1. Working Smarter Together Supplier Summit January 2014 Working Smarter Together

2. Welcome & Introductions Working Smarter Together

3. Transforming Procurement Working Smarter Together

4. Fife’s Big Change Challenge Our challenge is to meet the growing needs and demands being made on our services with a budget deficit of £93 million to 2017/18. In order to meet this challenge by 2017 we have set ourselves five aims:

5. Working Smarter Together Transforming Procurement Project The council spends £300 million of public money each year on goods, services and works We’ve looked at how this money is spent and decided to change the way we buy things across the council The changes in Procurement will bring a number of sustainable benefits: –Easier for suppliers to do business with Fife Council; –Increased savings from improving the way we work with suppliers and constructively challenging the demand for goods and services; –Making the best use of available resources by using common processes and removing duplication through better use of technology

6. Working Smarter Together TodayTomorrow Separate Services purchasing goods and services from same suppliers Many different methods of ordering goods and services – PO, telephone, Single point of contact in Council who will manage a category of goods and services for Council Standard processes and one efficient system to manage all finance & procurement Removal of some ordering methods & introduction of No PO Delayed Payment Different processes and many systems used to manage purchasing So What Is Changing?

7. Working Smarter Together Agenda & Objectives Working Smarter Together

8. Agenda of the Day Our objectives of the Supplier Summit Introduction to e-Procurement –What is e-Procurement? –What will change? –What are the benefits of e-Procurement? –What is iSupplier? –The role of Catalogues in e-Procurement –Our Vision –The Next Steps in the e-Procurement Project Which Suppliers are ready to provide Catalogues? Question & Answer Session

9. Working Smarter Together What do we want to achieve today? Identify which Suppliers can provide Catalogue content for the e-Procurement system Ensure that Suppliers are aware of the new ways of working with the e-Procurement system Ensure that Suppliers are aware of the next steps in the e- Procurement Go Live Project Ensure that Suppliers understand the benefits of iSupplier & how to sign up for iSupplier

10. Working Smarter Together An introduction to e-Procurement Working Smarter Together

11. e-Procurement is … Fife Council has purchased an e-Procurement system from Oracle which will ‘go live’ on the 1st April 2014. …an electronic method of conducting business through the internet and is an efficient method of doing business between buyers and suppliers.

12. Working Smarter Together Do you have experience using e- Procurement / Oracle with other customers?

13. Working Smarter Together What are the benefits of e-Procurement to Suppliers? Prompt Payment Payment in line with agreed contract terms Example: Currently payment to Suppliers can be delayed because there are errors in the invoice and/or orders which take time to resolve before the order is matched to the invoice and the payment terms begin Improved order accuracy will lead to fewer order & invoice queries Example: Suppliers can use the iSupplier functionality within the e-Procurement system to generate invoices which will replicate the information on the order to ensure a match which will be queued for payment, therefore reducing the time spent on Supplier queries to Accounts Payable. Improved Spend Visibility & Reporting to identify opportunities to contract with Suppliers Maximises the amount spent with Suppliers with whom Fife Council has a contract in place with Minimise Off Contract Spend Closer Working Relationship

14. Working Smarter Together What will Change? 1. There will be one standard Fife Council Purchase Order Purchase Order Call Off / Blanket Order Catalogue Order 2. All orders will be issued electronically via e-mail or through iSupplier 3. Tenders for low value contracts & mini competitions from existing framework agreements will be hosted on the new e-Procurement system 4. Increased compliance to contracts awarded by Fife Council – reduced out of contract spend 5. There will be a change to the existing T’s & C’s to allow electronic trading this will be communicated prior to 1 st April 6. Suppliers will have the ability to Self-Serve to resolve invoice queries

15. Working Smarter Together What will remain the Same? 15 1. Public Contracts Scotland (PCS) will continue to be used to advertise high value contracts 2. There will be no change to agreed payment terms 3. There will be no change to the recurring payment process 4. Fife Council will still expect Suppliers to provide goods / services in emergency situations without an order, the order will be issued retrospectively

16. Working Smarter Together An introduction to iSupplier Working Smarter Together

17. iSupplier is … Suppliers can use the portal to: View their Orders & Invoices Raise any queries on Orders & Invoices with Fife Council Respond to low value Tenders and requests for quotations Make Changes to their Catalogue Content Self Billing: when goods are receipted payment is sent to the Supplier automatically along with an invoice for VAT purposes … a portal open to Suppliers where they can log on using username & password enabling them to communicate directly with Fife Council

18. Working Smarter Together What are the benefits of iSupplier? iSupplier Ability to update your Supplier Details & Catalogue Information Streamlined Communication: queued to the correct members within the council Reduced Overhead Costs of Raising Queries & Creating Invoices Ability to access your information24/7 There are no costs to Suppliers for the use of the iSupplier functionality

19. Working Smarter Together Do you use iSupplier or a similar portal with other customers?

20. Working Smarter Together An introduction to Catalogues Working Smarter Together

21. With your support we will be loading Catalogues onto the e-Procurement System A catalogue is: … a list of items which can be purchased from a supplier that can be uploaded onto the e-Procurement system– does not need to show pictures – lines are sufficient What is Catalogue-able? Standard items e.g. paper, stationery, furniture etc Items which can be easily described or has a specific specification Clear price for the item Prices are constant or subject to an agreed review process Items with a high frequency of use

22. Working Smarter Together There are three different types of Catalogues Internally Managed Catalogue Catalogues are held on Fife Council server. Any amendments to the catalogue content are made by Fife Council staff. Supplier Managed Catalogues Catalogues are held on Fife Council server. Suppliers are able to amend catalogue content (via the i-supplier login) Punchout Facility where Fife Council staff can select items required from our internal ERP system and orders are placed via a portal on the suppliers own website. The content is managed by the supplier who must only make changes to content in line with the contract terms

23. Working Smarter Together How to have a Catalogue on the e-Procurement system 3 documents will be sent to suppliers who are able to provide catalogues:- The catalogue template. The unit of measure table A UNSPSC (United Nations Standard Products and Services Codes) Mapping Template We need your completed Catalogue Template no later than the 20 th February Please note that if you are currently involved in tender activity we will not be accepting any catalogue content from your organisation, if you are successful we will be in contact with you to accept your catalogue content.

24. Working Smarter Together What is the aim for e-Procurement at Fife Council? To have all Suppliers on iSupplier To have Catalogues in place for all appropriate Suppliers To have closer working relationship with Suppliers encouraging innovation To enable Suppliers to communicate easily with Fife Council Fife Council & Suppliers to work efficiently using the new e- Procurement system

25. Working Smarter Together Non Catalogue Orders Working Smarter Together

26. Not all Suppliers can provide catalogue content Will I receive an order from Fife Council if I do not have a Catalogue? If the product or service which your organisation supplies is not easily catalogue-able or your organisation is not ready to provide us with a catalogue then you will receive a Purchase Order from the Council for the Goods / Services you provide The Purchase Order will be created in the eProcurement system by Fife Council and then issued to your organisation via iSupplier or e-mail

27. Working Smarter Together What is a Purchase Order? A Purchase Order is a commitment to procure and pay for goods and services The Purchase Order will contain the details of the product being ordered and delivery location An example of the standard Fife Purchase Order is included in the supplier pack. Regardless of which area of the Council you serve, the Purchase Order you receive will always follow the example format provided. The only difference is that the text in the Purchase Order will contain the specific details of the goods / service which are required. Suppliers will receive their orders via e-mail or viewing directly via isupplier. Suppliers are advised not to provide goods and services without having an official Purchase Order from Fife Council with the exception of out of hours or emergency situations, in these cases an order will be raised retrospectively

28. Working Smarter Together There are 3 types of Purchase Orders available Standard Purchase Order: A purchase order is placed for a one off requirement and there is a description of the goods / services / works required. Once the goods / services / works are completed the Supplier invoices against the purchase order provided. Any new purchase order would be raised for any subsequent requirements from the supplier for goods / services / works. Call Off Purchase Order: A call off purchase order is used for known goods / services / works which are required at specific times during a financial year e.g. service contract. An order is set up in the e-Procurement system and the Supplier can invoice against the same order number which must be stated every invoice submitted otherwise payment may be significant delayed. Complex / Interim Payment Purchase Order: A complex / interim payment purchase order is used for the procurement of projects where the payment to the Supplier is spread over the project timeline e.g. new builds. The details of the payment schedule are agreed between the Supplier and Fife Council before the work begins and will be stated on the Purchase Order and can also be viewed in the iSupplier Portal.

29. Working Smarter Together Next Steps after the Supplier Summits Working Smarter Together

30. Next Steps: What happens after today? The presentation pack will be upload onto the Fife Direct website: fifedirect.org.uk/isupplier If you have any questions you can reach the Supplier Adoption Team on the contact details provided in the Supplier Packs Catalogues: Suppliers who can provide catalogue content will be provided with a template to complete and return to the Supplier Adoption Team no later than the 20 th February. iSupplier: Suppliers who want to use iSupplier will receive an e-mail notification with steps on how to register themselves on iSupplier and a training guide

31. Working Smarter Together Q&A? Working Smarter Together

32. Thank you for your time Working Smarter Together