Archive for the ‘E-procurement News’ Category

Ealing Council ahead of the game when it comes to simplifying government procurement

Thursday, December 16th, 2010

Last week John Collington, the Head of Procurement for the Cabinet Office’s Efficiency and Reform Group (ERG) and Chartered Institute of Purchasing and Supply CEO, David Noble, announced they were joining forces to help improve public sector buying. Their aim is to transform how government buys common goods and services through centralised category management, standardisation of specification, and aggregation of spend, to deliver savings from the baseline of £13 billion, in the region of 25 per cent over four years.

This collaboration follows John Collington’s announcement at London’s Efficiency, Reform & Accountability conference on 24 November, where he informed delegates of his plans to address 9 core spending areas, including office supplies, print management, advertising and media, by September 2011.

This is good news for Claritum, given our experience and success in the public sector, and one of our public sector clients, Ealing Council, is excited to be ahead of the game.

Having used Claritum since 2008 Ealing Council has been able to demonstrate the benefits of Claritum for some time, and the Council is now embarking on deployment of additional functionality, after reaching out to Claritum for ideas of how best to deliver additional cost reduction and value for money.

Claritum proposed a complete solution for Ealing encompassing branded templates, user portal interface, internal print management and costing and charging. This was to be added to the existing Claritum deployment which ensures sourcing and procurement meet corporate requirements and deliver best value on every transaction. A combination of matrix and bid costings covers a wide range of media from photography and design to complicated mailings and distributions. An interface to internal council systems provides semi-automated financial transactions.

The bottom line benefits to Ealing will be further cost savings and process efficiencies. Less tangible but increasingly valuable benefits will be derived from strengthening the Ealing brand and improving the effectiveness of communications media.

Ralph Brandhorst, Senior Production Manager for Ealing Council said, ”we estimate the reduction in direct and indirect costs will be many times the costs of the system improvements as well as providing many non cost benefits. It is an area many public sector organisations are looking at”.

The London Borough of Ealing is the largest in west London, third largest of the London boroughs, with 310,000 residents, 13,365 businesses and a budget of £266 million.

Former Home Office group commercial director John Collington became the most senior procurement figure in the UK government on 1 September when took up his current role. His remit is to spearhead a cross-government approach to procurement and its supply chain to make the best use of its combined purchasing power and get better value for money.

Top Tips for a Successful Spend Analysis Project

Thursday, December 2nd, 2010

In our experience of spend analysis projects for complex categories, especially marketing services and print, it can be daunting to know where to start.  Follow these top tips from Claritum for a successful outcome with meaningful and actionable information.

  1. Do something! Don’t assume this category is too complex to get the information you need.
  2. Clearly define your objectives before you embark on your project.  Decide what business decisions you want to make as a result of your spend analysis, and ensure you develop a framework that will give you the information you need.
  3. Gain senior procurement and marketing buy-in early, as you may need a champion to push through change further down the line.
  4. Engage independent category specific and vendor neutral experts, not generalists or those eager to win your contract.
  5. Segment spend groups at both broader and more detailed levels. You will want to be able to roll up and drill down spend detail by carefully identified categories.
  6. Be wary of invisible costs.

Good luck!

For more tips on conducting a successful spend analysis project download the Claritum White Paper: Spend Analysis for Complex Categories at: http://www.claritum.com/info-centre/white-papers

How The London Borough of Ealing are planning significant savings and efficiencies

Tuesday, October 19th, 2010

 The London Borough of Ealing is the largest in west London, third largest of the London boroughs, with 310,000 residents, 13,365 businesses and a budget of £266 million.
With increasing pressure to deliver cost reductions and value for money across the organisation, Ealing are looking at improving processes to drive cost savings and efficiencies. 
Ralph Brandhorst (senior production manager), in the central Marketing & Communications department is working with Claritum to develop systems and processes that will reduce time/costs associated with designing and producing all documents and any marketing and communications media. Within any organization there exists the hidden cost / time executives spend creating documents and ensuring they meet corporate branding guidelines, which could be reduced and used to make a greater contribution to service objectives.
To address this Claritum are proposing a complete solution for Ealing that encompasses branded templates, user portal interface, internal print management and costing and charging. This can be added to the existing Claritum deployment which ensures sourcing and procurement meet corporate requirements and deliver best value on every transaction. A combination of matrix and bid costings covers a wide range of media from photography and design to complicated mailings and distributions. An interface to internal council systems provides semi-automated financial transactions.
The bottom line benefits to Ealing are cost savings and process efficiencies. Less tangible but increasingly valuable benefits will be derived from strengthening the Ealing brand and improving the effectiveness of communications media.
 
Ralph Brandhorst said “We estimate the reduction in direct and indirect costs will be many times the costs of the system improvements as well as providing many non cost benefits. It is an area many public sector organisations are looking at”.
 
Phil Martin, Marketing Manager of Claritum said: “With the pressure on public sector spending we are delighted that Ealing are seeing real tangible efficiencies and savings from using Claritum. Our public sector clients are all reporting similar benefits and provide a best practice template for other local authorities. It is clear that the successes we have seen at our public sector clients provides proof that significant, measurable and sustainable value for money can be achieved from print, marketing and document services. We are seeing an unprecedented level of interest from councils, universities and other non for profits right across the country.”

Sir Philip Green “Government spending up to 80% above market rate on printing”

Tuesday, October 12th, 2010

The government is paying up to 80% above market price on many print jobs adding to a total annual print spend of £104m, according to Sir Philip Green’s review of Whitehall spending.

Green’s report into government efficiency, which was published this week, found that the prices paid by government for commodity purchases are often far from competitive.

He identified the lack of a centralised approach to buying goods and services, which has failed to leverage the buying power of the public sector and resulted in departments paying hugely different prices for the same items.

The capability of print buyers varied greatly across government departments while buying processes were often inconsistent, the report said.

Green added: “There is no reason why Government should not be as efficient as any good business.  Any large organisation would want to use its credit rating and scale to buy efficiently.

One of the  conclusions of this review is “scale”.  Every department has not been used to make Government spending efficient.”

Among his recommendations to the government, Green advocated centralised procurement, the production of accurate spend and consumption data, managing down demand and specifiations, and pricing common items at the same level for all central government departments. This can be achieved through the use of technology such as e-Procurement.

Local authorities such as Ealing Enfield and Greenwich Councils have adopted such technology by implementing Claritum, which has streamlined their sourcing, procurement and invoicing processes, leveraged their in house expertise and optimised communications with external suppliers.

The software-as-a-service solution automates much of the process of specifying, costing, ordering and invoicing marketing print, stationery, documents, reprographics and creative services. The application can be deployed to large number of users from customers and budget holders to expert buyers and suppliers. Management have control over spend limits and controls and have real time management information to monitor performance across the supply chain. Claritum integrates with most leading ERP and financial systems such as SAP, Oracle, JD Edwards and Agresso.

More Pressure on local Governments.

Wednesday, September 22nd, 2010

Chancellor George Osborne is due to deliver his Spending Review on Wednesday 20 October.

The June 2010 Budget said that departmental spending would have to be cut by £50bn a year by 2014/15, compared with 2010/11 levels

These cuts are putting even more  pressure on the public sector and Government Offices to improve efficiencies and drive better value for money procurement than ever before.

A survey from the Chartered Institute of Purchasing and Supply in the UK suggested that as much as 60% of corporate spend is uncontrolled, meaning it does not have proper management approval and it cannot be properly accounted for.

As a consequence, many not-for-profit organisations are adopting Print Spend Management solutions in a bid to take control of expenditure, improve cost-base visibility and ensure that value for money is truly achieved.

By deploying Claritum’s Print Sourcing and Procurement platform, sustainable and measurable value for money can be achieved from a combination of price reductions, process improvements and minimised wastage, avoiding costly and disruptive outsourcing.

A variety of public sector and local government authorities are already using the system

Phil Martin Marketing manager said; “Local Authorities are seeing real tangible efficiencies and savings from using Claritum . It is clear that the successes we have seen at our other public sector clients provides proof that significant, measurable and sustainable value for money can be achieved from print and document services.

Our Local Council Clients are able to do Much more with less resource.

We look forward to the possibility of shared services. This will benefit all local Councils who are using Claritum

59% Of US Companies see Cost Savings and Process Efficiencies as their key priority in the procurement of print.

Wednesday, April 28th, 2010

Initial research conducted by Claritum has shown that 59% Of US Companies see Cost Savings and Process Efficiencies as their key priority in the procurement of print.

Claritum (in conjunction with UK Trade and Industry) surveyed over 200 US Companies with a view to better understand their views on the procurement of indirect and complex categories.
The majority of those who responded (87%) spend between $3 and $10million on complex, indirect categories such as print and related services.

73% from the returned sample believe that effective print buying is just as important as any other indirect spend.

When asked about how print is purchased within their organisation, 68% were still using manual processes by either a central procurement function or the individual who has the need, with only 16% using and automated ERP or procurement platform.

The majority of companies indicated that cost saving and reducing the over all indirect spend (32%) as their top priority. Improved efficiency and effectiveness was also important (27%)

41% stated that granular/real-time visibility of indirect spends was “Very Important” where as 29% thought cost saving through competitive bidding was “Very Important”

72% felt cost savings through process automation was “Somewhat Important”

However 62% believed that monitoring buyer and supplier performance was “Medium to less important”

The survey is still available to complete, For Companies still wishing to take part, please follow the link - http://freeonlinesurveys.com/rendersurvey.asp?sid=fnrx31na32o8hf9726068

Managing Services Procurement Categories

Thursday, February 18th, 2010

New research by Spend Matters  suggests that organisations collectively spend over a trillion dollars per year on a range of services categories. From legal to marketing to print to outsourcing, organisational spending across a breadth of often complex and hard-to-manage services categories typically is large - significantly larger than most companies realise before analysing it - and decentralised. When companies first start to tackle complicated services categories, one of the major challenges they discover is that price is often just one component of many that factor into services spending decisions.

 

For a full look at the findings please log onto -  http://www.spendmatters.com/library/

Universities struggle with budget cuts.

Wednesday, February 3rd, 2010

The Department of Innovation, Universities and Skills (DIUS) has been instructed to save £1.9bn, including £400m in 2010-11, mainly through making the research councils, universities and colleges “more efficient” as a result of the 2009 budget.

Universities are worried that the savings will lead to a reduction in their overall funding, particularly for teaching, and for widening participation to low-income families and ethnic minorities.

Universities have been hard pressed to “do more with less.” With this backdrop, it not surprising for the public sectors to follow the lead of private companies in using advanced Sourcing and purchasing technologies hitherto available only to large organisations to drive down cost and improve efficiency.
With an On-Demand deployment model, companies pay predictable fees to gets the results of efficient strategic sourcing and competitive bidding without worrying about managing software and hardware or stretching their already slim IT staff to manage the technology infrastructure.

More and more Education and public sector organisations are using the power of these new Spend Management delivery platforms to achieve significant savings that can then be put to work in other areas. And the added intangible is that it also makes the Sourcing process more transparent.

James Samuels, CEO of Claritum Said - “We’re seeing huge demand for our SaaS spend management application from both private and public sectors. The combination of spend analysis, sourcing, e-procurement, supplier network and catalogue delivers significant and measurable benefits.

Our clients love the low upfront costs, small ongoing commitment leading to a quick ROI and significant hard cash savings. We have a number of leading Universities using the Claritum System, that have announced 17-25% savings and there’s more to come

Cost of NOT Using Modern Supply Chain Systems: 6.8 Billion

Monday, November 30th, 2009

A recent article on CNN Money that noted that  US retailers lose $6.8 Billion a year due to poor  processing, supply chain errors, and frauds which could be eliminated with good systems and processes.

 
There’s should be no excuse for any sourcing, procurement and processing errors. Good end-to-end e-Procurement systems can match every invoice against the purchase order and contract and make sure you’re only paying for what you ordered at contracted rates. Good forecasting and inventory tracking systems will prevent costly errors. And good visibility systems will allow you to spot any exceptions as soon as they occur and stop frauds, and fraudsters, in the act.

 
The reduction in loss alone over their service life-time will more than pay for such a system. (Not to mention the savings that a good sourcing, e-procurement, or inventory system can help you identify!)

Cost-cutting remains top priority

Wednesday, November 11th, 2009

Cutting costs will continue to be the most pressing issue for purchasing next year, according to a poll of delegates at the ProcureCon conference in Brussels this week.
 
In response to the question “What is the key issue for your department in 2010?”, almost one-third (32 per cent) said it was reducing costs by 5 per cent or more.

Managing risk and maintaining continuity of supply was voted the second most important issue.

Asked “What has helped increase your organisation’s efficiency most?”, 36 per cent gave the answer SRM, while 20 per cent said shared service and purchase-to-pay technology has proved most effective. For 16 per cent, outsourcing and offshoring had led to greater efficiency and a further 16 per cent had seen the greatest improvements through e-sourcing and e-auctions.