A Sustainable Campaign by ProQuest


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Invoice Costs Under High Security                                                                 A Sustainable Campaign
Optimizing the purchase to pay process is a big and expensive headache for many                   ‘Sustainability’ in military circles is an
organizations. HM Prison Service has made significant in-roads into the problem                   important word, but it isn’t usually associated
using a solution from American company Brainware.                                                 with the Forces’ environmental footprint. This
    Set up in 2005, the HMPS Shared Service Centre, in Newport, is tasked with                    however is about to change. Consultancy
achieving savings of £30 million while improving service across a range of finance, HR            BMT Isis has produced the first ‘Guide to
and, particularly, procurement services for 130 prisons. Steve Hodgson, Head of the               sustainability in defence acquisition’ which is about to be adopted by the UK’s Ministry
Service Centre, says: “We found the cost of processing an invoice to be roughly twice             of Defence, as part of the Government’s drive to become a leader in sustainable public
what we were expecting, closer to £5 than £2.” Analysis showed an extremely diverse               procurement practice.
supplier base, heavily dependent on paper invoices, and unwilling to absorb the costs                Mark Hedges, Senior Environment and Sustainability Consultant at BMT, explains that
of an EDI solution. Therefore, says Hodgson, “we decided that the automation of                   the purpose of the document is two-fold: first, to raise awareness of sustainability issues
paper, rather than the elimination of paper, was the way we would go. There are more              and transfer knowledge to all defence acquisition programmes, and second to serve as a
than 10,000 vendors in the supply base with more than 5,000 regularly interacting;                tool to sustain the sustainability drive in the long term. He says “The document will form
building individual templates for thousands of suppliers would not have been a practi-            an Acquisition and Operating Framework and will be available through an MoD public
cal proposition. The feature of Brainware’s solution that attracted us was its ability to         website not only to staff but also all suppliers and potential suppliers”.
process invoices without having to build a template for each supplier.”                              The biggest problem, says Hedges, has been the huge diversity of defence
    Steve Britton, Brainware’s VP, Sales, EMEA, explains: “Our technology gives us a              procurement. “Sustainability, rightly, means different things to different people: our
unique ability to process very large numbers of invoices, regardless of whether they              biggest challenge has been to create guidance that is meaningful to everyone”. The
are electronic or in scanned paper form. Our software can learn from examples: we                 guidance builds on earlier work by the MoD with some 33 key suppliers such as BAe
can ‘teach’ the system to recognize specific details, and it can then apply ‘handles’             and Qinetic which defined the high level intentions of suppliers and the MoD towards
to information on documents that it hasn’t seen before. It’s a highly scaleable                   sustainable procurement.
approach for customers with tens or thousands of suppliers.” Britton points out                      Sustainability considerations should be included at every stage from Concept and
that ineffective invoice processing isn’t just costly. “If you can’t get out from under           Assessment through Design, Manufacture and In-service use to ultimate Disposal, and
the paperwork, you have no visibility at senior level. You damage supplier relations,             include social and economic considerations. Hedges concedes that “probably some
you can’t identify and work with strategic suppliers and, often, real money is going              70% of the document is about environmental 
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