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
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
Source: AMR Research 2009
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
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-inClass/Target*
Compliant Spend
51%
86%
35% More On–Contract – Average
Lost Savings 12% for Off-Contract
User Adoption
63%
90%*
27% More User Adoption
Requisition-to-order cycles
3.4 days
< 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
% of POs Compliant w/Existing Contract
ROI GAP
Source: Aberdeen Group - Effective E-Procurement 2010, E-Procurement Benchmark Report 2008,
E-Procurement Trials and Triumphs 2007
P2P Solutions Market Landscape
Catalog
Shopping/Content
Management Capabilities
ERP
Equal Level
Private
Marketplace
(SAP,
ORCL,
PSFT,
JDE)
Supplier
Networks
Public Sector
Solutions
(Ariba, SciQuest,
Hubwoo)
(eSchool Mall,
Unimarkets, K12Buy)
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Functionality
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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
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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
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
Marketplace
Catalogs: Punchout
Catalogs
Content Management:
Outsourced Supplier
Enablement
Requisition Management:
Marketplace Workflow
Approval (Grant Funds)
Transaction Management:
Marketplace-Managed
Electronic Order Delivery
Case Study: Portland Public Schools
Overview
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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 Districtwide 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
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Consolidated Spending Through Single Portal to Reduce
Maverick Buying and Increase Spend Visibility
Enabled Users to Comparison Shop Multiple CoOperative 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
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
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 CoOps)
• 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
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SAP Integration
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User Experience
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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
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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
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
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Minimize IT resources with “cloud” solution
IT views single firewall punchout as more secure
FOCUS Marketplace P2P Process Flow
Shopper
Full Cart
FOCUS Auto PO Match
& Payment
Supplier
PO with P-Card
Deliver
Receiver
Receipts
Pcard
Bills
Reconciler
Private Marketplace
Questions?