Ontario Education Collaborative Marketplace Leading Change in Supply Chain Management Regional Commu

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Ontario Education Collaborative
Marketplace Leading Change in Supply Chain
Management Regional Communications
Sessions September 26, 28 and October 3, 5
2006
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Agenda

• OECM Overview Franca Gemignani
• OECM Live Demo
• OECM Progress Update Renata Faverin
• OECM Representatives and Contact Info

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OECM Overview

• What is OECM? Our key objectives
• Who is participating in OECM? The institutions
  currently involved
• Why OECM? The value for institutions,
  purchasing professionals, suppliers

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What is OECM?

• OECM is an electronic marketplace that connects
  buyers and suppliers together to facilitate more
  effective, efficient procurement
• OECM is buyer-led (our institutions are key
  beneficiaries)
• OECMs longer term operating and governance
  models are currently under consideration
• OECM initiative is being supported by the
  Ministry of Finance

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What is OECM? The Proposed Model
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What is OECM? The Proposed Model

• Requisitioning / shopping cart and approvals
  processed in marketplace
• Post-requisitioning processes handled by entitys
  back-end systems
• Pricing, descriptions for goods / services
  through catalogues

EduBuys

• All purchasing transactions (requisitioning /
  shopping cart to invoice entry) created, reside
  in marketplace
• Invoice data sent to entitys back-end systems
  (similar to PCard)

EduBuys Plus

• Supplier integration services, catalogue hosting,
  automated validation
• Compare prices for catalogue items posted by
  multiple suppliers
• Add-on services (e.g. catalogue creation, invoice
  generation) available

Supplier Portal

• Electronic management of RFIs, RFPs, RFQs and
  public posting of RFX documents (in parallel to
  posting at MERX)
• Multiple users can collaborate on building
  electronic contracts

eRFX
Go-Live Functionality
Planned Functionality

• Conduct reverse and standard auctions
• Notify subscribed suppliers of auction events

Auctions

• Electronic analysis of purchasing data to
  determine spending patterns and trends for a
  given entity

Spend Analysis

• Create, store, edit and manage any type of
  contract
• Monitor supplier contract compliance

Contract Management
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Who is Participating in OECM?

• Current OECM participating institutions generate
  an estimated 1.3B in annual spending

Significant Buying Power Ontario schools,
colleges, universities represent approximately
2B in annual spending.
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Who is Participating in OECM?

• And the momentum is growing

• Expressions of Support
• Brock University
• Carleton University
• Dufferin-Peel Catholic District School Board
• Fleming College
• George Brown College
• Georgian College
• Lakehead University
• Laurentian University
• Queens University
• University of Guelph
• University of Windsor
• Wilfrid Laurier University
• McMaster University

• Expressions of Interest
• Conseil scolaire catholique Franco-Nord
• Huron Superior Catholic District School Board
• Board of Governors of the Niagara College of
  Applied and Technical Arts
• Upper Grand District School Board

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Why OECM?

• Within the education sector, institutions have
  long been sharing ideas for better ways to manage
  procurement activities
• Want to leverage procurement best practices,
  success stories from U of T and public sector,
  such as eVirginia (eVA)

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How 85M in Savings Can Be Achieved
Savings are a combination of process savings of
75 per transaction as well as savings realized
on the price of purchased items.
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Why OECM? The Value for Institutions

• Will meet the needs of the majority of
  institutions regardless of size, governance,
  geography
• Design, development and implementation of the
  marketplace are supported by the Ministry of
  Finance for institutions signing commitment
  letters
• Institutions willingness to participate is very
  positively viewed by MoF, MTCU, MoE

Coming this Fall 2006 Institutional Membership
Campaign OECM looks forward to welcoming new
institutional members from universities, colleges
and school boards! We will provide the Ministry
of Finance with an updated membership list, as
per its request.
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Why OECM? The Value for Institutions

• Maximize efficiency in the back office make
  complex processes more user-friendly, less costly
  
• Better buying experience for researchers,
  administrators, teachers, etc.
• Improved leverage with suppliers greater
  standardization, better processing services
• Reduced supply chain technology investments for
  each participating institution

What will you do with your share of the
savings? OECM is projected to result in process
efficiency and strategic sourcing savings of over
85 million by FY 2009/2010.
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Why OECM? The Value for Purchasing Professionals

• Ensure purchasing policies are followed OECM
  workflow will ensure applicable policies,
  legislation/approvals are followed
• Free up time OECM will simplify purchasing
  process, and reduce manual, paper-based tasks
• Facilitate accountability, full audit trail
  OECM will record actions, decisions taken for
  every transaction
• Stretch budget dollars
• Automation will reduce cost/buying transaction
• Stronger collective buying power will result in
  lower prices for those on the marketplace
• reinvested in education

OECM supports Ontario University Purchasing
Management Associations (OUPMA) missions and
goals OECM directly supports OUPMAs mission to
foster closer cooperation and exchange of
information (e.g. purchasing best practices), AND
goal of cooperative purchasing ventures to
leverage institutional spending.
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Why OECM? The Value for Purchasing Professionals

• Receive goods services sooner e-Marketplace
  will reduce transaction processing time
• Improve order accuracy via OECM online,
  supplier-maintained catalogues on the
  e-Marketplace
• Find better products and services OECM can
  connect institutions with a wider range of
  suppliers
• Gain better insight into purchasing activities
• Order the right amount at the right time
• Better leverage for contract negotiations
• Better management reporting capability
• Stay up-to-date OECM will bring product
  updates/changes via supplier maintained catalogues

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Why OECM? The Value for Suppliers

• Ability to grow revenues common access point
  for universities, colleges, schools with 2B in
  total annual spend
• Minimize cost of goods sold OECM provides one
  common procurement process for all participating
  buyers
• Improve competitive position suppliers of all
  sizes, geographic locations can compete to supply
  same buyers

One-Stop Access to a 2B Market OECMs
significant value proposition to suppliers will
facilitate larger product selection at the best
possible prices for participating institutions.
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Live Demo

• OECM Overview Franca Gemignani
• OECM Live Demo
• OECM Progress Update Renata Faverin
• OECM Representatives and Contact Info

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OECM Progress Update and Next Steps

• OECM Progress Update
• OECM Next Steps
• Participating Institutions Representatives
• OECM Key Contacts

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OECM Progress Update
August 2005 OECM begins Phase 1 to evaluate
potential for implementation of e-procurement
marketplace
March 2004 OntarioBuys is initiated
April 2006 OECM Phase 2 funding of 1.2M received
November 2005 OECM completes Phase 1,
identifying significant economic, operational
savings
May 2006 OECM begins Phase 2 Software Selection
and Detailed Design
March 2005 Small group of procurement
professionals from universities, colleges, school
boards (SCU) develop joint funding proposal to MoF
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OECM Progress Update

• Spring/Summer 2006
• Phase 2 Software Selection and Detailed Design
  begins (CGI engaged)
• Develop communications and marketing plan to
  ensure all stakeholders are continually updated
• Website under development and will be ready by
  fall
• Newsletters being developed for the three sectors
  and will be distributed through Associations (NPC
  will be provided updates for CAUBO)
• Develop buyer, supplier adoption strategies
• Develop future OECM governance model

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OECM Progress Update

• Spring/Summer 2006
• Develop Due Diligence Framework to
• Validate the financial model and assumptions
  based on an independent review of the business
  case
• Validate the technology readiness of
  e-marketplaces in large, broader public sector
  environments
• Identify audit e-paper trails to satisfy all
  stakeholders

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OECM Next Steps

• Fall 2006
• Deliver four (4) regional in-depth workshops to
  universities, colleges, schools on OECM project
• Institutional Membership Campaign begins
• Supplier Membership Campaign continues
• Begin design of marketplace

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Participating Institutions Representatives
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OECM Key Contacts

• Renata Faverin,
• Chair, OECM Board of Directors
• Director, Procurement Services,
• York University
• [phone]
• Franca Gemignani,
• Project Coordinator, OECM
• franca.gemignani_at_oecm.ca
• [phone]
• info_at_oecm.ca

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Thank You