Speedier payment terms for council suppliers

The council has recently introduced a number of initiatives to help speed up the payment of supplier invoices. The credit crunch action group has agreed to improve the speed of payment of invoices owed by the council to business, with the intention of ensuring payment is made within an average of 10 days of the receipt of the invoice.
 
This new and improved system gives priority to delivering speedier invoice payments for small to medium sized businesses and the voluntary sector.

New technology such as electronic invoice routing and authorisation is being introduced to ensure that suppliers are paid more quickly by reducing the scope for invoices to get delayed or lost in transit.

The new process has been piloted since January within the building maintenance, ICT and business improvement, passenger transport and environmental health and public protection sections of the council. The result of the pilot is currently being assessed with these service areas and internal audit. Once completed, a council wide rollout of the new system will take place.

The introduction of a modern enterprise resource planning (ERP) solution, planned for April 2010, to replace the council’s existing finance, payroll and HR systems will further help to speed up the payment of supplier invoices as it will allow for streamlining of the council’s authorisation process and automated invoice matching.

Cllr Ian Marks, leader of the council said: “We understand the importance for businesses of maintaining a healthy cashflow. As a result of this initiative, we are already seeing over 30% of invoices paid within 10 days which we hope to improve on further in coming months. Our new system for the speedier payment of invoices will ensure that the council does not place any financial strains or unnecessary burdens on its valued suppliers during this difficult period.”

Ends
Issued by:  Estelle Harrs, senior press officer
Date:   Tuesday 16 June  2009
Release: Immediate