morethan than a marketplace –– more a marketplace An eProcurement solution for public sector organisations

Zanzibar – An eProcurement solution for public sector organisations Procurement in the public sector has come a long way from reams of paper orders and invoices, but now, with a choice of online marketplaces, the decision on which one to invest in has become more complex. Whether you are central government, a local authority, in education, health, housing, emergency services or a public sector charity, consider these questions . . .

Choosing a marketplace Spice Photo by Valerio Lo Bello [email protected] www.prfct.net/v

Access to accurate and up-to-date content • Does your marketplace provide rich content from Day One? • Does it make collaborative contracts freely available – yours, OGCbuying.solutions’ and other public sector organisations’?

Easy for suppliers to take part

An eBuying eSelling integrated innovative Managed Service solution

• Does your marketplace make it easy for suppliers to join and is it free of charge? • How simple is it for suppliers to connect, transact, load and update catalogues? • Is supplier adoption and eEnablement included as part of the overall service? • Is there a fully functional supplier selfservice portal that lets any supplier interoperate completely electronically?

A system and services that are clear, streamlined and secure • Is the service provided to a formal Service Level Agreement and been security accredited? • Is it available off the shelf through a framework agreement without having to run a procurement exercise? • Can it support multiple communication methods for documents between buyers and suppliers?

• Are there hidden extras or are all the components included in a fixed annual subscription? • How integrated is the marketplace to you or your suppliers’ eProcurement and finance systems? • Is it managed by an experienced public sector buying organisation that will ensure it meets all relevant legislation and policies – now and in the future?

A system that provides ongoing support for users • Is the system easy to use for requisitioners, professional purchasers and suppliers with online guides? If not, they may not want to use it! • Does your marketplace provide reference sites and endorsements from active customers? • Is there a Help desk for both buyers and suppliers? • Are there organised user groups including intra-organisation collaboration on best practice and lessons learned?

The Zanzibar Managed Service meets all these requirements – and more 

How will Zanzibar benefit your organisation? • Outsourced supplier adoption and catalogue management • Reduced cost of participating using the OGCbuying.solutions framework • Improved back-office reconciliation and reduced administration

How will Zanzibar benefit your suppliers? • User-friendly and intuitive technology • No fees or transaction charges • Improved, streamlined payment and reduced back-office administration • Only one site to upload catalogues – can be made visible to all customers

The Zanzibar Managed Service is a new public sector eProcurement and marketplace system – available to all English, Welsh and Northern Irish public sector organisations via an OGCbuying.solutions framework. Zanzibar has been set up to provide a low-cost eProcurement system, enabling public sector buyers and private sector suppliers – regardless of size – to transact easily over the Internet. Zanzibar is unique in the current public sector environment as it provides: • A Purchase to Pay system and eMarketplace that can operate alongside your existing electronic procurement processes • A secure, hosted and managed service, with ongoing support for buyers and suppliers • A complete end-to-end eProcurement solution generating operational efficiencies • Simple access for suppliers through a fully subsidised portal and single point for catalogue uploads • Access to collaborative contracts and information on all Zanzibar suppliers • Detailed and extensive procurement management information.

For public sector buyers – many efficiency benefits Greater control over spending You can directly control who approves any Zanzibar purchase and therefore improve process compliance and reduce maverick spend. 

Better value-for-money decisions Extensive search facilities enable budget holders to make informed value-for-money procurement decisions straight from their desk-top.

Greater spend visibility and informed negotiations Comprehensive information on levels and patterns of spend will help you negotiate better prices and contract terms.

Reduced administration time

Background picture: Mother and child Photo by Pasqualantonio Pingue [email protected] www.nest.sns.it/~pingue

• Visibility and analysis of your organisation’s expenditure

Zanzibar – a unique public sector marketplace

With automated invoice matching systems, you can reduce processing time for both budget holders and the accounts department.

Easy to sign up The Zanzibar Managed Service has been awarded under EU procurement rules, so you can sign up for the service without a lengthy procurement process.

Zanzibar provides your suppliers with benefits too Even the smallest supplier with an Internet connection now has access to electronic trading thanks to Zanzibar. With no joining, transaction or subscription fees for suppliers, you simply invite them to join. There are similar benefits for your private sector supplier too: • A supplier transaction portal – free to use • Integration with existing finance and back-office systems • A supplier content management system for loading catalogue data.



Joining up the procurement process from end to end – saving you time

Zanzibar’s joined up processes save you time and effort • Automatic reconciliation • No need for faxes, paper-based



orders or even email • A fully paperless service from buyer to supplier and back again • Suppliers maintain their own catalogues • Ability to integrate any existing procurement card programme for payment

Zanzibar eliminates the steps that can lead to reconciliation errors Many eProcurement process flows are interrupted by manual intervention and paperwork, which can lead to reconciliation problems and errors that are costly to resolve. Zanzibar, by contrast, is a completely electronic process, eliminating unnecessary reconciliation effort and matching documents. What’s more, Zanzibar enables your supplier to ‘flip’ a purchase order into an invoice on the supplier portal. Alternatively, suppliers can integrate their own back-office ERP and finance systems into the marketplace, so that they can send invoices directly into the Zanzibar environment.

Zanzibar is a fully electronic process

The final piece of the jigsaw is the electronic reconciliation of purchase orders and invoices. In Zanzibar this is dramatically simplified, as the eProcurement chain has not been broken, as illustrated in the diagram opposite.

Zanzibar enables you to spend more time on what really matters



Zanzibar suppliers also maintain their own catalogues – saving you even more time One of Zanzibar’s key features is the comprehensive marketplace catalogue accessed via the supplier portal. This means that: • Zanzibar suppliers can load and maintain their own content • Data is keyed once at the point of origin – so reducing the errors from repeated keying-in • All approved contracts are held in one place • Procurement professionals can monitor and approve pricing and content, but do not have to upload catalogues themselves • Automated reconciliation completes the process. Zanzibar’s electronic marketplace cuts out the need for manual sourcing. Requisitions can be raised directly from the marketplace catalogue, taking prices straight from the supplier’s own catalogue that you – as a buyer – have already approved.



Zanzibar is not a ‘one size fits all’ solution For buyers • You can choose which elements of Zanzibar you want to use – a Purchase to Pay system...

Zanzibar is a fully flexible and accredited system – protecting your interests

or marketplace only? • You can integrate Zanzibar with your existing technology – including finance, ERP or eProcurement systems For suppliers

Zanzibar is an eGov Level 2 security accredited, hosted, managed eProcurement service that can be conveniently accessed by buyers and suppliers alike.

what they have supplied? and how much was spent?, as well as information about procurement performance. This is potentially the most powerful part of the service.

The service is flexible and suitable for all public sector organisations regardless of size and technical capability.

4. A Supplier portal – enabling

The Zanzibar system has five core elements:

• They can use the supplier portal to conduct transactions – or integrate their ERP/finance systems with Zanzibar • They can upload and manage catalogues – or link to a web shop where buyers can access their catalogue content

1. A public sector marketplace – with hosted catalogues and the ability to ‘punch out’ to external supplier websites, providing greater information about all Zanzibar suppliers.

2 . An optional Purchase to Pay (P2P) system – for you to access the marketplace, via a web browser, send orders and receive invoices, providing fully flexible transactional workflow. This element of the service is optional, so if you already have an eProcurement system, you do not have to buy this element.

3. A data warehouse – with secure access to information about all transactions that have passed through Zanzibar, allowing you to drill down and interrogate the data in a number of ways. This can help supply the answer to questions ranging from; who has supplied the organisation?



suppliers to upload catalogues at one single place, receive orders and send invoices. This service provides all the transactional facilities your suppliers need and is available free to suppliers.

5. Integration facilities – allowing you and your suppliers to integrate existing eProcurement, finance and sales order processing systems with Zanzibar. An overview of the technical structure of the system is shown on the next pages. In addition to operating the system, the Zanzibar service includes a supplier adoption programme together with comprehensive service management including buyer and supplier helpdesks and account management. OGCbuying.solutions manage the framework agreement and support the ongoing development of the service through activities such as the Zanzibar User Group.



The Zanzibar System

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documents (such as an invoice that has been approved for settlement) and update information such as cost centre codes • Manage supplier access to the Zanzibar system.

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• Access catalogues from their existing purchase-to-pay systems

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matching and the financial settlement of procurement transactions. Alternatively, a buyer’s existing eProcurement system can be integrated with Zanzibar to obtain catalogue content and send/receive

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• A data warehouse containing all transaction data • Generation of report information on what has been spent, with which suppliers and on what items.

Supplier portal enables suppliers to: • Upload and manage catalogue content using the Catalogue Management System • Send and receive procurement documents using an application hosted

Catalogues Ca ta log ue

Zanzibar’s unique management information system provides:

on the portal, including the receipt of purchase orders, and the creation

Supplier portal

and transmission of advanced shipping notes and Invoices • Integrate their existing supplier eCommerce sites to provide catalogue

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content to the marketplace via PunchOut • Send and receive electronic procurement documents directly from their own back-office systems such as sales order processing or ERP systems.

Supplier 



This leading-edge technology is already up and working successfully now Helping buyers and suppliers in the UK public sector

Joining Zanzibar is quick and simple and you can go live in a few months

• So far, over 300,000 orders annually – worth £280m – have been placed using Zanzibar’s P2P engine • Local authorities, NHS organisations and executive agencies are spearheading its adoption • Over 9,500 users and more than 16,000 suppliers are already using the environments that will be delivering Zanzibar

Flexible costs and choice of service Zanzibar has been designed to make it as easy as possible for public sector buyers to join with no lengthy and costly procurement processes required. Zanzibar is not a one size fits all solution, so there is not a restrictive single cost. Each public sector organisation pays according to the size of its procurement demand and its particular requirements. The Zanzibar framework pricing is based on: • Your organisation’s annual procurement spend on goods and services • Whether you want the P2P and marketplace – or marketplace only.

What are the legal arrangements? Zanzibar is available to any organisation subject to public procurement regulations. A standard Service Provision Agreement has been developed, which establishes the legal relationship between PA Shared Services Limited (the company providing Zanzibar) and a buying organisation.

How do suppliers join? Suppliers need to be sponsored by a buying organisation and then invited to join. Zanzibar will support you in recruiting and eEnabling your supplier base to get on-board and assist with their technical queries. Supplier forums and user groups will also be available to make the process as simple as possible.

Additional services to help you with set-up or to assist with other procurement requirements are also available – see page 15. The combination of these two factors determine the cost of joining, which is made up of: • A one-off set-up fee • An annual subscription. A discount structure has been agreed with OGCbuying.solutions to enable groups of organisations to join together to keep costs as low as possible. We can work with you to calculate how much it would cost your organisation to join Zanzibar if required.

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The more you use Zanzibar – the greater your organisation’s opportunity to make savings through • Understanding your true spend

Getting going – Zanzibar provides you with tailored support right from the start

• Stronger negotiating position with more accurate information • Greater effectiveness of your buying team

Once you’ve decided to join Zanzibar, we know it’s important that getting ‘plugged into’ the system is as smooth and efficient as possible for you and your staff. The Zanzibar set-up package helps you with the integration process, from assessment through to training, and also supports the adoption process for your suppliers.

The package to get you on-board involves: • Readiness assessment – of your organisation’s existing purchasing systems, processes, structure and people. This will determine whether implementation can commence immediately or if any preparatory work is needed. • Technical integration assessment – will determine the requirements for integration of your systems with Zanzibar. • Technical implementation – will link your system to Zanzibar, complete the technical configuration and integration, and finally test comprehensively that the infrastructure is ready for live transactions. • Supplier adoption – is made easier as we work with you to encourage your suppliers onto Zanzibar, guide them on loading supplier information and take them through the enablement process. That way everyone is ready to start trading as soon as possible.

Zanzibar’s unique management information system is a very powerful additional tool that can help you to continue to deliver efficiency savings year on year.

Flexible management information – getting the best from Zanzibar At the top level, Zanzibar provides data on volume, patterns and levels of spend, the spread across your chosen suppliers and analysis by type of goods and services. You can also ‘drill down’ through groups or individual transactions, analyse specific spend and assess the value for money offered by your suppliers. This information can help measure the effectiveness of both your own buying teams and your suppliers, enabling you to negotiate better deals in the future. This information is also beneficial for your suppliers. A more detailed understanding of your current spend gives you a more accurate picture of future demand. Armed with this information, your suppliers can give you better pricing and help drive savings. Zanzibar will also enable you to pay your suppliers more quickly and efficiently, helping them with their cash flow – particularly important for SMEs that can use Zanzibar just as easily as any of your larger suppliers.

• Training and benefits realisation – will help train your key staff in Zanzibar ‘best practice’ guidelines and encourage them to cascade these to other buyers in your organisation. We can also help you to put in place measures and plans to realise the full benefits that Zanzibar offers. 12

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Additional services help you get the best from Zanzibar and your eProcurement

Maximize the potential of your eProcurement investments • Helping you meet your eGovernment and Gershon targets • Embedding change in your organisation

Under the framework agreement with OGCbuying.solutions, PA Shared Services Limited (PASSL) can provide a number of additional services – both before and after system implementation – to help your organisation deliver the full extent of the value from your investment in Zanzibar.

• Building your business case and helping you deliver it • Helping you improve your supply chain

Bespoke implementation services

You don’t have to go out to tender for this work, as OGCbuying.solutions have already undertaken the ‘value for money’ assessment as part of the Zanzibar procurement process.

• System customisation • Enhanced training and project management support

Thinking of joining Zanzibar? If you are thinking of implementing an eProcurement solution, but have not yet decided to join Zanzibar, we can provide a range of services to help you formulate your eProcurement strategy, build your business case and start the change process in your organisation. What is more, these services can be purchased without commitment on your part to buy the Zanzibar system.

• Dedicated integration and test systems

And once you have decided to join We also offer a further range of services to help you with the implementation of Zanzibar and really capturing the benefits of the system – available at any point during your Service Provision Agreement. These services include: • Consulting services to help you embed change in your organisation such as business process analysis and design, supply chain re-engineering and category-spend analysis. • Operations and integration services including: bespoke reporting from the management information data warehouse; enhanced integration of your eProcurement and back-office systems; paper document bureau service; and additional supplier management services including bespoke supplier adoption and ongoing maintenance of your supplier base.

Our services include: • Business case review Centre picture: Beach life Photo by Barbara Schneider

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• Outline spend analysis • Business process review • Benefits assessment and realisation strategy • Technical integration assessment • Change management review.

Interested in joining or need more information? Please contact us by e-mail at [email protected] or phone us on +44 20 7333 5444

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Who is involved in bringing you Zanzibar?

Contact us To find out more about how Zanzibar can help your organisation, please contact us: by e-mail at [email protected] or phone us on +44 20 7333 5444

The Zanzibar Managed Service has been devised by OGCbuying.solutions and represents a key part of the UK Government’s procurement strategy. OGCbuying. solutions awarded the framework agreement for Zanzibar to PA Shared Services Limited (PASSL) within a controlled public procurement process. PASSL, working with its subcontracted consortium partners, was chosen as providing best value for money.

or by mail to Omer Wilson Zanzibar Managed Service PA Shared Services Limited 123 Buckingham Palace Road

OGCbuying.solutions OGCbuying.solutions is an Executive Agency of the Office of Government Commerce in the UK Treasury. OGCbuying.solutions’ role is to deliver value for money gains for central civil government and the wider public sector, through their dedicated, professional procurement service.

London SW1W 9SR

OGCbuying.solutions provide public sector customers with a full range of products and services designed to encourage effective procurement, achieve measurable cost savings and improve the efficiency of the purchasing function throughout the public sector. Zanzibar is part of OGCbuying. solutions’ eProcurement Solutions, a suite of dependable tools to eEnable the entire procurement workflow. www.ogcbuyingsolutions.gov.uk PA Shared Services Limited (PASSL) and PA Consulting Group PASSL is a wholly-owned subsidiary of PA Consulting Group (PA) and is the delivery vehicle for Zanzibar. PA’s strong track record in public and private procurement and eGovernment solutions ranges from providing strategic advice and developing the business case, through to managing and delivering large highly-complex eProcurement solutions, systems development, organisational change and programme management. PA is also a leading independent sourcing advisor working for private and public sector clients worldwide. PA Consulting Group is a leading management, systems and technology consulting firm, operating worldwide in more than 35 countries. www.paconsulting.com/sharedservices and www.paconsulting.com Elcom Systems Limited Elcom Systems Limited is the UK subsidiary of Elcom International, Inc., which operates as one of the leading B2B eCommerce service providers, offering affordable eProcurement and eMarketplace solutions for buyers, sellers and commerce communities to conduct business online. PECOS is Elcom’s remotely hosted flagship solution, enabling enterprises of all sizes to achieve the many benefits of B2B eCommerce - without the burden of infrastructure investment and ongoing content and system management. www.uk.elcom.com IMPAQ Business Solutions Ltd IMPAQ is a UK-based company that specialises in providing hosted solutions and associated services that enable buying organisations to accelerate the adoption and enablement of suppliers to any type of eProcurement programme. www.impaq.co.uk

eProcurement and eMarketplace Business Solutions

This document has been prepared by PA. The contents of this document do not constitute any form of commitment or recommendation on the part of PA and speak as at the date of their preparation. © PA Knowledge Limited 2006. All rights reserved.

@UK PLC @UK PLC is one of the UK’s leading organisations in supplier e-enablement, delivering supplier adoption services to buyers and providing e-business tools to thousands of businesses selling goods and services to the public sector, private sector and consumers. www.ukplc.net 16

No part of this documentation may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying or otherwise without the written permission of PA Consulting Group. Lon~11416

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Working in conjunction with its consortium partners:

eProcurement and eMarketplace Business Solutions

Zanzibar is an OGCbuying.solutions Managed Service