Introduction to Purchasing – Back to Basics

Report
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
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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
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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’
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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!
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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
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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
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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
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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?
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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
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Pick up good ideas on FELP
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Remember….
If you always do
What you’ve always done
You’ll get
What you’ve always got
Anon
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Any questions?

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