Delivering savings from low value spend

In October 2007 Capita was selected as Southampton City Council’s 10-year Strategic Services Partner, and was engaged to provide back office services and deliver a transformational programme that would enable significant savings for the council over the lifetime of the contract. Procurement was identified as one of the key service areas to be outsourced and to contribute towards this.

Piggybank

8%
savings on the value of spend under management

The brief

Following the initial implementation (which focused on high-value spend management), a decision was taken by Southampton to outsource all low-value spend (sub-£100K). Capita’s procurement team needed to develop new ways of working across the Council and support service users in transitioning to the new service to ensure we unlocked the benefits from a centralised low value spend management arrangement.


Local government

Action taken

In order to deliver the solution, we put in place a number of new operating procedures and systems including developing the technology platform and introducing workflow management to streamline the processes to deliver reductions in the time taken to carry out low value sourcing exercises. We worked hard to ensure all service users understood how the new processes would work, and actively engaged the supply chain to build the base of local suppliers. 


Magnifying glass


Greater visibility of low-value spend

The result

We delivered average savings of 8% of the value of spend under management, as well as efficiencies gained from a streamlined, centralised processes.

Our systems have given the Council greater visibility (and control) over low-value suppliers and improved influenced of spend on SMEs, local businesses and the third sector.

Integration with P2P system to create further efficiencies and drive compliance.




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