e-Procurement
Government targets indicate that all local authorities were required to have some type of e-Procurement in place by the end of 2005, and that they must be using an appropriate e-marketplace by December 2006.
Lambeth Council has met the first target and is committed to achieving the second. We are also committed to making it easier to contact the businesses and the public via the internet.
We view the e-Procurement initiative as a joint, mutually beneficial venture between the council and its suppliers. e-Procurement will ensure faster payments to suppliers, reduce administrative work, and facilitate easier and more accurate information management for all parties.
What is e-Procurement?
e-Procurement is electronic purchasing: buying goods and services via electronic means (over the internet or through email, for example).
e-Procurement does not necessarily require new or advanced levels of technology: suppliers to Lambeth will not have to implement new or expensive systems to continue supplying us.
Why e-Procurement?
The government has established targets for the implementation of e-Procurement systems and realisation of the cost benefits therein. These targets are based on independent research which shows that best practice procurement coupled with e-Procurement can achieve £1.1 billion savings across government.
The benefits of a fully integrated electronic procurement system are many, for all parties concerned. Lambeth Council’s commitment to implement e-Procurement systems stems from our determination to streamline interaction between suppliers and bring cost and efficiency benefits both to Lambeth Council and the suppliers we deal with.
e-Procurement will ensure that orders are processed more efficiently, errors are eliminated, the payment process is sped up, more accurate management information is provided for all parties and that we help facilitate a paperless office environment.
Through such means we also aim to achieve the Office Of Deputy Prime Minister (ODPM) targets of "Promoting the economic vitality of localities . . . including Small and Medium Sized Enterprises (SMEs) in e-Procurement programmes," in order to "promote the advantages of e-Procurement to local suppliers and retain economic development benefits within the local community."
How will it work?
Lambeth uses the Vantage Marketplace, which acts as the hub for transactions between the council and its suppliers. This allows council staff to place orders using catalogues or other information provided by its suppliers, or using a link provided by Vantage to a supplier's own website.
The council has also implemented Oracle i-Procurement, which enables full integration between Payments, General Ledger and Purchasing. Suppliers choose their level of integration with Vantage: from simple registration, to ensure purchase orders are received (in any format); to establishing an eCatalogue and a fully electronic 'purchase-to-pay' process, including the ability to send electronic invoices.
What is Vantage Marketplace?
Vantage Marketplace is an internet-based secure connection through which Lambeth can buy goods and services from its suppliers and facilitate any electronic processes (ePurchase orders, eInvoices etc).
The core aspects of the Marketplace which Lambeth are targeting for supplier adoption in the mid-term are eCatalogues, ePurchase orders and eInvoicing. It is anticipated that by using the Marketplace in conjunction with Oracle the council will achieve its goal of a fully electronic ‘purchase-to-pay’ process.
Do suppliers have to use e-Procurement?
While it is Lambeth's intention that all purchasing will be carried out electronically as soon as possible, we recognise that not all suppliers are yet fully prepared for e-Procurement. Hence the Vantage e-Procurement system has solutions to accommodate everyone, whatever their level of preparation.
Suppliers do not currently have to be e-enabled to have their details loaded onto Vantage Marketplace: purchase orders can still be faxed, emailed or posted. However, the council will need to add its suppliers' and order data onto Vantage Marketplace, and also ensure that such information is kept up to date for existing suppliers. We cannot do this unless suppliers give us some basic information and consent for their details to be loaded onto the system.
How much will it cost?
There need not be any cost to suppliers in integrating with Vantage Marketplace, depending on their level of e-Procurement preparation and take-up.
Vantage has a scale of annual license charges for those suppliers who choose to take advantage of improved efficiency schemes offered by e-Procurement. However, as Vantage is a hosted system there is no requirement for additional investment in specialist hardware or software.
I need to know more, who do I contact?
If you require more details on Lambeth Council’s e-Procurement strategy, or are a current supplier and ready to implement e-Procurement solutions together with Lambeth, we are available to assist.
Please refer to the links on the right for further information, or feel free to email us at eprocurement@lambeth.gov.uk
Investors in People (IiP) is a national quality standard which sets best practice for improving an organisation’s performance through its people. Lambeth achieved corporate IiP recognition in December 2004. Few other councils have achieved corporate recognition.