eProcurement Workshop

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eProcurement Workshop
Phil Worsley Cap Gemini Ernst Young
Greg Nicholls E-government Unit State Services
Commission

2
Todays Programme

• Introductions and Welcome
• E-government
• GoProcure
• Demonstration
• Procurement Processes
• Break
• Demonstration (continued)
• Oracle Exchange, iSupplier Portal and Reporting
• Next Steps
• Questions

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The solution

• Access to an electronic procurement solution
• Low risk
• Takes advantage of Govts economy of scale
• Hosted by the Govt using Datacom
• Dependant on size
• Electronic access to Supplier catolgues
• Automate procurement process internally and
  with suppliers
• Access to reporting
• No capital required
• Part of the e-government programme

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E-government programme

• E-government programme and e-government Unit
  established July 2000 for four years
• Two main reasons for establishment of programme
• ensure public sector was able to make best use of
  information and technology to improve service
  delivery, internal performance and overall
  capability
• facilitate necessary organisation changes,
  development of networks and relationships for the
  above to occur

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http//www.e-government.govt.nz/

• E-government is
• changing the way government works
• about government agencies working together, using
  technology to provide individuals and businesses
  with government services and information
• E-government is not
• a massive IT project
• E-government Unit is
• part of State Services Commission working with
  government agencies to achieve the Government's
  vision for e-government

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E-government procurement project

• The government is looking at ways to improve the
  way it purchases goods and services
• This includes the processes, culture, and
  information technology necessary to attain
  leading procurement practice.
• The Procurement Project comprises three
  inter-related initiatives
• Syndicated procurement
• Best practice processes
• E-procurement

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E-procurement project background

• Objective
• To develop a 'best practice' strategic approach
  to government procurement that is enabled by the
  adoption of e-procurement, and foster a culture
  across all of government that will facilitate its
  uptake.
• Collaborative Project
• Greater overall benefits to government
• Avoid reinventing the wheel
• Share costs
• Unified approach is easier for suppliers
• Encourage uptake of e-commerce

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Potential Participants

• Large and small
• Departments
• Crown entities
• Polytechs
• Universities
• Health
• CRIs
• Local Government
• SOEs

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Activities To Date

• Project Formation
• Business Case and Conceptual Design for
  E-procurement
• Request For Proposal and RFP Evaluation
• Contract Negotiation
• Workshops with Government Agencies
• Letters of Intent

July-Oct 2000
Mar 2001
Aug 2001
Dec 2001
April 2002
May/June

• Workshops and Briefings

• Project Formation
• Ministers Report

• Syndicated Procurement
• Initial Business Case

• Request For Proposal

• Responses evaluated

• Contract Signed

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GoProcure design

• Government Online Procurement System
• SSC Project Manager and Promoter
• Cap Gemini / Oracle / Datacom/ Compaq
• Modular different solution options
• Contracted suppliers B2B not a marketplace
• One connection to government
• Easy for SMEs
• Annual subscription charge to agencies
• No charge for suppliers
• FMIS integration

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GoProcure key features

• On-line, browser based requisitioning
• Automated workflow and approval of orders
• Automated electronic (or fax) transmission of
  orders to suppliers
• Desktop receipting via browser
• Capture of purchasing intelligence
• Suppliers can maintain catalogues on line
• Automatic matching of Invoices and Orders
• No additional software required

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Solution Overview
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Demonstration What an agency does

• Portal
• Catalogue Search
• Catalogue Requsition
• Non-catalogue Requsition
• Receipting

System
Approver
Requester
Select Product
Create Requisition
Approve Requisition
Automatic PO
Receive Purchase Order
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Content is KingGood e-content enables finding
buying

• Rich Descriptions Complete information
• Short and long descriptions Less
  returns/queries
• Images
• Minimal abbreviations Easy to find
• Unified categorisation Easy to compare
• International stds - UNSPSC
• Consistent look and feel Easy to maintain
• Use others to build the catalogue All of above
• Up to date Quicker payment
• Self service Control

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Suppliers

• One point of contact with multiple Agencies
• Transaction hub provides 1 point of contact for
  suppliers for inbound and outbound transactions
• Decreased support, development and staff costs
• Catalogue maintenance
• Web based or
• File upload
• Standards UOM, UNSPSC
• Visibility of data that a user sees
• Reporting on sales status
• No charge
• No change contracted suppliers only
• Reduced errors received from Agencies

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GoProcure Exchange Transaction Hub

• Enables organisations to most effectively
  collaborate in real-time to deliver lower cost,
  higher quality products and services to the
  market faster
• Catalogue Management
• Self Service
• Buyer Specific
• Purchases
• Streamlined Order Placement
• Real-time Price And Availability
• Link-in Integration With Procurement Systems
• Link-out To Supplier Hosted Catalogues
• Transaction Delivery
• Inbound/Outbound
• Open OAG XML standards

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Exchange Administration Hierarchy

• Single registration
• Set up affiliate companies
• Company Administrator
• You maintain your organisation details
• Can be used for multiple locations
• eg billing v order location

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GoProcure Exchange XML Transactions
Government Agencies
Suppliers to Agencies
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iSupplier Portal

• A collaborative platform for a buyer to manage
  relationships with its supply base. Suppliers can
  be notified and respond to events in the
  purchasing and planning process, providing an
  unparalleled level of service.
• Item Summaries
• Planning Schedules
• Supplier Agreements
• Purchase Order Status Information
• Advance Shipment Notifications
• Invoice and Payment

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iSupplier Portal summary

• E-enable Suppliers
• Reduce Supplier Queries
• Supplier Updates Catalogue
• Better Information For Users
• Ability to share information greatly enhanced
• Suppliers can view and amend PO information
• Suppliers can provided Advanced Shipping details
• Seamless Integration With iProcurement,
  Purchasing And Accounts Payable

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Benefits - Exchange, iSupplier, PI

• Browser Interface
• Supplier Self-Service
• Real time catalogue update
• Reusable catalogues
• Real Time Transactions
• Order Status
• Shipments
• Invoices
• Manage Whole Purchase-To-Pay With Supplier
• Performance Reporting
• Online Reports

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Transactions

• Invoices
• Fax
• Mail
• Email file
• XML format
• FTP
• Paste into website
• Create online

• Purchase Orders
• Faxed
• eMail
• Flat file
• XML format
• Supplier portal

• Others
• Order acknowledgements
• Inventory levels

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Next Steps

• Assess the solution to be used by Agencies
• The full suite or
• The catalogue hosting and transaction hub
• Confirm commitment from Agencies
• SSC require a Letter of Intent

Aug
May/June
July
Oct
Sept
Build

• Workshops and Briefings
• Develop Business Case

• Go Live

• Finalise Business Case
• Onboarding

• Go/No-Go

• Supplier Workshops

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Why is GoProcure different?

• Buyer controlled
• Used to manage all suppliers
• Good supplier management tools
• Collaborative project gives very cost effective
  solution
• Cost model - subscription charge to buyers
• No charge for suppliers
• Also a Transaction hub
• Inter-Agency project as part of Part of the
  e-government programme

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Summary

• Contracted suppliers only
• 1 connection for suppliers
• Electronic Orders, invoices, Acknowledgements,
  Inventory where possible
• Reduce time and cost for suppliers
• Low risk subscription based (for Agencies)
• No software
• Reporting
• No change in tendering/contracting process with
  Agencies
• All purchasing