Transforming Government Procurement with AI

Summary:

An AI platform has reduced the resources needed to administer the process by an impressive 80%, streamlined operations, and improved service delivery.

Client: 

UK Department for Work and Pensions (DWP)

Problem Statement: 

The DWP faced inefficiencies in managing thousands of low-value, one-off invoices annually. The existing invoice handling process was heavily administrative, time-consuming, and prone to delays, adversely impacting the timely delivery of jobseeker training and delaying individuals’ return to work.

Results: 

• £2.5 million annual savings.
• Improved procurement compliance rates across the business.
• 10x efficiency gain in processing orders.
• 80% reduction in invoice processing resources.
• Improved ability to deliver training.

AI Solution Overview:

Since 2006, Basware has worked closely with the DWP to gain a comprehensive understanding of the department’s objectives and priorities. This collaboration was integral to addressing the department’s challenges effectively.

In 2007, as part of the DWP’s finance transformation program, Basware integrated its eMarketplace solution with Oracle’s ERP system. This integration formed the backbone of the department’s GSI Hub e-procurement platform.

Basware introduced an innovative LVP initiative to automate and expedite the procurement of jobseeker training services. Key features of this initiative include:

• Automated Sourcing: DWP officials can instantly source training services from pre-registered suppliers, eliminating the need for manual sourcing.
• Prompt Payments: Suppliers receive purchase orders and return invoices online, ensuring timely payments.
• Inclusive Market Access: SMEs, previously excluded from government contracts due to high entry costs, can now participate without additional financial barriers.

References: 

1. Department for Work and Pensions. Streamlining procurement to change lives. https://www.basware.com/en/why-basware/customers/department-for-work-pensions
2. e-Procurement Software Solutions. https://www.basware.com/en/solutions/e-procurement/

Industry: Government Procurement

Vendor: Basware

Client: UK Department for Work and Pensions (DWP)