Just over 12 months ago, the Bundaberg Regional Council employed a new online, technology based procurement system to give local suppliers and business the opportunity to register as providers of goods and services.

Since then, Procureit's parent company PlantMiner has been named one of Westpac's top 20 Businesses of Tomorrow and suppliers in the region have embraced the Council's new system and technology.

Manager of Strategic Supply at Bundaberg Regional Council, Jennifer Marshallsea, said the change came about when Council identified the need for technology enhancement to support their procurement operations.

"Council procures $100 million of goods and services annually and some of the old panel arrangements had been superseded or were non-existent where they were really needed", Jennifer said.

"We were really under pressure from our engineering department in relation to construction and trade supplies.

"It was time to find a better solution and process than the old, bound A4 book kept in the glovebox by our buyers.

"We needed a technologically advanced e-commerce system that would meet the needs of the twenty-first century.

"The main drivers were flexibility, mobility and agility. We needed a system that provided a simple interface for suppliers. Compliance and probity were important and it had to be localised."

PlantMiner is an online source of sub-contractors and hire equipment for the construction and mining industries and has a track record of providing procurement programs for the private sector. The company had recognised a gap in the market for online procurement programs for councils and public sector entities needing more flexible systems which also provided more control and visibility over their procurement team.

Product Manager, Steve O'Keeffe guided the development of the software package in collaboration with Bundaberg Regional Council. Procureit is the first online procurement package developed by the company for the public sector.

Steve said traditional procurement panels don't always necessarily mean the best value for money is being achieved.

"Often we find that panels are really just there for convenience. They are typically made up of a schedule of rates and suppliers provide their highest price, not their best, as there is a lack of certainty for them in the long term," Steve said.

"Procureit provides councils with a platform where businesses of differing sizes, from major chains to Mum and Dad enterprises, can engage on a fairly even playing field. The system also provides council with a dependable list of pre-qualified suppliers and trades."

"The process of finding Procureit and tailoring it as a solution to our procurement needs was a collaboration that took 12-15 months," Jennifer said.

"We are building a strategic supplier relationship through this system within a highly-regulated environment.

"When we started down this road we found that our local suppliers were not as sophisticated with online 'shopping' as we expected. Training and support had to be provided both to local business and to our own people.

"Other challenges included tailoring for OHS compliance, keeping pricing in line with the regulations for pricing and review arrangements and ensuring the panels were continually refreshed and up-to-date.

"It is resource heavy to begin with, but the resources to run Procureit reduce over time as more and more of the work falls back on to suppliers in terms of maintaining compliance with regulations.

"As compliance shifts back to industry, so does risk, which is a bonus for Council.

"People now know that Council is serious about pricing OHS compliant suppliers and we have already saved considerable funds through enforced contracted pricing.

"Local suppliers have come with us on this journey, increasing their own capabilities in the IT and online market and ultimately, their own competitiveness, productivity and profitability.

"Bundaberg Regional Council strongly supports sustainability in the local market and local community – this benefits us, and the region's economy in the long term."