Frequently Asked Questions About Supplier eEnablement
What is Supplier e-enablement?
It is the process of selecting, communicating and engaging with suppliers to realise trade through an e-Procurement solution. The process begins with the validation of suppliers and continues as the customer organisation is able to trade with a supplier using the PECOS application and ends when post connection activities are in progress.
What is the approach to Supplier e-enablement?
This is where a clear and consistent approach must be used by the Programme in the e-enablement of its suppliers aligned to SA Methodology. The consistency ensures a professional and efficient approach is used and removes duplication of activity and confusion of messaging. In addition, consistent standards are maintained underpinning the sponsorship model and therefore enabling the economies of scale benefits of a national approach to be realised.
How do Buying Organisations decide which suppliers to e-enable?
Each organisation selects suppliers which are aligned to their user roll out plan.
What do Buying Organisations need to check to ensure a supplier is appropriate for e-enablement?
Consider whether the Supplier meets all of the following criteria:
- Supplier is relevant to user roll out
- The contract/working agreement is stable (i.e. contract not up for award within the next 6 months)
- Large transaction volume or spend (preferably both)
- The supplier provides a broadly "eProcurable" product or service (e.g. IT consumables)
- eReadiness (the relative ease of e-enablement)
Who is responsible for Supplier e-enablement?
The Supplier e-enablement Lead(s) / Buyer(s) within each of the individual organisation(s), who are members of eProcurement Scotl@nd, having identified which Suppliers they are targeting, are responsible for Supplier e-enablement.
What information will the supplier have to put together in order to be e-enabled?
The Supplier will initially be requested to fill out the 'Supplier Readiness Questionnaire'. The information contained within this document will give the Supplier e-enablement Lead / Buyer a clearer understanding of the supplier's profile. From then on in, the usual buyer / supplier relationship will ascertain what further information is required.
How long does it take to e-enable suppliers?
Each supplier has a differing capability, drive and resource availability. Therefore, suppliers have taken in some cases between 6 weeks to 5 months to connect to PECOS. The longest part of the process is the design and the development of the content option, e.g. catalogue, punch out, dynamic documents or e-forms. It is important that the Supplier e-enablement Lead / Buyer continues to engage in dialogue with the Supplier(s) to the completion of the e-enablement process and beyond.
What is Involved?
When you commence the process of adopting a supplier, you are starting a straight-forward six stage process, beginning with the initial discussions with the chosen supplier and ending with them being ''Connected and Live'' on the PECOS system. The stages are well documented and easy to follow.
What are the benefits to both the buying organisation and the supplier?
The are many benefits to both the buyer and supplier, which overlap.
Buyer -Supply Chain Efficiencies, Cost Savings, Improved Payment Process,
Improved Reporting/Management Information, Improved Order Accuracy and Reduced Invoice Queries.
Supplier -Reduce Internal Costs, Expand Business, Become more efficient, Increase Spend on contract, Reduced invoice/price queries and Prompter Payment
"eProcurement offers an opportunity for business transactions to flow more easily and efficiently. This will be reflected not only in the supply of goods but also in the payment of accounts. The system is in line with modern day communications, creating a buying/selling culture that is fully accountable as well as cost effective".
Does a supplier need an Internet site to be e-enabled?
No - As a supplier there are various forms of managing content, starting with Non-Catalogue and Post, which do not require any technology and then progress, in time to the more technologically advanced and sophisticated solutions such as Punch Out and cXML. There is no discrimination against suppliers who do not have an Internet site.
Does eProcurement have an impact on terms and conditions?
The contractual relationship between a buying organisation and a supplier will remain a matter for the two parties. The service ensures that contractual confidentiality is respected and that users of the system are only able to access the contract, which their own organisation has with a supplier. Buying organisations will need to ensure that the terms and conditions of their relationship with their suppliers are examined to ensure that they are suitable to cover, for example, liability for data loaded into the system.
Is there any cost for Suppliers to be e-enabled?
There are three free standard connection options, which are Post, Fax and E-mail. There are an additional two advanced connection options, EDI & cXML. (EDI per transaction set is £4k e.g. orders = £4k, Invoices = £4k. cXML ordering = £1.5k.)
How does a supplier receive a purchase order with eProcurement?
The supplier can receive a purchase order as they do at the moment via:
Or electronic versions of the purchase order via:
CONTENT OPTION QUESTIONS
What is content?
Content is the goods and services, which you buy. PECOS must be populated with the relevant item and price information, so, that users can create / generate orders in the system. There are two methods for presenting content to a buyer / buying organisation, with a range of alternative options if needed.
How does ePS provide users with access to supplier's products and prices?
ePS provides this by populating the various products and prices as content.
The 5 options are Non - Catalogue, eForm, Dynamic Document, Catalogue and Punch Out.
What are the various options to represent content handled?
The standard method comprises of the following:
- eCatalogue -: Supplier or Buyer maintained, simple to create using a spreadsheet with the product, price information, UNSPSC codes, images etc.
- Punch Out -: Use of the Suppliers Web-site to create a shopping basket and bring back details to complete a requisition in ePS. ePS then sends the order, to the supplier.
The additional method comprises of the following:
- Dynamic Document -: This is a User customisable item, e.g. business card. Dynamic document will show the visual representation of the actual product.
- eForm -: This is a ''Request Form'' that is attached to a catalogue item. This allows the user to describe / specify their needs more closely and accurately in freeform text.
Are there any other methods?
Yes, there are two more methods. They are as follows Blanket Order -: Used for 'call-off' or 'framework' agreements, and Non Catalogue Trading -: Users enter free form requisitions. However, these methods do not embrace the true eProcurement methodology.
What are the key differences between dynamic documents and eForms?
e-Form -: Typically, an eForm is a Word or Excel template document, such as a holiday request form, an expenses form or any other internal form, which can be accessed and opened within IPM (Internet Procurement Manager) for editing. Once edited by the user, the eForm is then saved and attached to the requisition. The requisition, along with the attached eForm, is then routed in the usual way within IPM.
- Dynamic Document -: Typically, a Dynamic Document is a graphical representation of a document, such as a business card, newsletter or a brochure. Personalised documents or business forms can be ordered and routed within PECOS. This feature enables requisitioners to apply prompted or free text and images to document templates in order to create a personalised proof. Fields can also be automatically populated from user profile information.
How do I select the most appropriate content option?
Remember that every supplier is unique: decisions on content channel must be on an individual basis: this gives guidance only…
- They should be used once you have evaluated the supplier's capabilities and taken the following factors into consideration. For example-:
Whose responsibility is it to build catalogues?
There are a number of options. A supplier-maintained catalogue, provides the most reliable source of content enrichment. Depending on the circumstances, the catalogue can be maintained in some instances by the buying organisation.
Will other people be able to see my negotiated contract prices if I choose to punch out to a supplier's website?
No. When you are raising a requisition, the user ''Punches Out'' from PECOS to the suppliers website to browse and find items, pricing and other information. This information is specific to the "Buying / Buyer" organisation and is not access-able by any other organisation.
CONNECTION OPTION(S) QUESTIONS
What options are available?
There are currently 5 different connection options available for suppliers. Comprising of a 'Standard' and an 'Additional Service'.
What are the Standard Connection Options?
The 'Standard' options are as follows :
Post -: PECOS produces a paper based Purchase Order, which can be sent to the supplier via mail.
Fax -: PECOS creates an electronic fax Purchase Order that is faxed to the supplier.
E-mail -: PECOS produces e-mail Purchase Order that is automatically sent to the supplier's e-mail
in-box.
What are the Additional Service Connection Options?
The 'Additional Services' are as follows:
EDI -: You can send a file / P.O. through EDI to the suppliers back office.
cXML -: Enables you to send a cXML file directly into the supplier's back office.
Are there any cost implications for the various options?
There is no charge for Post, Fax or E-mail connections.
Where EDI and XML connection options have been selected by the supplier, there will be a requirement to process these orders in the associated back office system. Elcom will need to configure the necessary connections to the suppliers back office computers, due to their complexity and resource utilisation these activities are chargeable. However, these charges incurred are a one off charge, assuming that no additional changes are required once the system goes live.
XML Ordering is £1,500.
EDI per transaction set is £4,000 e.g. orders is £4,000, Invoices £4,000. (The belief is that the return on investment can be seen within 1 year).
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