working smarter together supplier summit january 2014 working smarter together

Working Smarter Together

Supplier Summit January 2014



Welcome & Introductions



Transforming Procurement



Fife’s Big Change Challenge

Our challenge is to meet the growing needs and demands being made on our services with a budget deficit of £93 million to 2017/18. In order to meet this challenge by 2017 we have set ourselves five aims:


Transforming Procurement Project

• The council spends £300 million of public money each year on goods, services and works

• We’ve looked at how this money is spent and decided to change the way we buy things across the council

• The changes in Procurement will bring a number of sustainable benefits:

– Easier for suppliers to do business with Fife Council;

– Increased savings from improving the way we work with suppliers and constructively challenging the demand for goods and services;

– Making the best use of available resources by using common processes and removing duplication through better use of technology


Today TomorrowSeparate Services purchasing goods and services from same suppliers

Many different methods of ordering goods and services – PO, telephone,

Single point of contact in Council who will manage a category of goods and services for Council

Standard processes and one efficient system to manage all finance & procurement

Removal of some ordering methods & introduction of No PO Delayed Payment

Different processes and many systems used to manage purchasing

So What Is Changing?


Agenda & Objectives



Agenda of the Day

• Our objectives of the Supplier Summit• Introduction to e-Procurement

– What is e-Procurement?– What will change?– What are the benefits of e-Procurement?– What is iSupplier?– The role of Catalogues in e-Procurement– Our Vision– The Next Steps in the e-Procurement Project

• Which Suppliers are ready to provide Catalogues?

• Question & Answer Session


What do we want to achieve today?

Identify which Suppliers can provide Catalogue content for

the e-Procurement system

Identify which Suppliers can provide Catalogue content for


Ensure that Suppliers are aware of the new ways of working with


Ensure that Suppliers are aware of the new ways of working with


Ensure that Suppliers are aware of the next steps in the e-

Procurement Go Live Project

Ensure that Suppliers are aware of the next steps in the e-

Procurement Go Live Project

Ensure that Suppliers understand the benefits of

iSupplier & how to sign up for iSupplier

Ensure that Suppliers understand the benefits of

iSupplier & how to sign up for iSupplier


An introduction toe-Procurement



e-Procurement is …

Fife Council has purchased an e-Procurement system from Oracle which will ‘go live’ on the 1st April 2014.

…an electronic method of conducting business through the internet and is an efficient method of doing business between

buyers and suppliers.

…an electronic method of conducting business through the internet and is an efficient method of doing business between

buyers and suppliers.


Do you have experience using e-Procurement / Oracle with other customers?


What are the benefits of e-Procurement to Suppliers?

Prompt Payment

Payment in line with agreed contract terms

Example: Currently payment to Suppliers can be delayed because there are errors in the invoiceand/or orders which take time to resolve before the order is matched to the invoice and the

paymentterms begin

Improved order accuracy will lead to fewer order & invoicequeries

Example: Suppliers can use the iSupplier functionality within the e-Procurement system togenerate invoices which will replicate the information on the order to ensure a match which will bequeued for payment, therefore reducing the time spent on Supplier queries to Accounts Payable.

Improved Spend Visibility & Reporting to identifyopportunities to contract with Suppliers

Maximises the amount spent with Suppliers with whom Fife Council has a contract in place with

Minimise Off Contract Spend

Closer Working

Relationship


What will Change?

1. There will be one standard Fife Council Purchase Order • Purchase Order• Call Off / Blanket Order• Catalogue Order

2. All orders will be issued electronically via e-mail or through iSupplier

3. Tenders for low value contracts & mini competitions from existing framework agreements will be hosted on the new e-Procurement system

4. Increased compliance to contracts awarded by Fife Council – reduced out of contract spend

5. There will be a change to the existing T’s & C’s to allow electronic trading this will be communicated prior to 1st April

6. Suppliers will have the ability to Self-Serve to resolve invoice queries


What will remain the Same?

15

1. Public Contracts Scotland (PCS) will continue to be used to advertise high value contracts

2. There will be no change to agreed payment terms

3. There will be no change to the recurring payment process

4. Fife Council will still expect Suppliers to provide goods / services in emergency situations without an order, the order will be issued retrospectively


An introduction to iSupplier



iSupplier is …

Suppliers can use the portal to: View their Orders & Invoices Raise any queries on Orders & Invoices with Fife Council Respond to low value Tenders and requests for quotations Make Changes to their Catalogue Content Self Billing: when goods are receipted payment is sent to the Supplier automatically along with an invoice for VAT purposes

…a portal open to Suppliers where they can log on using username & password enabling them to communicate directly with Fife Council

…a portal open to Suppliers where they can log on using username & password enabling them to communicate directly with Fife Council


What are the benefits of iSupplier?

iSupplieriSupplier

Ability to update your Supplier Details &

Catalogue Information

Ability to update your Supplier Details &

Catalogue Information

Streamlined Communication: queued to the correct members

within the council

Streamlined Communication: queued to the correct members

within the council

Reduced Overhead Costs of Raising Queries &

Creating Invoices

Reduced Overhead Costs of Raising Queries &

Creating Invoices

Ability to access your information24/7

Ability to access your information24/7

There are no costs to Suppliers for the use of

the iSupplier functionality


Do you use iSupplier or a similar portal with other customers?


An introduction to Catalogues



With your support we will be loading Catalogues onto the e-Procurement System

A catalogue is:… a list of items which can be purchased from a supplier that can be uploaded onto the e-Procurement system– does not need to show pictures – lines are sufficient

… a list of items which can be purchased from a supplier that can be uploaded onto the e-Procurement system– does not need to show pictures – lines are sufficient

What is Catalogue-able?Standard items e.g. paper, stationery, furniture etcItems which can be easily described or has a specific specificationClear price for the itemPrices are constant or subject to an agreed review processItems with a high frequency of use


There are three different types of Catalogues

Internally Managed Catalogue Catalogues are held on Fife Council server. Any amendments to

the catalogue content are made by Fife Council staff.

Supplier Managed CataloguesCatalogues are held on Fife Council server. Suppliers are able to

amend catalogue content (via the i-supplier login)

Punchout Facility where Fife Council staff can select items required from our

internal ERP system and orders are placed via a portal on the suppliers own website. The content is managed by the supplier who must only make changes to content in line with the contract terms


How to have a Catalogue on the e-Procurement system

3 documents will be sent to suppliers who are able to provide

catalogues:- The catalogue template. The unit of measure table A UNSPSC (United Nations Standard Products and

Services Codes) Mapping Template

We need your completed Catalogue Template no later than the 20th February

• Please note that if you are currently involved in tender activity we will not be accepting any catalogue content from your organisation, if you are successful we will be in contact with you to accept your catalogue content.


What is the aim for e-Procurement at Fife Council?

• To have all Suppliers on iSupplier

• To have Catalogues in place for all appropriate Suppliers

• To have closer working relationship with Suppliers encouraging innovation

• To enable Suppliers to communicate easily with Fife Council

• Fife Council & Suppliers to work efficiently using the new e-Procurement system


Non Catalogue Orders



Not all Suppliers can provide catalogue content

Will I receive an order from Fife Council if I do not have a Catalogue?

•If the product or service which your organisation supplies is not easily catalogue-able or your organisation is not ready to provide us with a catalogue then you will receive a Purchase Order from the Council for the Goods / Services you provide • The Purchase Order will be created in the eProcurement system by Fife Council and then issued to your organisation via iSupplier or e-mail


What is a Purchase Order?• A Purchase Order is a commitment to procure and pay for goods and

services

• The Purchase Order will contain the details of the product being ordered and delivery location

• An example of the standard Fife Purchase Order is included in the supplier pack. Regardless of which area of the Council you serve, the Purchase Order you receive will always follow the example format provided. The only difference is that the text in the Purchase Order will contain the specific details of the goods / service which are required.

• Suppliers will receive their orders via e-mail or viewing directly via isupplier.

• Suppliers are advised not to provide goods and services without having an official Purchase Order from Fife Council with the exception of out of hours or emergency situations, in these cases an order will be raised retrospectively


There are 3 types of Purchase Orders available• Standard Purchase Order: A purchase order is placed for a one off

requirement and there is a description of the goods / services / works required. Once the goods / services / works are completed the Supplier invoices against the purchase order provided. Any new purchase order would be raised for any subsequent requirements from the supplier for goods / services / works.

• Call Off Purchase Order: A call off purchase order is used for known goods / services / works which are required at specific times during a financial year e.g. service contract. An order is set up in the e-Procurement system and the Supplier can invoice against the same order number which must be stated every invoice submitted otherwise payment may be significant delayed.

• Complex / Interim Payment Purchase Order: A complex / interim payment purchase order is used for the procurement of projects where the payment to the Supplier is spread over the project timeline e.g. new builds. The details of the payment schedule are agreed between the Supplier and Fife Council before the work begins and will be stated on the Purchase Order and can also be viewed in the iSupplier Portal.


Next Steps after the Supplier Summits



Next Steps: What happens after today?

• The presentation pack will be upload onto the Fife Direct website: fifedirect.org.uk/isupplier

• If you have any questions you can reach the Supplier Adoption Team on the contact details provided in the Supplier Packs

• Catalogues: Suppliers who can provide catalogue content will be provided with a template to complete and return to the Supplier Adoption Team no later than the 20th February.

• iSupplier: Suppliers who want to use iSupplier will receive an e-mail notification with steps on how to register themselves on iSupplier

and a training guide


Q&A?



Thank you for your time


working smarter together supplier summit january 2014 working smarter together

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