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Preparing for e-procurement
Expasion of the purchasing toolbox
Procurementday2015 Bulgaria 28 05 2015
Purpose of today’s presentation
• A business cases based on the implementation of an e-
procurement tool at the shared service center in Leiden
Outline
• A short introduction of Holland
• The organization and spending of the Dutch government
• Trends in public procurement
• E- procurement facts and figures from shared service center
SP71, Leiden
• The latest figures of implementing e-tendering in Holland
• Five stages preparing for e-procurement based on the business
case shared service center SP71
Trade
Logistics
Transport
High tech economy
Windmills
Cycling
Flowers
Trends in the field of public procurement
• The central government: Centralization of buying organizations
and category management
• Local governments: form shared service centers
What about tools?
What achievement you want to reach with
tooling?
• Securing the buying process and internal rules?
• Standardization of procurement files?
• Securing legislation?
• Automate a process?
• Adding value to the business by expand your
purchasing toolkit
• Re-use of knowlegde and information
• And meet the deadline of electronic tendering mid
2016
Current level of e-tendering local government
in Holland
• 40 - 50%* of the local government has not made a decision
about starting to implement e-tendering.
• An average implementation project of e-tendering takes 6 – 12
months
• The good news: It is not too late if you start in time
Source: VNG
Stages of the implementation project
Preconditions and pitfalls
Adoption and goodwill
Specification, selection, Proof of Concept
Pre-live stage
Live stage
Preconditions and pitfalls
• What goals do you want to achieve as purchasing department
with this tooling?
• Efficient purchasing
• Professional buying
• Lawful purchase
• Easier buying
Preconditions and pitfalls II
• The purchasing maturity model questions:
1. Are all the processes defined and written down concerning the purchasing processes?
2. Is there a purchasing year plan?
3. Do you work with standard tender documents and appendixes or has every purchaser his own set of documents?
4. What is the level of commitment in your organization towards the purchasing department?
5. Is purchasing a subject of the strategic agenda of your organization?
Adoptation and goodwill
• select a representative group of purchasers to join the tender
team
• Avoid the ‘not invented here’ syndrome
• Be open in your communication about this change in the
regular way of working
• Management support (lead by head of the purchasing
department)
• Make your tender team important and let them act as
ambassadors to the rest of the organization
Preparing the scope for an e-procurement tool
and necessary requirements
Defining scope, functionalities and
requirements
Selection of
tender team
Maturity
model
Adoption
Pitfalls
goals
Specify Select Contract
Order
Prepare
Tactical buying process
Buying process
Monitoring After sales
Operational buying process
‘Make or buy’ decision
Matching requirements and restrictions
E-
procurement
requirements
Archive
requirements
IT
requirements
Finance
requirements
Business needs
Headlines requirements
• SaaS
• IT & Security
• Service and maintenance
• General requirements
• Connection to other systems (based on XML)
• Archive
• Management report
• Suppliers
• Email and correspondence
• Review comparing methods (price and requirements)
• Project plan based on vision and way of implementing the tool in the organization
Request For Proposal (RFP) stage and Proof of
Concept (PoC)
• 10 tendering platform vendors selected for Request For
Proposal (RFP) fase
• The three best were selected for the PoC and the team got full
access to their tooling tot test it based on use cases.
• Based on comparing the offers and the PoC the best vendor
was selected
Buying the e-procurement tool
Selected and contracted e-
procurement tool
Proof of
Concept
Defining
Functionalities
and
requirements
RFP
RFP phase
Pre live stage
• Setting up the system based on your templates together with
your vendor
• Add the users to the system
• Personalize the system with logo’s of your organization on the
screens
• Make sure the users recogonize themselves when using the
tool
• Train the users
Live stage
• Define pilot departements and tenders
• Accept that things go wrong just like in every project
• Make sure that you have the support from you vendor for the
first tenders
Questions
