Headlines: June 1st, 2000

Cap Gemini Ernst & Young has been selected as the preferred supplier for the MoD’s new E-Commerce system.The Defence Electronic Commerce System (DECS), is set to handle logistics transactions – spares, services and consumables – worth billions of pounds and will be key in reducing administrative costs and improving logistic support to the front line. An initial service will be provided from July.

The full service will include electronic catalogues of products and automatic transactions replacing a largely inefficient paper-based system. The partnership is structured to allow the incremental addition of services in-line with the further evolution of electronic commerce.

DECS will be used primarily by the Defence Logistics Organisation (DLO), the tri-service organisation responsible for the logistic support of the Armed Forces. The DLO currently spends approximately 2.5bn pounds with suppliers. It is anticipated that a large percentage of this business will be undertaken through the new system, which will be a key means of achieving the DLO’s 20% savings target over the next five years.

DECS is a key part of the MoD’s Smart Procurement Initiative to provide better and cheaper equipment faster. It is also an important element of the MoD’s contribution to the Government’s target that 25% of dealings with the public or commercial organisations should be electronic by 2002