GOVERNMENT PROCUREMENT CARD

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GOVERNMENT PROCUREMENT CARD
Presentation to LUPC Members August 2003
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PRESENTATION BY
Alex Haslam - MCIPS GPC Programme
Manager email alex.haslam_at_ogcbs.gsi
.gov.uk Mobile
07770 73351 Customer Service Desk 0870
268 2222
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DISTINGUISHING FEATURES

• Executive Agency of the Office of Government
  Commerce in
• HM Treasury
• A professional procurement agency
• Non profit making
• Totally impartial
• Self-financing government trading fund
• Driven by Ministerial targets - Customer
  Satisfaction - Productivity - Internal
  Quality
• 1.3b buying power

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OUR PURPOSE.

• to help civil central government and the wider
  public sector to achieve measurable cost savings
  and valuefor money
• Through
• the provision of expert procurement and contract
  management services and a range of pre-tendered
  direct call-off contracts

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GOVERNMENT PROCUREMENT CARD

• Original GPC contract launched October 1997 by HM
  Treasury for use by CCG, its Agencies NDPBs
  only - based on VISA Purchasing card system
• AIM To increase efficiency in the purchasing
  process in Civil Central Government
• New Contract awarded to VISA in December 2002 for
  5 2 Years available to the wider Public
  Sector
• Fully approved by National Audit Office (NAO)
  HM Treasury
• FREE Core Service

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TRAVEL SUBSISTENCE (TS) CARD

• Separate product for TS Launched April 2000
• Addendum to the current GPC Master Agreement
• Providing
• Non-Branded Plastic
• Travel Insurance on Travel Purchases
• Clear definition between GPC TS spend
• Management Information on TS spend
• Different tool for different users

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TYPICAL PURCHASE TO PAY PROCESS
13 STEPS -v- GPC 6 / 7 Steps
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GROWTH STATISTICS JULY 02 to JULY 03
July 02 July 03
Increase in Number of Cards 34,000 42,000
22 Total Spend 277M 583M
89 Total Savings 53M 104.5M 76

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GPC EXAMPLES OF USE

• GPC is now used across a wide spectrum of
  suppliers
• For example
• Stationery Training courses
• Computer supplies Travel Subsistence
• Temporary staff Maintenance supplies
• Building supplies Conferences
• Books, periodicals

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CRITICAL SUCCESS FACTORS

• On time payments improved
• Process savings
• Greater visibility control
• Better MI
• Petty cash/FLOATS reduced
• End user/manager approval
• Better process
• Less admin paperwork
• Quicker payment
• Audit Assurance

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GPC BENEFITS - STRATEGIC

• Link to the Modernising Government agenda
• Most cost effective purchase tool for
  E-Commerce
• Reduces costs
• Drives out inefficiency

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GPC OPERATIONAL BENEFITS TO USERS

• Reduction in ordering time processes - Reduce
  the number of invoices processed by up to 90
• Improved Management Information
• Clearly defined GPC TS Spend
• Empowered staff with Accountability
• Enabling concentration on high value purchases
• Easy to order / purchase / pay
• Improved supplier relations

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GPC OPERATIONAL BENEFITS TO USER (cont)

• Financial transparency accountability
  audit trail management information
• Meet Prompt Payment Targets
• Avoid interest charges under the late
  payments act
• Modernising Government streamline
  procurement process
• Joined up government procurement
• Environmental savings through paper
  reduction
• Frees time to concentrate on core activities
• GPC / Corporate accepted at 700k UK
  locations
• Single monthly consolidated invoice

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ENVIRONMENTALLY FRIENDLY

• Every transaction saves at least 6 pieces
  of A4 paper
• 11,500 pieces of paper 1 tree
• WHICH MEANS THAT.
• Over 1,948 trees saved to date !!!!!

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BENEFITS TO SUPPLIERS

• Reduction in ordering processing costs
• Stronger customer relationships
• Payment in 3-4 working days
• Improved cash flow
• Reduced need for credit control
• Less Paperwork
• Replaces non cost effective systems processes
• Increased opportunities with Government
• Increased business opportunities

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SETTING UP ADMINISTERING A CARD PROGRAMME

• GETTING STARTED
• Identify Aims
• Analyse Spend Profile
• Determine Low Value
• Secure Authority
• NEXT STEPS
• Select Bank
• Set up agreement with bank
• Supplier Recruitment
• Prepare Instructions for cardholders and managers

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NEXT STEPS (cont)

• Train cardholders and managers
• Issue instructions clarify parameters
• Emphasise risk elements
• Ensure structure in place
• Instructions to Cardholders
• Include
• Copy of transaction log
• Advice on Suppliers
• Advice on what to buy
• End to end process description

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ROLES RESPONSIBILITIES

• Programme Manager
• issue cards
• ensure cardholder trained
• scrutinise log sheets
• Certification
• identify problems and suspicious entries
• escalate problems
• ensure reporting e.g. lost/stolen cards
• Cardholder - as defined

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ROLES RESPONSIBILITIES (Cont)

• OGCbuying.solutions
• Liaison with Visa - Banks Organisations
• Raise issues with Visa and banks
• Disseminate information and guidance
• Advice and Guidance for new and existing
  programmes
• Policy and instruction updates
• Development of Good Practice

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ROLES RESPONSIBILITIES (Cont)

• OGCbuying.solutions
• Maximise benefits
• Organise User Groups, Working Groups Best
  Practice Workshops
• One to ones with Programme Managers
• Supplier Initiatives Retail Trade Services
  (B2B)
• Sharing experience throughout EU and beyond

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SUMMARY

• Simple Solution
• Quick return
• Minimal implementation and ongoing cost
• Planning and attention to detail (essential to
  the success of any proposed programme)
• Commit and Start to Benefit !!!