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Summary
A well-known supply chain management company, Systemcare Limited,
identified the opportunity in 1999 to create a business requisition
management portal which would serve the small to medium enterprise
community (SME).
Earlier, with the help of ECC, Systemcare had created a working
online environment for one of its prestigious integrated supplier
clients as a foundation for a more extensive service offering.
ECC was contracted to work closely with Systemcare executives
to create the new business model. Within two months the team
had mapped out the system requirements and completed the specification
which would build a world-leading online procurement service.
The first full portal service was delivered in June 2000.
The portal, serving both the demand and supply communities,
is now supporting over 2,000 users with a £30 million
annual portal bandwidth.
The
Company
Systemcare Limited is part of the Freeminster Group. Various
business units have been created as a result of its evolution
into online provision including B2B solutions. The core product
of the company is Mfour, a supply chain management solution.
The
Business Need and Potential
With the advent of portals
such as Ariba and I2, Systemcare identified the need for a
requisitioning management system which could be available
24 hours a day, seven days a week. The portal was to be a
true business-to-business service which would bring together
the supply and demand communities of the mid-tier market.
The demand for lower cost and greater choice was seen as the
Holy Grail for business purchasing. Systemcare had the infrastructure,
experience, core tools and partnerships to deliver this.
The base goals were to:
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Reduce
the cost of purchasing |
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Offer
equal value for the demand and supply communities |
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Create
a simple, worthwhile ordering medium |
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Turn
purchasers into buyers |
The
Solution
Founded on Gestalt theory, the Requisitions.com web site adopts
characteristics similar to aspects of human psychology. The
idea behind Gestalt (German for 'shape') is that the whole
is more than the sum of its parts. Another key Gestalt concept
is that what happens to any part of the whole may be determined
by the laws of the inner structure of the whole. In simple
terms, people are comfortable with a staged process
so the solution adopted that strategy.
The seven elements of the business process are represented
by the inner ring in the following diagram which is the basis
of Requisitions.com.
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The
execution is straightforward. Deliver more value through the
'Learn' module which provides the personalisation to re-attract
customers. This will lead to further 'Transactions'. The 'Deliver'
and 'Support' modules then provide the feedback so often missing
during a supply cycle. This is where there are important added-value
opportunities beyond simple purchase.
The
Technology
The e-procurement portal operates within an application service
provider (ASP) model. This is a rentable online application
running from a browser and it is similar to conventional business
software. The tools included ASP programming using Java.
This removed the barriers to e-procurement for the expected
demand community by providing a pay-as-you-go, ready-to-use
service. Systemcare understands the transition from traditional
procurement to online procurement. With ECC it created a 'transition
framework' which provided the comfort and control required
for new members, supply or demand, to join with ease.
The
Value and Benefit
Although the media and economy are promoting the general change
of mind-set needed for survival within the e-business market,
the portal offers particular benefits to the online supplier
and customer communities.
These are:
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Reductions
in the cost of purchasing |
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Greater
controls over the purchasing process across many widely
separated sites |
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Provision
of solutions to business-critical priorities |
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Decision
support utilities and automated administration services
to complete the purchasing cycle |
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Buying
and purchasing capability leading towards automated purchase
services |
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Feedback
mechanism and 24-hour procurement routing visibility |
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Ability
to create promotions, auctions and shared catalogues within
secure and controlled communities |
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Online,
added-value, post-sales services |
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Free
news-feed services on improvements within Requisitions.com
and news-feeds on the principal changes or activities
within the e-economy through an interactive online Business
Innovation Forum |
Systemcare can now boast a growing 2,000-user community, worldwide
connections and expansion opportunities. It is exploring business
opportunities in Australasia and South Africa and has laid
the foundation of a much wider fulfilment service.
With the help of ECC, Systemcare has reinvented itself to
realise the opportunities available through the adoption of
new technology.
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