Title: Bargain Hunt II: Introduction to eSourcing
1- Bargain Hunt II Introduction to eSourcing
- Alan Gray Due North
- Beverley Lewis e-Three
2eSourcing
- Agenda
- Intro to Due North
- What is eSourcing
- The NWCE solution from a Procurer and Supplier
perspective - What is an eAuction
- Processes
- Benefits
- Intro to eThree
-
3Due North
- A software development company
- Specialise in eSource applications
- Developed by LGAs for LGAs
- First Tender application in Jan.2002
- Systems now used in over 100 organisations
- Work in Local Government, NHS,
- Higher Education and Emergency Services
4What is eSourcing?
- eSourcing is the discipline of applying internet
technology to improve operational efficiency as
well as spend reduction during the Purchasing
cycle
5What is eSourcing
Or Obtaining competitive contracts with the
best suppliers, at the best market
prices, quickly and efficiently, using
specialist internet tools.
6Why should you use eSourcing?
- Efficiency
- Consistency
- Repeatability
- Collaboration
- Accountability
- Cost savings
- Major Police Force 950/tender
- Buying Consortium 360,000 in one year
7Benefits of eSourcing
- Buyers
- Access to more Suppliers
- Assess more suppliers efficiently
- Web-based (No email, paper or post!)
- Send suppliers electronic information (Pictures,
Specs) - Drives project discipline (EU compliance)
- Suppliers
- Share information around their organisation
- Repeatable
- Simple structure to follow
8What has NWCE purchased?
- ProContract
- An intuitive and flexible software solution
- Enables Procurers to source suppliers - goods
services - Has integrated Auction
- Enables Contracts to be managed from inception to
completion - Fully Hosted and Managed Service
Initiate
Source
Award
Manage
9Due North ProContract - Initiate
- Enables Procurers to map all steps in sourcing
and contract management - From these steps a library of Templates is
created and stored - Collaboration rules are set up and roles assigned
to procurement teams - The workflow for the complete contract cycle is
established - Templates guide procurer through all steps in
sourcing cycle
10Due North ProContract - Initiate
11Due North ProContract - Initiate
12Due North ProContract - Initiate
13Due North ProContract - Source
- Advertises forthcoming contract opportunities
- Software manages Expressions of Interest and Pre
Qualification - Approved publisher of OJEU notices
- Fully Manages all types of tendering from Request
for Quotation to Invitation to Tender - Includes an integrated Reverse Auction Tool
- Including transformation eAuctions
14Due North ProContract - Source
15Due North ProContract - Source
16Due North ProContract - Award
- Provides fully weighted Evaluation Tool
- Tool is library driven
- Enables post tender clarification
- Informs successful and unsuccessful suppliers of
the results
17Due North ProContract - Evaluate
18Due North ProContract - Manage
- Contract Monitoring
- Record Key events
- Undertake meaningful Supplier Reviews
- Multi contract review
- Reporting
- Contract Register
- Transparency
19Due North ProContract - Manage
20Due North ProContract - Manage
21Due North ProContract - Supplier
- Supplier View
- Free Service
- Their own private area
- Can update their own details
- Reminders to update their own details
- Once registered, they get informed of
opportunities - Ability to track opportunities
- Improved communication with Procurers
22Due North ProContract Suppliers view
23Due North ProContract Suppliers view
24Due North ProContract Suppliers view
25Due North ProContract Suppliers view
26Due North ProContract Search for Opportunity
27Due North ProContract - Benefits
- Helps Generate Savings
- Process efficiencies
- Collaboration and Aggregation
- Monitors Supplier Performance
- Clear Supplier communication
- Key Activity prompts and escalation
- Transparent Process
- Access to software 24/7
28Due North ProContract Supplier Benefits
- Free service
- Never miss Contract Opportunities
- Creates more opportunity
- Easier Communication during Tenders
- Fair Transparent Tendering Process
- Saves Time, Money and Resource
- Intuitive Software - User Friendly
- Access to software 24/7
29What is an eAuction?
- A dynamic online negotiation process between
pre-selected suppliers for a specific piece of
business.
30eAuction vs Traditional Key Differences
- Traditional negotiation
- Buyer issues paper PQQ, ITT, inc. specs SLA.
- Suppliers prepare quotes.
- Supplier and buyer negotiate acceptable price.
- eAuction
- Buyer publishes electronic PQQ, ITT, inc. specs
SLA. - Suppliers prepare quotes.
- Suppliers compete with one another for buyers
business.
Negotiation
Negotiation
Negotiation
Negotiation
Supplier A
Supplier B
Supplier C
31eSourcing V TraditionalProcess Benefits
32Key benefits for buyers?
- Buyers
- Suppliers and Buyers utilise an incorporated
messaging facility - Online evaluation tool aids scoring and
evaluation - Buyers can invite more than one representative
from a supplier - Material Costs
- Environmental Sustainability
33Key benefits for suppliers?
- Suppliers
- Online messaging facility and access to FAQs
- Respond to ePQQs/eITTs much quicker
- Access specifications, SLAs, contract
information online - Shorter sales cycle (30 days OJEU, 35 days ITT)
- Reduction in material costs
34Introduction to e-Three
- Software independent eSourcing specialists
- OGC framework eAuction providers
- Average savings achieved
- 18 private sector
- 26 public sector
- Established in 2002
- Procurement specialists from diverse industries
and sectors with significant category management
experience
35e-Three Services
Sourcing
Procurement
Products
Spend Visibility / Opportunity Assessment
Supplier identification/ Low cost Country Sourcing
Contract Negotiation / RFPs/Qs / eAuctions
Contract Writing
Contract Implementation
Category Management Spend Compliance
Collaboration
Collaborative Sourcing
Co-Procurement Supply Chain Forum
Tender Train
Public Sector Collaborative Sourcing
Solutions
Helpdesk Telephone support
Assisted Buying Specialist resource on-demand
Change Mgt Self-enablement via training support
Outsourcing Outsourced Sourcing Outsourced
Category Mgt
36Tender Train Model
Bespoke Contracts
Fragmented Spend
Local Borough Council
NHS Trust
Public Transport Organisation
Public Transport Organisation
Local Borough Council
County Council
Civil Service Organisation
NHS Trust
County Council
Leverage Volume
Civil Service Organisation
Process Synergy
Common Supply management
37Elements of e-Three Support
ePQQ
eITT
eAUCTION
Data Collection/Management
PQQ Template Creation
Bid Day Management/Support
Post bid reporting support
Bid Parameter Creation
Cost breakdown Creation
End to end Project Management
EU Procurement Directive Guidance
Supplier Management
Competitive Positioning
38e-Three Category Knowledge
39Agency Staff Wiltshire County Council
- Project Summary
- Collaborative projects between 6 local
authorities - Objective implement cost-effective tiered
framework - Annual spend 7 million
- Process Suppliers
- 103 expressions of interest
- 65 ePQQ, 30 ITT
- 26 Suppliers in eAuction
- Bidding workbook with all line items and volumes
- Results
- 25 savings
- Rationalised supply base
- Top 3 suppliers in each category bid similar
pricing - 3 year collaborative framework contract
implemented covering various disciplines from
social care, legal, manual and admin to IT and
accountancy
- Critical Success Factors
- Supplier training
- Collaboration
- Inclusion of internal stakeholders
40Architectural Services
- Project Summary
- Transportation organisation
- 27M per year 4 year contract, total spend 108M
- Objective implement cost-effective framework
- Process Suppliers
- Specs from incumbent.
- Bidding workbook with all line items and volumes.
- 32 Suppliers
- Results
- 18 savings
- Rationalised supply base
- Improved quality more niche suppliers included,
with competitive pricing - 4 year framework contract implemented covering
all architectural requirements
- Critical Success Factors
- Supplier training hand-holding suppliers
are not good at tendering, and have little
eAuction experience
41Office Furniture Liverpool City Council
- Project Summary
- Merseyside Collaborative Group led by Liverpool
City Council - 4M annual spend
- Objectives Cost savings collaboration
- Process Suppliers
- Full Sourcing process including OJEU, PQQ, ITT,
product evaluation and eAuction
- Results
- Transformation eAuction
- 40 savings
- Rationalised supply base 1 local supplier
- Critical Success Factors
- Clear definition of product spec and product
evaluation - Robust cost-breakdowns
- Supplier Training
42Office Supplies Knowsley MBC
- Project Summary
- Merseyside Collaborative Group led by Knowsley
MBC - 4M annual spend
- Objectives Cost savings alignment with
proactive supplier to manage spend
- Critical Success Factors
- Clear definition of product spec, plus
alternative product proposals - Robust cost-breakdowns
- Process Suppliers
- Full OJEU Tender utilising eSourcing platform,
ePQQ, eITT and eAuction - Core basket of top demand products for each of
the collaborative authorities - Quality evaluation completed prior to eAuction
those of a min. quality invited to eAuction - Catalogue Discount Lot
- 8 suppliers
- Results
- 25 savings
- Supplier rationalisation contract awarded to
one supplier
43Examination Gloves
- Project Summary
- Collaborative tender process between Bristol City
Council, UBHT and other NHS Trusts, local
authorities and the police. - Approx. annual spend of 1million
- Requirement for non sterile examination gloves
- Critical Success Factors
- Supplier day to explain eAuction process and
tender opportunity - Product sampling session
- Collaboration
- Transparency of process
- Process Suppliers
- OJEU procedure
- PQQ
- ITT 20 suppliers
- eAuction -9 suppliers
- Pro-active supplier management
- Results
- Savings of 40 for Bristol City Council and 20
for UBHT - Collaborative Framework
44Questions