Local Authorities Expect to Save £5m with PROACTIS eSourcing
PROACTIS, a global Spend Control and eProcurement solution provider, today congratulates 28 local authorities who have come together in a joint highway procurement initiative led by Denbighshire County Council for negotiating an average 14% reduction in material costs using PROACTIS eSourcing, which could generate savings in the region of £5m over the lifetime of the agreement. The All Wales and AGMA Highway Lighting Procurement Partnership was recently shortlisted in the Procurement Collaboration category of the Welsh National Procurement Awards 2013.
The Group developed an agreement for the supply of the full range of lighting materials and led to the requirement being advertised in OJEU with 11 different lots covering all materials procured for highway lighting. The agreement was advertised for a period of four years with an estimated value of £40m.
The tender process was undertaken by Denbighshire County Council using PROACTIS eSourcing. The solution provides a flexible, collaborative, and efficient method for electronically developing, publishing, accepting responses to, and evaluating requests to suppliers. Both buyers and suppliers benefit from a structured, transparent, and easily tracked process from expression of need through to final contract award.
The Association for Public Service Excellence (APSE) recently reported the story in its magazine highlighting how collaborative procurement can enable authorities to stretch their diminishing budgets further while transferring knowledge and skills.