Oxygen Finance
Premier Supply Service
Briefly describe the initiative/ project/ service
Oxygen Finance is the leading provider of payment programmes to the public sector and Cumbria County Council’s partner in delivering Premier Supply Service (PSS), a service that has enabled us to generate much needed new income and significantly improve our processes and efficiency.
PSS is an early payment programme that enables suppliers to have their invoices paid ahead of the contracted term in exchange for a discount – the level of the discount is directly proportional to how early the payment is made.
The Oxygen Finance team worked extensively with Cumbria County Council as part of a combined project team, they engaged effectively with our procurement and AP departments. The collaborative way in which the team at Oxygen Finance works means that we have a solution designed specifically for our needs and that complements other procurement priorities whilst also delivering predictable bottom-line savings, P2P efficiencies and social value creation.
The Oxygen Finance approach involves a combination of process and change consultancy, dedicated supplier on-boarding and secure, fully-integrated technology. We also have access to dashboards that provide insight into process effectiveness and programme performance.
Why do you think it should win this award?
Oxygen Finance should win this award because they have provided an innovative solution that helps to address multiple issues we, and other councils face, including targeted savings, digital transformation and tackling late payment.
Collaboration is not just evident at the implementation stage but through the lifetime of the contract and in its remuneration model; the earnings are directly linked to the success of the programme which means our objectives are aligned. The teams go the extra mile by investing significant resource both at the start of the programme and in providing comprehensive service management and proposed innovative solutions during the lifetime of their contract to ensure ongoing success.
The payment programmes deliver hard financial benefits as well as supporting social value goals by injecting income into the local economy.
We have benefitted from access to wide-ranging process and change expertise including people with experience of working on complex, supply chain transformations. The success of their programmes has directly led to other councils adopting the model.
Unlike their competitors, their dedicated supplier on-boarding team uses a proven multi-channel marketing approach, creating branded PSS m
What are the key achievements?
Over £1m of new income has been generated for Cumbria County Council with increases expected year on year, and in addition, almost £200m of liquidity has been injected into the local Cumbrian economy over the last 12 months as a direct result of the programme.
Purchase-to-pay processes have been streamlined and e-invoicing has been offered to all PSS suppliers. 26% of spend is now via a Purchase Order (up from 6%), and further improvements are anticipated, thereby making the Council more efficient.
Invoices are now being paid to all participating suppliers within around 10 days of submission, helping the Council to comply with late payment legislation.
The changes have been well-received by our suppliers and positive feedback on the benefits they are seeing have been received (references are available). On average, £12m of payments are now fast tracked each month, with further growth expected, through a very positive and maturing partnership arrangement.
