Introduction to Purchasing – Back to Basics
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Transcript Introduction to Purchasing – Back to Basics
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?