Helping the Public Sector achieve 17% Savings
The London Borough of Enfield is a 3 Star Council based in North
London with over 300,000 residents. The Council has prided itself in
leading many initiatives to the benefit of local tax payers. Following
the 2007 Spending Review, The Council implemented SAP to manage
e-procurement and was starting to see real value for money benefits.
One challenge, however was that the SAP application was not suitable for was the category of print and document spend. It was a significant and complex challenge due to the range of specification options, deadlines and supplier pricing meant that a catalogue approach just wasn’t powerful enough. Getting an accurate picture of how much was spent across the council and by whom was a major challenge as print was bought on an ad hoc basis by a large number of people without any knowledge or understanding of buying print, and of course, suppliers were eager to exploit this opportunity.
Not only that the Council’s procurement team took the opportunity to review the in-house printing facility. It had been producing all of the council’s work for many years but had dated, inefficient machinery, was under utilised and when compared to the commercial sector was expensive to run. The manual nature of the operation meant it could only service a limited number of council employees.
Enfield decided to proactively transform the print unit into a dynamic profit centre by separating print services and focusing on copying, scanning, 1 and 2 colour print, digital and outsourcing litho to a framework of approved printers.
To facilitate this change meant Enfield had to implement a sophisticated print procurement solution, to streamline the print supply chain and aid procuring, managing and paying for print.
After a thorough market review, The London Borough of Enfield selected Claritum. The Claritum application was deemed to be the most user friendly, capable and cost effective solution, with the flexibility to meet the wide variety of requirements but with the standards required to integrate with SAP.
The implementation team ran a phased deployment ensuring Claritum met each objective at every stage. Initially the application was deployed into the Print unit and was operated by the print team. This ensured that processes were efficiently transferred onto the software and efficiencies achieved. Combined with the newly installed digital equipment, the Council quickly started to see tangible benefits of low cost / quicker response for the 1 and 2 colour work.
Next the team deployed the Claritum software to the outsourced supplier network. A key challenge set by the procurement team was that tendered or historical prices from external suppliers were not to be exceeded, so the software had to allow buyers to compare spot prices and request-for-quote responses with the historical or baseline prices. It was quickly apparent that whilst initially suppliers were tempted to push prices up, the software ensured that buyers always had the opportunity to buy from contract rates when applicable or take advantage of available capacity in the market and buy on a spot rate. Instant savings were made and could be reported back to the procurement team.
Suppliers adopted the system quickly as they could see the speed and efficiency benefits to them. This capability enabled the council’s print buyers to easily source prices from approved suppliers and compare prices, not only across the framework of suppliers but benchmark against their own in house pricing. The Council’s internal customers saw immediate benefits of better prices and improved response.
Enfield are seeing the benefits of increased efficiencies and savings, and have cut the Councils print spend by 17%-20%.
The time taken to specify and gain prices either via contract prices or RFQ from the approved roster have been significantly reduced, and the print team has total transparency of the prices quoted. The purchasing team is satisfied that the prices submitted by suppliers in the tender are the maximum the Council will pay.
Catalogue rolled out over company intranet
The team extended the number of Council users by deploying Claritum’s catalogue capability by rolling out the catalogue as a service on the Council’s intranet.
5,000 users are able to log in and place orders
The system maximises efficiency of processing high volume / low value individual orders such a copying, scanning, laminating, print on demand, stock orders and variable data orders. Users see a price based on their requirements, so they can flex specifications in real time to fit their budgets.
Invoicing and Reporting
The orders are routed to the Print Services department or produced on demand by the incumbent litho supplier. The back office order processing has been streamlined to reduce administration and rekeying for the supplier, as well as auto-generating consolidated sales invoices and monitoring service performance through real time management information.