A report by the Director of Finance set out the details of a proposal to automate invoice processing.  This automation was dependent upon the procurement of the system detailed in the report.  In parallel to the project, the Procurement Unit was continuing to encourage the use of iProcurement to enable the new processes to bring greater efficiencies and service improvements.

The project centred on reducing costs, being able to manage all Council payments to suppliers and taking the Council from the lowest quartile in the national comparison of paying suppliers within 30 days.  The investment required involved the acquisition and implementation of a suitable solution from the tender details provided in the exempt appendix to the report at the end of the Cabinet’s agenda.  This investment was offset by the savings generated by a reduced staffing establishment and was an eligible case for support from the Efficiency Investment Budget.

The report recommended that the Cabinet agree to the proposal and approve the use of the Efficiency Investment Budget to enable the project to be delivered.  The licence and implementation costs were capital items and were proposed for inclusion in the capital programme.

RESOLVED:  That

(1)  agreement be given to the procurement of an invoice automation system from the lowest bidder as indicated in the exempt appendix to the report, at a cost of £165,626, to be added to the capital programme;

(2)  the revenue cost of £27,975 be met from the Efficiency Investment Budget;

(3)  a revenue saving of £45,000 be realised in 2011-12; and

(4)  the indicative additional revenue saving of £250,000 be realised as part of the business transformation project.