Efficiencies and IT Panel SHARP Project Update Tuesday 24 th January 2006 Hertfordshire County Council www.hertsdirect.org

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<ul><li> Slide 1 </li> <li> Efficiencies and IT Panel SHARP Project Update Tuesday 24 th January 2006 Hertfordshire County Council www.hertsdirect.org </li> <li> Slide 2 </li> <li> SHARP Key Drivers Improve procurement process Effective reporting Support delivery of e-Government targets Efficient working practice Economical process </li> <li> Slide 3 </li> <li> Achievements (Sept. 05 update) System stabilised -Action Plan completed Year end closure of accounts earlier under SAP Various small project / pilots completed successfully /underway [e.g. The SAP impacts of Growth and Change-Phase 1 complete, Phase 2 ready to go live; Training and Development live input into the ACS finance review] Project Implementation Review completed in July 2005 Serco Contract renegotiated end of June 2005 </li> <li> Slide 4 </li> <li> Activities since Sept 05 Actions from SHARP Review Reporting project Interim report due 31 st Jan 06 Catalogue of prioritised Finance, HR and Procurement reports Gap analysis and development programme Workshops with front line managers </li> <li> Slide 5 </li> <li> Activities since Sept 05 Actions from SHARP Review Forms review Completing Feb 06 Consultation workshops identified process improvements Revised forms delivering improved efficiency Review SHARP support framework Merging SAP support and contract management Increase number of support calls dealt with by 1 st line support </li> <li> Slide 6 </li> <li> Activities since Sept 05 Actions from SHARP Review SHARP Communication strategy New Connect pages for Purchasing live Jan 06 Revised Connect pages for SHARP Feb 06 Feedback questionnaire sent to all SAP users Review Training Delivery SAP Purchasing training linked to contract training Developing e-learning </li> <li> Slide 7 </li> <li> Activities since Sept 05 Actions from SHARP Review Enhance key contract relationships Joint SHARP/Serco Continuous Improvement Board Put in place more pro-active contract management from Logica </li> <li> Slide 8 </li> <li> Other activities delivering against key drivers E-mailing key reports to schools Information delivered earlier Target reduction of 1,500 pages paper reports per month Support to departmental BPR projects Change management for ACS Finance re- organisation Project management for changes to CSF Youth Service </li> <li> Slide 9 </li> <li> Other activities delivering against key drivers Remote time-sheet entry for schools Pilot in 60 schools Plan roll out to all schools in 2006/07 Input data at source Reduce paperwork </li> <li> Slide 10 </li> <li> Procurement Project update This update will cover: A reminder of the project strands and objectives Some key targets for this year The benefits that will be delivered over the next two years Examples of current project activity Specific detail on Purchasing Cards How we will work more closely with our suppliers </li> <li> Slide 11 </li> <li> Procurement Project Strands </li> <li> Slide 12 </li> <li> Project Objectives 1.Provide clear routes for efficient and effective purchasing in HCC Identify the most cost effective way to purchase goods and services 2.Promote the advantages of these and set up measures to monitor them Give people the information to allow them to purchase efficiently 3.Rationalise the supplier base to allow more targeted effort Cleanse data and focus with key suppliers to reduce transaction costs 4.Improve communications with suppliers Promote a 2 way exchange with suppliers re costs of doing business 5.Encourage the uptake of e-opportunities Reduce manual intervention in the buying/paying process </li> <li> Slide 13 </li> <li> Some Key Targets Save money on stationery, postage and processing by 1. A major reduction in cheques as a payment method Move from 70% of trade payments by cheque to 30% by April 06 2. Automatic e-mailing of remittance advice for BACS payments Start emailing to all vendors capable of receiving by Jan 06 Reduce Transaction Costs 3. A major reduction in A14 payments, leading to total cessation Move from 50% use of this costly payment method to 30% by April 06 Identify efficient methods of purchasing 4. Bring in purchasing cards to enhance our range of efficient purchasing methods Purchasing cards in by Mar 06. </li> <li> Slide 14 </li> <li> Some Key Targets (cont.) Procurement Process 5.Capture benefits from improved procurement processes introduced Using monthly monitoring, now in place, Identify, influence and promote the savings capabilities of SAP e.g. catalogues 6. Improve training of buyers to get skilled /effective purchasing decisions Coordinate HBS procurement training with SHARP courses by Jan 06. Reduce Suppliers 7. Reduce the total number of suppliers Reduce total suppliers by 20% by June 2006 </li> <li> Slide 15 </li> <li> Benefits of Project Target area05/06 predicted savings (k) 06/07 predicted savings (k) Reduction in A14s100450 Transfer from cheque to BACS 015 Purchasing Cards0100 Improved procurement processes 250475 Business Support savings (from Managed Service contract) 45 Workflow (improving speed of invoice handling) 938 Total4041,123 </li> <li> Slide 16 </li> <li> Examples of Activities Flyers sent out requesting BACS details with all supplier cheques All BACS payees have been asked for e-mail addresses for remittances (50% initial response rate) No new vendors set up for payment by cheque started Nov 2005 New school milk contract specified requiring self billing, reducing invoices processed by 20,000 per year starts April 06 Electronic invoicing solutions are being developed for stationery, computer consumables and contracted water cooler purchases New Purchasing site set up on Connect for the HCC buyers (c. 2000 staff), with guidance on efficient purchasing, target areas for savings and all the rules (e.g. financial reg./contract regs.) in one place. </li> <li> Slide 17 </li> <li> Purchasing Cards Will be introduced by Mar 06 Visa cards, issued by Bank, under a nationally agreed contract (the Government Procurement Card - GPC) There are currently c.500 central and local government organisations using 70,000 cards in the UK. Will receive one monthly statement from Bank, but a software package will split detail automatically into our SAP accounting system Will provide savings through lower transactions costs for low value purchases </li> <li> Slide 18 </li> <li> Purchasing Cards (cont.) Est. savings (Year One) = 100k Est. savings (Year Two, onwards) = 150k per year Benefits include reduction of costs, better management info, greater control of ad hoc spend, improved ability to meet KPIs for payment and a small rebate from the Bank. Ongoing system costs = 10k per annum Implementation project will include cardholder training and simplification of accounting process for low value items. </li> <li> Slide 19 </li> <li> Working with our suppliers Further develop the Hertsdirect Your Business area Promote supplier engagement with Hertfordshire marketplace Sponsor with HBS a Meet the Buyer event with suppliers this year to promote smarter ways of doing business Target our top suppliers to establish a mutually beneficial method of doing business Make suppliers aware of the portfolio of tools to enable e transactions so that by their introduction they can become a HCC supplier of choice </li> <li> Slide 20 </li> <li> Questions? Hertfordshire County Council www.hertsdirect.org </li> </ul>