Presentation on theme: "ISpec presentation Welcome to the iSpec presentation. iSpec is a fully integrated strategic procurement tool that manages the entire process from requirement."— Presentation transcript:
1 iSpec presentationWelcome to the iSpec presentation. iSpec is a fully integrated strategic procurement tool that manages the entire process from requirement through eSourcing, project and contract management to final delivery and acceptance.
3 Remy InfoSource Our solutions The InfoSource Group owns 3 technologiesiSpec (Tender, Bid and Contract Management)iTech (Artificial Intelligence Diagnostics)ICAM (Equipment Logistics System)
4 Remy InfoSource Siemens (MagLev) HPH (no2 in ports) Some of our customersSiemens (MagLev)HPH (no2 in ports)DP World (no3 in ports)SABMiller (no2 in beer)Bermuda GovernmentRemy has extensive experience in delivering high-tech business and technical solutions to multi-national corporations. You might be aware of the world’s first magnetic levitation train that was built by Siemens and Thyssen Krupp in Shanghai China. Remy supplied the technology and methodologies used in the diagnostic system that monitors over 120,000 components in real-time.
5 The issuesFirst of all let’s take a look at the issues
6 Large CAPEX projects Complexity. Multiple stakeholders. Interfaces. The dilemmaComplexity.Decisions made, technical problems solved, financing requirements assessed, supplier capacities evaluated, legal issues addressed.Not even the smallest detail can be overlooked.Multiple stakeholders.Aligning the many functional stakeholders typically involved in large capex projects is a major task. Finance, procurement, legal and engineering all consider different issues.Interfaces.The combination of functional and international stakeholders and different segments and procurement packages requires well-managed interfaces. Good communication/collaboration is essential.
7 Typical CAPEX project management Many systems involved - duplication of data/efforte-Sourcing systemOutlook/exchange serverMicrosoft officeMany organisations have a diverse range of applications and tools which combine to deliver the procurement process and project management to final delivery and commissioning, however this complexity often leads to lack of integration. Tracking, auditing and synching information across multiple systems is time consuming and expensive in terms of people and potential project delays no matter how efficient the organisation is.Document management systemProject management systemContract management systemQuality assurance/inspectionsWorkflow system
8 The result Where how why when? Project information is scattered on computers and in documents throughout multiple organisations and in multiple systemsMissing/outdated documentsNo AccountabilityDifficult to auditNo control/authorisationNo transparencyHigh riskMany disputesThe main reason we experience all the above-mentioned problems is the fact that this information is typically scattered on computers and in documents and tools throughout the organisation and often even in other organisations.
9 Filling the gaps iSpec Sourcing RFx Evaluation Negotiation Trials & Supplier AccreditationTech Spec ManagementExternal info gatheringContract draft and reviewiSpecStrategic SourcingContract implementedHere is a graphic presentation of how iSpec complements typical ERP systemsInternal business requirementReportingPlanning systemsRequisitionPaymentTypical ERP /eTendering systemTransactional ProcessingMRPPurchase orderItem based procurement - SKUsInvoice processingApprovalGoods receivingInventory ManagementQuality Management
10 Pressure (time and resources) The main reason we experience all the above-mentioned problems is the fact that this information is typically scattered on computers and in documents and tools throughout the organisation and often even in other organisations.RealityRealityRealityInsufficient resourcesTime constraintsSkills shortagesSequential document access (long lead time)Bad collaborationGeographically dispersed data and stakeholdersIncomplete bidsManual processesData miningComparative reportsEvaluationMassive paper/ trailTime constraintsMany design reviewsMany change requestsMany disputesNo proper audit trailCost overrunsMuch time spent resolving issuesDelays
11 Typical intangible risks Risk managementIntangible risk has a 100% probability of occurring but is ignored by the organisation due to a lack of identification ability. It directly reduces the productivity of knowledge workers, decreases cost effectiveness, profitability, service, quality, reputation, brand value, and earnings quality.Typical intangible risksKnowledge risk (poor access to information/skills)Relationship risk (poor collaboration)Process-engagement risk (poor procedural compliance and no transparency)Intangible risk management identifies a new type of a risk that has a 100% probability of occurring but is ignored by the organisation due to a lack of identification ability. For example, when deficient knowledge is applied to a situation, a knowledge risk materialises. Relationship risk appears when ineffective collaboration occurs. Process-engagement risk may be an issue when ineffective operational procedures are applied. These risks directly reduce the productivity of knowledge workers, decrease cost effectiveness, profitability, service, quality, reputation, brand value, and earnings quality. Intangible risk management allows risk management to create immediate value from the identification and reduction of risks that reduce productivity.Principles of risk management The International Organization for Standardization (ISO) identifies the following principles of risk management:Risk management should:create value – resources expended to mitigate risk should be less than the consequence of inaction, or (as in value engineering), the gain should exceed the painbe an integral part of organizational processesbe part of decision making processexplicitly address uncertainty and assumptionsbe systematic and structuredbe based on the best available informationbe tailorabletake human factors into accountbe transparent and inclusivebe dynamic, iterative and responsive to changebe capable of continual improvement and enhancementbe continually or periodically re-assessed
12 Total Cost of Ownership(TCO) SKU based procurementInadequate evaluation methodsCost implications beyond the sourcing phase not considered/handledNo consideration of costs external to contractNo life-cycle approachUse of iSpec has been proven to result in not only reduction in cost of acquisition but total cost of ownership in that it enables one to consider other factors such as external costs (outside of the contract), MRO spares requirements, etc.
13 The SolutionLet’s now take a look at how iSpec solves the problems we have just discussed.
14 Manages integrated process The solutionWeb based solutionRequires only a browserFewer support issuesGlobal accessRole-based accessFull securityManages integrated processMaster libraryTender creation/publicationVendor responseEvaluation and negotiationContract managementQuality AssuranceThis is an overview of the solution
15 iSpec - A-in-1/OTS - fully integrated Initial request through sourcing, contract management and QAToolsDoc MgtQAWorkflow/ApprovalsProj Mgte-SourceContract mgtMessagingDocsRemindersiSpec✔QA/inspectionsERPOutlookOfficeProj Mgt.iSpec is an all-in-one, off-the-shelf package that handles the entire process in a fully integrated manner.
16 Centralised control, global access VendorsBid submissionsClarificationsChange requestsDelivery trackingTechnical/EngineeringSpecificationsQAProject managementTechnical evaluationsOnly 1 copy of each documentOnly 1 copy - the right oneGlobal role-based accessConcurrent editingVersion control (audit trail)Complete contextual audit trailAll collaborationsAll negotiationsAll vendor responsesAll clarificationsContract amendmentsApprovalsBy whom, when, from whereIdeally, the optimum solution would involve a system that maintains centralized control but yet allows global access to all the project information. Thus no matter how far your project team is scattered geographically, all members should be able to access and work on all documents AT THE SAME TIME FROM ANYWHERE! Wouldn’t that be great. Everyone working on the same document at the same time from different locations and no data loss. Is this even possible?Procurement/legalAgreementTerms and conditionsHealth and safetyFinancialsVendor KPIApprovalsCommercial evaluationsManagementApprovalsOverviewProgramme mgtKPI
17 Wizards on every screen This is an overview of the solutionThe solutionHelp fileTraining videosWizards on every screen
18 The SolutionLet’s look at a typical tender work flow. Ideally we would like to have a set of master documents or templates for the various types of projects that we do on a regular basis. Let’s see how we set that up.
19 Master documents Control Authority Audit trail Outdated documents Current methodIssues project managers currently have in managing master documentsControlAuthorityAudit trailOutdated documentsMissing documents
20 Create a template Add template Create master setLet’s see how iSpec handles this. First of all let’s create a template for the construction of an A-type warehouse. To do this we select New Template and then create a standard list of documents that form part of the template. Just like we used to do it manually.Add templateAdd documents that form part of master set
21 Adjust document settings Create a templateAdjust document settingsNow we create the outline or headings on the left - just like Word in outline mode - and then add the detail or clauses under that heading on the right. As we add these clauses or text, the system automatically adds them to our standard library. This allows us to re-use a clause in many other documents later on without having to re-type it. We can also configure each clause to be editable during tender preparation or not.You will see that only 3 of the headings in this document have pencils next to them. That means that only those 3 headings contain clauses that are editable during tender preparation and only by team members with the appropriate permissions. The beauty of this is that the project team does not need to waste time reading the other clauses as they are all pre-approved and are not subject to change - therefor requiring no effort during preparation or approval.Add new contentAdd content from libraryOnly certain items are editable
22 Requirement/response settings Create a templateRequirement/response settingsWhat are requirements?Delivery datesHow will responses be scoredWhat response is expected?PricesProduct dataResponses to questionsFor each heading or for an entire document we can setup what the internal user has to do during preparation and what responses we require from the vendor.
23 Audit trail - version tracking The library also keeps a record of each version or change to each clause. So in the history tab, we can browse through previous versions of the clause and view, compare or roll back to a previous version - if we have the appropriate permissions of course.All changes recorded:By whomWhenCompareRoll back
24 Creation of Master Library Dedicate resourcesThe library also keeps a record of each version or change to each clause. So in the history tab, we can browse through previous versions of the clause and view, compare or roll back to a previous version - if we have the appropriate permissions of course.Remy serviceDevelop specification for libraryConfiguration of libraryCreation of master documentsVendor response settings
25 The SolutionOnce we have created our templates, we can use them to create a tender a just create one from scratch. The project team - which can include legal, procurement, external consultants, engineering, etc. can all assigned to the tender and work on it simultaneously.
26 Issues for tender preparation Current methodCorrect documentsProcedural complianceLead timesGeographically distributed project teamAudit trailTypical issues project managers experience in tender preparation
27 User login Login takes user to My Workspace When the user logs in, he/she is immediately taken to the My Workspace page listing all items that requires his/her attention.Login takes user to My WorkspaceLists all outstanding tasksGets daily with similar summary
28 Create a new tender Set basic options Add a tender Publication dates Once we have completed all the documents in our template and approved them for use, we can now use this template to go and publish our first tender.We can enter information and select various options for this project. The publication dates for example as well as the currency, whether it is a closed or public tender, etc.Set basic optionsPublication datesType - RFxCurrencyBusiness Unit
29 Prepare tender Dates Status Reports Open and completed tasks Overview Once the project is created, we get the overview screen. This contains various panels that can be used to view or manage various aspects of the tender.The task manager has two sections - listing both the open tasks that require our attention as well as the completed tasks below.DatesStatusReportsOpen and completed tasks
30 Tender preparation phase Prepare tenderTender preparation phaseDocuments copied from master templateDocuments requiring attention have alert iconsSelect project team and rolesSelect vendors to inviteIn the Tender Documents panel, we see the documents that were all copied from the original master template. Each document with a yellow alert icon next to it indicates that it requires our attention. So depending on who is logged in - for example a lawyer or an engineer or procurement specialist - they will see different documents and alerts calling for their attention.Lower down panels contain internal users that are assigned to this project as well as a list of invited or registered vendors that intend to bid on this project.
31 Prepare tender Only items with pencils require editing Document preparationOnly items with pencils require editingOther headings are pre- approved and cannot be changedLess work - less checkingAs the team now starts to prepare the documents for publication, we can see our original document with only 3 headings requiring our attention. What a pleasure. We only need to read and edit those 3 items and we are done with this document.
32 Prepare tender Orange pencils turn green as items are completed PreparationOrange pencils turn green as items are completedSelect options as set up in template - no editing requiredImport BOQ from ExcelAll items with green pencils have been completed and require no further attention. All items with orange pencils DO require our attention.
33 Upload attachments/addenda We can also upload attachments such as drawings, spreadsheets and any other files we wish.Upload multiple documents at a timeAttach drawings, pictures, documents, spreadsheets, etc.
34 Team works simultaneously Concurrent document accessNow here is where the real power of iSpec comes in. The minute we edit a clause, we can see if anyone else has made any changes and we can view and compare those changes, roll back or combine them. This means that even if 2 people - one in New York and one in Hong Kong are both working on the same clause at the same time, we won’t lose any of their changes, both edits will be recorded, and the final approver can decide which to use or combine them. No other system has this capability.Multiple users can access document simultaneously from different geographic locationsAll changes are recorded
35 Vendor management Register Assign to Groups Vendors Panels Trades iSpec also does vendor management and we can create panels and trade lists. This way we can invite a whole group of vendors e.g. top five electrical contractors with one click rather than having to invite each one individually.RegisterAssign to GroupsPanelsTrades
36 Creation of Tenders Remy service Dedicate resources The library also keeps a record of each version or change to each clause. So in the history tab, we can browse through previous versions of the clause and view, compare or roll back to a previous version - if we have the appropriate permissions of course.Remy serviceCreate and prepare tenderCustomer review and approvalRemy help desk support
37 The SolutionNow we need to obtain the required approvals depending on the type of tender and perhaps the value.
38 Approval issues Ensure correct approvals Current methodGetting approvals in a timely manner can be a problem. We also need to ensure that nobody changes anything after the approvals have been done.Ensure correct approvalsLead times (availability of approvers)Avoid unauthorised changes after approval
39 Obtain approval Approvals can only start once all pencils are green It is impossible to publish an incomplete documentOnce approval starts all documents are frozenOnce we have completed all our documents for publication - in other words when all the pencils are green, only then will iSpec allow us to start certain of the approvals. This means it is impossible to publish a tender that is incomplete. Once we click the start approval button, all the appropriate approvers are automatically sent reminders to login and approve the documents. At this point no changes can be made. Once all approvals have been completed, the system will wait for the publication date and then send out automated invitations to the selected vendors (if any) and open the tender to them or all vendors if it is a public tender.
40 The SolutionOur vendors can now login and start preparing their bids online.
41 Vendor response issues Current methodIncomplete submissionsDifferent formatsDifficult data miningUnnecessary marketing materialAdministration of clarifications and communicationsThere are many issues relating to vendor responses that can be a nightmare to manage.
42 Vendor login Login takes vendor to My Workspace When the vendors log in they are immediately taken to their My Workspace page to see a list of outstanding tasks.Login takes vendor to My WorkspaceLists all outstanding tasksGets daily with similar summaryWizard for guidance
43 Vendor online submission Prepare bid and submitVendor online submissionThe first thing the vendor sees is the same basic information regarding the status of the tender. The vendor also has a submission panel where he or she may Submit a bid, submit no bid or generate a printable document. During the publication period before the tender closes, a vendor may submit, edit or withdraw a bid as many times as he likes.Again the list of documents have their alerts for the attention of the vendor.Vendor sees same basic overviewControl panel for submitting/withdrawing bidDocuments with alerts
44 Prepare bid and submit Vendor response Red items require attention When the vendor enters a document for the first time, he sees only red headings. This indicates all the items that require his attention. As he submits the information required at each heading, that heading changes to black and thereby keeps track of how much he has completed.Red items require attentionVendor response for each item is specified and simpleDelivery datesPricesComplianceDocumentation
45 Clarifications - Audit trail All correspondence is recorded in iSpec automatically linked to the heading it relates toCreates comprehensive audit trailOnce you select the heading, you can view the message, mark it as actioned and if necessary, send your own mail message.
46 Modifications/addenda Addenda/clarificationsThe internal team can also update vendors with new or missing informationMessages/addenda can be sent to one or all vendorsPart of audit trail
47 Prepare bid and submitResponse validationVendor cannot submit bid unless all items have been completedShould a vendor accidentally click the Submit your bid button, the system will check all documents and warn him/her that there are still outstanding or incomplete items. This means that a vendor can NEVER submit an incomplete bid.
48 The SolutionOnce the bids have closed, the Tender Committee approves the opening of the bids.
49 Open bids Approval status Track and expedite approvals Once the Tender closes, the assigned tender committee members automatically receive an requesting they approve the opening of the bids. If the bids are not opened on time, we can go to the approval screen and see who is holding up the process and send them a reminder.
50 The SolutionNow the team can start evaluation and negotiations
51 Evaluation issues Incomplete submissions Different formats Current methodIncomplete submissionsDifferent formatsDifficult data miningPricing comparisonNon-compliant itemsDifferent evaluation scenariosTechnicalCommercialVarious issues affect how well we can evaluate the submitted bids.
52 Compare pricing One click pricing comparison No data mining required Bid evaluationOne click pricing comparisonNo data mining requiredOnce the bids are open, the first order of business is typically to compare the prices. This is done with the click of a single button. As all data is submitted directly into a database and not in spreadsheets or documents, the system can provide the pricing comparison report immediately. Detailed information is available by clicking on a specific item.
53 ComplianceNext we might want to view the number of non-compliant items from each vendor. Then we could call up the non-compliance detail report. Here we can compare all non-compliant items from each vendor. We can then score each vendor on these items and this will then update the evaluation score bar chart seen here.Finally we can track negotiation progress.
54 Non-compliance details Next we might want to view the number of non-compliant items from each vendor. Then we could call up the non-compliance detail report. Here we can compare all non-compliant items from each vendor. We can then score each vendor on these items and this will then update the evaluation score bar chart seen here.
55 Evaluate and negotiate Score and negotiateAs we continue evaluation and negotiations, we can view each item individually and see who made the offer from the vendor’s side.We may look at his supplemental information and find that the specification is close enough and therefor we might be happy to accept his offer as compliant.On the other hand although we find it superior, we might decide to accept it as non-compliant.A third option exists. We might find it totally unacceptable and then we may click on the negotiate button and make a counter offer that he must comply with the specification We can go back and forth like this until we agree and then we can accept the final offer. The entire history of the negotiations are also kept as part of the audit trail - in exactly the same way we keep the correspondence.The benefits of iSpec in this regard are that one no longer needs to sit around a table with tons of printed documents with yellow highlights and post-it notes. You either do this over the phone or if you want still around a table - each with his notebook open and logged in. Once you agree on an item, one party enters the offer and the other accepts it. Both the offer and acceptance are date, time and user stamped. It is therefor no longer necessary to keep minutes of meetings or create addenda as everything is recorded in iSpec.Evaluate and negotiateEnter technical & commercial scoresAccept or negotiate
56 EvaluateAs we continue scoring the vendors’ responses, iSpec continually updates the evaluation reports.
57 Negotiation progressFinally we can track negotiation progress.
58 Sign the contract Prepare final version online Final contractPrepare final version onlineElectronic version should be legally bindingOption to print and signThe final contract documents can be generated for printing and signature. At this point you may elect to include other information into the document as well. For example the vendor submissions, the negotiation history, correspondence and other information.
59 The SolutionNow we get to the Contract Management phase where we need to track delivery, manage revisions, do Quality Assurance and calculate liquidated damages if any.
60 Contract management issues Current methodWhat about contract management?Project managementVariation ordersTracking deliveryVendor performanceForget crucial milestones and follow upHow do we ensure that the vendor delivers according to contract?
61 Project planning Generate project plan containing Resource planningGenerate project plan containingDeliverablesMilestonesUse as basis for project planningMS Project or PrimaveraThe list of deliverable items can be used to generate a Microsoft project plan outline with completion dates or interface to other systems such as Primavera. This can serve as an outline for the customer or vendor to create a detailed plan withe resources etc.
62 Delivery tracking Automated reminders Vendor reports delivery Tracking delivery of items or achieving of milestones is an important part of the contract management function.Vendor deliveryAutomated remindersVendor reports deliveryUploads certificatesManualsDelivery notesCustomer verifies
63 Vendor delivery performance Delivery scheduleVendor delivery performanceDuring the delivery phase, iSpec typically allows you to view a delivery report where the green area represents items delivered on time, the red area items delivered late and the blue area represents items still to be delivered.The table shows all deliverable items with first of all the delivery dates requested in the original tender documents, secondly the dates agreed during negotiation and finally the actual delivery dates.Track and compare:Original requestAgreed per contractActual delivery datesCalculate penalties
64 Contract management Vendor raises issue Send email from iSpec If revisions need to be negotiated to the contract, there is a facility to do this as well and these changes and acceptances form part of the audit trail under negotiations. Typically the vendor would send a request or raise an issue via the messaging system.Vendor raises issueSend from iSpecCustomer gets mail
65 Contract management Customer sees issue Mark item as read The customer sees the issue and respondsCustomer sees issueMark item as readChange contract text
66 Contract management Revision is made Content change is highlighted sent to vendor to acceptThe changes are highlighted and the vendor notified
67 Vendor accepts revision Contract managementVendor accepts revisionVendor can view revision details and acceptThe vendor can now register acceptance of the discussed change or discuss it further.
68 Contract management Manage other revisions Other revisions Pricing All revisions/change/variation orders are handled in this way.Manage other revisionsPricingDelivery dateUnits
69 MRO spares data Enter spares data Validate Capture MRO dataIf your tender includes the supply of spare parts for maintenance of the system, these can also be specified and their data captured and validated in iSpec for later use in your storeroom and maintenance management systems.Enter spares dataValidateInterface to ELS (Equipment logistic systems)
70 Quality assurance Monitoring of status of the works QAMonitoring of status of the worksChecklists of outstanding/faulty itemsAcceptance tests/inspectionsPerformance testingCertificationsConsolidating this information into reportsLet’s look at the quality assurance aspect of project delivery. We need to track faulty items and perform ad-hoc inspections. For certain projects we might need to do performance testing of systems or health and safety certifications. All this information needs to be tracked and managed.
71 Inspection items Create inspection items We can actually setup and manage a list of inspection itemsAd-hoc inspectionsCreate inspection itemsAttach inspection records to specific items or as general issues
72 Inspection items Take pictures of issues and faults Track correction Ad-hoc inspectionsDuring inspection/testing/commissioning, we can take pictures, attach test results, etc. as part of the inspection record. We can also track issues that need to be addressed and attach them to punch lists/milestones.Take pictures of issues and faultsTrack correctionAttach to milestones
73 Work packages as sub-tenders Main & sub-tendersWork packages as sub-tendersLarge project contains separate work packagesCivil worksUtilitiesSecurityProcess controlPlantWork packages can be published/awarded separatelyRoll up overview for evaluationAutomatically generate separate contractsManage themWhen we have large projects with many work packages that may be farmed out to different vendors, we would like to publish the entire project as a whole to get a picture of the entire project and be able to roll up costs of all the work packages.
74 iSpec Improvement Do it right Reap benefits Standardised approach The main reason we experience all the above-mentioned problems is the fact that this information is typically scattered on computers and in documents and tools throughout the organisation and often even in other organisations.ImprovementDo it rightReap benefitsStandardised approachEnforced procedural complianceEasy collaboration amongst stakeholdersProper audit trailConcurrent document accessImproved productivityOnline clarifications are part of audit trailNo incomplete bidsAutomated evaluationNegotiation audit trailAutomated contract generationBetter contractsImproved productivityFewer design reviewsFewer change requestsFewer disputesFull audit trailCost savingsBetter QAImproved productivityTransparencyReduced tender management costs
76 Bottlenecks/lead times Project timelineBottlenecks/lead timesKey performance indicators assist in identifying bottlenecks in the process. Here we see a chart showing lapsed time for each phase of a tender. Clicking on a bar shows both the time take and the persons involved. If someone has not completed his approvals for example a reminder can be sent automatically.Identify bottlenecksAnalyse lead timesSend remindersCompare to bench-marks
77 Measure vendor performance Tracking vendor performance is also important.Measure vendor performanceProject reviewOn-time deliveryQualityReliabilityVendor summaryFlag vendors and projects
80 AnalysisOther analysis tools are available and custom reports can also be incorporated into the system to improve management decision making.
81 INTERNAL USERS/CONSULTANTS SUPPLIERSINTERNAL USERS/CONSULTANTSBIDSNo downloading and uploading of documentsAll submissions done online and encrypted securely into the databaseAttachments allowedNo information visible to the company until after bids have been opened electronicallyNegotiate/correspond onlineOne-click conflict resolutionTrack delivery onlineReminders for deliverable itemsTENDERS/CONTRACTSTender is a copy of the latest approved version of a template or newly createdCustomise only editable itemsNegotiate/correspond with suppliers onlineFull audit trail kept with date and time stampsApprovals at various stages up to contract signatureBuilt-in pricing comparator, conformance reports and evaluation system (scoring)Built-in KPI reportsCustom reports using Crystal reporterTEMPLATE LIBRARYTemplates have assigned owners and approversColleagues can correspond regarding changes, etc.Messages stored with clause as part of the audit trailCopy and paste a template to create a similar one and just make the changesMultiple language versions possibleOnly fully approved templates can be used to create tenders/contractsMASTER LIBRARYClauses or complete documentsEach with an owner/approverChanges automatically update any template in which item is usedComprehensive audit trailRollback, compare, approveCorrespondence regarding changes are stored as part of the audit trailBatch approvalsMultiple language versionsItem can be fixed, fully editable or only have editable fields - giving complete control over change permissionsHere is a final overview of the entire system consisting of the master library with all its features. These items are used to create templates that are automatically updated when a clause is updated. Only fully approved templates can be used to create tenders or contracts. Bids are entered online and as a result comparisons, evaluations and scoring becomes a simple matter. Inspections can be performed during project delivery and underlying it all is the workflow, communications and audit trail.Supplier 1Master libraryitemSupplier 2TenderTemplateMaster libraryitemTenderSupplier 3Master libraryitemTenderMaster libraryitemTenderTemplateINSPECTIONSOnline/offline inspectionsCan link to items in documentsQuick reports & Punch listsAd-hoc and standard inspectionsMaster libraryitemTenderWorkflow, Communications and Audit trailInspector
82 Concurrent licensingEstimate the maximum number of users that would be logged in at any time during the day. This is the number of concurrent licenses you will require.3 concurrent users in this exampleLicensing is based on the maximum number of users that may be logged in at any one time. You may give unlimited users access to the system at no additional cost. Concurrent user licenses start at around Euro 7,000/ user and decrease as the number of licenses increases.Users logged into iSpec at any timeUsers with iSpec login and passwordUnlimited users with iSpec login
85 Savings and benefits 70% efficiency improvement Other benefits70% efficiency improvementLead time reduction from 2 weeks to 1 dayImproved vendor relationsBetter sharing of global expertiseImproved control and transparencyImproved management reporting capabilityimproved procedural complianceImproved risk management
86 User observations - $ Savings “Standardisation of contracts and specifications (using iSpec) has lead to lower prices in general (3% on large projects). Business units not using iSpec are paying higher prices. (1 general case > 20%).” Why - Clear unambiguous tenders. Transparency. Better leverage during negotiations.“Because of the transparency vendors can no longer get away with charging different business units different prices for the same equipment.” (or different prices for the same item on different projects)User interviews have resulted in the following comments regarding savings resulting from the use of iSpec.As shown in an earlier slide an average saving of 3% of total project cost has resulted.
87 User observations - effort “Transparency, traceability and keeping the communication/negotiations together are a huge benefit for both parties… The only reason that we can manage so many projects so effectively is because the negotiations and communications are recorded against each item/clause for anybody to read and see what has been discussed/negotiated. That is also valid for the Vendor because they pass the documents from Tender team to Engineering/Project management team. We do the same for 3rd party…..” Paul Jordaan, DPWorld.One of the most praised features and benefits of iSpec is the fact that all communications and negotiations are recorded against each item. This not only benefits the customer, but also the vendor as when the document is passed from the Tender team to the Project team, they also benefit from this quick access to this information.
88 Evaluation & Negotiation BeforeBidDocuments@@@TenderDocuments@@@@BidDocumentsRemember the old way of doing things?@@@@@@Evaluation & Negotiation@BidDocumentsBidBid@Bid@@@@@@@@@@@@ContractDelivery@@@@@@
89 After Suppliers Project team Supplier 1 Supplier 2 Supplier 3 iSpec Now clicking on an item in the original tender document immediately displays all correspondence, responses, negotiations, final contract text and any attachments for each vendor. No other system offers an audit trail this comprehensive.Correspondence_______________________Bid responseNegotiationsFinal contractAttachmentsCorrespondence_______________________Bid responseNegotiationsFinal contractAttachmentsCorrespondence_______________________Bid responseNegotiationsFinal contractAttachmentsiSpec1_______1.1___2_________________3_______3.1 Aircon3.2_____4_______________________
90 iSpec usersThese are some of the companies that use iSpec.
91 Why iSpec? Timing and cost Flexibility Learn and grow Deliver value Business requirementTiming and costFlexibilityLearn and growDeliver valueProject ManagementDocument Management and Version controlRisk management
92 Why iSpec? SAP Toolset Other solutions iSpec Tool selection Integrated tool lacking in functionality and ease of use.Adjusted timelinesOther solutionsVarious solutions reviewedInternal proposal in progressiSpec
93 Why iSpec? Out of the box ready Reasons for iSpecOut of the box readyAlmost 100% fit to our business requirementRapid implementationStandalone flexibility until back-end readyIntuitive interfaceTraining and help includedIndustry experience - not theoretical model
94 Case study - Bermuda Requirements: Bermuda Government Transparency ControlAudit-abilityStandardisationSkills optimisation
95 Case study - Bermuda Customisations Installation Training ImplementationCustomisationsInstallationTrainingTotal time - 3 months
96 Case study - SABMiller Second largest brewer in the world AboutSecond largest brewer in the worldOperates in 67 countriesCAPEX expenditure US$900 million per annum
97 Case study - SABMiller SAP user AboutSAP userRequired efficient Tender Management systemTrial of iSpec as best-of- breed solutionContract/spec contains over 6,000 data items to manage for a new brewery
98 Case study - SABMiller Internal issues External issues (vendors) Speed - LAN issue - issued key users with 3G cards as interim solutionResistance to change (learning curve)External issues (vendors)Data entry slow - new spreadsheet-like quick entryValidation - no incomplete submissions allowed. Vendor education.
99 Case study - SABMiller Productivity improvement of 300% BenefitsProductivity improvement of 300%Contract price reduction +- 3%Transparency and audit trailSingle point auditing
100 Case study - SABMiller Global roll-out plan Roll out customisations roll-out teamtraining systemcustom manualsglobal roll-out in progress
101 Case study - SABMiller ERP vs iSpec iSpec was 100% fit for our business requirementiSpec is out of the box ready to use whereas ERP CRM integration is very difficult. You have to get e-sourcing to talk to the back end and this is very expensive and time consumingRapid implementation of iSpec allowed us to change our process and behaviour without worrying about the toolRunning iSpec standalone allows us more flexibility - we are not restricted by the back-end as with ERP
102 Case study - SABMiller Why iSpec? iSpec's user interface is intuitive and easy to useiSpec comes with training materials which ERP doesn't - we would have to develop thatiSpec comes with industry experience which makes implementation easier.iSpec instantly addressed our business problemsRemy's commitment to solving our problems and making things work made a difference
103 Case study - DP World World’s 3rd largest port operator Over 50 ports globallyCAPEX around US$ 3 billion in current projects
104 Case study - DP World Wanted to centralise CAPEX procurement RequirementsWanted to centralise CAPEX procurementNeeded an automated systemGlobal access 24/7All documents up-to-the- minute accurate
105 Case study - DP World Internal resistance Internet issues Issues DPW bought P&O and they resented DPW central procurementOnce they saw benefits they came on board very quicklyInternet issuesChina - ISP blocked attachments over 5MB - fixedInternal LAN bandwidth issues
106 Case study - DP World Customised system Benefits and savingsCustomised system1 project manager now handles up to 30 projects (previously only 4)Single point auditingStandardisationProject cost reduction of 3%
107 User observations - value “iSpec has highlighted weaknesses that existed in our processes as well as our people. Using iSpec now helps us augment tendering and contract management skills in many of our business units.”“Project managers are now adding value to the process rather than doing clerical work much of the time”“Management reports are available at the click of a button and data contained in them is current - not days or weeks old.”“With improved visibility and a bit more time spent on negotiations we have saved in virtually ZERO amendments to contracts after awarding.”User comments on other value added benefits include the augmentation of contract management skills throughout the organization. Up to date management reports and other benefits.
108 Summary Costs - iSpec avg. savings of 3%-20% on total project cost Productivity - iSpec results in 300%+ improvement = $Accountability - iSpec’s comprehensive audit trailConflict resolution - iSpec One-Click resolutionControl - Approved templates and edit/approval controlTransparency - iSpec audit trail and easy user accessHere is a final summary of the most important savings and benefits of using iSpec. Which one do you see as the best added value to your business processes?
110 Technology and security For anyone who has questions about Technology and security issues - use the following slides.
111 Technical information TechnologyMicrosoft .NET applicationRequires only a browser (IE 8 +, Safari, Firefox, Chrome)Secure accessDatabase - MS SQL Server 2008+Microsoft server 2008+The system is developed using Microsoft .NET technology.Users only require a browser to access it securely.
113 Fin-Link Financial links to: DTS or SSIS IAS compliant Typical interfacesInterfacingFinancial links to:ORACLESAPJDEPeopleSoftSunThaliaSageScalaEmprizDTS or SSISIAS compliant$25,000 each + consultingSourcing RFxEvaluationNegotiationTrials & Supplier AccreditationExternal info gatheringContract draft and reviewTech Spec ManagementWe have standard interfaces to financial (ERP) systems.Strategic SourcingContract implementedInternal business requirementReportingPlanning systemsRequisitionPaymentTransactional ProcessingMRPPurchase orderInvoice processingApprovalGoods receivingInventory ManagementQuality Management
114 Typical SecurityThis is the typical configuration we recommend and implement ourselves. Of course most larger companies who do their own hosting will have their own corporate policies and IT departments that will follow their own standards.
115 eBidding optionWe also have an ebidding module for reverse auctions, as well as an auction module.
116 These links only work in Keynote RemyIssuesSolutionTemplatesTenderResponseClarificationsApprovalsBid openingEvaluationDeliveryProject planningContract mgtKPIBenefitsWhy iSpec?SABDPWBermudaTechnologyImplementationSizingGAP analysis1st Data gatheringTraining1st template1st tenderFeedbackAdjustRoll out planRoll outInternetLANVendorsInternal resistanceOver-customisationIntegrationERPThese links only work in Keynote
123 GAP analysis Master documents Tender process Delivery process Contract ManagementNo customisation yet
124 Data gathering Business hierarchy Templates Roles Approvals Configuration
125 Data gathering Typical RFQ structure RFQ Sections Plant A Plant B Plant CPlant DMemorandum of AgreementSame conditionsO H & SCommercial Terms and Conditions ($)$$$$$$$General ConditionsSpecial ConditionsEmployer’s Requirement (FIDIC)#######Eskom Standards and SpecificationsDrawingsExecutive SummaryMilestone Schedule
127 Training Administrator Template editors Project team Vendor introduction
128 TrainingCustom Quick GuidesCustom training videosImplement
129 First tender Prepare - smaller tender Publish Evaluate/negotiate Award Manage contractFeedback
130 Analyse first tenderIssues identified during each phase (internal messaging)Adjustment/customisationApply new methods and customisations
131 Roll out plan Finalise Data gathering input plan Finalise Support plan Finalise Hosting planFinalise Training planRoll out plan to divisions and business units
132 Roll out plan Centre of Excellence: Role allocation & Definition of competency requirementsMaster template managementRoles definitionInterface with Remy-IS and GISHelp Desk functionalityKnowledge sharing and capability building
133 Roll out plan Departments/regions: Role allocation & competency requirementsTemplate managementRoles allocation at project levelHelp Desk requirements
135 Attachments the main issue InternetAttachments the main issueiSpec AttachmentsISP limits file size for uploadingRequest ISP to increase file size limit
136 LANIssuesSlow performance90% of the time the problem is LAN bottleneck not internetSeparate LAN segment with high QOS
137 Vendor issues Validation - must submit all requested data Draw back VendorsValidation - must submit all requested dataLazy - will do work if they get contractWant an opportunity to negotiate after bid openingDraw backYou can’t evaluate properly without sufficient dataFixCondition of doing businessLong term benefitDecide which data is important for evaluation purposes
138 Internal resistance Resistance Resistance to change Training New system - takes timeHave to change habitsRequires discipline initiallySoon realise benefits of improved productivity and transparency
139 Over-customisation To customise or not Enthusiastic users want everything up frontWon’t work if we don’t have XXCustomisation/re-working is expensive and causes delays and errorsTry before you customise - see what you REALLY need
140 Integrate/interface with ERP InterfacingDo all divisions/business units have the same back-end?Is your back-end mature and fully rolled out?How will customisations affect integration?Get immediate benefit, customise when sure, then integrate (quicker return, lower cost, less frustration)