THE FUNDAMENTALS OF
MARINE E-PROCUREMENT PLATFORMS
For Buyers FOUNDED IN 1999
Executive Summary Procurement is changing. Rapid, automated process is replacing clumsy, outmoded admin, while hyper connection and agile supply networks are becoming reality. Efficient and effective is the name of the game. Reflecting that shift are e-Procurement platforms, which are undergoing rapid change themselves. Driven by a demand from users for better analytics and from organisations for increased transparency, the new generation of platforms equip procurement departments with the tools to excel. At the heart of these developments is evolving tech that underpins powerful tools like spend analytics, automation and AI, providing valuable business intelligence that leads to tangible savings and lasting, sustainable value. The maritime supply chain is leaving the dark ages. The market is clearly evolving and the need to act is pressing. As the saying goes, time and tide wait for no one; nor does
2
technology. Those who do not adapt risk being left behind and swept away into the annals of time. The ultimate winners will be those who adopt, learn and adapt. The process need not be difficult; in fact it’s quite the opposite. You don’t even need to change your existing system. ShipServ partners with more than 20 major software providers, meaning that built-in adaptors will have you up, running and ahead of the competition within a month in many cases.
What is an e-Procurement platform? An e-Procurement platform is a proven way to improve the efficiency of your procurement process. It is a controlled ecosystem to which ship operators connect their existing procurement software. Once connected, they transact with their supply network in a far more automated way, saving time and money.
Once a ship operator is connected to the platform, all its transactions – RFQs, quotes and POs – are routed through the system and recorded automatically, meaning that laborious admin is eliminated. From day one, the system creates transaction efficiency and records spend – giving clearer insight into how and where costs are accrued.
SHIPSERV ECOSYSTEM
Buyers
Analysis & Benchmarking Tools
Suppliers
Anglo-Eastern
MSC
ABB
Seven Seas
Berge Bulk
Norbulk
Alfa Laval
Carnival UK
Norwegian Cruise Line
Ship Supply International
Chevron CMA CGM CPO Crowley
Princess Cruises RS Components Scorpio Shell
Eaglestar Epic Gas Hoegh Holland America Line Keppel Shipyards
Bollfilter
e-Procurement Platform
Thome Utkilen
Maersk Group
SSL International Co. Ltd
Fuji Trading
Total Lubmarine W&O Supply
ISS Loipart AB
REQs, RFQs, Quotes, POs, POCs, Invoices
MAN Energy Solutions Marine Technic A/S
W.W. Grainger Inc. Wartsila Services Wrist-Klevenberg Ship Supply
Scandia Gear
MOL + hundreds more
Fastenal Francois Marine
The bridge for...
Vroon
Sinwa Sperre
HMS
SIEM Teekay
Callenberg
ShipServ Pages Search Engine
+ thousands more
3
How does an e-Procurement platform help me? An e-Procurement platform can help:
4
Make savings
Boost efficiency
Gain clarity
Switching from an outdated or manual system to ShipServ creates a typical OPEX saving of between $300k and $1.2m per year for a fleet of 10 vessels.
Automate core procurement tasks to reduce the administrative burden on your team and allow them to spend time on strategic purchasing.
Cut through the mess of data that is siloed in old and dysfunctional systems to see how, what, where and why you are spending to reduce costs and create additional value.
Keep track in real time Multiple teams working across numerous offices? Keep track in real time on the status of RFQs, quotes, POs and spend.
Automation: Cultivate efficiency Automation is essential to increasing procurement’s value and its strategic importance – and e-Procurement platforms are essential to effective automation. The manual, email-based transaction flow between procurement departments and their suppliers is one of the biggest uses of manpower in the maritime supply chain today. It’s time consuming, costly and distracts from valuable strategic work. A solution like ShipServ, for example, allows
purchasing departments to connect to all their suppliers from their existing procurement system, meaning that RFQs and orders are sent from and received by that system. Re-typing, Excel spreadsheets, PDFs and emailing RFQs are a thing of the past. Data quality improves. The decrease in administrative tasks reduces the procurement cycle by 50% and increases productivity by 30% - saving time, money and effort.
“15% time saved”
Richard O’Malley
“Saves a significant amount in terms of time”
Walter Woodage
“We save 30% of our time” “Freeing up 30% of our time” “Each member of the team gains 3 hours a day”
Panikos Parmenides
Nick Christian Edwards
Nick Ranade
5
Analyse and benchmark: Bigger savings & better performance from crystal clear transparency Modern e-Procurement platforms come with a host of powerful tools that enable users to analyse and benchmark spend, track supplier performance and mitigate risk in the supply chain. After all, if you can’t see where you are, how do you know where you are heading? By offering greater transparency over spend, e-Procurement systems can help to review supplier performance and consolidate spend under contract.
6
On the next page there is an example of one of ShipServ’s analytics reports for buyers.
Analyse and benchmark: A report for buyers The Supplier Performance Report (for buyers) provides purchasers with a host of key real-time data on the procurement performance of every supplier that they trade with on ShipServ. This enables them to analyse trends and identify where improvements can be made, thereby enhancing and fully optimising relationships with suppliers. Amongst the KPIs included are information on transaction totals, quote and win rates, response times, price- and timesensitivity analysis, most commonly bought items and spend history, and analysis by vessel and by purchaser. Many of the KPIs come with two different benchmarks enabling you to compare against the average of all your suppliers, and the average of all suppliers on the entire ShipServ platform.
“The improved reporting as a result of the Supplier Performance Report ensures the information is readily accessible for client review meetings and allows us to monitor supplier reviews. Especially as it is printable as a single report. I wish I had this years ago!�
Walter Woodage, Director/General Manager, Norbulk Shipping UK
7
FAQs Do I really need one? Yes, you do. If you are interacting with even half your suppliers using Word, Excel, PDF, emailing etc – then you definitely do, because it’s costing you time and money. An e-Procurement system will automate all of this - no more manual processes, no emailing, and no more PDFs or Excel. The transactions go straight from your own procurement system and come straight back into it.
Isn’t this all very expensive & time consuming? Not really, no. The cost of implementation is typically modest. It is relatively straightforward to get connected: ship operators plug in an electronic connection from their current procurement system to the e-Procurement platform, so there is no need for a ship operator to change their current procurement software.
How does this fit with my existing system? You might be using the purchasing module of one of the many software companies / PMS / fleet management companies that serve the industry. That is not an issue because an e-Procurement platform plugs in to existing procurement software and then enables much better functionality and therefore bigger benefits. The ShipServ platform works very closely with major software systems and has standard adaptors to make the connection process straightforward. In short, the ShipServ platform is a specialist upgrade which plugs in to your existing system.
8
How long before I see ROI? From day one you’ll benefit from significantly improved procurement transaction efficiency and better spend analytics. The financial extent of the upside varies as no two ship operating companies are alike. Across all the projects we have worked on through the years, typically we see OPEX savings of between $300,000 and $1.2m per year for a fleet of 10 vessels.
What happens to all my data? ShipServ is ISO 27001 certified, reflecting our strategy to continually enhance information security practices. The ISO 27001 complements the existing security controls ShipServ has in place including regular external Penetration Tests, independent reviews of IT operations and constant reviews of security standards. There is also complete data confidentiality - our reputation rests on this. We never share your data with anyone (the benchmarking is aggregated and averaged so that it cannot be linked to any single company). Data is never sold to third parties in any form.
Will I get any support? We offer 24/7 support, with very high levels of reliability from a well-resourced global team of technicians and account managers.
Are all the e-Procurement platforms the same? There are some major differences. For example, platforms vary in how many of your suppliers are connected. Some platforms also charge some suppliers if they trade over a certain volume (but not ShipServ: by always having a free trading option, ShipServ guarantees the ability to connect with 100% of your suppliers). Finally, there are also differences in the quality of the analytics / benchmarking reports that are available.
9 3
Why you can trust us The ShipServ proposition is simple. It helps shipowners and ship managers to find the best suppliers easily, trade efficiently and build trusted relationships. Buyers speed up their purchasing process and save money.
The significant growth in e-Procurement platforms emphasises the shipping industry’s continued development in embracing digitalisation. It also cements ShipServ’s position as the market leading marine e-Procurement platform in a landmark year in which the company celebrates its 20th anniversary since it was founded in 1999.
The ShipServ e-Procurement platform is the largest by far: with 260+ shipowners and managers operating 10,000 vessels, connected to 73,000 suppliers. The total value of trade on the platform is running at $4bn per year.
While the digitalisation of the industry is often seen through a futuristic lens, e-Procurement is one of the most viable first steps of that digital journey that both buyers and suppliers can benefit from right now.
FOUNDED IN 1999
10
Pain-free connection from your existing system whichever that happens to be Critically, you don’t change your existing procurement system. We work with the vast majority of software providers (some shown here) and have a close relationship with them. With many, we already have a pre-built “adaptor” to speed implementation.
In this instance, the average connection time, from start to having you up and running, is less than one month. If you have a bespoke procurement system, or one not shown on this page, then that is not an issue. Over the last 20 years ShipServ’s IT team have worked with customers to successfully connect many bespoke systems.
11 3
9 12
WAYS SHIPSERV IS DIFFERENT Committed to helping procurement teams improve their performance
1.
2.
3.
Efficiency improvement of 30% is typical
100% coverage of your suppliers, guaranteed
Excellent supplier response rates and speeds
In the last 20 years, we have implemented the platform into hundreds of procurement teams’ operations so this is not an empty claim.
What is the point of moving to an e-Procurement platform if you need to retain inefficient, manual processes for many of your suppliers?
We offer suppliers the choice of advanced quoting solutions which enable them to quote back efficiently and quickly.
Sounds crazy? Well it happens because some e-Procurement platforms have a pricing model where suppliers are forced to pay to quote, and refuse to be part of the platform.
In fact, a full 25% of our trade is from suppliers who have our ultimate supplier solution: a full integration into the supplier’s ERP.
This does not happen with the ShipServ platform because we have always offered a free trading tool available to all suppliers, regardless of trading frequency or value.
These solutions benefit the suppliers, but also our buyers.
13
4.
5.
6.
Unique reports and benchmarks
Enhanced cyber security and data protection
Avoids hidden issues with portals
We give procurement teams a host of online KPIs and benchmarks so that you can monitor the trading performance of each of your suppliers and make the most of your supplier meetings.
As your procurement transactions go directly from your procurement system via ShipServ, the number of emails, and potentially harmful attachments you receive from suppliers is vastly reduced.
Apart from the security risks covered in the previous point, there is another reason to be cautious of portals.
We give similar reports to both buyers and their suppliers so they benefit from improved dialogue.
Also, unlike some of the other platforms and portal solutions currently on the market, all ShipServ interfaces are fully secured. ShipServ is ISO 27001 certified (Information Security Management standard).
14
Additional work and time are involved for suppliers in using individual portals. Inevitably these costs are passed onto buyers in the form of increased prices (although often invisibly to the buyer).
7.
8.
9.
Easy plug-in to all marine software systems
Trusted by more ship operators than any other
Highly rated customer service
Our expert team has successfully completed hundreds of implementations into ship operators’ marine software systems or procurement systems.
We are running by far the largest e-Procurement platform in marine. Currently 260 shipowners and managers, and their 10,000 vessels, are connected and run their procurement through ShipServ.
We have a large customer service centre for both buyers and suppliers which operates 24/7.
We list 21 marine software companies on our website as partners. With many of these, we have already built “adapters� so implementation is super quick.
On the supplier side, over the last 20 years we have built up the largest supplier coverage in marine with over 73,000 connected suppliers.
15 3
We’d love to help If you are a shipowner, manager or operator and you would like to find out more about how ShipServ can help you, or if you want to see a demo, please get in touch. Please email me directly at: marketing@shipserv.com I will then make sure you are contacted by the right person. Thank you David Hardy | Chief Marketing Officer, ShipServ
To find out more, visit our website: www.shipserv.com or follow us on: Twitter and LinkedIn You can also download our eBooks from the website
FOUNDED IN 1999