Introduction to Purchasing – Back to Basics Florence Gregg, figpc ltd E: [email protected] M: 078 3432 2134 The role of purchasing is about: Buying what’s needed to get the job done Contributing to the College’s success Maximising purchasing power of every £1 Procedural compliance Managing risks Empower Conference 2010 5th/6th May 2010 2 What can you influence? College’s total expenditure A – Staff Pay Sound procurement B – Capital practices will improve the C – Revenue College’s overall value for money activities on a significant proportion of both these areas of expenditure Empower Conference 2010 5th/6th May 2010 3 Procedural compliance Internal procedures Competitive quotations and tenders External procedures EU procurements Supplies and services £156,442 Works £3,927,260 Below threshold procurement – must follow the ‘spirit of the legislation’ Empower Conference 2010 5th/6th May 2010 4 What is value for money? “The optimum combination of quality and whole-life costs [WLC] to meet the user’s needs” It’s about getting more with every £1 you have to spend It’s about making best use of your resources – including your time! Empower Conference 2010 5th/6th May 2010 5 WLC > initial purchase price Initial set-up costs Running or operating costs Purchase price, installation, training, preparing the space/conditions Consumables Maintenance End of Life Sale income or costs of disposal Empower Conference 2010 5th/6th May 2010 6 How can you achieve VFM? Paying less for the same goods Paying the same for better quality goods Where you need the better quality Getting added value at no extra cost Reducing the College’s exposure to risk Streamlining your processes Becoming more sustainable Empower Conference 2010 5th/6th May 2010 7 Practical pointers Understand What your Department buys and from whom What your College buys and from whom How you do your buying What frameworks are available to use? CPC, university consortia, buyingsolutions Plan your procurement activities Empower Conference 2010 5th/6th May 2010 8 Practical pointers Identify your needs Not wants Challenge your requirements Do you need it? Can you meet the need another way? Can you link up with another college or someone else? Empower Conference 2010 5th/6th May 2010 9 Practical pointers Senior management Support those involved in procurement activity Change the College’s purchasing culture Remember where VFM is achieved When the purchase decision is made and contract formed Empower Conference 2010 5th/6th May 2010 10 Pick up good ideas on FELP Empower Conference 2010 5th/6th May 2010 11 Remember…. If you always do What you’ve always done You’ll get What you’ve always got Anon Empower Conference 2010 5th/6th May 2010 12 Any questions?