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About e-Trading Working Group

It is the stated MOD aim that all purchasing should be conducted electronically and related commercial terms and conditions will become a requirement of all Defence Contracts. As a result, the e-Trading Working Group was established in January 2003 between UKCeB and member companies active in the Defence sector to identify opportunities and to address issues emerging from the increased drive for electronic trading between MoD and Industry.

                                             Remit

The Group and the programme is directed at all aspects of e-Trading encompassing:

  • Electronic Purchasing
  • Sourcing
  • Tendering
  • Auctions
  • B2B exchanges

It is explicitly at the level of the Defence strategic agenda, addressing business process and policy issues; it is not the commercial aspects nor the commercial policy relating to the use of e-business techniques. This is the responsibility of the e-Business Working Group operating under the Commercial Policy Group. It is also encouraged as the forum for suppliers to platform and address related problems or issues concerning the application or future programme.

Terms of Reference

Purpose - Generic Working Group - Tasks - Framework - Outputs - Method - Membership - Meetings -  Notes - Further Information

Purpose:

To support and drive the successful implementation and exploitation of e-Trading (1) between MoD and its trading partners and between companies with defence contracts through the influence of appropriate policies and the development of procedures that allow, within the requirements of national regulatory authorities, the adoption of best practice processes and technologies.

Generic Working Group Tasks

1. Development of a joint delivery strategy for e-trading in the defence sector
2. Ensure coherence and visibility between MoD and Industry plans for the implementation of e-trading capability
3. Ensuring exploitation of e-trading to mutual benefit, including the defence sector supply chains
4. Present common MoD / Industry consensus and recommendations to policy makers(2) and national regulators
5. Ensure an integrated approach with the other UKCeB Working Groups and MoD
6. Promote opportunities or remove obstacles (including national and international issues(3))
7. Economise effort towards corporate and common developments
8. Encourage coherence in solutions
9. Identification of best practice (particularly non-defence) that could be applied in the defence sector and the sharing of lessons learned
10. Focused on topics of demonstrable joint business benefit

Framework:

1. Forum of stakeholders from companies, MoD and Trade Associations
2. Authority to produce guidance through UKCeB and MoD
3. Receives direction and priorities from the NDIC and the Joint MoD / Industry Two-Star Group and from Industry via company representatives on the Working Group
4. Secretariat support from the UKCeB Task Force
5. The Working Group Industry Chairman is responsible for the resolving of issues by another UKCeB Working Group and for coordinating issues that affect more than one Working Group
6. The Working Group MoD Chairman is responsible for the resolving of issues by other parts of MoD

Outputs:

1. Publication of a Joint MoD / Industry Delivery Strategy for e-Trading in the Defence Sector
2. Publication of specific recommendations to policy-making stakeholders of changes needed to business and commercial policy and procedures such that e-trading best practice and technologies can be implemented
3. Collaboration on process interfaces to leverage best practice
4. Development of future collaborative requirements
5. e-Trading guidance in a template standard to (at least) the MoD and UKCeB web-sites, including best practice and lessons learned
6. Development of joint training requirements and collaborative delivery of that training
7. Assurance that sufficient connectivity, process and business functionality will be in place.
8. Publication of performance measurement metrics to demonstrate joint business benefit

Method

The Working Group will focus on key issues as identified by consensus amongst the stakeholders and as directed. Each will be taken forward to deliver outputs by a nominated individual, sub-group team, or the UKCeB Task Force on behalf of the group.

Membership:

1. Chairmen(4) :
a. Industry - Marc Ottmueller, Rolls-Royce
b. MOD - Les Sigrist, Director Logistics Procurement Support
2. Trading Partner Representatives
3. MoD Representatives
4. Trade Association Representatives
5. Strategic capability delivery partners
6. Subject matter experts (co-opted as required)
7. UKCeB Task Force

Meetings:

Held at least every 3 months.

Administration:
Working Group to be chaired as above and administered by the UKCeB Task Force. There will be a dedicated area on the UKCeB website provided for Working Group members only.

Notes:

1. Electronic Trading (or commerce) is specifically doing trade or commerce electronically. This includes EDI and web-commerce, but excludes static web sites that do not offer on-line trading facilities. In the context of trading in the defence community, it includes e-procurement, supply order management, auctions and B2B exchanges.
2. Note that issues associated solely with the commercial aspects of e-trading between Industry and MoD are not within the scope of the UKCeB e-Trading Working Group as these are already covered by the joint MoD / Industry Commercial Policy Group
3. Including (in association with the UKCeB Export Control Working Group) those associated with export control legislation.
4. In view of the prominence of the primary customer (MoD) in e-trading policy, process and procedure matters across the supply chain, the e-Trading Working Group exceptionally in the UKCeB Working Group structure has a joint Industry / MoD chair.
 

Further information

Further information relating to the Programme can be found on www.ukceb.org.uk and the d2btrade website, which will be the primary sources for output from the e-Trading Working Group.

Direct contact can be made through: -

Kevin Gaskin - DLO Procurement Enabling Group on 01225 828145
or Colin Jones UKCeB on 0117 979 5956 
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