April 2, 2003, 9:30 a.m. Rule Development Workshop Florida Department of Management Services

Transcription

1 April 2, 2003, 9:30 a.m. Rule Development Workshop Florida Department of Management Services Agenda: I. Overview of MyFloridaMarketPlace (Separate Materials) II. Draft Rules (Attached) 60A MyFloridaMarketPlace Vendor Registration (pp. 2-3) Excerpt of Vendor Registration Terms of Use (p. 4) 60A MyFloridaMarketPlace Transaction Fee (pp. 5-7) Vendor Transaction Fee Report Form (p. 8) 60A MyFloridaMarketPlace Participation Exceptions (pp. 9-11) Monitor the centralized website for more information: (Under Hot Topics on main portal ( click MyFloridaMarketPlace) Customer Service: or Voice: (866) FLA EPRO ( ) Fax: (866)

2 MyFloridaMarketPlace Florida Department of Management Services MyFloridaMarketPlace Overview

3 What is MyFloridaMarketPlace? MyFloridaMarketPlace is an eprocurement (electronic procurement) system MyFloridaMarketPlace covers the full life cycle of purchasing (from requisition to payment) MyFloridaMarketPlace connects buyers and vendors through the electronic exchange of catalogs, quotes, bids, purchase orders, invoices, etc. MyFloridaMarketPlace includes on-contract and off-contract buying MyFloridaMarketPlace includes a variety of tools for bids, quoting and invoicing Request Source Approval Order Receive Pay 2

4 State of Florida eprocurement Systems - Current Vendor Bid System Profiler Portal SPURS SPURS View FLAIR 3

5 State of Florida eprocurement Systems - Transition Vendor Bid System Profiler Portal SPURS SPURS View FLAIR MyFlorida Market Place 4

6 State of Florida eprocurement Systems - Future Portal FLAIR / FLAIR Replacement MyFlorida Market Place 5

7 What is included in MyFloridaMarketPlace? Initial Users - Pilots Initial Users - Exec Agencies Buyers Eligible Users - Other State Agency Eligible Users Univ, City, County MyFloridaMarketPlace Users General Public State Term Contract Vendors Agency/ Dept. Contract Vendors Vendors Minority Businesses Small Businesses 6 Buyer Help Desk Buyer Tools Vendor search State term contract items Requisitions/Purchase orders Online workflow approvals Informal solicitation (quotes < $25,000) Sealed bids (ITN, ITB, RFx > $25,000, auctions, reverse auctions) Receipt of Goods P-Card Contract development and administration Reports Vendor Help Desk Business Support and Operations Strategic Sourcing MarketPlace Procurement Assistance Vendor Tools Self registration notification of formal and informal solicitations I want to buy I want to sell Online quoting on informal solicitations (< $25,000) Online submission of sealed bids (> $25,000) Electronic purchase order receipt Electronic submission of invoices Catalog creation and updates for State term contracts Catalog Enablement Training and Education

8 Who are the Buyers? Initial Users - Pilot Agencies (May 2003) Department of Transportation Department of Management Services Initial Users Executive Branch Agencies (July 2003 April 2004) 7 Department of Children & Families Department of Health Department of Corrections Department of Juvenile Justice Department of Environmental Protection Department of Revenue Department of Lottery Agency for Health Care Administration Department of Highway Safety & Motor Vehicles Department of Elder Affairs Other State Agencies Educational Institutions Other Governments (City, County, etc.) Department of Education Department of Citrus Department of Law Enforcement Department of Military Affairs Department of Business & Professional Reg. Agency for Workforce Innovation Department of Community Affairs Executive Office of the Governor Department of Veteran s Affairs Other Eligible Users (To Be Determined) Legislature Judicial

9 Vendor Benefits All vendors, including MBE and CMBE vendors, should receive benefits from using advanced business technology. The MyFloridaMarketPlace system can help your business reach state buyers. Single Point of Registration Access to Untapped Buyers State of the Art Tools Available Customer Support Enhanced Economic Development Opportunities for Small Business 8 Reduced Administrative Burdens and Manual Processes

10 9 Vendor Benefits Moving to advanced business technology benefits all vendors. The MyFloridaMarketPlace system provides: Opportunity to generate additional business and increase sales Potential for selling a broader range of goods and services through increased visibility of products and/or services (vendor searches, catalog searches) Potential for finding additional customers through increased visibility across agencies (access to additional state agencies and local FL governments) Opportunity to streamline operations and decrease operating expenses Potential for increased order accuracy and order processing speed through receipt of electronic purchase orders Potential for decreased labor costs per order through use of electronic invoicing Potential for decreased shipping and handling costs that result from shipping wrong goods or wrong quantity of goods due to order errors Opportunity to shorten order-to-cash cycle and improve cash flow Potential to shorten invoice processing time through vendor automation of invoicing and State automation of matching Potential to shorten the payment approval process through electronic approvals

11 What do vendors say about eprocurement? Here are a few quotes about eprocurement benefits realized by eprocurement vendors participating in other electronic markets We see significant benefits in being early adopters of ebusiness and believe it will give us a competitive advantage. We believe the greatest benefit comes from complete integration of orders into our back office system thereby reducing manual intervention. Alan Powell, Arco We have achieved a 20% savings on our order management costs. French Thornton Supplier Survey, Jan 21, 2002 We started off with manual order entry, but we now conduct 80% of our business electronically. We re not only reaping impressive time and cost-savings benefits, but also improving our customer relations. Nick Hermann, CIO at Organic Farm Foods We are in a low margin field and don t want to increase headcount. We see automation as a way of growing without the heads. French Thornton Supplier Survey, Jan 21,

12 What do Governments say about eprocurement? Forrester Report Cites the following benefits from eprocurement Increased Productivity Governments realize a range of savings by moving paper-intensive vendor solicitation processes online Moving bid notifications to the Web allows governments to cut printing and mailing budgets by 75% Streamlined Processes Governments can cut the costs of administering a PO by more than 50%, to $50 or less, and shorten the approval cycle to minutes Payment methods like EFT secures a new round of discounts from suppliers by guaranteeing prompt payments Reduction on the Cost of Goods Governments can secure price breaks by requiring suppliers to compete for bids against one another in reverse auctions Pennsylvania has saved $10 million by buying raw materials like coal through Web-enabled reverse auctions Governments can negotiate discounts using aggregated information cutting commodity costs another 5% to 15% 11

13 Aberdeen Group Dec Study (abridged) 12 Process Time Savings Reduced Quote Cycles by 60% Reduced order-tofulfillment by 86%; cut sourcing cycles on half Purchase request to goods delivery: 17 to 19 days to two days, depending on goods Reduced administrative tasks by 120 hours per week; cut parts lead Process Cost Savings Reduced FTEs for procurement Annual administrative cost savings of $100,000 Yes What do Governments say about eprocurement? Purchased Product/Service/Material Cost Savings Yes 5% to 10% price reduction through improved contract compliance; 13% price reductions, on average, through online negotiations Up to 40%, depending on goods purchased Additional Savings/Benefits Better responsiveness, lower inventories Facilitated supply base rationalization Able to re-deploy people to more strategic tasks, extend system to contractors Yes N/A Increased supply chain visibility; improved responsiveness to changes times in half Yes Yes 10% unit cost reductions, on average Cut sourcing cycle times in half Weeks to days N/A Cut PO process costs by 40% Negotiated 20% unit cost reductions, on average Increased buyers skill sets; standardized on global-sourcing strategies Improved sourcing discipline and process standardization; enhanced market data $500,000 in first six months Improved data gathering and system integration

14 Is there a fee? No fee to register for MyFloridaMarketPlace Effective July 1, a 1% transaction fee will be applied to all State purchases Vendors must be registered in MyFloridaMarketPlace in order to respond to solicitations or enter into new agreements that are effective beginning July 1 These guidelines are established as part of rule language that helps to clarify Florida Statute 287- a link to this rule language will be included in the "I Accept language included in the vendor registration process 13

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