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B2B E-Commerce @ MIT

Explore the evolution of MIT's electronic procurement systems, including ECAT and SAPweb. Beginning with the first ECAT version in 1995, this initiative aimed to consolidate suppliers and streamline procurement processes. ECAT2, implemented in 1999, integrated with vendors' sites and SAP for efficient requisitioning, approvals, and payments. With significant savings and a daily average of 100 orders, the system fosters better vendor relationship management. Future enhancements include cross-catalog search and electronic funds transfer, extending the model to various vendors and internal providers.

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B2B E-Commerce @ MIT

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  1. B2B E-Commerce @ MIT CSG, 10/6/1999 Lorraine Rappaport <ljr@mit.edu> 617.253.0749

  2. MIT E-Commerce Initiatives • SAPweb - web requisitioning front-end to SAP • VIP Card - MIT issued credit card with approvals in SAP • Online credit card processing - allowing internal merchants to sell on the web • ECAT - electronic catalog procurement with preferred suppliers

  3. ECAT History • First version of ECAT (Electronic Catalog) introduced in 1995 as part of supplier consolidation effort • Office Depot, VWR Scientific, and BOC Gases built online catalogs for MIT with our pricing and product restrictions • Required separate authorization mechanism • Difficult to scale to community and other vendors • Required non-standard, problematic desktop software • Requisitioning not integrated with SAP; no approvals

  4. ECAT2 Implementation • First implementation with NECX (rolled out in February, 1999) • BOC Gases and Office Depot go live in June, 1999 • VWR now in pilot testing • Check out: http://web.mit.edu/ecat and http://web.mit.edu/sapweb

  5. ECAT2 Model Components • Utilizes vendors’ standard public sites with MIT pricing • Fully integrated with SAP for authorizations, commitments, payments • Uses SAPweb requisitioning front-end to SAP • Digital certificates for authentication • Based on OBI (Open Buying on the Internet) standard for transmitting vendor shopping baskets • Utilizes EDI to format and send POs and invoices

  6. ECAT2 Design

  7. Advantages of the Model • Modular enough to swap out components as technology changes (e.g. XML???) • SAPweb and SAP interfaces are familiar • Takes full advantage of vendors’ value-added services (e.g., VWR MSDS sheets, other vendors’ “extras”) • Allows procurement staff to focus on vendor relationship management

  8. Disadvantages of the Model • Multiple vendor sites - different capabilities, different navigation • Many components to maintain • Not scalable to all vendors • Batch processes within SAP and at vendor sites mean that orders are not quite real time

  9. But, is it successful? • Daily traffic averages 100 orders per day • Smooth transition from ECAT(1) • Now focusing on converting paper requisitioners • Dollar savings could be calculated at $250K-$500K/year + additional savings from preferred partnerships

  10. Coming Attractions • Extending ECAT2 model to other vendors • Extending ECAT2 model to internal providers • Enhancements wish list: • Cross-catalog search capability? • Electronic funds transfer?

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