e-commerce discussion panel panelists: joan matsumoto, ma carol wilson, ct mike mangum, nc tina...

E-Commerce Discussion Panel

Panelists: Joan Matsumoto, MACarol Wilson, CT

Mike Mangum, NCTina McLamb, NC

eProcurement in Massachusetts

April 4, 2006

Online Bidder QuickTipshttp:// www.mass.gov/osd

What is an eProcurement System?

• Typically, “e” implies web-enablement, but generally means “paperless.”

• Use of the term “eProcurement” may vary from state to state

• May be a single system or many systems

• May be fully or partially integrated, or not integrated at all

• May support only a portion of the state’s public entities or all

• May be required by law or regulation for some or all processes


eProcurement Processes

Record Management

Vendor ManagementBidder Notification

Record Management*

Bidder Registration

Bids Contracts Purchases Payments

Bid Submission

Bid Tabulation

Bid Disposition

Order Receipt

Catalog Creation/Management

Catalog Purchasing Reconciliation

Encumbrance

Payment

Bidder Notification

Bidder Conference

* BIDS: WTO Notices, RFI, RFP, ITB, Internal Requisitions

Reverse Auction

Request for Quote


Public Bidder Questions

Required?

Fee/Bond?

Bidder or Buyer Managed?

Goods & Services, Human and Social Services, Construction?

Single or multiple systems/sources within the state?


• Comm-PASS is the Commonwealth Procurement Access & Solicitation Site

• Launched in 1997 to increase competition, value through public access

• Home-coded “bulletin board” replaced by BearingPoint system in 2004

• Data system supports workflow, transactions for bid-contract processes

• Required posting site for announcements/bid specifications for:

• any executive department goods/services, human and social services bid exceeding $50K

• all public entity construction exceeding $10M

• Open to any public entity in Massachusetts at no charge, includes free training

• Posting are accessible at no charge to anyone with Internet access

• THERE IS NO PRE-QUALIFICATION/REGISTRATION IN MASSACHUSETTS

eProcurement in Massachusetts: Comm-PASS

Bidder Notification

Record Management

Bidder “Registration”

Bid SubmissionBidder Conference


Statewide Contract Procurements on Comm-PASS

• All announcements, requests for information, solicitations, and contract awards

• All written questions must be submitted via the Forum

• All written answers are posted via the Forum

• Bidders may elect to subscribe for optional value-added services

• Automatic notification of new posting and amendments for solicitations, contracts, forums

• Appear in the Business Directory, a publicly accessible “yellow-pages” style web-listing

• Create and submit responses online to eliminate paper, waive and defer wet-ink signatures

• Bid tracking through a customizable system “desktop”

• Subscription is not required to access or respond to any posted opportunity

• Subscription fees are based on Massachusetts fee policy: avoidable, based on cost offset


Public Access


Subscriber Desktop

E-Commerce in Connecticut

Carol Wilson, C.P.M., Director of Procurement

State of Connecticut

April 4, 2006

Online Bidder QuickTips

E-Commerce History in Connecticut

• 1997 – Developed website with general procurement information – Contracts viewable online.

• 1998 – Inception of online Bidder Notification System (moved away from paper mailing of bid notices and advertising in publications).


• 2000-2002 – Announced and Implemented Connecticut’s 1st agency online ordering system – “Orderlink” for contract purchases.

• 2003 – Migrated from “Orderlink” to statewide ERP system (integrated central accounting, purchasing, personnel and payroll system).

• 2005 – Enhanced online Bid Notification System to State Contracting Portal (all agency solicitations posted here – open, transparent, accessible government).



• 2003-2006 – Focus on obtaining clean Data Catalogs required from Suppliers for ERP purchasing system (E-Catalogs).

• 2005-2006 – Developed and Rolled-Out Online Small/Minority Business Certification Application System.



What’s Next in Connecticut?

• 2006 – Expect to roll-out online Supplier Performance Reporting & Resolution System (interactive between agency, procurement office and suppliers).

• 2006 – Developing online Bid Response System.


How can Suppliers Assist Us?

• Utilize Procurement web options (bid notification systems, online certifications, bid response systems).

• Communicate and Provide Constructive Feedback for Improvements

• Provide Procurement Staff with Technical Contacts who can competently respond to E-Catalog needs.


External (Supplier) Challenges of E-Catalogs

• Complete and Accurate Catalogs (contract data)

• Properly Formatted Catalogs (field names, field lengths, field types, required vs. optional fields, etc.)

• Timely Catalog Updates/Maintenance


Internal (State) Challenges of E-Catalogs

• System Functionality

• Timely Catalog Updates/Maintenance

• Impact of Errors on other ERP System modules

• Impact of Integrity of Data on Accounting Functions/Audit.


Keys to Success in E-Commerce Initiatives

• Be Flexible

• Stay informed of latest initiatives

• Communicate

• Participate


Questions?

NC E-Procurement @ Your Service

Overview

April 2006

43

E-Procurement Overview

The system, which went live in October 2001, is comprised of the Ariba Buyer web-based software product with public sector extensions, a Statewide Vendor Registration application, and a marketplace for performing informal quotes electronically.

E-Procurement is an effort to transform the way the State of North Carolina purchases goods and services, as follows:

It is an enterprise e-procurement system that allows government entities to aggregate their purchases to obtain better prices from their suppliers.

Users are empowered to use online requisitioning through the Internet with direct access to state term contracts.

Entities can choose to decentralize the purchasing process.

The eQuote tool allows users to submit requests for quotes to specific vendors for items below the sealed bid and advertising requirement, replacing more manual quoting processes. Responses (quotes) are submitted and evaluated electronically.

Orders and approvals are routed electronically.

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E-Procurement Statistics

E-Procurement Statistics: As of March 5, 2006 Over 1 million purchase orders issued Over $5.6 billion in purchases Over 45,000 vendors registered Over 13,000 system users 238 purchasing entities using system

Who is using NC E-Procurement @ Your Service? All State Agencies - 29 Institutions and Hospitals - 15 Local Education Authorities (K-12 Public Schools) – 115 of 115 Community Colleges – 57 of 58 Local Governments - 22

45

E-Procurement Organization

Sponsorship– Governor’s Endorsement

– Enabling Legislation

– Sponsoring Agencies• Purchase and Contract

• Information Technology Services

• Office of the State Controller

Enterprise-Wide– State Agencies

– Institutions & Hospitals

– K-12 Public Schools

– Community Colleges

– Local Governments

46

E-Procurement Organization

Advisory/Work GroupsCross Entity Representation

– Advisory Committee– Users Groups– HUB Office

Project Management– State Project Director– State/Accenture

Management Committee– Accenture as Application

Service Provider

Business Model– No Appropriated Funding

– Transaction Fee on Purchase Orders

47

E-Procurement Features

Functionality– Electronic Requisition– Automated Rule-Based

Approval– Funds Checking– P-Card– Electronic Purchase Orders– On-line Receipts– eQuote/Informal Quote Tool– Catalogs/Term Contracts– Vendor Registration/HUB

Certification– Reporting

Core Software– Ariba

– eQuote (custom)

– Vendor Registration (custom)

48

E-Procurement Scope

On-line integration with six financial systems– State Agencies/Institutions

– 1 Financial System– Community Colleges

– 1 Financial System– K-12 Public Schools

– 4 Financial Systems

Additional Opportunities – Reverse Auctions

– Strategic Sourcing

– Integration with Universities

– Continued statewide rollout to local government

49

Support for E-Procurement Program

40 personnel supporting E-Procurement operationsCall center handling roughly 500 customer inquiries per week; also supporting user communications and trainingApplication support providing ongoing maintenance and enhancements for the systemTechnical support hosting the E-Procurement infrastructure and providing 99.5% availabilityNew Development Team responsible for implementing local schools, community colleges, and universitiesCatalog enablement managing content for approximately 125 State Term Contracts and 500 catalogs Billing team creating and processing an average of 6,000 invoices per month to 17,000 vendor locations.

50

Benefits of E-Procurement

Reduced prices through increased competition and aggregation of demand

Increased operating efficiency and reduced administrative costs

One Stop Shopping Online quoting tool – eQuote Increased order accuracy Online catalogs for statewide term contract items Electronic approval flows Access to new vendors Auto-Tabulated quotes

51

E-ProcurementBenefits Analysis

In reaction to staffing and budget constraints from 2001 through 2003, the State leveraged E-Procurement to spend its dollars more efficiently and manage the procurement function more effectively.

Price reduction savings over first two years ofE-Procurement operations: $127 million

Cost savings of $127 M are the result of a 7.24% decrease in prices.

First-class purchasing system has been implemented and maintained with no State funds expended as a result of an innovative public / private partnership.

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Specific areas of measured benefit

eQuote: Savings average 26% on items purchased using eQuote.

Term Contracts: Savings realized range from 3% to 23% on term contracts re-bid as a result of changes in contract strategy due to eProcurement.

Cycle Time Reduction: Process savings range from 26 – 50% when the elapsed time from order creation to goods receipt was measured for four agencies one year prior to E-Procurement go-live and one year after E-Procurement go-live.

53

Awards Received:

Digital Government Award for Innovation in State Government

Best of the Web Award – 1st place, Government to Government category

IT Cronin Award – Honorable Mention

E-Procurement Honors

e-commerce discussion panel panelists: joan matsumoto, ma carol wilson, ct mike mangum, nc tina...

Documents

online bidder quicktipshttp

public bidder questions

public access slide

nc slide

quote slide

massachusetts eprocurement

eprocurement system

cost offset slide