Internet will save schools cash

By ADAM GIFFORD

Schools in New Zealand are set to save money by joining together to buy goods and services in bulk.

The School Trustees Association has teamed up with Oracle New Zealand and Cap Gemini Ernst & Young to build an electronic procurement portal for New Zealand's schools.

Association general manager Ray Newport said the project would cost "in the ball park" of $1 million.

He refused to outline how the development was being funded, apart from saying, "We have strategic partners."

But he said the portal should be self-funding from transactions once it is running.

The association has an annual income of about $2.5 million from its 2400 members. Mr Newport said it was still signing up suppliers such as telephone companies, stationery vendors and IT firms.

"Tomorrow's Schools created 2650 state entities, each doing its own thing, but it means they can't benefit from leveraging their collective purchasing power."

Mr Newport said association members stood to make significant savings within their operational grant funding by using the portal.

The Cap Gemini Ernst & Young head of applications and infrastructure management for Australia and New Zealand, David Stewart, said the firm was building and managing the portal for the trustees association, using Oracle eprocurement software.

"We have had involvement with other exchanges in Australia and round the globe but this will be the first trading exchange we have done here," Mr Stewart said.

He said they should be ready for pilot trials by November.

Mr Newport said many school boards were showing interest and had asked to be involved in the pilot or as early users.

The association hoped to get at least half its schools on the system within the first 18 months, he said, and would target larger schools first.

"We are talking about a state-of-the-art procurement system with a shop front but smart back-office capability as well, so schools can replicate their own budgetary needs in the system.

"The system will provide very good data to schools that currently stays with the vendor about pricing and buying patterns. The suppliers get benefits as well in terms of the ability to access 2400 schools efficiently."