Public Sector

South Tyneside Council


The Challenge

South Tyneside Council spends £207m every year with over 3,000 suppliers who help the council to provide a wide range of key services – from school and library materials and health and wellbeing services to highways maintenance and waste disposal.

One of the ways the council is working to ensure best value for money is through the Supplier Incentive Programme – an early payment scheme – which has already attracted many suppliers, with invoices approaching £62m signed up to receive early payment in the first year.

The initiative represents a new level of collaboration between the council and its supply chain, providing mutual benefits for both the council and businesses, with suppliers having their invoices fast tracked in exchange for a small rebate.

Oxygen’s Solution

South Tyneside council partnered with Oxygen Finance to introduce the programme and the council has become a role model for other Local Authorities that wish to improve their purchase-to-pay (P2P) processes, boost suppliers’ cash flow and generate a new income stream.

Oxygen Finance has a wealth of experience with public sector clients throughout the UK and continues to help councils add social value, generate a new income stream and implement e-invoicing, which is fundamental in order to comply with the EU Directive on e-invoicing and payment performance reporting.

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South Tyneside Council South Tyneside Council

£207m annual spend on services

South Tyneside Council South Tyneside Council

3,000+ suppliers

South Tyneside Council South Tyneside Council

£62m invoices approaching through sign up

South Tyneside Council South Tyneside Council

Role model for other Local Authorities


South Tyneside Council

Making sure we deliver value for money while maintaining quality is more important than ever. Effective procurement is fundamental to achieving our vision, protecting our front line services and supporting a socially sustainable economic environment.

“I’m pleased that the Social Value Act has been included as a key element of our new Procurement Strategy. Encompassing social value enables us to ensure that bidders bring a social or environmental benefit to SouthTyneside where possible. This can often include apprenticeship or local employment opportunities, which supports our strategic objective of economic growth.”

Councillor Ed Malcolm – Lead Member for Resources & Innovation

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