Press
Release: Adelaide. January 10, 2001
South Australia’s 68 councils are
set to shop online following a successful trial at the City
of Whyalla. It is believed to be the first Australian State
to do so.
The new eprocurement platform, which potentially
will link councils to a vast array of suppliers, is destined
to save the State’s 68 councils in excess of $20 million
annually in the procurement process.
According to Australian Bureau of Statistics
figures, SA councils spent nearly $350 million on goods and
services alone in 1999. The new facility will reduce procurement
processing time and thereby costs.
Mr Andrew Sendy, Chief Executive officer
of Strategic Ecommerce, the technology provider for this initiative
said the time saved can be used by purchasing staff to negotiate
better terms with their suppliers.
“The extent to which costs are lowered
is variable, but overall savings of 7 to 10 per cent can be
expected,” he said. “If every council procured
their goods in this way, total savings of upwards of $20 million
annually could be achieved.’
“For suppliers, the new system will increase their market
share of trade with councils.”
Mr Sendy applauded the City of Whyalla for
demonstrating leadership and initiative in taking part in
the trial, said all councils who take up the eprocurement
facility would ensure that Local Government in South Australia
is placed at the forefront of an emerging technological revolution.
The facility can be seamlessly integrated
with council’s IT financial systems, IT
Vision. This enables near real time committal of costing
when an order is placed, as well as integration with appropriate
financial codes.
Civica
has also agreed to collaborate with SEL in the integration
of “StraightBUY”
with its councils Australia wide and is due to start that
process in late 2002.
Apart from the financial savings the eprocurement
facility delivers to councils, it also streamlines the requisitioning
and approval process.
Requisitioning becomes unnecessary as authorised
individuals are able to directly access a supplier’s
catalogue and place an order provided it falls within their
purchasing limit.
Rogue purchasing is minimised as is carrying
of inventory, while forecasting future needs, especially for
budgetary purposes is greatly enhanced.
For further information:
Mr Andrew
Sendy
Chief Exceutive Officer
Strategic Ecommerce
Ph: 1300 136 456
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