Published September 2005 in Regeneration & Renewal
Wigan-based company Valueworks has developed computer software that it claims enables local authorities and housing associations to make significant savings when purchasing construction materials and household items such as baths and kitchens. The software links clients with contractors and suppliers, and aims to allow the clients to identify the cost of the goods and prevent hidden extra costs or unnecessary supplies from appearing on the final bill. Valueworks supplies this technology and assistance to 18 local authorities and housing associations. Customer relationship manager Vicki Murcott answers our panel's questions.
Q - How does the software demonstrate value for money in the procurement process?
A - We believe that the system shows cost-effectiveness in several areas. We look at the initial deals available, monitor them and compare prices with other offers. By using the controls available through our system, we can demonstrate a reduction in organisations� maverick and uncontrolled spending. There�s also less administrative work involved, so the client reduces the cost of processing purchase orders and invoices. The system can also be as flexible as you want it to be.
Q - How does Valueworks cope with EU procurement legislation for local authorities?
A - Valueworks does the sourcing upfront and we only use products that are compliant with the Official Journal of the European Union (OJEU). We would agree with say a housing consortium, what they require and then go through a sourcing process compliant with OJEU. Everything is sorted to meet EU legislation before anybody gets near the system. We recognise that OJEU can be incredibly complicated and we tend to provide advice for suppliers (to cope with it).
Q - What�s the process for evaluating the quality of the products purchased and does the system have the capacity to track and monitor problems such as defects or returns?
A - Only products that have been sourced through an OJEU compliant process can be accessed through the system. The people receiving the orders tend to be contractors and they must confirm the delivery of the items electronically. At this point they can clearly specify in the system why they would want to return the goods if they are damaged or if they don�t need them any more. All parties can access this information and review the performance of any supplier.
Q - Is there the capacity to integrate into a client's existing IT system, or is it a stand-alone system?
A - It can cope with either. Some clients want all orders held in their own system, others prefer them to be in ours. There is an automated data feed that feeds from the Valueworks payment system into the clients or the supplier�s system. It tends to be the suppliers who want the integration. We can integrate clients into the financial system of Valueworks but they tend to prefer us to import an Excel file. Integration can be as straightforward or as complicated as clients want it to be.
The Panel
Questions were compiled with help from Ian Marlow, service director of housing technical services at Leicester City Council, and Sarah Davis, policy officer with the Chartered Institute of Housing.
