Overview of the enable solution

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Ricky FullerCommercial DirectorFindel
Education Regional Supplies

• Overview of the enable solution

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Chris ElliotHead of Purchasing and
ICTStaffordshire Moorlands DC
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enable Joint e-procurement Partnership

• Warrington
• Macclesfield
• Vale Royal
• Staffordshire Moorlands (Sept 2004)
• Congleton (Autumn 2005)
• AtoZ Supplies / UKprocure

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Who we are

• Part of Findel Education Limited
• Largest educational supplier in UK 200m pa
• Supply c50,000 product lines to schools LAs
• major national brands such as Hope, NES, Philip
  Harris, NRS
• Regional Supplies Division - 4 brands 80m pa
• AtoZ Supplies - formerly part of Essex CC
• GLS educational supplies - London SE
• WNW - formed to serve councils in Wales NW
• EDCO - leading supplier into Northern Ireland

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Our credentials

• Early adopter
• Suppliers to major council e marketplaces
• eg London Essex Marketplaces
• Supply to schools through online portal _at_schools
• Electronic ordering invoicing
• Provider of Enable marketplace with UKprocure
• Specialists in public sector product supply
• Understanding of public sector issues

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Who we are - UKprocure

• Leading provider of public sector e-procurement
  solutions services
• e-marketplaces
• e-auctions
• e-sourcing
• Experts in integration and implementation
• Project management skills
• Oracle Exchange platform

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3 principal objectives

• To purchase goods in common supply through a
  one stop shop overarching supplier
• To purchase using an end-to-end electronic
  e-procurement solution
• To achieve efficiency savings through Business
  Process Re-engineering

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Why this approach? In strategic terms

• Councils have a statutory duty to secure Best
  Value for their Customers and other stakeholders
• Comprehensive Performance Assessment (CPA)
• Key issues for councils
• Partnership working
• Best use of Resources - releasing resources to
  front line

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• Independent Review of Local Government
  Procurement 2000 - LGA and DETR - (Byatt)
• Authorities need to adopt a considered and
  far-reaching approach to the commissioning and
  procurement of services
• Create the conditions in which new suppliers
  might take root or existing suppliers might
  become more competitive

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National Procurement Strategy for local government

• Effective use of procurement resources
• Benefits of doing business electronically
• Benefits of collaborative working
• Long term partnership approach
• Specific targets for e-procurement adoption

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In operational terms

• No Central Purchasing Unit
• Low control over purchasing
• Variety of deals prices
• Limited no of corporate contracts
• 1,000s of suppliers
• Expensive long-winded manual purchasing process
• Lack of info about purchases costs

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Spend analysis

• 53m, 12,000 suppliers, 135,000 invoices
• 88 of suppliers lt 1,000 pa
• 2 of suppliers gt 50,000 pa
• 83 suppliers 50 of invoices but only 14 value
• 20 common suppliers across three councils
• lt25 local suppliers

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Expensive manual purchasing process

• BEFORE
• 4.5 hrs average elapsed time to complete order to
  pay cycle
• 73 average cost to process a transaction
• 18 separate manual steps to process a transaction

• AFTER
• lt1 hrs average time to complete
• 15 average cost to process a transaction
• fully integrated electronic end-to-end process

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Principal benefits NePP Case Study
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Approach and timescales

• Vision and tender specification prepared
• 300k of LGoL Partnership Funding achieved
• OJEC issued - Negotiated Route
• 12 Tenders received - 4 met the specification
• Appointed external consultants to assist with
  evaluation and tender negotiations and BPR work
• Preferred supplier appointed AtoZ Supplies with
  UKprocure as software provider Dec 2002
• System live May 2003 pilot period to Oct 2003
• Official Launch Nov 2003
• First new joiner Autumn 2004

October 2001
September 2004
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What is enable? key features

• Purchasing of day to day goods through one
  overarching supplier AtoZ Supplies
• Access to more than 500 suppliers
• Potential to extend into other goods services
• End to end electronic solution
• Full commitment accounting and full integration
  with financial system
• AtoZ Supplies undertaking tendering arrangements
  on behalf of councils
• Joint Enable Client Unit

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The enable solution - overview

• Technology
• Content
• Service
• Management
• The solution requires all four elements to work
  in harmony

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The enable solution - technology

• Fully integrated procure to pay system
• Online searching, ordering, favourites, repeat
  orders, product comparisons
• System built around authorisation / control
  levels
• Confirmation (via email) at all stages of process
• Single consolidated weekly invoice
• 27 points of integration across three authorities
• Online portal providing focal point for users
• Products, procedures, prices, news etc
• Management information
• www.atoz-enable.co.uk

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The enable solution - content

• Wide product range (gt 15,000 products)
• Line by line quotation process (meets standing
  orders)
• Pre-tendered product ranges
• Council specific catalogue
• Capability to adopt council specific arrangements
• Core list of discounted products
• Volume related rebate

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The enable solution - service

• Defined service levels and KPIs
• Product availability, call response, quote
  turnaround etc
• Single points of contact escalation for issues
• Specialist product related support
• On site training, support account management
• Feedback and improvement

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The enable solution - management

• Beware of speeding up the mess
• Organised structured approach to procurement
• Agreed work programme with defined stages
• Tender programme
• Simple purchasing procedures
• Supplier management (to ISO9002 standard)
• User input
• Analysis of information to inform development

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Where we are and where next

• Phase 1 completed
• Technology, Catalogue content, Training
• Phase 2 underway
• Defined working procedures work programme
• Product range harmonisation
• Extension of product available through enable
• Better deals more competition
• Better integration into third party supplier
  systems
• Structured user involvement and input
• New joiners

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• No or orderers reduced by gt50

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• Average order value 340

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Critical success factors

• Clarity of objectives / clear vision
• Well defined business case ROI
• Determination to achieve return on investment
• Recognition of need to re-engineer internal
  purchasing processes
• Desire commitment to change
• Commitment to supplier partnership for mutual
  benefit

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Benefits of joining the partnership

• Fully tested solution with full integration
• Savings in time to implement
• No requirement to undertaking own OJEC
• Economies of scale from joint purchasing
• Flexibility to adopt council specific
  requirements
• Core solution can be tailored to each council

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New joiners costs

• Software licence fee per annum
• One off integration training costs
• Optional BPR and project management assistance
• Option to make use of client function through
  annual contribution
• Some offset through volume related rebate

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Questions