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With 250,000 Transactions Per Year, Council’s Processing Cost Reduced From £60 to £26 Per Transaction and Is Expected To Drop to Just £16 Per Order with e-Invoicing

EGS Ltd, the UK’s largest and fastest growing e-Commerce Exchange for the public sector and its suppliers, today announced that Stoke-on-Trent City Council has deployed 500 users, completed 4,200 transactions valued at more than £1.4 million, and more than halved the cost of processing orders as a result of adopting EGS’ e-Procurement and electronic trading environment for local government, known as the IDeA:marketplace. In addition to the usual stationery, paper clips and office supplies, the Council has used the EGS IDeA:marketplace to purchase a range of products and services, such as Donkey Rides for kids, hiring a Land Train, repairing its clock tower, as well as ordering catering services. Stoke-on-Trent City Council expects the total value of its transactions through the Exchange to surpass £20 million by the end of this year.

Stoke-on-Trent City Council has now signed up 715 active suppliers and is adding more on a daily basis. The Council now has users of the EGS Exchange in every division and will be deploying it to in excess of 1,000 people over the coming months. The Council was previously using a manual ordering service for its procurement and first went live with the EGS solution in April 2006, following a twelve month market evaluation of a range of solutions.

“We moved to an electronic e-Procurement system as part of the overall e-Government agenda, but we also saw the huge potential it had for cost savings through both cashable and non-cashable systems, the improved management insight into purchasing and the ability to cut down on maverick buying,” said Sebastian Shaw, e-Procurement Officer for Stoke-on-Trent City Council. “The information we are able to receive by using the EGS solution is fantastic. From a purchasing and management perspective, we can see monthly reports on total spend, flag any orders over a certain amount that need sign off, show verification, as well as on or off contract spending.”

Prior to deploying the EGS Exchange, it used to cost the Council £60 to process a purchase order end to end manually. This is reduced to £26 for orders through the EGS IDeA:marketplace with a manual invoice and £16 for purchases paid on a purchase card. The Council anticipates deploying EGS’ e-invoicing solution in the next twelve months and expects the pay to purchase process cost will be reduced down even further to £16 – on a par with purchasing cards. With a total of 250,000 transactions a year, the Council will reap significant savings.

“We found EGS to be extremely easy to work with and easy to use,” added Shaw. “We wanted a system that was rich in functionality, but also very user friendly or it wouldn’t have gotten adopted internally. Moving forward we are interested in aggregating with other local authorities over the next twelve months particularly with regards to Adult Social Care. We’d like to see integration between the marketplace and Adult Social Care spend in a way that doesn’t detract from social care needs. EGS has more than 100 local authorities using its Exchange, and we’re extremely interested in talking to any other local authorities about collaboration around procurement in the Adult Social Care context.”

Designed and managed by EGS specifically for local government, the IDeA:marketplace gives instant access to a wide range of contracts for products and services that have been negotiated locally, regionally, or nationally. The IDeA:marketplace is a joint venture between EGS and the Improvement and Development Agency (IDeA) to deliver local government's own electronic world-class procurement system and electronic trading environment. The IDeA:marketplace provides local government customers with a range of e-procurement solutions and services that meet their own needs as Councils, whilst enabling them to work more closely and effectively with other bodies at local, regional and national levels. Over 100 Local Authorities are currently part of IDeA:marketplace, and 150 public sector buying organisations use this and EGS’ other exchanges.

Buyers in the UK public sector raise over 50 million purchase orders per year and suppliers post over 100 million invoices per year. Shared Service e-Commerce environments help dramatically reduce the costs of these processes and underpin collaboration between groups of public sector bodies to get the best from national, regional and local collaboration. There is £100 billion of e-procureable spend in the public sector every year. The combined efficiencies of business process cost savings and e-Procurement cost savings delivered by EGS have the potential to save the public purse well over £1 billion per annum. The solutions also offer major cost savings for suppliers. With almost one million online catalog items (the largest available), EGS Exchanges also have the potential to reduce the unit price of goods and services by as much as 30 per cent.

About EGS Ltd

Founded in 2000, EGS Ltd is the UK’s leading supplier of e-Commerce Exchanges for the public sector. The company’s Shared Service e-Commerce solutions are used by over 150 public sector buying organisations. EGS operates a series of inter-locking regional and sector focused e-Commerce exchanges, providing services designed to automate and reduce the costs and timescales associated with the procurement to pay lifecycle. The services save considerable time and cost for both buying organisations and suppliers alike. EGS is the biggest and fastest growing e-Commerce Exchange for the UK public sector with more than 50% market share,
making it the market leader in its field, and the most successful Exchange of its kind in Europe. With the largest Shared Services customer base, EGS has 150 public buying organisations linking with 30,000 of their chosen supplies and the main contracts from Public Purchasing Consortia. Electronic purchasing is taking off. EGS has seen a 500% growth in the use of its services in past two years alone, and expects the trend to continue.

For further information, please contact:

Vanessa Land
Devonshire Marketing
Tel: +44 (0)870 242 7469
Email: vanessa@devonshiremarketing.com

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