South Tyneside Council spends more than £125m 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 introduction of Oxygen’s Supplier Incentive Programme which has already attracted many suppliers, with invoices approaching £30m 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.
The early payment programme offers a win-win for both the council and the suppliers.
Benefits to the Council
– New predictable income & savings
– Adhere to government legislation
– Improve corporate social responsibility
– Purchase-To-Pay efficiencies & reduced cost
Benefits to Suppliers
– Optimise working capital
– Replicated down each tier of the supply chain
– Improved working relationship
– Hands free, fully automated cash acceleration