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Premier Supply Service
Information on the Premier Supply Service.
Premier Supply Service –early payment programme for suppliers
The Premier Supply Service gives our suppliers the opportunity to be paid earlier than their contracted terms, while also enabling the Council to improve payment processes and generate much-needed savings.
What is the Premier Supply Service?
Suppliers can choose to join the Premier Supply Service to be paid as soon as the invoice is authorised, and ahead of their 30-day term, in exchange for a pre-agreed rebate. The rebate is applied dynamically and is proportionate to how many days we accelerate the payment by.
The calculation is transparent, and a debit note is provided for every invoice including details of the rebate taken.
Why do we offer the Premier Supply Service?
We offer an early payment programme as it delivers multiple benefits – our suppliers benefit from improved cash flow, greater visibility across the Council and reduced time spent chasing payments and the Council benefits from improved operational effectiveness by optimising P2P processes. The income from the rebates provides much-needed funding to support the delivery of front-line services.
We believe that strong supplier relationships are essential and the Premier Supply Service demonstrates our commitment; we recognise early payment can make a significant impact on the growth and development of our suppliers’ businesses.
Who are we working with to deliver this programme?
We are working with Oxygen Finance to deliver this service. Oxygen Finance is the leading provider of early payment programmes in the UK. The company works with councils across the UK and more than 16,000 suppliers participate in Oxygen Finance programmes.
How will the programme be communicated to suppliers?
Oxygen Finance call our suppliers to explain more about the programme and suppliers may also receive an email from Oxygen Finance that enables them to join the programme online – it is a simple and straightforward process that only takes a couple of minutes to complete.
How will the programme impact me?
Please help us to pay our suppliers early by raising Purchase Orders and Receipting Goods as soon as the goods/services have been delivered. Do not wait for the invoice to arrive to goods receipt.
No Purchase Order No Pay Policy - Standard catalogues are set up in the E5 system to assist users.
Cumberland Council has a Purchase Order policy which aims to ensure that all spend by the Council is authorised and accounted for. All spend should have a supporting purchase order raised prior to ordering goods/services.
- Purchase Orders will not be issued to the supplier until they are fully approved.
- Invoices will not be paid until a goods receipt has been submitted into e5 e-procurement system
- Invoices without a valid PO will be returned to the supplier and will not be paid until returned with a valid PO quoted
If you are a requisitioner
- It is essential that you raise a request for a Purchase Order within e5 e-procurement system. You will need to ensure the suppliers you work with quote the PO number on invoices to ensure efficient processing.
- Once goods/services have been received it is essential that you receipt goods in e5 e-procurement system as soon as possible. Invoices will not be paid until a goods receipt has been submitted into e5 e-procurement system.
If you are an approver of requisitions
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It is essential that you review and approve/reject any requisitions as soon as they are received. If you know you are going to be on leave, please setup a suitable delegate for approvals in your absence. Purchase Orders will not be sent to suppliers until they are approved.
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Standard Payment Terms for suppliers are that payment is processed 30 days from receipt of a valid invoice.
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Suppliers should send invoices to the E5.communications@cumberland.gov.uk mailbox. Any delays caused by invoices being received within Service Areas will affect the date the supplier is paid.
Compliance
PO compliance is monitored. Supplier invoices applicable to the Premier Supply Service will also be monitored. Where a rebate has not been achieved this will be communicated with the Service Area Manager for review.
Training
Training in respect of raising orders is provided by the Purchase to Pay and Financial System Team. Any staff who identify the need for such training because of this policy should contact: E5.communications@cumberland.gov.uk
Questions
If you have any queries about the programme, please contact: Premier Supply Service Premier.SupplyService@cumbria.gov.uk
Frequently Asked Questions
What is the Premier Supply Service?
The Premier Supply Service allows the Council to pay our supplier’s invoices early, ahead of their contracted term (typically 30 days). In exchange for this early payment, the Council can negotiate a small rebate which is calculated using the number of days the invoice payment is accelerated.
Why does the council offer this service?
The service enables the Council to support suppliers by accelerating payments to support their cash flow and boost growth, whilst gaining additional revenue to help achieve long-term savings and protect front-line services.
How is the council offering this service?
The Premier Supply Service is a Cumberland Council programme delivered in partnership with Oxygen Finance Ltd.
How does the Premier Supply Service work?
The system calculates:
1. The number of days the payment is 'early' (defined as the date it would have been paid versus the actual date it will go on the payment run)
2. This 'early' days figure is then multiplied by the agreed daily rebate % to give the actual Early Payment Rebate amount to be deducted from the invoice value.
Who is Oxygen Finance?
The Premier Supply Service is enabled by a company called Oxygen Finance. If you would like more details, please visit the Oxygen Finance website.
How much does it cost suppliers to join?
There are no service charges, joining fees or hidden charges.
The only fee the supplier pays to participate in the Scheme is the agreed early payment rebate.
What is the benefit to the supplier?
The benefit of the Premier Supply Service is to make payment of invoices early which will assist with cashflow into their business.
What changes does the supplier need to make in their system?
None. All we require is that they submit their invoices electronically as text PDFs.
How does a supplier join the programme?
A supplier can request a call back through the microsite.
How does a supplier leave the service?
The supplier would have to talk with their Contract Manager or Oxygen Finance about their contract.
What happens if the supplier does not want to join?
That’s OK. The Premier Supply Service is a voluntary initiative. Suppliers who choose not to join will continue to submit invoices and they will remain on their existing contracted payment terms.
How will early payment impact the invoice submission process?
The supplier will be required to email invoices in a text PDF format.
Does the email for submitting invoices change?
Yes. All onboarded suppliers are given a separate email address to submit invoices.
How will a Premier Supply Service invoice be treated differently?
Premier Supply Service invoices are paid immediately once the invoice has been approved in exchange for a small rebate which is agreed upon joining the service.
A supplier is requesting an early payment, is that possible?
As the Council has 30 days payment terms, we are unable to process the supplier’s payment earlier. Advise them to speak to their Contract Manager or share the Premier Supply Service link with them if the supplier would like to join the scheme.
When will the supplier receive payment in their bank account?
Standard UK bank accounts can take up to 3 working days after the payment has been made by Cumberland Council (Standard BACS processing time)
Why may suppliers on the Premier Supply Service not get paid early?
Compliant supplier invoices are paid as soon as they are approved, it could be possible that the invoice is still pending a goods receipt.
Will all suppliers have the same rebate percentage?
As with any commercial negotiation what suppliers are offering is commercially sensitive and cannot be shared between suppliers.
How much acceleration are we expected to give a supplier?
We will aim to pay on day 10 following receipt of a valid invoice; however, this will be dependent on the goods receipting process.
Why would a supplier receive a debit Note?
A supplier who has signed up to Premier Supply Service will have an early payment rebate that is deducted from the invoice value in return for payment of your invoice early.
The debit note represents the early payment rebate. It is just like a credit note, only it is generated by Oxygen on behalf of Cumberland Council and issued to the supplier.