Hampshire councils make savings with e-procurement

Hampshire councils are saving thousands of pounds a year with an e-procurement system.

Hampshire councils are saving thousands of pounds a year with an e-procurement system.

Five out of the eight councils forming what is known as the Hampshire Marketplace have now implemented EGS' IDeA:marketplace to automate buying processes, and buy goods and services cheaper and more efficiently.

Hampshire Marketplace was formed in 2005 to generate savings, and the councils that have gone live have already seen significant reductions in procurement costs.

Despite warnings that some companies may take longer than expected to reap rewards from e-procurement systems, many businesses have reported huge savings.

The councils involved are Basingstoke and Dean Borough Council, New Forest District Council, Fareham Borough Council, Gosport Borough Council, and East Hampshire District Council. Test Valley Borough Council, Rushmoor Borough Council and Eastleigh Borough Council will go live in the coming months. Hampshire County Council is project managing the scheme.

Janet Barrett, procurement manager at Basingstoke, said the council is saving £81 per transaction and has made over 200 transactions this year so far.

Shaun Le Picq, procurement and development manager at Hampshire, said transaction costs had gone from £54 to £27, and said the new system gives smaller councils incentives to look at different procurement approaches.

Barrett said, "We are doing fairly well so far with £81 savings per transaction. We are now looking at rolling these savings out to other areas.

"We are finding that the authority is using the new system to look at efficiency in general. Our stationery deliveries have gone down from once a week to once a fortnight. We are also using the system to look at sustainable procurement."

The scheme will be fully rolled out over the next four years, and once completed, purchases of around £1.5m per year will be made through the system.

Read more on E-commerce technology