Transcript Title of Presentation

E-Commerce Discussion Panel
Panelists: Joan Matsumoto, MA
Carol Wilson, CT
Mike Mangum, NC
Tina McLamb, NC
eProcurement in Massachusetts
April 4, 2006
What is an eProcurement System?
• Typically, “e” implies web-enablement, but generally means “paperless.”
• Use of the term “eProcurement” may vary from state to state
• May be a single system or many systems
• May be fully or partially integrated, or not integrated at all
• May support only a portion of the state’s public entities or all
• May be required by law or regulation for some or all processes
Online Bidder QuickTipshttp:// www.mass.gov/osd
eProcurement Processes
Bids
Contracts
Purchases
Bidder Registration
Record Management
Catalog
Creation/Management
Encumbrance
Record Management*
Bidder Notification
Catalog Purchasing
Reconciliation
Bidder Notification
Vendor Management
Order Receipt
Payment
Bidder Conference
Request for Quote
Bid Submission
Bid Tabulation
Bid Disposition
Reverse Auction
* BIDS: WTO Notices, RFI, RFP, ITB, Internal Requisitions
Online Bidder QuickTipshttp:// www.mass.gov/osd
Payments
Public Bidder Questions
Required?
Fee/Bond?
Bidder or Buyer Managed?
Goods & Services, Human and Social Services, Construction?
Single or multiple systems/sources within the state?
Online Bidder QuickTipshttp:// www.mass.gov/osd
eProcurement in Massachusetts: Comm-PASS
Bidder
“Registration”
Bidder
Notification
Record
Management
Bidder
Conference
Bid Submission
• Comm-PASS is the Commonwealth Procurement Access & Solicitation Site
• Launched in 1997 to increase competition, value through public access
• Home-coded “bulletin board” replaced by BearingPoint system in 2004
• Data system supports workflow, transactions for bid-contract processes
• Required posting site for announcements/bid specifications for:
•
any executive department goods/services, human and social services bid exceeding $50K
•
all public entity construction exceeding $10M
• Open to any public entity in Massachusetts at no charge, includes free training
• Posting are accessible at no charge to anyone with Internet access
• THERE IS NO PRE-QUALIFICATION/REGISTRATION IN MASSACHUSETTS
Online Bidder QuickTipshttp:// www.mass.gov/osd
Statewide Contract Procurements on Comm-PASS
• All announcements, requests for information, solicitations, and contract awards
• All written questions must be submitted via the Forum
• All written answers are posted via the Forum
• Bidders may elect to subscribe for optional value-added services
•
Automatic notification of new posting and amendments for solicitations, contracts, forums
•
Appear in the Business Directory, a publicly accessible “yellow-pages” style web-listing
•
Create and submit responses online to eliminate paper, waive and defer wet-ink signatures
•
Bid tracking through a customizable system “desktop”
• Subscription is not required to access or respond to any posted opportunity
• Subscription fees are based on Massachusetts fee policy: avoidable, based on cost offset
Online Bidder QuickTipshttp:// www.mass.gov/osd
Public Access
Online Bidder QuickTipshttp:// www.mass.gov/osd
Public Access
Online Bidder QuickTipshttp:// www.mass.gov/osd
Online Bidder QuickTipshttp:// www.mass.gov/osd
Online Bidder QuickTipshttp:// www.mass.gov/osd
Online Bidder QuickTipshttp:// www.mass.gov/osd
Online Bidder QuickTipshttp:// www.mass.gov/osd
Online Bidder QuickTipshttp:// www.mass.gov/osd
Online Bidder QuickTipshttp:// www.mass.gov/osd
Subscriber Desktop
Online Bidder QuickTipshttp:// www.mass.gov/osd
Subscriber Desktop
Online Bidder QuickTipshttp:// www.mass.gov/osd
Subscriber Desktop
Online Bidder QuickTipshttp:// www.mass.gov/osd
Subscriber Desktop
Online Bidder QuickTipshttp:// www.mass.gov/osd
Subscriber Desktop
Online Bidder QuickTipshttp:// www.mass.gov/osd
Subscriber Desktop
Online Bidder QuickTipshttp:// www.mass.gov/osd
Subscriber Desktop
Online Bidder QuickTipshttp:// www.mass.gov/osd
Subscriber Desktop
Online Bidder QuickTipshttp:// www.mass.gov/osd
Subscriber Desktop
Online Bidder QuickTipshttp:// www.mass.gov/osd
Subscriber Desktop
Online Bidder QuickTipshttp:// www.mass.gov/osd
Subscriber Desktop
Online Bidder QuickTipshttp:// www.mass.gov/osd
Subscriber Desktop
Online Bidder QuickTipshttp:// www.mass.gov/osd
Subscriber Desktop
Online Bidder QuickTipshttp:// www.mass.gov/osd
Subscriber Desktop
Online Bidder QuickTipshttp:// www.mass.gov/osd
Subscriber Desktop
Online Bidder QuickTipshttp:// www.mass.gov/osd
Subscriber Desktop
Online Bidder QuickTipshttp:// www.mass.gov/osd
E-Commerce in Connecticut
Carol Wilson, C.P.M., Director of Procurement
State of Connecticut
April 4, 2006
E-Commerce History in
Connecticut
• 1997 – Developed website with general
procurement information – Contracts viewable
online.
• 1998 – Inception of online Bidder Notification
System (moved away from paper mailing of bid
notices and advertising in publications).
Online Bidder QuickTips
E-Commerce History in
Connecticut
• 2000-2002 – Announced and Implemented
Connecticut’s 1st agency online ordering system –
“Orderlink” for contract purchases.
• 2003 – Migrated from “Orderlink” to statewide ERP
system (integrated central accounting, purchasing,
personnel and payroll system).
• 2005 – Enhanced online Bid Notification System to
State Contracting Portal (all agency solicitations
posted here – open,
transparent, accessible
Online Bidder QuickTips
government).
E-Commerce History in
Connecticut
• 2003-2006 – Focus on obtaining clean Data
Catalogs required from Suppliers for ERP
purchasing system (E-Catalogs).
• 2005-2006 – Developed and Rolled-Out Online
Small/Minority Business Certification Application
System.
Online Bidder QuickTips
What’s Next in Connecticut?
• 2006 – Expect to roll-out online Supplier
Performance Reporting & Resolution System
(interactive between agency, procurement office
and suppliers).
• 2006 – Developing online Bid Response System.
Online Bidder QuickTips
How can Suppliers Assist Us?
• Utilize Procurement web options (bid notification
systems, online certifications, bid response
systems).
• Communicate and Provide Constructive Feedback
for Improvements
• Provide Procurement Staff with Technical
Contacts who can competently respond to ECatalog needs.
Online Bidder QuickTips
External (Supplier) Challenges
of E-Catalogs
• Complete and Accurate Catalogs (contract data)
• Properly Formatted Catalogs (field names, field
lengths, field types, required vs. optional fields,
etc.)
• Timely Catalog Updates/Maintenance
Online Bidder QuickTips
Internal (State) Challenges
of E-Catalogs
• System Functionality
• Timely Catalog Updates/Maintenance
• Impact of Errors on other ERP System modules
• Impact of Integrity of Data on Accounting
Functions/Audit.
Online Bidder QuickTips
Keys to Success in ECommerce Initiatives
• Be Flexible
• Stay informed of latest initiatives
• Communicate
• Participate
Online Bidder QuickTips
Questions?
Online Bidder QuickTips
NC E-Procurement @ Your Service
Overview
April 2006
E-Procurement
Overview
The system, which went live in October 2001, is comprised of the Ariba Buyer web-based
software product with public sector extensions, a Statewide Vendor Registration application,
and a marketplace for performing informal quotes electronically.
E-Procurement is an effort to transform the way the State of North Carolina purchases goods
and services, as follows:

It is an enterprise e-procurement system that allows government entities to aggregate their purchases to obtain
better prices from their suppliers.

Users are empowered to use online requisitioning through the Internet with direct access to state term contracts.

Entities can choose to decentralize the purchasing process.

The eQuote tool allows users to submit requests for quotes to specific vendors for items below the sealed bid
and advertising requirement, replacing more manual quoting processes. Responses (quotes) are submitted and
evaluated electronically.

Orders and approvals are routed electronically.
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E-Procurement
Statistics
E-Procurement Statistics: As of March 5, 2006





Over 1 million purchase orders issued
Over $5.6 billion in purchases
Over 45,000 vendors registered
Over 13,000 system users
238 purchasing entities using system
Who is using NC E-Procurement @ Your Service?





All State Agencies - 29
Institutions and Hospitals - 15
Local Education Authorities (K-12 Public Schools) – 115 of 115
Community Colleges – 57 of 58
Local Governments - 22
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E-Procurement
Organization

Sponsorship
– Governor’s Endorsement
– Enabling Legislation
– Sponsoring Agencies
• Purchase and Contract
• Information Technology
Services
• Office of the State
Controller

Enterprise-Wide
–
–
–
–
–
State Agencies
Institutions & Hospitals
K-12 Public Schools
Community Colleges
Local Governments
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E-Procurement
Organization

Advisory/Work Groups
Cross Entity Representation
– Advisory Committee
– Users Groups
– HUB Office


Business Model
– No Appropriated Funding
– Transaction Fee on
Purchase Orders
Project Management
– State Project Director
– State/Accenture
Management Committee
– Accenture as Application
Service Provider
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E-Procurement
Features

Functionality
– Electronic Requisition
– Automated Rule-Based
Approval
– Funds Checking
– P-Card
– Electronic Purchase Orders
– On-line Receipts
– eQuote/Informal Quote
Tool
– Catalogs/Term Contracts
– Vendor Registration/HUB
Certification
– Reporting

Core Software
– Ariba
– eQuote (custom)
– Vendor Registration
(custom)
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E-Procurement
Scope

On-line integration
with six financial
systems
– State Agencies/Institutions
– 1 Financial System
– Community Colleges
– 1 Financial System
– K-12 Public Schools
– 4 Financial Systems

Additional Opportunities
–
–
–
–
Reverse Auctions
Strategic Sourcing
Integration with Universities
Continued statewide rollout to local
government
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Support for
E-Procurement Program
40 personnel supporting E-Procurement operations
Call center handling roughly 500 customer inquiries per week;
also supporting user communications and training
Application support providing ongoing maintenance and
enhancements for the system
Technical support hosting the E-Procurement infrastructure and
providing 99.5% availability
New Development Team responsible for implementing local
schools, community colleges, and universities
Catalog enablement managing content for approximately 125
State Term Contracts and 500 catalogs
Billing team creating and processing an average of 6,000
invoices per month to 17,000 vendor locations.
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Benefits of
E-Procurement

Reduced prices through increased competition and
aggregation of demand
 Increased operating efficiency and reduced administrative
costs
 One Stop Shopping
 Online quoting tool – eQuote
 Increased order accuracy
 Online catalogs for statewide term contract items
 Electronic approval flows
 Access to new vendors
 Auto-Tabulated quotes
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E-Procurement
Benefits Analysis
 In reaction to staffing and budget constraints from 2001 through
2003, the State leveraged E-Procurement to spend its dollars
more efficiently and manage the procurement function more
effectively.
Price reduction savings over first two years of
E-Procurement operations: $127 million
 Cost savings of $127 M are the result of a 7.24% decrease in
prices.
 First-class purchasing system has been implemented and
maintained with no State funds expended as a result of an
innovative public / private partnership.
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Specific areas of
measured benefit
eQuote: Savings average 26% on items purchased using
eQuote.
Term
Contracts: Savings realized range from 3% to
23% on term contracts re-bid as a result of changes in
contract strategy due to eProcurement.
Cycle Time
Reduction: Process savings range from
26 – 50% when the elapsed time from order creation to
goods receipt was measured for four agencies one year
prior to E-Procurement go-live and one year after EProcurement go-live.
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E-Procurement
Honors
Awards Received:



Digital Government Award for Innovation in State
Government
Best of the Web Award – 1st place, Government to
Government category
IT Cronin Award – Honorable Mention
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