eProcurement models

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eProcurement models i n h o u s e b u i l d i
n g
Gareth Braithwaite
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• Who are we?
• David Wilson Homes
• Wilson Bowden Developments
• 2,250 employees
• Ibstock Head Office
• Agenda
• The paper chase
• Trading Hubs
• Electronic Ordering
• eCommerce Standards (e-Gif)
• Examples
• Catalogues

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Buyer
The paper Chase !
30 seconds
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Business to Business (B2B) eBusiness eCollaboratio
n
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Buyer
13466
Dumb Computers!
What is this number?
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Buyer
13466
Dumb Computers!
What is this number?
ltContractgt lt13466gt ltcontractgt/ ltOrder Nogt lt20155gt
ltorder Nogt ltQtygt lt50gt ltQtygt ltItemgt
ltPencils2hbgt ltItemgt
Same Names - XML
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• Supply Chain Integrators
• Neutral 3rd party
• Often a software house
• Brining together buyers and sellers
• Future Internet powerhouse
• Costs
• Integration fees
• Signing on fee
• Subscription fee
• Transaction fees
• Lifetime fees !

B2B Trading Hubs
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X
Trading post entrepreneur
Translation Currency T C Barter Rates
A lesson from history Part 1
Barrier to trade
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Internet Hub entrepreneur
X
Translation Sharing
200 years later
Direct eTrading
Barrier to electronic trade
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10 years on

• Members club
• No regulator
• New subscription terms
• New transaction terms
• Competitor buyout
• Additional funding
• Under new management
• Do they share the same best interests of your
  industry?

Risks of using Hubs
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Direct eTrading
Defn - Direct eTrading Linking IT systems
together via email based messages.
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• Requirements
• Industry agreement
• Open trading standard
• 8 billion in documents
• Optional
• No ownership issues
• No equity
• No third party
• No hub
• Reduce daily operational costs
• Low set-up cost
• No subscription fees
• No transaction fees
• Available free to all
• No risks

Housebuilding CEOs requirements
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Email
invoices_at_dwh-post-room.co.uk legal_at_dwh-post-room.
co.uk surveys_at_dwh-post-room.co.uk
How does in work?

• EMAIL with 2 Attachments
• document image
• XML file (like EDI)

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Email Document Image
Purchase Invoicing
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Email XML file
Terms of Reference
eCommerce Dictionary
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Dictionary of eCommerce
Standards
BASDA eBis-XML dictionary, added 12 extra data
entries to create eBuild-XML
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BASDA key to Chancellor's procurement savings
target
BASDA expects to play a key role in helping
achieve the target announced by Chancellor Gordon
Brown in his Budget of generating 3billion of
civil central government procurement savings by
2005-2006. BASDA is part of a joint initiative
with the Office of Government Commerce (OGC) and
the Office of e-Envoy (OeE) to develop and test a
single IT language, known as XML, which will
enable suppliers and public sector buyers with
different IT systems to conduct business online
more easily and so generate substantial savings.
Dec 2003
e-Gif
UK Government's Interoperability Framework
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• Prerequisites
• Internet Connection
• Email Account
• XML Standards
• Existing software package (Sage)
• Supply chain agreement
• eCommerce Gateway ()

B2B Direct eTrading
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Leap of Faith
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XML in Marketing
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XML in Legal
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Example of eBuild-XML message alert
Examples
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Ordering from a WEB Catalogue
Opportunity
Punch Out Orders
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Ordering from a Catalogue

Supplier
Buyer
Catalogues Punch Out Orders
WEB Site
Approved
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Direct eTrading works!
OGC strategy E-Gif
XML and eBusiness
Opportunity for smaller suppliers via punch out
ordering.
The Internet is free!
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eProcurement models i n h o u s e b u i l d i
n g
gbraithwaite_at_wilsonbowden.plc.uk
visit www.basda.org