Friday 28th Oct 2016 - Logistics Manager

MoD contracts galore on e-Procurement sites

About £2.5Bn worth of contracts are now live on the Ministry of Defence (MoD) e-Procurement system, says Capgemini. Supported by Capgemini, the P2P e-Business portal is a secure and streamlined way for the MoD to buy goods and services from industry and enables suppliers to trade and receive payment more quickly and efficiently than ever before.

And distribution company Eddie Stobart has become the five hundredth supplier to sign up to the MoD’s Purchase to Payment (P2P) Solution, an e-Business portal hosted on the Defence Electronic Commerce Service (DECS), a managed service from Capgemini providing a single trading portal between the MoD and industry.

To date, more than 50,000 purchase order lines with a value in excess of £700M have been processed via P2P, and more than 21,000 invoices worth £556M in total have been paid using the service.

Key features of P2P include electronic ordering, receipting and invoicing, with an automated three-way matching capability which contributes to a significant improvement in information management and quicker payment cycles. By adopting industry standard procurement processes, the MoD has redefined its procurement strategy and reduced administration with process improvements and centralised buying.

Tony Rossi, director of the Procurement Enabling Group at the MoD’s Defence Logistics Organisation, explains: “The P2P system enables the automation or our procurement processes allowing us to trade more efficiently with our suppliers and pay them faster.”

Suppliers have praised the service for its improved speed of payment and reduced administration.

Ben Whawell, Eddie Stobart’s corporate development manager, comments: “We signed up to the system because it enables us to streamline our ordering processes, eliminate the associated administration costs and improve our payment cycle. Overall it has strengthened our working relationship with the MoD.”

P2P uses the Oracle eBusiness suite and is hosted on the Defence Electronic Commerce Service (DECS). Suppliers can connect by using Exostar, Purchasing Portal, EDI or the RLI, which is the MoD/Supplier Intranet.