Axe falls on Government e-buying scheme

By ADAM GIFFORD

Procurement specialist GSB-Supplycorp is expecting increased activity from the state sector after the Government axed the Goprocure online purchasing project.

State Services Minister Trevor Mallard said $2 million was spent on the GoProcure pilot, which was built by Cap Gemini New Zealand. This was well down on the original $7.5 million contract.

Only two agencies were in the pilot, the police and Auckland University.

A year ago Mallard said GoProcure would save Government agencies at least $6.5 million a year, and departments would be made to use the system.

But this week the minister changed his tune, saying only a few government agencies and suppliers were ready for it.

"It is likely that by the time more agencies are ready to use GoProcure, there will be alternatives to provide these services, and government leadership in this area will no longer be required," Mallard said.

GSB Supplycorp chief executive Carl Mitchell-Turner said the project had hung over the market for almost three years.

"Now we should have a clear and level playing field."

Electronic procurement involves two elements - software to streamline or automate an organisation's internal buying processes, and a marketplace or hub where electronic purchase orders, invoices and catalogues can be exchanged between buyers and suppliers, even if they use different back end systems.

At the height of the e-procurement hype, hundreds of marketplace sites were being promoted, but few survived.