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With Approx. 10,000 Orders Per Annum and £20 Million Passing Through EGS’ Exchange, Chichester Also Trials its e-Invoicing Matching Solution For Roll Out in 2008

EGS Ltd, the UK’s largest and fastest growing e-Commerce Exchange for the public sector and its suppliers, today announced that Chichester District Council has deployed EGS’ e-Procurement and electronic trading environment, known as the IDeA:marketplace, to 200 staff across approximately 20 internal buying organisations. The Council anticipates placing in excess of 10,000 purchase orders in any given year, which will see the Council’s annual gross budget of £20 million pass through it. In addition, Chichester is currently in the process of trialing EGS’ new e-Invoicing Matching solution for a 2008 phased roll out.

In October 2005, Chichester District Council was required to look into possible eProcurement options in line with Central Government IG4 targets that stipulated the need for an end-to-end procure-to-pay, fully electronic solution in place, negating the need for paper-based purchasing to improve efficiency. Following a review of possible options, Chichester concluded that EGS’ IDeA:marketplace was the only product that cost effectively, provided them with the comprehensive procure-to-pay cycle and online marketplace that they required.

Following a phased implementation and adoption by their now 900 suppliers, the Council now has a strong procurement policy-based system, compared to its archaic manual, solely paper-based procurement practice that was falling foul of the common issues associated with this kind of system - namely lack of visibility and management of spending, security and process inefficiency.

“We were keen to improve internal efficiency and overall confidence in our processes as the lack of visibility of what was being purchasing and what was being spent was not easy to pinpoint,” said Mark Dolan, Systems and Technical Accountant, Chichester District Council. “We also needed a commonality of suppliers and with the help of EGS the set up was quick and straight forward. Due to the fact that we maintain a decentralised buying policy, the new system makes processes simpler and is intuitive for all 200 staff members to use within their own buying organisations. We released the marketplace to each buying organisation at a time, supported by a comprehensive training schedule which took a total of 15 months. The system is now 98 per cent electronic, with the full 100 per cent anticipated by the end of 2007.”

Chichester District Council will now be able to aggregate and analyse all data pertaining to spend and buying cycles providing the Council with greater control of its annual spend. Not including manpower, Chichester District Council have saved approximately £6,000 per annum related to the old system’s purchase-to-pay fees, following the introduction of the EGS Exchange, as well as productivity gains as a direct result of moving away from a paper-based procurement system and onto an eProcurement marketplace.

“The system has been successful and we are currently looking into the possibility of joining up with similar organisations such as other local district councils to achieve greater returns and improved efficiencies,” noted Dolan. “Following the full integration of the system with our financial suite, we feel a greater sense of control as we can now measure what we can manage as oppose to not being able to measure what we couldn’t manage. Trialing the e-Invoicing Matching model from EGS seemed like a natural progressive step for us and we intend to roll out the system during 2008.”

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:

Kim Squire
Devonshire Marketing
Tel: 0870 7000 166

This press release was distributed by ResponseSource Press Release Wire on behalf of Devonshire Marketing in the following categories: Computing & Telecoms, for more information visit