NAEP: E-Commerce Best Practices

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NAEP E-Commerce Best Practices
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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

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P2P (Procure-to-Pay) Process Defined
Procurement workflowThe transactional workflow
to find, request, purchase, and receive product
SearchMeta-search capabilities that access
internal and external catalogs and preferred
supplier websites and contracts
CatalogTypes of catalogs maintained may be
internal or external punch out internally
maintained by the buying organization or serviced
by the supplier
PaymentThe extension of the settlement of a
supplier invoice after a good or service has been
received
Source AMR Research 2009
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Public Sector P2P (Procure-to-Pay) Adoption
Early Adopters of Procurement Workflow
(eRequisitioning) Now Focused on Procurement
Marketplaces to Aggregate/Manage Spend
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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 51 86 35 More OnContract Average Lost Savings 12 for Off-Contract
User Adoption 63 90 27 More User Adoption
Requisition-to-order cycles 3.4 days lt 1 day 70 Faster Cycle Time
Days to On-Board Catalog Supplier 13 days 3.2 days 75 Faster Cycle Time
Off-Catalog Requisitions 34 10 24 More Touchless POs
Requisition-to-order costs 31 22 29 Savings per PO
Source Aberdeen Group - Effective E-Procurement
2010, E-Procurement Benchmark Report 2008,
E-Procurement Trials and Triumphs 2007
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P2P Solutions Market Landscape
Equal Level Private Marketplace



Catalog Shopping/Content Management Capabilities ERP (SAP, ORCL, PSFT, JDE) Supplier Networks (Ariba, SciQuest, Hubwoo) Public Sector Solutions (eSchool Mall, Unimarkets, K12Buy)
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 gt1M Medium 150K-1M Low lt150K
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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

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Marketplace Homepage
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Results from USC Contracts
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Product Detail Page
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Payment Screen
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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 agencys specific contracts
• Full integration with ERP systems

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Customization of Marketplace
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Case Studies

• Stand Alone System- Portland Public Schools
• Integration with existing ERP System- Fairfax
  County Public Schools

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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
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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

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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
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Case Study Fairfax County FOCUS Marketplace
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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

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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

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FOCUS Marketplace P2P Process Flow
Shopper
Full Cart
Approver
FOCUS Auto PO Match Payment
PO with P-Card
Receiver
Deliver
Pcard Bills
Receipts
Reconciler
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Private Marketplace

• Questions?