Police collar costs with e-procurement hub

Published on the 07/05/2005 | Written by Tranzsoft

Tranzsoft_NZ Police
icon_case study

AT A GLANCE

  • New Zealand Police

INDUSTRY

  • Government

SOLUTION

  • Tranzsoft implemented its Business Connector e-procurement hub

FOR MORE INFORMATION

Tranzsoft
W: www.tranzsoft.com
E: information@tranzsoft.com
T: +64 9 448 2075

Less than two years since going live, an electronic procurement hub developed by Tranzsoft for NZ Police is handling over 40% of the organisation's purchasing. As Air New Zealand, DX Mail and Holden join nine high volume suppliers already on board, police national procurement manager Stan Pope reckons excessive purchasing costs have been busted...

When the government pulled the plug on the GoProcure electronic procurement project two years ago, New Zealand Police didn’t waste any time in setting up an alternative system.

Out of a total annual budget of roughly $1billion, the force runs one of the public sector’s largest accounts payable ledgers with purchases totaling around $200 million a year. The organisation had already identified around 410,000 transactions a year with high volume suppliers that could be managed by an end to end e-procurement solution. These included 131,000 fuel transactions a year and 40,000 stationery invoices a month through single suppliers. The business case for a system that could reduce administrative costs was therefore very compelling.

Tranzsoft implemented its Business Connector e-procurement hub between the Police’s SAP ERP system and three high volume suppliers. These were Corporate Express for stationery, Serco Project Engineering Ltd (SPEL) for facilities management and warehousing, and BP for fuel. The original three were later joined by Smartpower, NZ Van Lines, Optim Group, On Line Security, Onesource, Spotless, and Custom Fleet.

Eighteen months later and Air New Zealand, courier company DX Mail and vehicle manufacturer Holden have joined the list.

National procurement manager Stan Pope says the benefits to police are less administration, fewer errors, less manual coding and less time and effort generally.

“The Business Connector hub makes it much easier for all concerned,” he says.

Pope says the system has been particularly beneficial for ordering and receiving stationery. Previously the user would have to go through a goods receipting process, coding the supplier invoice and sending it to the police national accounts centre where it would be re-entered manually.

“Now purchasers select products online, usually getting automatic approval, and the order goes directly to Corporate Express, where it is despatched within an hour or two,” says Pope.

“It’s hugely more efficient. We are handling 35,000 stationery purchase orders and most of these are ‘rats and mice’ invoices. and this system cuts out all of that manual re-coding.

Before the addition of the latest three suppliers, the hub was handling 300,000 transactions a year, worth $81 million dollars or roughly 40 percent of total police purchasing, and it has already helped to achieve a dramatic reduction in police purchasing costs. Before the police installed SAP in 1999 the organisation calculated each purchase order was costing $42.15 to process. The combination of SAP and the Tranzsoft hub has brought that down to $5.20.

Pope says suppliers are also benefiting from the hub.

“The supplier gets a lot more surety about payment. Instead of a shotgun of 35,000 invoices sent around the country all these transactions go through a single process and there are less errors as a result.”

Pope says a couple more suppliers may join the hub in the next three to four months. “After that, there aren’t a hell of a lot on the list to add, we are starting to fill out.”

The same technology runs the Tranzsoft Gateway and Pacific Health Exchange here in New Zealand, and handles large volumes of supply chain transactions for scores of other Corporate, SME and Government users, connecting suppliers and customers on both buy and sell sides.

With the Pacific Health Exchange growing from the major Auckland Hospitals to include Capital & Coast in Wellington, Hawke’s Bay DHB and 3 more ready to implement, connecting them to medical, wholesale and consumable suppliers, Tranzsoft’s trading ‘community’ is growing rapidly. This allows all users to connect to each other seamlessly with new and existing users finding many trading partners already connected.

Corporate Express for example uses Tranzsoft to reach customers such as NZ Defence Forces, Auckland District Health Board and Restaurant Brands (KFC, Pizza Hut & Starbucks), meaning other companies buying from or selling to these organisations can now engage knowing that the hub has critical mass and proven technology.

But the reach doesn’t just stop with New Zealand. With Tranzsoft’s integration with Australia’s Pacific Health Exchange and Timber and Hardware Exchange the gateway now offers an Australasian-wide eProcurement hub.

Tranzsoft’s Rod Hall also points out that “with the addition of our FlowBiz business automation, users are now able to leverage even more efficiency and cost savings with an automated electronic procurement cycle from product catalogue through requisition, on-line approvals to purchase order, advice notes and invoices.”

It seems B2B e-commerce automation is alive, thriving and business as usual – at least for Tranzsoft Gateway users.

See the diagram below for an overview of how many major NZ organisations are using Tranzsoft’s e-Procurement and B2B documentation gateway.

FURTHER READING


About This Vendor


More Case Studies

Tranzsoft supply chain precision

Cloud portal delivers supplies with surgical precision

July 6, 2016 | Hayden McCall
New Zealand health care providers are using the cloud to ensure critical supplies are delivered to the right place at the right time, but extending it has been glacial…
Tranzsoft_Corporate Express

Corporate Express clients gain efficiency with Tranzsoft’s hub

July 7, 2009 | Tranzsoft
Tranzsoft moved Corporate Express’ systems over to electronic order processing back in 2002. Seven years on, the two companies have set a benchmark for streamlined order processes...
Tranzsoft_police

Police sign 3 year e-procurement deal with Tranzsoft

March 22, 2004 | David McNickel, Tranzsoft
After being at the forefront of the Government's GoProcure initiative, the Police found themselves provider-less last December when Cabinet pulled the plug on the fledgling e-procurement project. Three months later they've inked an e-procurement deal with Tranzsoft. David McNickel investigates the motive behind the decision...
Tranzsoft_Ivanhoe Group

Big strike for Tranzsoft’s e-commerce solution

September 1, 2003 | Tranzsoft
You would probably wonder what these miners in Mongolia have to do with Waitemata Hospital here in New Zealand. Dig a little deeper though and you'll find that each is now benefiting from the same locally developed solution to manage similar document and data exchange challenges…
Tranzsoft_NZ Health

Hospitals running with e-procurement

July 5, 2003 | Tranzsoft
After two years of negotiation and trials, the health industry is ready to adopt a central exchange to streamline electronic trading between medical suppliers and hospitals...

Medication errors can happen anywhere, but knowledge is your best defense. So it’s no wonder that online pharmacies is becoming more popular over the last years. Viagra is one of the best treatment options of all date. Nowadays a lot of articles were published about natural viagra substitutes. Usually, when folk talk about ED, they think “otc viagra substitute“. A medical review about “http://corpmoreinfo.com/where-to-buy-viagra-online.html” found that men’s most common sexual dysfunction is erectile disfunction. Furthermore, this may include hardening of the arteries, anxiety, or a stress. Any cure may cause some side effects. Sometimes side effects can be actually serious. Stop using this medicine and get medical help if you have sudden vision loss.


Follow iStart to keep up to date with the latest news and views...