an authority on e procurement

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e Procurement

• an authority on e procurement

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• Simon Lipscomb
• Regional Development Manager,

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IDeAmarketplace

• The IDeA
• Origins of IDeAmarketplace
• IDeAmarketplace the solution
• Regional e Procurement
• IDeAmarketplace e Hub
• Benefits of regional collaboration

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The IDeA

• The Improvement and Development Agency (IDeA)
  provides services and products to support
  self-sustaining improvement from within local
  government
• Created in 1999 and owned by the Local Government
  Association (LGA)

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IDeA themes

• The IDeA works across 5 themes
• e-government
• Leadership
• Capacity building
• Improving council services
• Community well-being

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IDeAmarketplace- Origins

• IDeAmarketplace has its origins in a research
  project to collect information on
• local governments spend on goods and services
• current practice in UK local authorities
• best practice in public and private sectors
• understanding the suppliers point of view

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Conclusions

• Local government would benefit from a single
  procurement portal (super-store)
• a self-service internet based solution is faster,
  simpler and more convenient
• Such a store should be run by a trusted
  partner
• IDeA is ideal trusted partner - similar
  initiatives such as
• IDeA Knowledge, National Land Information
  Service, Electoral Register

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IDeAmarketplace the local government solution
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Indicative Local Authority spend profile
Spend profiles
Generic categorisation of orders within a council
by transaction volume
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E-tendering e-ordering
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E-ordering supplier managed catalogues
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What did this tell us?
Initial e-catalogue items
The solution must support the procurement of all
types of goods services not just catalogue
items
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Catalogue
Catalogue Indirect
Periodic
Bespoke Capital
Bespoke Indirect
Total
Consumables
Services

• Social services
• Catering services
• Agency staff
• Engineering services

• IT consumables
• Office Supplies
• Furniture
• Cleaning materials

• Agency Staff
• Library Services
• Car leasing
• Travel
• HR services
• Insurance

• Buildings
• Vehicles
• IT infrastructure

• One off purchases
• Legal services
• Consultancy

Source eGS analysis
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The 7 Key components required of the solution

• Order and receipt everything electronically
• Access to best national/regional deals in tandem
  with local supplier retention
• Caters for the Procure-to-pay cycle
• Strengthens controls and reporting
• Incremental approach to roll-out
• Easy to use
• Cost effective

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Strategic procurement
High
Strategic Critical e.g.Childrens Services

• Strategic Security
• e.g.advertising

Market Difficulty
Tactical Profit e.g.Utilities
Tactical Acquisition e.g.Print Office Supplies
Risk
Exposure
Low
Supply Value
Source Essex County Council
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Solution Overview

• IDeAmarketplace is a hosted eProcurement trading
  environment enabling local authorities to
  purchase everything they purchase today,
  electronically

A developing e-Purchasing toolkit
Functional tools
Punch
eCatalogues
Punch Out
RFQ
eOrdering
PCards
Punch In
e Invoicing
Paperless Process Management ? Shopping Basket
?Order Mgt. ? Workflow ? Integration ? Supplier
Directory ?MIS ? Payment Approval
Platform
Special Offers
Regional Marketplaces SME eTrading
Trading Partners National Framework Agreements
Brokers
E-trading Environment
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What do you get with IDeAmarketplace ?

• Unlimited number of users
• Trading flexibility
• Buying Power
• FMS interface flexibility
• No capital outlay in IT infrastructure

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What do you get with IDeAmarketplace ?

• Active participation in ongoing development via
  LAUG
• Value for money
• Onsite Starter Pack
• 8 days of flexible onsite support
• Supplier adoption
• Work with organisations, such as Business Link,
  to run supplier days
• Comprehensive reporting capability
• Online reporting by time period, purchase
  category, cost centre, supplier, and user.

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Local Authority User Group (LAUG)

• Dedicated Local Authority focus
• IDeAmarketplace is developed in close
  co-operation with colleagues in local
  authorities. It is a tried and tested e trading
  platform and is run as a partnership with the
  Local Authority User Group (LAUG) who inform its
  future direction and development.

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The e Hub architecture for regional
collaboration
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3
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1
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Using Procure to pay within marketplace
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Punch in from complex FMS
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Punch out to supplier web site
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Benefits of e Hub model

• The benefit of partnership, the freedom of
  independence.
• Each participating council can retain its
  autonomy and local priorities BUT still enjoy the
  benefits of joined up working, access to shared
  contracts and supplier base, greater leverage in
  contract negotiations and comprehensive
  management information to inform future
  procurement decisions.

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The Benefits of regional procurement
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Benefits

• Supplier leverage
• Easier access to contracts and associated savings
  (savings from 9 15 across major spend
  categories)
• Benefits normally associated with larger councils
  are shared across the region
• Shared Learning and training
• Shared cost and resource
• Common approach
• Extend benefits to partner organisations

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Benefits

• Shared procurement resource
• Shared strategic capacity to support processes
  (eg generic procurement toolkits Best Value
  review support benchmarking etc)
• Shared capacity to support joint contracting
• Shared capacity to support more effective use of
  existing collaborative contracts
• Shared eProcurement capability
• Shared project management resources
• Knowledge sharing around BPR (eg process
  templates)
• Shared training resources
• Local user groups
• Shared approach to FMS vendors to drive down cost
  of interfacing
• Shared approach to supplier adoption
• Joined-up approach to on-boarding local
  supplier community
• Shared supplier training events and publicity
• Shared services eg Supplier Portal

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Technical Benefits

• Not technically prescriptive to councils or
  suppliers
• Flexible technical architecture allows each
  organisation to move forward at their own pace.
• Those councils who wish to move forward quickly
  can begin achieving benefits whilst not closing
  the door on a regional solution

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• Thank you