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ValueAdding.com has recently conducted a survey across local authorities in
the UK. This has included Unitary, County and District / Borough Councils.
The full Purchase to Payment report can be downloaded by clicking the link
on the left.
Our findings show a great range of processing costs; from £3 to over £80
per transaction. Some of these are associated with the different methods
that are used (paper purchase orders, IT ordering systems, corporate cards,
etc.), but there is also a range of costs within each method.
The main issues that we found are:
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65% of councils do not know what their costs of purchasing goods or
services are |
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Paper-based systems were considerably more expensive than IT-based
systems |
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Corporate card transactions were the cheapest, but can't be used for all
purchases |
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Over half the councils surveyed still use a paper-based system, while 1
in 5 use this method exclusively |
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Nearly half use more than one system of purchasing, with a small number
using 4 or 5 different methods concurrently |
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Most councils would benefit from using a rigorous costing approach (such
as activity based costing) to assess the value-for-money they are
delivering through their purchasing processes |
Email
us for more information:
click here
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