Transcript ECommerce Best Practices and the US Communities Marketplace
NAEP: E-Commerce Best Practices
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
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
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
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.”
Performance Area Average Best-in Class/Target* ROI GAP
Compliant Spend
% of POs Compliant w/Existing Contract
User Adoption 51% 63% 86% 90%* 35% More On–Contract – Average Lost Savings 12% for Off-Contract 27% More User Adoption Requisition-to-order cycles Days to On-Board Catalog Supplier 3.4 days 13 days < 1 day 3.2 days 70% Faster Cycle Time 75% Faster Cycle Time Off-Catalog Requisitions 34% 10%* Requisition-to-order costs $31 $22 Source: Aberdeen Group - Effective E-Procurement 2010, E-Procurement Benchmark Report 2008, E-Procurement Trials and Triumphs 2007 24% More “Touchless” POs 29% Savings per PO
P2P Solutions Market Landscape
Catalog Shopping/Content Management Capabilities
• • • • •
Functionality
Punchout Support Single UI Search w/Punchout Social Shopping (Ratings) Document/Policy Management Punchout Catalog Verification • • •
Supplier Enablement
Supplier Ramp Management Free E-Commerce Site No Supplier Fees • • •
Cost
High >$1M Medium $150K-$1M Low $<150K
ERP (SAP, ORCL, PSFT, JDE)
Supplier Networks (Ariba, SciQuest, Hubwoo) Public Sector Solutions (eSchool Mall, Unimarkets, K12Buy)
Equal Level Private Marketplace
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
Marketplace Homepage
Results from USC Contracts
Product Detail Page
Payment Screen
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
Customization of Marketplace
Case Studies
• Stand Alone System- Portland Public Schools • Integration with existing ERP System- Fairfax County Public Schools
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
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
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
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
Case Study: Fairfax County FOCUS Marketplace
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
• • • •
FOCUS Marketplace Requirements
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 P2P Process Flow
Full Cart Shopper FOCUS Auto PO Match & Payment PO with P-Card Deliver Supplier Receiver Receipts Pcard Bills Reconciler