february 17th 2005 slide n° 1 / 17 french mod e-business presentation french mod e-procurement...

February 17th 2005 Slide N° 1 / 17French MOD e-business presentation

French MOD e-procurement-------------------------------------------

‘Possibility for businesses to fully seize market opportunities’

Michel [email protected]


The aim : The aim : to be more efficient in procurementto be more efficient in procurement

30 % of RFI - RFQ are closed without contract30 % of RFI - RFQ are closed without contract

To reduce the costs of supplies by 25 %To reduce the costs of supplies by 25 %

To give easier access to public procurement to :To give easier access to public procurement to :- - SME’sSME’s- European companiesEuropean companies

A full dematerialised process from the requirement to the A full dematerialised process from the requirement to the paymentpayment

DGA project enlarged to MOD : 15 to 17 G€ purchase /yearDGA project enlarged to MOD : 15 to 17 G€ purchase /year


Internet Network

Defence market place

IXARM.COM portal

ACHATS.DEFENSE.GOUV.FR portal

ContractContract

French MoD market place : e-purchasing approachFrench MoD market place : e-purchasing approach


Internet Network

Secured private Network (not link to Internet)

ESPACE PARTENAIRES

Suppliers

Armed Forces

Others state services : minister of finance…

DGA

Defence market place

IXARM.COM portal

ACHATS.DEFENSE.GOUV.FR portal

Partners Network AreaPartners Network AreaContractContract

French MoD market place : e-purchasing approachFrench MoD market place : e-purchasing approach


Market place architectureMarket place architecture

Market room

Suppliers data

E-catalogue

E-auctions

E-invoice

RFI notice

E-offers by suppliers

Consultationmanagement

>RFQe-files

technical documents

www.ixarm.comArmed forces

equipment

Acquisition equipement

DefenceR &D achats.defense.gouv.fr

- general equipment :- infrastructure- fuel- health furniture- food- clothing

BOAMPJOUE

OTANOCCAR

Notificatione-awarding

Information on public procurement


A fully operational market place A fully operational market place since November 2002since November 2002

220 main purchasing entities,

Around 9000 registered users

– buyers : 2000

– suppliers : 18 000 users, including 7000 registered

Higher transparency of public procurement 100% RFQ above 90 K€ are published on the market place

» 4 k€ < ± 80% RFQ published < 90 k€

In number :

» 7000 calls for tenders published (with their technical and administrative files)

» More than 55 000 downloads by suppliers

Year 2004 statistics


Statistics : call for tenders publicationStatistics : call for tenders publication

nombre de DCE mis en ligne

0

200

400

600

800

1000

1200Total

DGA


First aim : to fully seize market opportunities, First aim : to fully seize market opportunities, public procurement is open to new supplierspublic procurement is open to new suppliers

Portals design for supplier’s incentive :Portals design for supplier’s incentive :– > To > To Facilitate and secure the candidature step – All free access for suppliers,All free access for suppliers,– All necessary information (laws, adm. formularies, how to get All necessary information (laws, adm. formularies, how to get

in touch with buying entities…),in touch with buying entities…),– Ordinary computer, just Internet link.Ordinary computer, just Internet link.

Ixarm : far further than only advertising RFQIxarm : far further than only advertising RFQ– Both in French and English,Both in French and English,– Description of main defence programs,Description of main defence programs,– Spontaneous proposals authorized (research…) Spontaneous proposals authorized (research…) – Marketing place for supplier’s adverts on their know howMarketing place for supplier’s adverts on their know how


Front page “ixarm.com” portalFront page “ixarm.com” portal


Statistics : downloads by suppliersStatistics : downloads by suppliers

Téléchargements de DCE

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

total

non inscrits

inscrits


Change Management : Key factorsChange Management : Key factors

Change management internal +external : 2/3 of the results Not to be concentrated on tools Think simple, easy to use Demystify dematerialised process on Internet Don’t match tool changes and buying process changes :

– No big bang

– Incremental process : step by step,

– What are the earnings / expectations of the buyers and the suppliers :

– A win-win process : Efficient procurement needs two efficient partners


Change Management towards suppliersChange Management towards suppliers

Actions done with success : Meetings with professional organisations National and local meetings at the beginning of 2004 : 1500 suppliers Online “Handbook”, Online FAQ ,Web “Hotline” E-call for tenders training in order to test their ability to answer correctly Personalised home page : specified interests and be awarded of new tenders

( 173 000 alert mails sent to registered suppliers in October 2004)

Data base for suppliers : 1st step (done) : enable Cies to download all administrative documents 2nd step (June 2005) : Cies fill a data base in order to have not to send

candidature files (75 % data common for the MOD)» In order to facilitate and secure the candidature step


Difficulties and perspectives for suppliers :Difficulties and perspectives for suppliers :the most important challengethe most important challenge

Very good perception of the push of tenders on the market place, but reluctance to go further

To incite suppliers to register : 85% of the downloads are done by unregistered suppliers

Develop e-offers (only 213 since January 2004) v/s answers still through paper way

To generalise the opportunities to use electronic-exchanges (collaborative exchanges for programs …)

Different standards used by marketplace Difficulty to have access to high speed network Perception of risk level : shared between supplier and purchaser in

private sector, all risk supported by suppliers in public sector.

Difference between SME and big Cies Security approach Internal process to elaborate offers Responsibility / Electronic Signature delegation


Focus on 2 difficultiesFocus on 2 difficulties

Electronic certificates– Survey with French partners (National Imprimery, local authorities…) on

3000 suppliers : 7% have a certificate > 30% don’t know where to buy it < 30% don’t know what it’s for

– It’s easier to sign a paper than by electronic way– High security certificate with face to face delivery / but it’s impossible to

oblige a CEO to go himself in a post or bank office to take it Difficult to define compromise : security / pragmatism

Encryption / anti-virus : contradiction between two goals Public purchaser shall not be attacked by virus put in the offer Supplier shall be confident that public purchaser will not see the offer

before official evaluation committee Trust and security : find a compromise too


Conclusion for French MOD market placeConclusion for French MOD market place

Public buyer’s side : A real success for the e-call for tenders, Already high positive Return on Investment :

Project costs 2000-2004 :4 people project team, 7 M€ (ASP mode) Earnings : transparency,

“soft money” / administrative costs : 2 M€ in 2003, 18 M€ in 2004,

“hard money” / on supplies : not yet measurable

Supplier’s side : Success for downloads , For other possibilities of the procurement cycle (e-tenders, reverse

auctions..) : only if suppliers could find their own interest on it


Conclusion Conclusion

How to go further with at European level ?

Certificates : Bridge Certification Authority project to enlarge Now it’s quiet impossible to receive trans-borders e-

offers if the supplier hasn’t local (buyer) certificate Reverse-auction code of conduct To develop common supplier’s register To incite development of high speed network To prompt interoperability / standardisation (XML, private

supply-chain compatible or not with public standards) To help to conduct change management towards suppliers


Questions ? Questions ?

More information on :

– www. ixarm.com (both in French and English)

– www. achats.defense.gouv.fr (French)

– mails : [email protected] [email protected]

february 17th 2005 slide n° 1 / 17 french mod e-business presentation french mod e-procurement...

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