What is eProcurement?What is eProcurement?

e-Procurement is a tool to E enable procurement activities, including sourcing, ordering, commissioning, receipting and making payments for the whole spectrum of an authority’s activities.

The prime objective is to e-enable the management of the supply chain that can be achieved by stand alone, shared or integrated software tools.

e Procuremente Procurement Graphical overview Graphical overview

So what’s eProcurement?So what’s eProcurement?

Sourcing is the process by which an authority identifies, selects, and manages its suppliers. (e-tendering and e-auctions)

Buying goods and services is the transactional process executed by many members of the authority during the day to day delivery of services. (e-purchasing and procurement cards).

e-Procurement is a collective term for a range of technologies that can be used to automate the internal and external processes associated with sourcing and buying.

E-Procurement - ComponentsE-Procurement - Components

E-Purchase Registration

Store coding

Technical Particulars

Evaluation of Bids

Award of Rate Contract

E-Inspection / Supply Supply Order

Inspection

Dispatch Details

Receipt Details

E-Tendering Tender Notice

Tender enquiry

Bid submission

Bid opening

E-Payments Bill submission

Processing

Payments

Debit Adjustments

Status

Complaints

Increased Transparency & Wider Competition

Simplify & Speed Up Tendering Processes

Real Time Generation Of Detailed & Accurate Data – Elimination

Of Human Error

Seamless Sharing Of Information

Ease Of Operation & Quicker Decision

Comprehensive Website To Facilitate Tendering, Contracting,

Ordering And Retrieval Of Information To Authorized

Functionaries - Online Interaction Avoiding Physical Visits

Facilitating Pre And Post Contract Management

Reduction In Cost Of Government Purchases

E-Procurement - BenefitsE-Procurement - Benefits

Obstacles in adoption of e-procurementObstacles in adoption of e-procurement

• Though the trends are positive, there are certain stumbling blocks in the adoption of e-procurement. Many small and medium businesses are slow in procuring online, due to constraints in integrating procurement platforms with legacy systems and the lack of data standards. E-procurement in the B2C sector has also been slow to catch on, as the supply chain links have not yet been fully e-business -enabled. One impediment is that not many suppliers are equipped to participate in an e-procurement process. They will have to invest in making custom interfaces and in some cases customers may be unwilling to participate.

• Some of the issues that need to be sorted out by companies wanting to implement e-procurement solutions are:

E-enabling of suppliers. Finding new suppliers.

• Need for strong collaboration.Capacity to deliver.Transactional cost.To some extent, availability of content and Transparency of the process.

SOME ISSUES

VENDORS OF E-VENDORS OF E-PROCUREMENTPROCUREMENT

Ariba: www.ariba.com CombineNet: www.combinenet.com Commerce One: www.commerceone.com Elance: www.elance.com Oracle: www.oracle.com QAD: www.qad.com SupplyWorks: www.supplyworks.com

VENDORS (CONTD.)VENDORS (CONTD.)

• WIPRO

• TATA MOTORS

• DABUR

• ICICI LOMBARD

• SRL RANBAXY

• MAHINDRA & MAHINDRA

• RELIANCE

RELEVANCE AND SCOPE RELEVANCE AND SCOPE How e-procurement is going up Year

No. of department

s/ agencies

Value of transactio

ns completed $ (Million)

No. of transactio

ns processed

Percentage of e-procurement out of

total spend

2003-04

8 447 564 20%

2004-05

7 departments, 9 PSUs and 17 municipalities

3,522 3,746 80%

2005-06

8 departments, 13 PSUs, 51 municipalities and 5 universities

3,740 7,931 90%

Largest eProcurement Largest eProcurement vendorsvendors

Vendor Estimated number of

clients, 2006

Comments

SAP* 2,500 Largest vendor, almost all licensed

Oracle with PeopleSoft*

2,400 Mostly licensed, some licensed under Oracle OnDemand model

Ariba 250 Fortune 500 clients, not much growth

ePlus 450 US only; linked to IT product sales

BasWare 80-90 Nordic countries; licensed product

Perfect 80-90 US mostly; SaaS offering

IBX 80-90 Nordic countries; SaaS offering

CC-Hubwoo 60-70 Germany and France; SaaS

Quadrem 30-40 Mining and CPG companies; SaaS

Ketera 25-30 US; SaaS

Source: Forrester Research, Inc., based on vendor data from over 60 vendors

E procurement in SSG.E procurement in SSG.

Company OverviewCompany Overview

• 30 years in the institutional 30 years in the institutional

sporting goods industrysporting goods industry

• Parent Company of BSN Sports Parent Company of BSN Sports

and US Gamesand US Games

• $90 million in annual revenue$90 million in annual revenue

• Complete range of products: Complete range of products:

(Athletic, PE, Youth, Consumer, (Athletic, PE, Youth, Consumer,

Camp)Camp)

• Largest manufacturer and Largest manufacturer and

distributor of sports and distributor of sports and

recreation products to the recreation products to the

institutional market.institutional market.

• National and international National and international

distribution capability.distribution capability.

• Industry leader with technologyIndustry leader with technology

eCommerce SiteseCommerce Sites

Sport Supply GroupCorporate Site

www.sportsupplygroup.com

BSNsports.comAthletics

http://www.BSNsports.com

US-Games.comEarly Childhood

http://www.US-Games.com

How eProcurement How eProcurement is Done in SSG...is Done in SSG...

Typical Purchasing ProcessTypical Purchasing Process

User researching product

Vendor School WarehouseUser with product request

User with approval

Decision Maker

Purchasing Agent Sales Rep

End User

Our eProcurement ProcessOur eProcurement Process

If your organization is looking for ways to reduce costs while increasing ordering efficiency and user flexibility, our e-Procurement solution is the tool you need.

Organizations can cut their administration costs by reducing their distribution and warehouse needs by utilizing our electronic ordering and direct fulfillment solution. This adds convenience and value for your users and requires no investment or maintenance on your part. It also provides the necessary controls and approval system that organizations like yours require. Our e-Procurement solution was developed with the latest technology to ensure that your organization receives the very best, most secure electronic ordering system available today.

eProcurement eProcurement Sample ScreensSample Screens

“ “Gateway” PageGateway” Page

We create a “Gateway Page” We create a “Gateway Page” for all your users to go to and for all your users to go to and select which catalog and type select which catalog and type of products they are looking of products they are looking for:for:

Athletic = BSN SportsAthletic = BSN Sports

PE = US GamesPE = US Games

We include a drop down We include a drop down window that provides a quick window that provides a quick start training guide on how to start training guide on how to use the system. use the system.

Entering - Your Sports StoreEntering - Your Sports Store

After selecting After selecting your product or your product or catalog category catalog category from the Gateway from the Gateway Page the user Page the user automatically automatically jumps to this log in jumps to this log in page where they page where they enter their e-mail enter their e-mail address and address and password that we password that we set up in advance.set up in advance.

Main ScreenMain Screen

Once the user logs in and Once the user logs in and hits the sign in button, they hits the sign in button, they come to the Main Web come to the Main Web page. On this page you will page. On this page you will find the following features:find the following features:

a) Cart Purchase amount, a) Cart Purchase amount, quick links to your account quick links to your account status, order tracking, help status, order tracking, help and back to home.and back to home.

b) A PDF file of our b) A PDF file of our current catalog in case you current catalog in case you don’t have yours handy.don’t have yours handy.

c) “Quick Jump” Buttons c) “Quick Jump” Buttons to the Major Sports Shopsto the Major Sports Shops

d) A full list of Product d) A full list of Product Categories.Categories.

e) Product Specialse) Product Specials

Quick Order Entry Quick Order Entry MethodMethod

The Quick Order Entry method The Quick Order Entry method is the easiest and quickest way to is the easiest and quickest way to order product. It is used when order product. It is used when the user knows the specific the user knows the specific product code that they want to product code that they want to order. order.

From the Main Screen click on From the Main Screen click on “Quick Order Form” located in “Quick Order Form” located in the upper right hand corner.the upper right hand corner.

This will take the user to this This will take the user to this screen where they simply type in screen where they simply type in the product code from their the product code from their catalog along with the quantity catalog along with the quantity desired.desired.

If the user has more than one If the user has more than one item they select “add to cart” and item they select “add to cart” and keep entering product codes until keep entering product codes until their list has all been entered. their list has all been entered.

Once their order is complete the Once their order is complete the user clicks on “Proceed to user clicks on “Proceed to Checkout.”Checkout.”

Checking Out – Step #1Checking Out – Step #1

At this point the user At this point the user reviews their cart for reviews their cart for the proper items, the proper items, quantity and clicks on quantity and clicks on the “Proceed to Step” 2 the “Proceed to Step” 2 button on the bottom of button on the bottom of the page. the page.

Checking Out - Step #2Checking Out - Step #2At Step #2 of checkout the At Step #2 of checkout the user should verify and if user should verify and if necessary change the ship to necessary change the ship to address. address.

Also, this is where you can Also, this is where you can specify special delivery specify special delivery instructions such as inside instructions such as inside delivery or do not deliver delivery or do not deliver before a specific date.before a specific date.

Once you have verified your Once you have verified your order, selected the proper order, selected the proper ship to address and any ship to address and any special delivery instructions, special delivery instructions, the user should click on the the user should click on the “Proceed to Step” 3 button. “Proceed to Step” 3 button.

Checking Out - Step #3 Checking Out - Step #3

Step #3 of checkout allows the coach, AD or PE coordinator to submit the order for authorization. This can be the school bookkeeper, secretary or purchasing manager. You tell us and we set it up behind the scenes based on your direction.

Simply click the Submit For Authorization button and the system automatically generates an email that is sent to that user’s designated authorization contact as you have specified for final approval.

Checking Out - A/B AuthorizationChecking Out - A/B Authorization

The authorization contact simply opens the email, clicks the authorization link provided, logs-in as normal and is taken to the e-Procurement approval page where he/she may approve or reject requested items.

Checking Out - A/B AuthorizationChecking Out - A/B Authorization

Once the authorization contact selects items to approve, the 1-2-3 checkout process is the same. Except at Step 3, the authorization contact has the ability to insert a purchase order number and then submits the order.

That’s it!

What Happens after Authorization?What Happens after Authorization?

1) Your electronic order is instantly received by our SAP/IT system after you hit submit my order.

2) If your order is for stock items, the order moves immediately over to our Warehouse where labels are dropped every 2 hours.

3) The order is picked and packed and shipped in most cases the same day.

Additional FeaturesAdditional Features

From the Main Page of our Web Sites you can:From the Main Page of our Web Sites you can:

• Track your UPS Orders.Track your UPS Orders.

• Review your Account Status.Review your Account Status.

Order TrackingOrder Tracking

To track an order the To track an order the user simply logs on user simply logs on normally and at the top of normally and at the top of any page clicks on the any page clicks on the Order Tracking selection. Order Tracking selection.

Once here the user can Once here the user can see the detail of their see the detail of their orders, when their orders, when their product shipped, when it product shipped, when it was delivered and the was delivered and the tracking number. tracking number.

To view the order To view the order tracking detail tracking detail information, the user information, the user clicks on the blue clicks on the blue tracking number next to tracking number next to the order in question.the order in question.

Instant UPS TrackingInstant UPS TrackingBy clicking on the blue tracking By clicking on the blue tracking number, the user jumps number, the user jumps automatically to a UPS Page automatically to a UPS Page which shows their detail tracking which shows their detail tracking information including who signed information including who signed for the delivery.for the delivery.

Account StatusAccount Status

Each user can Each user can view their account view their account status on-line by status on-line by simply selecting simply selecting the account status the account status quick link button quick link button on the top of any on the top of any page. page.

Once at this page Once at this page the user can select the user can select to display all to display all items, open items, items, open items, cleared items or cleared items or master data and master data and see a summary of see a summary of their account.their account.

Customer ServiceCustomer Service

At any time the user can At any time the user can scroll to the bottom of any scroll to the bottom of any page and select from our page and select from our Help Desk, Request a Help Desk, Request a Catalog, search our Catalog, search our FAQ’s, Contact Us via FAQ’s, Contact Us via e-mail or give us a call on e-mail or give us a call on our toll free 800 number, our toll free 800 number, where our customer where our customer service team will be happy service team will be happy to assist the user.to assist the user.

We appreciate your We appreciate your business and hope you will business and hope you will give our on-line ordering give our on-line ordering system a try! system a try!

How do I get set up?How do I get set up?

Setup is easy as 1-Setup is easy as 1-2-32-311

Give us a call and let us know you would like to get set up with our e-procurement, on-line ordering solution

Our representative will review with you your requirements and set up all of your schools in advance.

22 33Within 5-7 business days your entire school district will be up and running with your free, on-line ordering Sports and PE Store.

THANK YOUTHANK YOU