naep: e-commerce best practices
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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 - PowerPoint PPT PresentationTRANSCRIPT
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?