East Lancashire E-Partnership Saves 60% Of Annual Stationery Spend With E-Auction From UKprocure Systems

Posted on Sep 2, 2004

“UKprocure Systems has helped us achieve massive savings from e-procurement, whilst giving us the highest level of quality of goods and services. We’re meeting Modernising Government targets and providing best value for money for taxpayers.” - Tom Middlehurst, Deputy Finance Director, Rossendale Borough Council

2nd September 2004 – In its first reverse eAuction, the East Lancashire ePartnership (ELeP) has saved 60 percent on the annual value of stationery goods, demonstrating the huge benefits that innovative e-procurement methods can deliver to the public sector. Working collaboratively, three members of ELeP - Rossendale, Hyndburn and Pendle - harnessed UKprocure Systems reverse eAuction technology, to deliver dramatic and immediate cost reduction. The cost savings from this and future auctions will be ploughed back into front-line service delivery and in Rossendale Borough Council, the projected savings from future auctions will mean that future Council Tax increases will be minimised.

In the reverse auction, eight suppliers submitted a total of fifty-three bids, which equated to one per minute, outlining their best bids for stationery products. The reverse auction enabled suppliers to transparently view competitor offerings, whilst protecting anonymity, which delivered a highly competitive process and guaranteed the best value for ELeP.

As well as dramatically cutting the cost of the procured goods, ELeP has also achieved big savings by streamlining processing costs. The average cost of ordering and paying an invoice is £60. With around 30 individual stationery suppliers used by the three authorities prior to the reverse auction, a central stationery contract with one supplier has resulted in a massive reduction in the number of received invoices and processing time and cost. It has eliminated maverick spending and enabled officers to concentrate on delivering front-line services.

Tom Middlehurst, Deputy Finance Director, Rossendale Borough Council, said: “E-procurement is high on ELeP’s agenda. It’s a core requirement of the Government’s IEG and Modernising Government targets and it also delivers a quick and effective way to achieve big savings through the use of technology. UKprocure Systems has helped us achieve the benefits we wanted from our first eAuction. They utilised their proven track record in local government, knowledge of the supplier base and software solutions to deliver a seamless, results-focused event. We now have a business case to progress this innovative procurement method into other areas of our business.”

The reverse auction was hosted by UKprocure Systems and ran on UKprocure Systems reverse auction software, which is based on Oracle’s Exchange and Sourcing modules, from the Oracle E-Business Suite.

Shish Lal, CEO, UKprocure Systems said: “ELeP is a forward thinking and innovative partnership. The member authorities have demonstrated how to combine both collaboration and the effective use of information technology to deliver benefits to local government and the taxpayer. In doing so, ELeP is putting into practice the government’s agenda to improve procurement practice and to deliver value for money from the increased investment in public services.”

ELeP is now working with UKprocure Systems and consultants Deloitte & Touche to identify other suitable areas for reverse auctions. UKprocure Systems has also been chosen as the preferred supplier for ELeP’s e-marketplace, which will enable the authorities to reap the considerable benefits of e-procurement, from sourcing to payment.

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About UK Procure

UKprocure Systems (www.ukprocure.com) is the leading supplier of end-to-end procurement solutions to the UK public sector, with an emphasis on healthcare, local government and education. UKprocure Systems provides managed services and hosted solutions that support the full procurement process, from sourcing and managing to ordering and invoicing. Its industry-leading eSourcing and eMarketplace solutions, which are based on the robust Oracle platform, are reinforced by UKprocure Systems consultancy services and unrivalled knowledge of the public sector supplier base and business processes. UKprocure Systems enables its customers to achieve dramatic cost savings through the transformation of the procurement process, savings that can be re-deployed to improve front line service delivery. At the same time, UKprocure Systems innovative solutions help public sector organisations meet Government targets for Modernisation, Best Value and Collaboration.

For more information please contact:
Tara Williams
UKprocure Systems
T: 020 7936 9489
M: 07976 906673
E: tara.williams@ukprocure.com

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