NHS Wales is embarking on an innovative early payment programme for its suppliers to help achieve greater efficiencies through a more effective purchasing process. NHS Wales is working with Oxygen Finance to improve its purchase to pay (P2P) solution, as part of a wider efficiency drive.
The programme will offer suppliers early settlement of their invoices in exchange for a discount directly proportional to how quickly the payment is made.
NHS Wales has an annual spend of over £4 billion on goods and services and the Early Payment Programme is projected to deliver savings of circa £9 million over the contract period, alongside a myriad of further benefits down the supply chain.
Russell Ward, Head of Accounts Payable and eEnablement at NHS Wales Shared Services Partnership, said:
“We see this as a win-win scenario. The programme will not only open up a welcome new income stream, but crucially allows us to develop better relationships with suppliers and vastly improved efficiency across our procurement systems.”
As part of the programme, Oxygen Finance will be delivering a comprehensive package of support to include expert process and change consultancy, a dedicated team to bring suppliers onboard and secure technology, integrated with the health authorities’ existing ERP system, so that transactions can be processed without intervention.
Ben Jackson, chief executive of Oxygen Finance added:
“Our approach to early payment has proved to be hugely successful for our local authority clients and it is an exciting prospect to take this into the healthcare arena.”
Date: Thursday 9th November, 2017
Source: Purchase to Pay Network