Mildura Rural City Council implemented ‘Straightbuy’ – an electronic procurement (e-procurement) system in May 2003. Since that time over 10,000 purchase orders have been raised electronically across Council.
Straightbuy allows staff to issue their own orders and commit budget lines that automatically import into Council’s financial management system for accounts payable and financial commitment reporting purposes.
Email alerts are sent to authorising officers and the purchasing administrator to notify of an order to approve or process. Email confirmations are also relayed to the requisitioning officer, advising of the order being sent. A status report is available on the progress of the order to the supplier, and a daily report is sent to the purchasing administrator of unread email orders that have not been viewed by supplier.
Mildura’s Central Purchasing Officer, Tony McCarthy, said the system delivers a higher degree of customer service to users in a quicker, streamlined procurement process that keeps paperwork to a minimum.
“What took hours for someone to data entry now takes seconds,” he said. “Pre-set financial delegation limits, set by the Purchasing Administrator, ensure that the right level of authority approves orders along delegation limits. It also develops a ‘self administration’ mindset, where technological skills are developed across the organisation and Council benefits corporately from a standardised way of procuring goods and managing that process.”
Due to Mildura’s isolation, e-procurement has provided positive communication methods as well as development for local business opportunities. Through Council’s initiative, local businesses are involved in electronic commerce, allowing them to expand their market opportunities through electronic catalogues that can be viewed by other markets or Councils. The system also allows Mildura to invite selected suppliers to provide Council with tenders and quotes for under $100,000 electronically. Benefits include saving up to a week in postage using e-quotes, and the ability to attach documentation in invitations and responses. Successful quotes can also be transferred into an official purchase order, satisfying audit requirements and ensuring probity and transparency standards.
Through working with the software developer, Council was able to process 4,500 orders for the 2005/2006 financial year.
For further information contact Tony McCarthy on (03) 5018 8194.
