New Govt electronic trading service will achieve substantial savings

28/7/94

Savings estimated at more than $60 million over the next five years will be made through a new Government electronic trading service announced today by Services Minister Graham Kierath.

The system, called an 'Electronic Gateway', has been established by the State Supply Commission.

It will link Government departments and agencies to their suppliers, enabling them to buy goods and services by computer.

"The savings will come through substantial productivity improvements as the system gets rid of costly paperwork, settles accounts by direct debit and speeds up the whole process of purchasing," Mr Kierath said.

"There is no doubt that electronic trading is the way of the future for purchasing."

The Minister said the Electronic Gateway, administered by the Department of State Services' Electronic Trading Unit, would allow agencies to send and receive documents such as purchase orders, invoices, quotations and consignment notes.

Suppliers could connect to the service through commercial networks provided by IBM, National Electronic Interchange Services (NEIS) and Telstra.

If suppliers were not connected to the gateway, the computer would send the document by fax.

"Over 30 Government agencies are already connected, with large departments such as Main Roads, SECWA and WAWA having indicated an intention to join in the near future," Mr Kierath said.

Some 50 suppliers are presently linked to the Electronic Gateway, which is expected to grow to around 150 suppliers over the coming year.

It is hoped that in future the system will provide both electronic funds transfer to pay suppliers and a wide range of information on Government tenders and contracts.

Under the old system of purchasing, departments or agencies had to request quotes, process those quotes, raise a purchase order, process a delivery note, process the invoice and send payment by cheque.

Under the new system, this will all be done by computer.

KPMG Management Consulting has been awarded a contract to provide training in electronic trading to Government officers and business representatives.

Suppliers wanting more information on the network should contact the Department of State Services on 222 8222.

Media contact:  Brian Coulter 222 9595 / 481 2133