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tGov Procurement

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Quotes. E-sourcing systems. Marketplace or other P2P enabled system. 20% Authority Spend ... 70M savings by October 2008. 4. p-Cards - National Savings Potential ... – PowerPoint PPT presentation

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Title: tGov Procurement


1
1
t-Gov Procurement NePP National Conference
Exhibition 2006
p-Cards - Realising the Benefits
David Pointon Lead Officer, RCEs Commodities,
Goods
Services Work Stream 7th December 2006 Russell
Hotel, Russell Square, London
2
2
e-Procurement - Automated Infrastructure
Marketplace
National / Regional / Sub-regional deals
E-auctions / Collaborative arrangements
80 Authority Spend
20 Authority Spend
Environment, Social Care, Highways / Engineering,
Leisure, Facilities Management, Construction
Stationery, Office Equipment, IT Hardware /
Consumables, Work Wear, Mobiles
Suppliers
Invoices
Payments
Orders
Deliveries
Invoices
Payments
Bids
Service Delivery
Performance Management
Tenders
RFQs
Quotes
Authority
Commissioning Contract Managers
Users
E-sourcing systems
E-auction software
Marketplace or other P2P enabled system
P-Cards
3
3
e-Procurement - National Savings Potential
358M savings by October 2008
4
4
p-Cards - Implementation Targets
70M savings by October 2008
5
5
p-Cards - National Savings Potential
Potential realisable efficiencies on the
elimination of paper based administration
(estimate 20 of the 20M manual invoices
processed by LAs annually could be transferred
to p-cards saving 10 per transaction) would
generate 40M savings.
6
Purchase Cardsand Social Care
6
t-Gov Procurement NePP National Conference
Exhibition 2006
Nick Vickers Head of Financial Services, Kent
County Council 7th December 2006 Russell Hotel,
Russell Square, London
7
7
Purchase Cards Social Care
  • Background
  • Transaction Data Matching (TDM)
  • Kent Card

8
Background
8
9
9
Drivers
  • eProcurement Strategy
  • Social Care specific issues

10
10
What is Domiciliary Care?
  • 36,000 clients helped to live at home 9,500
    receiving care packages at any one time.
  • Older people, learning disability, physical
    impairment, mental health difficulties.
  • Care Managers within KCC commission the care from
    private sector providers.

11
Transaction Data Matching
11
12
12
Payments to Domiciliary Care Providers
  • 70 care providers in Kent.
  • 24,000 invoices annually.
  • Manual invoice checking and certification
    process.
  • Payment delays
  • Supplier frustration
  • Compliance with Government Payment Directives.

13
13
What is TDM?
  • Outsourced, automated payment and data matching
    solution.
  • Developed with RBS and PCCL.
  • Electronic process.
  • Embedded OGC/Visa card.
  • 3-4m per month being transacted.
  • Fully implemented.

14
14
TDM Process
Supplier
KCC
Electronic invoice file
Care management orders
3rd party matching process by PCCL
Management information to KCC
Payment to supplier
KCC pays bank
15
15
Kent County Council Benefits
  • Only 1 invoice per month.
  • Efficiency savings - 700k per annum (non-
    cashable).
  • Streamlined purchase to pay process.
  • Increased level of control.
  • Meets eGovernment targets.
  • Meets Government payment requirements.
  • Environmental benefits.

16
16
Supplier Benefits
  • 2-4 day payment better cashflow.
  • No queries / hold up in payments.
  • Administratively simpler.

17
17
Issues
  • Commitment from the top within KCC.
  • Commitment of partners.
  • Winning over care providers.
  • Merchant Service Charge.

18
Kent Card
18
19
19
Why?
  • Reducing dependency.
  • Giving individuals greater choice.
  • Technology as a means to and end.
  • Increase take-up of Direct Payments.
  • Ambivalence of UK banking sector to client group.

20
20
What is Kent Card?
  • Pre-loaded corporate card.
  • Visa badged and KCC branded developed with RBS.
  • Allows for individual top-up and internet
    facility.
  • Clients pay electronically for services from Visa
    enabled organisations.
  • Clients can draw cash.
  • Serviced by 24/7 KCC Contact Centre.
  • Target 5,000 clients.

21
21
Benefits
  • Ownership by the individual.
  • Empowering the individual.
  • Easier administration for the individual.
  • Available to more vulnerable clients.
  • Reducing Adult Services administration.
  • Better value purchasing?
  • Meeting Government targets.

22
22
Issues
  • Technology.
  • Compliance with Financial Services Authority
    requirements Know Your Customer.
  • Customer service support.
  • Care manager buy-in.
  • Client buy-in.

23
23
Key Contacts
24
24
t-Gov Procurement NePP National Conference
Exhibition 2006
GPC Cost Modelling
Eychelle Heywood Procurement Consultant,
Portsmouth City Council 7th December 2006 Russell
Hotel, Russell Square, London
25
25
Background
  • Purchasing cards at Portsmouth City Council
  • - Commenced in 2004
  • - Initially 60 cards (increased to 87)
  • - Across all 5 directorates, including social
    services, procurement, financial services and
    schools
  • - Used to compliment Oracle financial system by
    removing low value / low volume transactions
  • - Cardholder benefits clearly demonstrated and
    irrefutable. Financial appraisal considered by
    finance colleagues to be inconclusive.

26
26
Project Aims
  • Develop a working model to enable Authorities
    Organisations calculate the potential Gains from
    the adoption of GPC
  • Identify Cashable Savings
  • Identify Efficiency Savings (Non Cashable)
  • Identify potential Environmental Benefits

27
27
Process
Analyse Procurement Process
Output Report To support Business Case
Confirm
Analysis Spend
Complete Cost Model
Identify Current Costs
28
28
Procurement Process Analysis
  • Identify the various procurement process
  • Classify between
  • Petty Cash
  • New Supplier engagement
  • Basic Process
  • Standard Process
  • Advanced Process
  • Confirm process Participants and Action Timings

29
29
Process Timings
30
30
Spend Analysis
  • Full spend analysis
  • Identify Third Party Suppliers
  • Spend and Transaction details
  • Set low value limit 5000 to 1000 per
    transaction
  • Confirm Target for GPC

31
31
Supplier Analysis
32
32
Transaction Analysis
33
33
Identify Costs
  • Costs
  • Stationery
  • Telephony
  • Financial Transactions
  • People Costs engaged in the process
  • Overhead Allocation
  • Storage

34
34
Cost Model
  • Requires an understanding of the detailed
    procurement to pay process
  • Requires understanding of the procurement
    portfolio
  • Enables review of procurement process to identify
    duplications and in efficient processing prior to
    GPC implementation

35
35
Next Steps
  • Sign off by sponsors
  • Proving by current GPC users
  • Review of cost model process by Audit Commission
  • Make available for general use

36
36
Potential Benefits
  • Identification of potential Cost and Efficiency
    savings focused on the organisations practices
    rather than standard figures e.g. 28 / 33 per
    GPC transaction.
  • An effective Procurement Finance Tool to manage
    tactical and strategic procurement relationships.
  • Identified target reductions in paper/postage
    /agency staff costs and other environmental
    benefits.
  • Clear vision for your business case / project
    support.

37
37
Questions
  • When available? Target Q12007
  • NePP website

38
38
t-Gov Procurement NePP National Conference
Exhibition 2006
Procurement Cards Guidance
Ian Makgill Director, Ticon UK Ltd 7th December
2006 Russell Hotel, Russell Square, London
39
Why publish more guidance?
39
  • p-Cards are still important National Procurement
    Strategy, BVPI8, e-Gov, Efficiency Review, latest
    white paper.
  • This is a detailed implementation guide with
    practical advice.
  • Provides advice on how to progress from business
    case to benefits, including how to counter likely
    resistance points.
  • Can be used as a reference manual.
  • I wish this had been available 3 years ago when
    I started our programme, I've found it very
    thorough. Simon Blackman, Wycombe District
    Council.

40
40
How was the guidance developed?
  • Existing guidance was collated to identify
  • What was missing (implementation advice,
    countering objections)
  • What could be included from previous materials
  • Interviews with key stakeholders
  • Programme managers in local authorities
  • Managers in banks and at Visa
  • Day to day work with councils
  • Awareness of new developments in the market
  • Understanding of the issues that councils face
  • Thorough review process with councils and other
    stakeholders.

41
41
What is in the guide?
  • Business case
  • Analysis, estimates, building a case
  • Managing objections
  • Fraud, spend control, management info, cards
    finance
  • Buying a solution
  • Buying a card service, buying software
  • Implementing a programme
  • Resourcing, preparing, suppliers, set up, rollout
  • Running a programme
  • Managing monitoring, contract compliance,
    benefits

42
42
Who is it for?
  • Executive summary
  • Members, CEOs, Senior managers
  • Detailed guidance
  • Procurement business case, contract compliance
  • Audit fraud, spend controls
  • Finance monitoring, commitment a/c, VAT
  • IT implementation
  • Efficiency managers benefits, processes,
    recovery
  • Project managers preparation, set up, roll out
  • Departmental managers managing monitoring
  • Internal communications roll out

43
43
Latest Developments
  • New software solutions
  • Commitment accounting and p-cards available
  • Integrated order and invoice management available
  • Pre-pay in social services
  • Developments for suppliers
  • Increasing numbers offering level 3 data
  • Becoming a merchant is becoming cheaper
  • Wider range of acceptance options
  • GPC
  • Contract extended to 2010
  • 750 programmes live
  • Free web-based reporting software available

44
44
What next?
  • Those without p-cards
  • Use the document to create a debate on how
    p-cards could be used in the organisation
  • Draft a business case for using cards
  • Those who are planning to implement p-cards
  • Cross check the plans you have for implementing
    and managing the programme against the advice in
    the guide
  • Those with cards
  • Review the programme you have look for
    opportunities to recover benefits and extend the
    programme.

45
45
Any questions?
  • Other resources
  • GPC Annual Reports www.ticon.uk.com
  • Visa acceptance database www.visaeurope.com
  • Online business case tool www.purchasingcard.inf
    o
  • OGC.Buying.Solutions www.ogcbs.gov.uk
  • Ian Makgill, Ticon UK Ltd
  • 146 Strand, London, WC2R 1JD
  • 44 (0) 20 7836 1999
  • ian.makgill_at_ticon.uk.com
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