The First Phase of Supplier Adoption
Background
Equanet (previously known as PC World Business) were selected in the first phase of supplier adoption for the Scottish Government (SG) as a key supplier to the central purchase ordering and payment point for all IT goods and services. Equanet are part of the G-Cat 2 catalyst contract let by the Office of Government Commerce (OGC) which is open to all Government Departments for the supply of IT hardware, software and accessories.
Equanet provides 40,000+ products to over 400,000 business customers throughout the UK. Due to the dynamic nature of the IT market, 50% of these products go obsolete every six months and 2,000 prices change every day.
Equanet are an early adopter of e-procurement hosting a large catalogue with their own website which includes value-added functionality (for example - the ability to create a favourites page, track orders, interactive help pages, customer specific content). It was recognised that to meet SG customer requirements for speed, minimal errors, dependability, delivery and reliability an e-commerce solution would provide significant benefits.
Content and Connection Options
Equanet centrally maintain their own catalogue due to the dynamic nature of their business and have developed a sophisticated website with full transactional capability.
Due to the dynamic nature of Equanet's content and the sophistication of their website it was agreed between Equanet and the SG to develop 'punch-out'. This would allow the user to access the Equanet website directly from PECOS (the software application component of eProcurement Scotl@nd service), select the items to be purchased from the Equanet catalogue, bring back details to complete the requisition and submit the purchase order. The purchase order being e-mailed via cXML automatically into the Equanet back office system. Equanet have invested heavily in catalogue maintenance and their own website enabling the SG to select punch-out for content and cXML as the preferred connection option.
Business Benefits
- Immediate on-line access to all product pricing and specifications resulting in quicker order processing: As all product information contained on the Equanet website is updated on a daily basis, the user can be assured that it is correct and accurate at all times.
- Reduced phone calls for routine enquiries: The user no longer has to contact Equanet to enquire about products, availability and pricing. The user knows exactly what has been ordered, at what price and when it will be delivered.
- Control of purchasing authority: Orders placed by the SG are routed to an approver, before being submitted to Equanet. This ensures that any orders received from PECOS are from an authorised source.
- Supply chain efficiency: Through the xml connection, order information is automatically populated in Equanet's back office system ensuring that the order is actioned and the items despatched in a timely manner.
- Real time prices and availability: The user can be assured that for all products, accurate and correct pricing and availability information will be shown ensuring that all orders placed will be met in full.
- Accurate management information: The SG can now generate reports showing what has been ordered, by whom, on what date and at what price. This allows the SG to: understand purchasing activity, make informed purchasing decisions and undertake supplier management.
- Integrated procedures with supplier & customer: Through punch-out and xml, both PECOS and Equanet's website are integrated ensuring that all orders are processed automatically. There are also minimal inconsistencies between prices and availability leading to fewer pricing queries and error rates. It also releases resource both within the SG and Equanet to concentrate on key roles.
- Embedded procurement card: The embedded procurement card for the IT purchasing section allows immediate payment to Equanet and one single consolidated invoice which simplifies payment processing within the SG. Thus reducing administrative costs within the purchase to pay process.
Suppliers Viewpoint
"Equanet, a GCAT accredited IT supplier, are delighted to be involved in the Scottish Government's eProcurement project and with the eProcurement Scotland Programme, and wholeheartedly embrace the benefits of e-procurement.
As a supplier, this project improves upon our business relationship with the SG and gives us the opportunity of increased levels of business in the future, not only with the SG itself, but with the other organisations deploying the eProcurement Scotl@nd service in the future. This is a first for the public sector in going live with a punch-out and XML solution!
Not only do Equanet hope to enjoy a long and fruitful mutually beneficial relationship with the SG and the other organisations deploying the eProcurement Scotl@nd service, but by trading electronically with them, Equanet are able to enjoy a more streamlined and efficient trading relationship.
The punch-out solution developed means that there are fewer errors, and therefore fewer payment queries, which obviously benefits both customer and supplier.
Equanet would like to thank the Scottish Government's Supplier Adoption Team for their co-operation and dedication during this project, and wish them every success, in what is sure to be a beneficial development for both suppliers and the buying organisations".
Craig Williams, E-Commerce Manager, DSGi Business
Internal Customer's Viewpoint
"Due to the on-line functionality through PECOS, I punch-out directly to the Equanet website securing the correct GCAT2 pricing and product availability immediately. This reduces delivery times significantly hence increasing internal customer satisfaction. I have also simplified recurring orders through setting up a favourites page and can track orders on-line to update internal customers".
Simon Lucas, Communication & Information Services Division, Scottish Government
More information . . .
To obtain further information relating to this article on the Scottish Government and Equanet's implementation of the eProcurement Scotl@nd Service please contact:
PC World Business
If you would like further general information on the ePS service or would like to receive future eProcurement Scotl@nd Newsletters, please contact the eProcurement Scotl@nd Service Desk