Order • Purchase Order can be forwarded Option 3:cXML (Advanced Connection) • Can be directly run into back office systems (removes the need for manual inputting) • Cost to set up first cXML connection Option 4:Secure e-mail • 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 Option 5:EDI (Outdated Method) • Can be directly run into back office Systems (removes the need for manual order inputting • EDI is old technology

14. 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. 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

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