Transcript No Slide Title

MODULE 3
.
PURCHASING/INVENTORY
MANAGEMENT
Naomi Kelly
Learning Objectives
• Understand the purchasing function.
• Understand the tools used by purchasing to
acquire goods and services.
• Understand inventory management
Overview of the Office of Contract
Administration (OCA)
• OCA/Purchasing – Authority to procure
commodities and professional and general
services (except architects and engineers).
• DPW – Authority to procure construction and
architectural and engineering professional
services.
What the City Buys:
Equipment and Supplies
• Vehicles: cars, trucks, vans,
heavy equipment
• Petroleum: fuel, lubricants
• Office supplies
• Printed forms, paper
• Computer hardware and
software
• Food and food services, for
hospitals and jails
• Animal feed and supplies
• Medical equipment and
supplies, pharmaceuticals
• Laboratory equipment and
supplies
• Castings
• Chemicals
• Institutional clothing and
laundry service
• Electrical supplies, lamps
• Glass
• Pipe, fittings, valves
• Hardware, tools, locks,
shovels, rakes, lumber
What the City Buys:
General Services
Construction
Professional
Services
• Janitorial
• Buildings
• Management
• Security
• Pest control
• Landscaping
• Moving
• Street repair
• Park and
playground
improvements
• Utility systems
and repairs
consulting
• Accounting
& auditing
• Medical
• Legal
• Software design
• Facilities
management
•Architecture &
engineering
DPW Bureaus
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Building Repair
Urban Forestry
Street Environmental Services
Street and Sewer Repair
Purchasing Tools
• Competitive bidding process
– Citywide Term Contracts
– Requisitions
• All others
– Sole Source
– Blanket Purchase Order
– Delegated Departmental Purchasing
(Decentralized Purchasing)
– Direct Vouchers
Procurement Services for DPW
• Citywide Term Contracts
– Concrete and Cement Material; Rock, Gravel, and Sand;
Asphalt Products; Street Sweeper Brooms; Concrete Trash
Receptacles; Lumber and Plywood; Glass; and Global
Positioning System.
• Departmental Purchase Orders
– 80 Departmental Blanket Purchase Orders (trees, trash
bags, hardware, plumbing supplies, electrical supplies,
paints, etc.)
• Requisitions
– Graffiti Removal, street sweeping machines, etc.
Inventory Management
• Purchasing plan
• Stocking
– Storeroom for commonly used items
• Just-In-Time (JIT) purchasing
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Shifts warehousing burden to retailer
Optimizes inventory
Increases internal efficiencies
Frees up capital