Digitalization of Procurement Processes in Randaberg Municipality

A case story about public procurement

The goal for Randaberg Municipality in Norway has been clear: To optimize and streamline the administrative processes so that the municipality's resources can be used more appropriately

The last six months' targeted focus on digitalization of the procurement processes in Randaberg municipality has paid off. With the switch to the Acentio 360 purchasing solution, 87% of all invoices based on purchase order are now processed automatically.

Implementation of Acentio 360 Procurement Solution

With the implementation of the Acentio 360 procurement solution and invoice matching module, it has been possible to realize measurable in just 6 months. The platform is directly integrated with the Xledger Public ERP system and can thus ensure automated payments and bookkeeping of invoices. Order handling through Aentio 360 has been the key to optimizing, automating and streamlining invoice processing, ensuring documentation and compliance with the municipality's procurement policy and ensuring compliance with the municipality's agreements.

In a solid collaboration with Kjetil Langeland, purchasing manager in the Finance Department in Randaberg Municipality, and his team of dedicated procurement specialists, it has been possible to realize both implementation and benefits within just a few months.

If we just look at the period from May to July, the number of automatically approved invoices has increased from 60% to 87%! This is partly the result of a strong focus by the municipality's procurement department and the effective functionality for invoice processing in Acentio 360.

Environmental considerations

By optimising procurement processes, the green agenda has also come into play. By reducing the number of deliveries, the municipality can reduce both CO2 emissions, particle fening and at the same time increase safety for pedestrians in the municipality. For example, when delivering a box of 50 pens over a distance of just 20 km (40 km round trip) with a van running 12 km/l on diesel, approximately 8.94 kg of CO2 is emitted[1]. It is thus possible to reduce CO2 emissions significantly by simply consolidating orders, which is easily done in Acentio 360. Here orders to the same suppliers can be merged, and in addition automated notifications and approval flows help ensure smooth handling in everyday buness.

Freeing Up Resources

In a municipal organization where purchasing, accounting and invoice processing are part of the daily tasks, these processes can quickly take time away from other core tasks. With digitalisation of the procurement process, Randaberg Municipality has already freed up valuable resources that can be used in areas that directly benefit the municipality's citizens.

Documentation and Auditing

Digitalisation has added another important benefit: Documentation. As the procurement processes are digitized, it is easier to document purchases, approvals and payments. You obtain full process transparency and this is crucial when e.g. audits require insight into the organization's spending.

Optimization of Procurement

With digitalisation, the municipality gets a clear insight into where purchases are made, what is being ordered, who buys what and how often? This insight can ensure that large purchases are approved correctly, and that deliveries are only made to registered delivery addresses. Put on top of that the fact that all purchases are based on finalized agreements - the employees buy the right items from the right suppliers to the right prices. All of this helps to minimize the risk of errors and potential maverick buying.

Conclusion - e-procurement is a success!

Randaberg Municipality's decision to digitize the procurement processes has proven to be a great success! Not only in terms of financial and time savings, but also in terms of strengthening the organization's efficiency, safety, and environmental responsibility.

Acentio is looking forward to a long and strong collaboration with Randaberg Kommune. We are convinced that Randaberg Municipality will help set new standards for digitalization of both procurement and invoice processing in the public sector.

[1] Calculations based on data from the U.S. Environmental Protection Agency (EPA) on diesel emissions.

Are you interested in hearing more about how we help public procurement succeed?
Please feel free to reach out to Director of PMO Jacob Gaarde Vornøe at tel. +45 61 22 11 90 or jgv@acentio.com