OGC releases new eProcurement guidance for the public sector
The Office of Government Commerce has produced new guidance to help the public sector maximise the benefits of electronic procurement.
The eProcurement guidelines are the first major update in over two years, following on from the 'eProcurement: Cutting Through the Hype' guide - known colloquially as 'Blue Frog' - released in Autumn 2002.
Reflecting the significant developments that have taken place since, 'Blue Frog II' has been completely revised in light of the Efficiency Review, policy changes and the increasing popularity of reverse eAuctions. Around a third of the Government's £21.5 billion efficiency savings target is expected to come from improved public procurement.
In preparing the new report, interviews were conducted with over 40 public and private practitioners involved with implementing eProcurement programmes. It includes guidance on constructing the business case for eProcurement, measuring the benefits, change management issues, technical advice and case studies of success implementations.
The report also publishes for the first time analysis of six-monthly data compiled by the OGC into eProcurement activity in central government. According to the first year of monitoring up to March 2004, almost 30 per cent of central government's five million purchase orders were being processed using eProcurement systems, it is reported.
The data indicates that in 2003/4, £57.8 million of value for money savings from central civil government were delivered through eProcurement. Over £51m of this total came from a small number of departments using purchase-to-pay systems - automating the processes from the point of purchase to settling payment.
While eAuctions are shown to be still in their early stages, almost half of organisations surveyed intended to implement them in the future.
Key messages from the report to the public sector are:
- Consider implementing a Government Procurement Card programme - this is the most obvious quick win which can create immediate efficiency gains
- The report "strongly recommends" the earliest use possible of eAuction tools, as these are currently proving a clear "quick win" in cash releasing terms
- Implement purchase-to-pay to make the procurement process as efficient as possible and to start to capture information on spending patterns as useful management information
- Implement eSourcing solutions to improve the professionalism of procurement staff and ongoing supplier relationships.
"There is a risk that departments will halt their current plans for eProcurement to wait and see what comes out of the Efficiency Review", says OGC Chief Executive John Oughton in the report. "However the message from OGC is 'Don't stop! It's even more important to do something now'".
Related Links
eProcurement in Action: A Guide to eProcurement for the Public Sector (PDF: 2MB)
