NAEP: E-Commerce Best Practices

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

P2P (Procure-to-Pay) Process Defined

Procurement workflow—The transactional workflow to find, request, purchase, and receive product

Source: AMR Research 2009

Search—Meta-search capabilities that access internal and external catalogs and preferred supplier websites and contracts

Catalog—Types of catalogs maintained may be internal or external punch out; internally maintained by the buying organization or serviced by the supplier

Payment—The extension of the settlement of a supplier invoice after a good or service has been received

Public Sector P2P (Procure-to-Pay) Adoption

Source: October 2011 NIGP Member Survey: “Use of Procurement Software in the Public Sector”

Early Adopters of Procurement Workflow (eRequisitioning) Now Focused on Procurement Marketplaces to Aggregate/Manage Spend

P2P ROI Improvement Opportunity

Source: Aberdeen Group - Effective E-Procurement 2010, E-Procurement Benchmark Report 2008, E-Procurement Trials and Triumphs 2007

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.”

P2P Solutions Market Landscape

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 >$1M• Medium $150K-$1M• Low $<150K

Equal Level Private

Marketplace

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

Marketplace Homepage

Results from USC Contracts

Product Detail Page

Payment Screen

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 agency’s specific contracts• Full integration with ERP systems

Customization of Marketplace

Case Studies

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

Public Schools

Portland Public Schools Marketplace Model

Model: Stand-Alone MarketplaceCatalogs: Punchout CatalogsContent Management: Outsourced Supplier Enablement Requisition Management: Marketplace Workflow Approval (Grant Funds)Transaction Management: Marketplace-Managed Electronic Order Delivery

Case Study: Portland Public Schools

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

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

Overview

Results

Fairfax County Marketplace Model

Model: ERP Integrated Marketplace (SAP)Catalogs: Punchout CatalogsContent Management: Outsourced Supplier Enablement Requisition Management: ERP (SAP)Transaction Management: Marketplace –Managed Electronic Order Delivery

Case Study: Fairfax County FOCUS Marketplace

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

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

FOCUS Marketplace P2P Process Flow

Full Cart

PO with P-Card

Deliver

Appro

ver

Shopper

Receiver

FOCUS Auto PO Match & Payment

One Invoice

One Payment

Reconciler

ReceiptsPcard Bills

Supplier

Many PaymentsMany Invoices

Private Marketplace

Questions?