ShipServ develops benchmarking e-procurement tools

New developments in e-procurement software will allow fleet managers and ship operators to benchmark their purchasing performance. ShipServ is introducing a benchmarking tool that uses the sales and purchase information in its swelling TradeNet e-procurement database, said ShipServ founder and chief executive Paul Østergaard.

“We are further leveraging the data we have, so buyers can benchmark the prices they pay with those paid by other ship operators,” he said. “We are also working on indexing the spending in categories for different ships, such as creating an engine or deck spares index. It is all about developing the data for shipmanagers.”

The software builds on e-procurement suites ShipServ Match and TradeNet, which enable ship operators to order and purchase products and comment on the suppliers. “We have automated the flow of information between suppliers and ship operators,” Mr Østergaard said.

“Buyers can link their own procurement systems on to our platform. Purchasers can send a tender to known suppliers and add a ‘request for quote’ that goes to other suppliers. Suppliers can then offer their products and services. There is more interaction between suppliers and buyers and it can cut ship operator and product costs.”

Around 200 shipping companies, managing more than 8,000 ships, use the program, so do 50,000 suppliers. More than US$3 billion of ship supplies are traded across the e-procurement platform every year. Many of these ship operators provide feedback on the platform. “We have a review system so customers can provide comments, verify suppliers and rank traders,” Mr Østergaard said. “There are recommendations, and we also have blacklists of poor suppliers.”

It can be cost-effective to fleet managers to use an e-procurement platform. “Some of our customers have realised up to 7 per cent in cost savings,” he continued. “On average, vessel spend is US$600,000 per year [not including crew, bunkers and insurance], so this could be a considerable saving. On average, ship operators put 75 per cent of their spending through our system.” MEC