After a thorough request for proposal process, HMRC selected to implement the entire Emptoris Supply and Contract Management software suite, which includes solutions for sourcing, spend analysis, contract management and supplier performance management. Emptoris solutions are available to UK public sector organizations under a Government Department Approved Framework.
"HMRC is very focussed on delivering efficient, cost effective and best practice processes across all its operations. The use of spend analysis software lies at the core of achieving this, since having clear visibility allows us to effectively target key areas of spend and clearly demonstrate the value delivered," said David Thomas, Commercial Director, HM Revenue & Customs.
"This information capability is very useful in fulfilling promptly and accurately our FOI responsibilities. In addition, the use of contract management technology, will not only address the recommendation of audit, but also improve the efficiency of our contracting processes, as well as improve the terms of and compliance to HMRC contracts," said Thomas.
The Emptoris technologies have already helped HMRC to achieve savings and value from the auction functionality, including achieving a 30% savings in a recent sourcing event. The software has also allowed HMRC to take paper out of the process, which has efficiency as well as a sustainable green benefits.
In January 2007, HMRC initiated a pilot project using Emptoris Spend Analysis to collate and enrich its spending data so that the Department could report more effectively to government auditors. HMRC has annual spending of almost £2.5 billion ($5 billion U.S. dollars) which it must manage and for which it must account. In February 2008, HMRC initiated a second pilot program, using Emptoris Sourcing, which aimed to enable the Department with more efficient, effective and open sourcing practices for the goods and services it procures.
"Sourcing and spend analysis technologies are in wide use in the private sector at leading global companies. Getting HMRC in line with best practices in the application of these technologies was a goal and a path we thought imperative to test. The pilot programs demonstrated great success in improving visibility and control over our public spending, and indications are they will greatly improve our efficiency," said Thomas.
Sourcing software solutions allow organizations to source the best products and services from suppliers while driving cost competitiveness, minimizing supply base risk and reducing sourcing cycle time. Spend analysis software allows organizations to collect and organize spending data from across disperse systems and locations to provide an accurate, up-to-date, view into spending. Spend analysis further enables organizations to better identify savings opportunities, monitor the effectiveness of savings initiatives, and automate spend classification to provide granular spend visibility. Contract management software allows organizations to structure stronger contracts, streamline contracting processes, and improve contract quality and compliance.
HMRC chose Emptoris after a vigorous 5-month request for proposal (RFP). HMRC wanted a supply and contract management suite that would easily integrate with its existing SAP enterprise resource planning system – and that provided more extensive functionality than other supply management solutions it had tested.
"We selected a proven software solution suite with the market’s highest functionality, according to independent research, and a solution suite which provides the ease-of-use and ease-of-implementation that ensures quick deployment and adoption," said Thomas.
Emptoris is consistently recognized by independent research firms as a leader in supply and contract management software based on its "heavyweight functionality," "ability to execute," and its track record of innovation.
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