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Efficiency through technology: Procurement
Electronic procurement has the potential to deliver significant efficiency benefits, but the government advises that it should be introduced as a means of implementing good purchasing principles, not as an end in itself or solely to meet online targets.Local authorities and educational institutions need to ensure that they have thought through their eprocurement strategy fully. The strategy should cover electronic tendering and supplier and contract management, as well as online catalogue, requisitioning and payment capabilities. When implemented well, eprocurement can deliver noteworthy cost savings. The University of Edinburgh, for example, has reduced its purchasing costs by about 25 per cent using an institute-wide eprocurement system. The university has about 20,000 students and more than 8,000 staff. Annual turnover at the institution exceeds Ł365m. The driver when implementing the eprocurement system was ease of use, says Karen Bowman, director of procurement at the University of Edinburgh. Because the technology will be used across the university by a range of people, it was important that the system was no more complicated to use than previous online and offline systems for purchasing. Bowman says the benefits of getting eprocurement right can be considerable, but warns that there are challenges. 'Eprocurement has enabled us to get better value out of contracts and to make efficiency savings, but that may not sell it to the end user,' she says. 'You have to ensure that you can support your users and suppliers, and understand their needs. Don't get too hung up on the system itself.'
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