Hampshire County Council

Buildings, Land and Procurement Panel Item 9

15 January 2008

Corporate Procurement Update

Report by the Director of Property, Business and Regulatory Services

1.0

Summary

1.1

The last progress report on corporate procurement initiatives was made to the Panel at its meeting on 24 June 2007. This report provides a commentary on activity over the last six months and includes an updated schedule of the cashable savings identified for 2007/08.

1.2

The report also refers to the intention to participate in a Central Buying Consortium (CBC) contract for the supply of electricity for street lighting to take effect in April 2008.

1.3

The report has indirect links to the delivery of the Corporate Strategy, but requires a decision as it impacts on the management of the Council's resources and is part of the wider improvement and efficiency agenda.

Recommendations

That the Buildings, Land and Procurement Panel advises the Executive Member for Policy and Resources that approval be given to:

1. The improvement programme for corporate procurement

2. The Chief Executive being authorised to conclude contracts for the supply of electricity for street lighting

2.0

National Agenda

Policy Environment

2.1

CSR07 has introduced an `expectation' for collective cashable efficiency gains in local government of £4.9 billion over the next three years. This is equivalent to an annual gain of around 3% and three workstreams linked at a high level to local authority budgets have been identified:

· business process improvement, including collaboration £1.8 bn

· smarter procurement £2.8 bn

· asset management £0.3 bn

2.2

More specific information on procurement is expected in the new National Improvement and Efficiency Strategy, but it is already clear that procurement is expected to play a key role across local government through initiatives on construction, care, waste, goods and corporate services. Members will be aware that the Regional Centres of Excellence are being merged with Improvement Partnerships into Regional Improvement and Efficiency Partnerships (IEPs). The South East IEP (SEIEP) has the task of completing a strategy for the region early next year and this will be developed from bids submitted by the various component partnerships such as the Hampshire Improvement Board (HIB) and the SECE workstreams.

2.3

The Audit Commission (AC) and the Public Accounts Committee have expressed reservations about some of the efficiencies claimed by government departments and local authorities during CSR04, but the AC has also produced summaries of where efficiencies have been identified. These along with annual efficiency statements are a useful (if unwieldy) resource, but they acknowledge that `better' procurement means much more than simply `buying better'. This is illustrated by work done on `Healthy Competition'. This document by the AC finds that market mechanisms accounted for almost one-third of the reported savings in corporate services (£80 million) over the two-year period 2004/05 to 2005/06 as in the chart below:

2.4

The AC also note that in Best Value, Competition was the least well-used of the 4 Cs and suggest that competition and contestability will have to play a significant role in future. Expectations of shared service arrangements appear (at least currently) to be fairly low and there is more emphasis on examples such as the re-provisioning of home care and introducing challenge and competition into weak markets (e.g. waste collection and passenger transport services). As the Council develops its efficiency delivery plans and as the procurement review programme moves forward, these issues and the output of the work commissioned from Mott MacDonald/ RSe Consulting Limited will need to be considered further.

e-Procurement Initiatives

2.5

The Secondary and Primary Heads Resources Groups have in principle agreed to support a Procurement Card pilot in schools. It is intended that the cards should be used for ad-hoc and specialist purchases only, remove the need to use personal credit and debit cards and reduce the use of petty cash. The card will improve the efficiency of the procurement process in these areas, whilst still maintaining appropriate levels of control and transparency of purchasing arrangements.

2.6

The Joint Working Party established with third-party providers of domiciliary care continues to research and develop the business case for the use of `virtual' procurement cards for invoicing and payment. The Joint Working Party has recently visited domiciliary care providers in Kent where this invoicing and payment scheme is in use. The County Treasurer's Consultancy Team is assisting with the provider-side of the business case and the whole document is expected to be completed by late January 2008.

2.7

The direct ordering link to two corporately contracted suppliers (Dell and Supplies Team) is now live and is being piloted by Education ICT (EdICT). To date 279 purchase orders have been raised in this way (with a total value of over £420,000). This new process has proved successful and it is planned to extend this pilot to IT Services in the next few months.

2.8

The Corporate Procurement team is assisting Adult Services with their requirements for a contract management system to replace, and improve on, the existing Supporting People contract management system and manage all other contracts within Adult Services. Corporate Procurement and County Supplies, Passenger Transport and Adult Services (including Supporting People) have provided contract data to the South East Centre of Excellence (SECE) for uploading to the SECE business portal (currently adopted as the County Council's Corporate Contracts Register). Environment and Property Services are uploading their data manually. Around thirty of the local authorities in the South East are using the portal in some way (as at October 2007). Adult Services have been asked by SECE to consider becoming a model of best practice in how to effectively publish data to the Portal.

2.9

Property Services have begun their roll out of the corporate e-tendering system (In-Tend) with a series of `lunch and learn' sessions and one-to-one training. All solicitors in the Chief Executive's department have access to In-Tend and are being supported with the opening of tenders by a number of `super users' in the department.

2.10

The automation of the sending of purchase orders to key suppliers is proceeding satisfactorily. This allows purchase orders to be auto-faxed or emailed to suppliers, thereby saving printing and postage costs and staff time. The percentage of purchase orders faxed automatically has increased to over 10% (around 2,600 per month), which meets the current targets within the Corporate Procurement Strategy. In addition, following a successful pilot, County Supplies is now sending more stock purchase orders via e-mail to vendors. It is anticipated that over 90% of the orders raised for County Supplies will be sent by this method during 2008.

Collaboration

2.11

The HIOWLA collaborative procurement project, being led by East Hampshire District Council, recently provided an update report to the HIOWLA Improvement Board (HIB). The report recommended moving forward with a bid for improvement funding for next year to develop a more detailed business case for a procurement shared service for the area. The bid is likely to be for around £140,000 pa in each of three years. In the short term, a Senior Officer Collaborative Procurement Group will be set up to provide direction to a reshaped Local Authority Supplies Group. In addition, HIB funding (with additional SECE support) may be used support a collaborative spend analysis for all authorities in the next few months.

2.12

The recommendations of the report to the HIB were agreed as follows:

· the role of the Hampshire eMarketplace Joint Board is widened to address collaborative procurement across the region;

· the role and reporting arrangements of the Local Authorities Supplies Group are reviewed to see how it can contribute to the development of collaborative procurement practices within Hampshire;

· a detailed spend analysis, funded jointly by the HIB and SECE, is undertaken to enable the Joint Collaborative Group to target areas to achieve efficiencies in the short term and to provide data for the business case;

· a contribution of £34,000 from the capacity fund be made available to fund the spend analysis [Note: the HIOWLA Board agreed to fund the full costs of the spend analysis];

· a detailed business case is prepared to examine the various options for the provision of a fully shared procurement unit comprising a major spending authority, e.g. the county and/or unitaries and districts.

2.13

The Corporate Procurement team is providing support to this project and is assisting in compiling the bid for Improvement Fund support from 2008 to 2011. This will also support further development of the Hampshire eMarketplace.

2.14

The Royal Borough of Windsor and Maidenhead joined the Hampshire Marketplace in August and all but two of the ten partner authorities are now live on this collaborative purchasing system. A presentation on electronic procurement and the Hampshire Marketplace is being made to a group of Winchester City Council Councillors on 21 January to assist the City Council in deciding whether to join the partnership and how to gain the benefits from e-procurement.

2.15

Whilst progress with rolling out the Hampshire Marketplace to district councils continues to be relatively slow, due to change management and capacity issues in districts, the project is performing well against several key targets. To date over 1,400 purchase orders have been raised on the system with a value of just over £1million. The target was for an average of 50 purchase orders per authority (500 in total) by December 2007. There are now 307 collaborative contracts and suppliers (national, regional, sub-regional or consortia) compared to a target of 150 by December 2007. Individual authorities have also adopted 132 `local' suppliers onto the marketplace which are not collaborative and can be used by the adopting authority only, against a target of 50 suppliers by December 2007. Total savings achieved to date are over £50,000. This is well below the target of £250,000 and performance will be reviewed further in the coming months. It is, however, worth noting that only 15 district councils in the whole of the South East region have so far been able to adopt the eMarketplace software promoted by the IDeA and it is likely that SECE will propose that the new Regional Efficiency and Improvement Strategy should enable `free' access to an electronic marketplace.

2.16

The Royal Borough of Windsor and Maidenhead has also requested that County Supplies provide a procurement service to schools in the borough from April 2008 and has identified a number of County Council contracts that it will promote to its corporate departments as soon as possible. This is the first phase of what is hoped to be a longer term collaborative procurement arrangement between the County Council and the Royal Borough.

2.17

The National Procurement Programme (an off-shoot of the Regional Centres of Excellence) has brokered discussions between several of the largest public buying organisations operating in local authorities. These have included the Central Buying Consortium of which the County Council is a member and work is in progress on several joint contracts. The most significant of these are at present ICT equipment and photocopying equipment (with joint annual expenditure expected to be in excess of £50 million and £35 million respectively).

3.0

Improvement Plans

Savings and Efficiency

3.1

Procurement Savings and Efficiencies - The latest report (Appendix One) shows cashable savings for corporate departments of £611,500 for 2007/08 against a target of £500,000 and £73,000 cashable savings for schools. To date £203,400 of non-cashable savings have been identified for corporate departments against a target of £500,000. The balance of £297,000 of non-cashable savings is uncertain and departmental representatives on the Corporate Procurement Network have been asked to identify contributions to this.

3.2

Temporary Workers Contract - Preparations are being made to re-tender the Council's contract with Manpower UK Limited for a start-date in the summer of 2008. For the twelve months to September 2007, Manpower reported spend of £5.86 million. As expected, this turnover is dominated by Adult Services (mainly care services) with over 55% of the total. In the care sector, more than 43,000 shifts were requested during the year with a fill rate of 93%. Manpower also report growth in the supply of care staff and this is possibly linked to the opening of the new nursing beds. Around 400 administrative and professional workers have also been supplied to the Council to fill requirements of varying duration. Excellent savings were made when the first contract was awarded in 2004 and further value-for-money improvements have been made on an incremental basis over the life of the contract. The potential for further cashable savings from a new contract would appear to be limited, but it is expected that the invitation to tender will include the requirements of West Sussex County Council and competition is likely to be keen. Close liaison is being maintained with the Resourcing Centre in support of efforts to develop better workforce planning and `demand management' in the area of temporary workers.

3.3

Street lighting - The Council expects to participate in a CBC tendering exercise for the supply of electricity for street lighting as the current contract is due for renewal in April 2008. The current contract was awarded to the lowest overall tender for the supply of `green' electricity for a period of two years at a cost of around £3.4 million per annum. As on previous occasions, it will be important for the County Council to be in a position to commit to the results of the tender exercise quickly, and it is, therefore, proposed that the Panel should advise the Executive Member for Policy and Resources that authority should be given to the Chief Executive to conclude this contract. The assessment of the bids received will be based principally on price, but service issues (including sustainability, billing and any `costs' associated with changing suppliers) will also be taken into consideration.

Departmental Procurement Reviews - In Progress

3.4

Passenger Transport Services - The pilot tender for North East Hampshire home to school and social care `taxi' services is proceeding. The number of suppliers involved and the nature of the pre-qualification process have generated far more work than originally estimated and there is likely to be a small delay in the contract start date. It is now expected that the new contracts will be in place by the end of the summer term and will be in place for all routes in NE Hampshire at the start of the autumn term. A reduction in the number of routes for pupils with Special Educational Needs since July 2007 has meant that the total value of this pilot framework currently stands at approximately £8 million. A report on the outcome of the tendering exercise will be made to the Panel in June 2008.

3.5

Adult Services Domiciliary Care - Work has commenced on verifying the data and mapping postcodes of those service users currently receiving domiciliary care in parts of the New Forest in order to develop and test the impact of a patch-based procurement strategy as recommended in the review of the procurement of domiciliary care.

3.6

Children's Services Domiciliary Care - Children's Services Departmental Management Team has approved the recommendations arising from the Review of the Procurement of Domiciliary Care in Children's Services. Some of the recommendations relate to aggregation of requirements with Adult Services, which is seen as a longer term objective. In the short term, a more formal tendered framework will be put in place specifically for Children's Services. Due to staffing pressures in both the Corporate Procurement Team and Children's Services, the implementation of this part of the recommendations has not yet started, but both teams expect to move this forward early in the New Year.

3.7

Cost of Care / Fair Price for Residential / Nursing Care - The cost of care project for Adult services is focused on identifying the real costs of care and what level of investment may be required to ensure the right quality, level and type of care is available in the market for the County Council to meet increasing demands. The first phase of the project involving a survey of homes' costs has been completed. Eighty-six completed surveys were received from providers and analysis of the returns has indicated considerable cost pressures in the market. The results of the survey are being jointly considered with Adult Services. The survey was developed in partnership with the Hampshire Care Association (HCA) and the HCA sponsored and managed the survey process on behalf of the County Council. The next stage of the project is to identify an appropriate level of return on investment to inform the development of a `fair price' for the cost of care. The project is likely to identify that further investment in this area of care provision will be required over the next few years to safeguard suitable and sustainable service provision.

3.8

High Cost Learning Disability Placements - The team continues to provide ad-hoc assistance to Adult Services in the analysis of costs between homes and benchmarking between different providers of learning disability residential and support services and in preparing the negotiation strategy. Meetings have taken place with two of the three service managers to agree strategy and to review cost analysis to date.

Other Support to Departments

3.9

Venues and Overnight Accommodation - At its meeting in July, the Corporate Procurement Network (CPN) confirmed that a tender exercise was required for the provision of venues and overnight accommodation and a consultation group has been set up to ensure the project meets the Council's requirements. County Supplies and the Hampshire Teaching and Leadership College (HTLC) are still working closely together to find the best way through the `parallel approach' agreed by CPN. There is some concern about the proposed approach and the possibility that HTLC's requirements can be accommodated within the corporate contract (likely to be with a booking agent or agents) remains under consideration. The Leader's recent memorandum to Chief Officers on the use of external commercial venues will reduce the Council's requirements for these services and this is being drawn to the attention of potential suppliers.

3.10

IT Services - since the report made to the Panel in June 2007, CPCS has been approached to undertake contracting exercises on behalf of IT Services for IT consultancy and hardware maintenance, Support has also been provided to the managers leading on the renewal of the contract for voice and data infrastructure and on contingency arrangements.

3.11

Local Resources/ Staff Turnover - Members previously agreed funding to support the appointment of two Contracts Managers to work on the delivery of a programme of procurement reviews and appointments were made in December 2005. During the summer, the Contracts Manager `specialising' in Adult and Children's Services resigned to take-up other employment and, within a small team, this has caused some disruption to the programme. An offer of employment has been made following a recent recruitment exercise, but the individual has no previous experience in local authorities and will need time to become fully effective.

Corporate Procurement Strategy / Performance Improvement

3.12

Procurement Training & Development - 840 delegates have now attended Corporate Procurement arranged events and training. An online Best Practice Guide aimed at all staff involved in procurement will be launched in the next few months once it has been signed off by the Legal Practice.

3.13

Performance Indicators - Work has been undertaken on the local performance indicators (PIs) for procurement following the discussion at the Panel on 24 June 2007 and targets have been identified for the majority of PIs. Trend graphs have also been included where appropriate. The PIs will be reviewed in light of recently published guidance from the Audit Commission on value-for-money indicators for procurement. Performance for 2007/08 as a whole will be reported to the Panel in June 2008.

3.14

Action Plan - The up-to-date position against the outcomes, actions and targets identified in the Corporate Procurement Strategy is shown in Appendix Two. This shows some good progress, but in several areas this has slipped behind the original timetable and further work needs to be undertaken, particularly in relation to rolling out a corporate Gateway Review process and the outcome on partnering arrangements.

3.15

Statistics - For the first eight months of the financial year, purchase orders with a face value of £412 million were raised in the Council's procurement systems. The electronic catalogue accounted for 31.1% (38.5% in 2006/7), interfaces from departmental systems handled 36.9% (36.2%) and the core system was used for 32.1% (25.3%, including waste management).

4.0

Conclusions

4.1

The national procurement `landscape' has developed further over recent months with the publication of CSR07 and the amalgamation of the Regional Centres of Excellence and the Improvement Partnerships into the new Regional Efficiency and Improvement Partnerships. The availability within the region of further funding for improvement and the `expectations' focussed on procurement within CSR07 are welcome and the Corporate Procurement team will work to support these initiatives. However, it will be important that the team concentrates its efforts on the established programme of internal reviews and seeks opportunities to contribute effectively to the Council's wider efficiency agenda.

4.2

Cashable savings of £611,000 have been identified for 2007/08 (excluding schools) and very substantial gains have been made in the supply of gas and electricity as market conditions became more favourable. The results of the first large-scale tendering of home-to-school routes in the north-east of the County and of the renewal of the Council's contract for the supply of temporary workers are expected in the first half of 2008 and will be reported to the Panel in June. Solid progress has also been made in respect of the review programme, e-procurement and collaboration.

4.3

Requests for support from departments have increased and the wide range of projects in progress has put some pressure on actions linked to the Corporate Procurement Strategy, for example, the wider application of the Gateway Review process. Relative priorities within the overall programme are reviewed regularly and the new Chief Executive will continue to take a strong personal interest in this activity.

LINK(S) TO CORPORATE STRATEGY

Yes

No

Hampshire safer and more secure for all

_

Maximising well-being

_

Enhancing our quality of place

_

This report does not link directly to the Corporate Strategy but, nevertheless, requires a decision as it has a positive impact on the management of the Council's resources and on the local economy, by promoting a strategic approach to procurement, and by developing the procurement skills of staff

Appendix One

Procurement Efficiencies and Savings Monitoring : Corporate Procurement and County Supplies

Nov-07

Cashable Efficiency Savings 2007/08

Description

Contracted Value (£ p.a.)

Total Annual Cashable Saving £

Corporate Share (excl. schools)

Cashable Corporate Savings (£)

Cashable Schools Savings (£)

2007/08

2007/08

Food: average savings from new contract, comprising reductions in price compared to previous contract of £269,000 p.a., £7,000 additional discount on ad-hoc purchases and £18,000 from an increase in nominated lines. Quality cross-check: no change to type or products or level of service, with potential increase in quality of service through one order point and reduction in food miles.

4,700,000

294,000

100%

294,000

0

Agency Staff: (Manpower) extension to existing contract for 1 year, discount based on 2.5% savings achieved per annum to date. Quality cross-check: no annual increase in rates and continuity of service delivery.

6,000,000

150,000

100%

150,000

0

Child Care Vouchers: - extension to existing contract for 1 year discount based on NI savings to HCC savings in 06/07 were £41k however due to the increase in take up this has increased to over £50k for 07/08.

797,695

56,000

100%

56,000

0

Description

Contracted Value (£ p.a.)

Total Annual Cashable Saving £

Corporate Share (excl. schools)

Cashable Corporate Savings (£)

Cashable Schools Savings (£)

Wood Products & Misc Building Products: savings from new contract. Quality cross-check: All wood products supplied by supplier are FSC accredited.

60,000

3,000

60%

1,800

1,200

Filing Cabinets: savings from a re-costing exercise from current two providers giving an overall saving of 20%. Quality cross-check: quality of service unchanged, saving in road miles and fuel emissions as units are now delivered to local distributor based within HCC who then deliver to HCC sites whereas previously all deliveries were despatched from Methyr Tydfil.

132,000

26,400

20%

5,300

21,100

School Cleaning Contracts: (Oak Farm) savings achieved through new contracts. Quality cross-check: seamless transition to new contract and improvement in quality of service delivered.

58,000

10,000

0%

0

10,000

Print Framework Contract: savings from new contract based on £300,000 outsourced works. Quality cross-check: improved service delivery to end users following centralisation of print sourcing (Print Management Service), seamless transition to new contract.

300,000

15,000

60%

6,800

4,500

Description

Contracted Value (£ p.a.)

Total Annual Cashable Saving £

Corporate Share (excl. schools)

Cashable Corporate Savings (£)

Cashable Schools Savings (£)

2007/08

2007/08

Designer Furniture - savings from new contract, no previous contract in place. Savings estimated on the basis of 80% of requirements being on-off and not repeat business. Savings against prices previously quoted. Quality cross-check: improved service delivery to end users, rationalisation of current 'designer furniture' vendors

200,000

30,000

95%

21,400

1,100

Flexible Working Furniture Contract: savings from new contract, no previous contract in place. Savings estimated on the basis that 20% are larger orders. Quality cross-check: improved service delivery to end users, rationalisation of current 'flexible working' furniture vendors

500,000

54,500

100%

31,800

0

Library Security & Self Issue Systems: savings from new contract, no previous contract in place Quality cross-check: formalised agreement ensuring compliance with insurance & Health and Safety requirements.

100,000

20,000

100%

20,000

0

Photocopiers (NRG): further reductions in prices obtained through effective contract management and benchmarking. 10% price reduction on 35/45 copy per minute colour and black and white. Equivalent to £70,000 p.a. fye. Quality cross-check: no change to service quality or service levels

700,000

70,000

20%

8,200

32,600

Description

Contracted Value (£ p.a.)

Total Annual Cashable Saving £

Corporate Share (excl. schools)

Cashable Corporate Savings (£)

Cashable Schools Savings (£)

Removals: reduction in prices compared to previous supplier. Actual savings estimated based on use of two new suppliers and previous supplier. Part year effect. Quality cross-check: no change to service specification.

150,000

30,000

90%

15,800

1,700

Office Machines: 1.2% savings from new contract. Quality cross-check: seamless transition to new contract, previously 2 contracts one for guillotines & trimmers and the other for shredders, laminators.

103,500

1,242

33%

400

800 

Total Cashable Savings Achieved for 2007/08

611,500

73,000

Outcome 1

Our capacity and performance in procurement is improved

Action

Target/Date

Responsibility

Progress

Operating effective Corporate and Departmental Gateway Review processes for appropriate projects (particularly high value/high risk)

March 2007

All CPN members

Target not met, but recommendations on process are awaiting approval. 4Ps offer a free service for projects valued over £40m. Reviews adopted for major works by Environment & Property Services

Measuring performance through the development of Key Performance Indicators (KPIs) for procurement.

December 2006

Shaun Le Picq

KPI suite developed and reported on in June 2007

Using a standard corporate contracts register in all departments

December 2007

All CPN members

Achieved/in progress.

SECE Business Portal now live

Number of staff attending procurement training events (630 at April 2006)

850 by December 2008

All CPN members

840 to date. Target will be exceeded

Outcome 2

The number of procurement partnering arrangements is increased to maximise benefits

Action

Target Date

Responsibility

Progress

Publication of revised partnering guidance.

March 2007

Shaun Le Picq

Included in the online `Best Practice' Guide. To be launched shortly

Identification of further partnering opportunities in construction related procurement and service delivery.

December 2008

David Corcoran

Dave Jessop

Shaun Le Picq

Progress achieved through SECE Construction workstream eg LSC.

Provision of appropriate training for staff involved with developing partnerships and managing term arrangements.

April 2007

David Corcoran

Dave Jessop

Shaun Le Picq

A corporate course is available. Further actions to develop this theme not yet taken

Outcome 3

Better value for money is achieved through appropriate collaboration

Action

Target Date

Responsibility

Progress

Successful implementation of Hampshire Marketplace and realisation of benefits for District Council partners.

February 2007

Shaun Le Picq

On-going - seven districts are `live' at present

Increase the `common use' contract portfolio to over £100m by end of 2007/08.

March 2008

Neil Jones

£104m as at October 2007

Outcome 4

All procurement projects meet identified needs and provide community benefits

Action

Target Date

Responsibility

Progress

Operating a consistent corporate social responsibility strategy for equality and diversity, fair trade, ethical purchasing and sustainability in procurement as part of the Gateway Review process for major projects

March 2007

Shaun Le Picq

All CPN members

These issues are part of proposed Gateway Process. New `short term' sustainable procurement group has been established.

Inviting potential suppliers to propose additional community benefits for major contracts

July 2007

All CPN members

On-going

Developing greater consistency (and simplification where appropriate) in procurement documentation for suppliers, particularly at pre-qualification stage

December 2007

Shaun Le Picq

PQQ's already reduced to minimum requirements in light of current EU Regulations (agreed with Legal Svcs)

Improving contract management procedures in proportion to the level of risk and value

December 2008

All CPN members

Joint project between Environment and Corporate Procurement scheduled to start in January 2008.

Percentage of milestone activities completed in original National Procurement Strategy for Local Govt (75% at April 2006)

100% by end 2007

Neil Jones

Shaun le Picq

90% addressed

Outcome 5

The efficiency of the procurement process is maximised through appropriate use of electronic procurement

Action

Target Date

Responsibility

Progress

Increasing the proportion of spend via virtual procurement cards

December 2008

Shaun Le Picq

Projects at business case stage

Implementing XML ordering with key suppliers

December 2008

Shaun Le Picq

Dell and Supplies Team live in pilot

Rolling out our e-tendering system

April 2007

Shaun Le Picq

All CPN members

Rollout progressing well in PBRS.

Developing our strategy and business case for e-invoicing

June 2007

Bevis Ingram

Shaun Le Picq

Not yet addressed

Monitor KPIs:

· % of orders sent electronically (1% April 2006)

· % of spend through procurement cards

· % invoices paid electronically (86%)

20% Dec 2008

TBC% Dec 2008

90% Dec 2008

Shaun Le Picq

Shaun Le Picq

Bevis Ingram

10.6%

0.7%

88.2%