2 eCommerce and why it is important Common challenges that eCommerce addresses: 1. Inefficient Processes ● Manual procurement processes ● Automation only used for discrete categories of spend ● Unable to deploy tools to satellite offices and geographies 2. Maverick Buying ● Poor contract compliance ● Low-levels of management information on expenditure ● Subcontractors cannot leverage from your buying power 3. Poor Collaboration ● Too many suppliers for the same commodities ● Too many resources managing the procurement of non-strategic goods and services ● Low levels of organisation wide information and collaboration 4. Poor Integration ● Only top 2% of suppliers integrated ● Low levels of integration between systems managing direct and indirect spend
3 Benefits for eCommerce Automated Procurement From requisitions to accounts-payable, access a rich set of online tools for the automation of the entire procure to pay process. Savings of £41 per order, increased compliance to contract delivering between 5% – 15% savings on spend Reduced Catalogue Management Costs £4 - £5 per Line Item Management Information Know what you buy from whom and at what price. Estimated savings of 4% Total Spend Simple Supplier Selection & Purchase Pre-approved supplier catalogues, no ongoing catalogue maintenance Protects Existing Investments Integrates with existing system, open standards based, use your own P2P Comprehensive Managed Service No capital outlay, no need for dedicated IT resources to manage service Deploy Solutions as Shared Services Software-as-a-Services solution delivered as a managed services to enable rapid delivery across the enterprise.
4 What eCommerce Solution we use and Why The Procserve Commerce Network The Procserve Commerce Network is provided by Procserve, who specialise in world leading eCommerce Solutions and Services. They offer packaged trading solutions for customers of all sizes and technical capabilities to connect to the Procserve Commerce Network. The Commerce Network is a system that allows organisations to trade with each other online through a controlled, secure, common set up, an online collaborative procurement system. Why did we join the Procserve Commerce Network? Free to Suppliers – There are no charges to suppliers for connecting to the Procserve Commerce Network. Single Entry, Multiple Use – A supplier need only register and be set up once on the system. This reduces our selling costs whilst allowing us to reach a much wider audience. Faster Order to Payment Time – Using Procserve Commerce Network means that suppliers can be paid on or before payment terms. This is a major benefit to both parties in meeting payment obligations. When all stages of the process are fully automated, we simply ‘flip' incoming orders into electronic invoices which are received by our customers immediately.
5 What eCommerce Solution we use and Why How do Procserve differ from anyone else in the market? Access to Commodity Procurement Deals: Procserve Commerce Network brings the best value national, regional and local commodity procurement agreements to public sector buyer's desktops. User access is controlled by the buying organisation so buyers are directed towards the deals that make most economic sense for their organisation and comply with their buying policy. Technical Integration - capitalising on existing IT investments: Procserve Commerce Network can connect easily to existing procurement and finance systems. Procserve has worked with all of the main back office technology providers to produce tried and tested interfaces that reduce time and costs to our customers and give them a better, more seamless user experience. Suppliers: Your Suppliers only have to register once to access / trade with multiple customers via the Procserve Commerce Network. It’s one connection to multiple buyers which can easily integrate with their existing ERP systems. This cuts down on the cost of development for individual customer requirements for eCommerce and translates to successful Supplier take up. Your Suppliers could already be waiting there for you.
6 What you could Achieve with the Procserve Commerce Network Real life savings from Procserve customers: Re-deployment of 12 catalogue management staff to focus on more value adding activities Gross saving of £3million per annum for removal of invoicing scanning solution, whilst improving the overall quality of activities and services Reduction of the cost of capital employed via the reduction of physical stock holdings from around 11 weeks down to 8 weeks An NHS hospital trust saved 50% on the price of a key product lines as a result of sourcing through the Procserve marketplace and enforcing purchasing compliance for the duration of the contracts Housing Association Grŵp Gwalia realised savings of £31.50 per transaction, and their P2P process time savings stand at 73%. The 9 step procurement process has been reduced to 4 steps which means a 90% reduction in processing time for procurement staff Gwynedd Council: Process Savings: The new procurement model has reduced the administrative effort by an average of 60% Price Savings: Price savings on purchases through the use of corporate contracts and supplier discounts Sustainability Savings: Caerphilly County Borough Council has potentially saved 11,000 sheets of paper and 70kg of CO2 by pushing 10,800 Purchase Orders through eTrading.
7 Procserve Contact Details For more information about the Procserve Commerce Network, please contact Procserve: Web: -commerce-network-buyer/ -commerce-network-buyer/