Procserve eProcurement Overview July 2014
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Transcript of Procserve eProcurement Overview July 2014
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© Procserve Holdings Limited. All rights reserved.© Procserve Holdings Limited. All rights reserved.
Procserve:
Sharper Thinking for
Smarter Public Sector
Procurement
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Agenda
• 8 stages of eProcurement• Driving savings & benefits• Best practices• About Procserve
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8 Stages of eProcurement
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© Procserve Holdings Limited. All rights reserved.
Driving savings
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Delivering savings and benefits
Procurement Benefits
Visibility & transparency
Efficiency
Compliance
Control
Cost saving
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Utilising data for savings & control
Expose and stop suppliers charging different prices to departments for exactly the same
products
Expose and stop extreme prices being paid by
departments for exactly the same
products
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Doing business more efficiently
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Basket of goods comparison
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Using data to track against process
Within local area60%
Out of local area40%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
No, 26%
Yes, 68%
Unclassified, 6%
What is our online spend with SMEs?
Where is my spend going?
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Making it all add up
• Procserve commissioned BDO LLC to conduct a rigorous, independent assessment of the benefits of using the Procserve Commerce Network
• These were found to include savings in Price, Process, Resource and Sustainability
• BDO’s findings were used to benchmark an organisation's procurement maturity against the savings that could be achieved
• This resulted in the production of an online savings calculator (http://thecalculator.procserve.com/)
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Benchmarking for actionable savings
6 items with savings of £186,000
CommodityCheapest
(WPS)Average (WPS) Highest (WPS) Total Bought Total Spent
Potential Saving
19" LED Monitor 50.67£ 90.26£ 119.25£ 224 17,021.18£ 5,671.10£ CC530A Black Toner 58.09£ 75.77£ 91.87£ 169 12,188.01£ 2,370.80£ CP3525 Cyan Toner 126.90£ 139.16£ 188.00£ 248 31,928.53£ 457.33£ A4 Paper (box) 7.70£ 11.33£ 18.75£ 46,802 533,049.76£ 172,674.36£ Latex Powder-free Gloves 2.71£ 4.13£ 5.53£ 4,158 15,976.44£ 4,708.26£ Thick Bleach (750ml) 0.60£ 0.82£ 1.98£ 1,977 1,208.85£ 22.65£
Totals 246.67£ 321.47£ 425.38£ 53,578 611,372.77£ 185,904.50£
9 Nurse joiners
10 Police joiners
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© Procserve Holdings Limited. All rights reserved.
Best Practice
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Implementation approach
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Resourcing for success
Our guidelines suggest the customer will need to resource 2 – 3 FTE for the project, both setup and roll out. Typical roles are illustrated below:
Moving to business as usual the customer should plan for 1 – 2 FTE to fulfill the requirement to maintain content and support the solution.
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Supplier OnBoarding
Identify Categorise and Prioritise Engage Enable Transact Support
Identify The objective of the identify phase is to capture the total supplier base of the customer so it can be analysed and prioritized in the next phase.
Categorise and Prioritise
Understand which suppliers are required to trade with through Procserve, and what level of connection / content is required, and in what order should they be targeted.
Engage This step will engage and influence suppliers to ensure that they are on board with the expectations on them and the timescales
Enable Provide support to the supplier through registration so that they can trade electronically. Additionally where appropriate work with the supplier to make content available.
Transact The supplier is now ready to trade, activity should be monitored through early life to ensure the optimum solution is being embedded
Support This step is to acknowledge the need for on going support to suppliers.
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Supplier enablement
BasicVery Low. No action on suppliers. Single or Bulk-
Upload via SD
Suppliers receive PO and RFQ. Capture MI
STAGE EFFORT BENEFIT
RegisteredLow. Limited effort from
suppliers – complete questions and Ts&Cs
Suppliers can return Quotes. More supplier data captured for MI.
Content EnabledMedium – High
depending on scope and website integration
Simplified purchasing. Price comparisons
eInvoice IssuedLow – High depending on mandation approach and
back-office integrationAP efficiencies
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© Procserve Holdings Limited. All rights reserved.
About Procserve
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Who is Procserve? • A HMG security accredited B2B SaaS business• Procserve develops, implements and manages eMarketplaces
for the UK Gov’t, Welsh Gov’t, Police, Travel, Telecommunications and Manufacturing to name just a few
• Founded in 2006 to deliver the Gershon review goal of an ‘e-hub’ for Government
• Headquarters in Westminster• Privately held
– Venture of PA Consulting Group
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Procserve
Allows you to securely and efficiently trade anything with anyone through a secure
cloud, enabling maximum business benefits through visibility and controls to deliver
genuine bottom-line savings.
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The largest UK public sector commerce network
17,000 Active Buyers 1,200 Buying Organisations
32,000 Suppliers (60% are SMEs)
Over £2b transactions so far…£1b in last 12 months
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Procserve in action…
‘A multinational stationery supplier, who receives orders through both ERP and marketplace solutions, advised that the set up time on Procserve is negligible. This compares in this company’s experience to significantly longer set up times for some alternative marketplaces and ERP interfaces.’
BDO report April 2013 The customer service provided by Procserve following implementation has been highly commended by buyer and supplier organisations interviewed.
Independent review of NPPH – Sept 2013
‘’This project can make a real difference and make the Public Sector more joined up across Wales.”
Mike Melville, xchangewales Programme Manager
“We firmly believe that the use of xchangewales eTrading will create efficiencies for both the Public Sector buyer community and
their suppliers. Access to collaborative procurement arrangements and best value for money goods and services will support the
delivery of benefits across the Welsh Public Sector; whilst suppliers have greater access to their customers.
Jane Hutt, Welsh Assembly Government, Minister for Budget & Business
‘Improving efficiency is no longer a nice to have, it is mission critical and a key consideration for everything we do.
Our vision was to use technology to transform the way everyone within the Council works and deliver real cost and time savings, and Procserve is a fundamental enabler to realising that.’
Adam Richens, Chief Financial Officer, Borough of Poole
9% price savings
50% back office
savings
7m transactions
32,000 suppliers
Multi ERP
integration
3 awards
1,200 buying
orgs
370 years
experience
17,000 individual
buyers
£2.2bn transacted
94 integrated
clientsSaaS
Proven Products8
communities
Security accredited
Granular data
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THANK YOU
www.procserve.comwww.twitter.com/procserve
www.linkedin.com/company/procserve