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PURCO SA Purchasing Consortium Southern Africa COMMITTED TO SAVING OUR MEMBERS TIME AND MONEY THROUGH PROFESSIONAL AND FOCUSSED COLLABORATIVE PROCUREMENT WHILST STRENGTHENING PARTNERSHIPS WITH ALL STAKEHOLDERS IN THE HIGHER EDUCATION SECTOR IN SOUTHERN AFRICA 128 Active Suppliers 65 contract types R510m (2010) 26 universities 8 associated members PURCO Facts Section 21 company – Non Profit Organisation • • • • • • • Created by our members to serve our members Our members are our shareholders Operating since 1978 PURCO subscribes to the B-BBEE act of February 2007 PURCO is a level 2 contributor Procurement co-operation Alliance partner to HESA • Benefit in Top Management support and co-operation for improved savings and efficiencies PURCO adds value by • Achieving competitive upfront prices and back-end rebates • Creating an opportunity for experts to contribute. • Creating an environment for interchange of ideas, sharing new developments and benchmarking of activities. • Focusing on and specialising in specific contracts that are commonly used by our members. • Neutral party in tender adjudication process on tenders specific to members. • Saving time for buyers, allowing them to attend to strategic matters. • Spreading procurement costs over a greater spend. Top 10 Contract Types Top 20 Suppliers : Aug 09 – July 10 Actual Spend 2010 Actual Spend 2010 1 SAA R69m 2 Peters Papers R30m 3 Lasec R24m 4 Afrox R20m 5 Cleancor R18m 6 Budget Rent A Car R16m 7 Bytes Document Solutions R14m 8 First Technology R12m 9 Waltons R10m 10 BA / Comair R10m 11 Clover R10m 12 PC Palace R9m 13 Nampak Tissue R9m 14 Europe Care R9m 15 Pinnacle Micro R8m 16 Air France/KLM R8m 17 Sea World Frozen Foods R8m 18 DHL R7m 19 Introstat R7m 20 Neo Technologies R6m Working Process • Board meeting: Executive management meetings x 4 • JPPF: forum for procurement managers to plan, discuss issues of common interest and formulate action plans x 2 Annually: • Conference: involve all stakeholders, new industry developments, new procurement practices, professional development, etc. • AGM: Annual General meeting for members, to report back and elections of board representatives. Working Process Ongoing: • Contract negotiations: tender or RFP process -2-3 months • Rebates: to PURCO from suppliers at minimum of 1% of total turnover • Incentives: to members, best prices upfront and annual rebate disbursements to members. • Independent Benchmarking • Savings reporting • Member visits Member Benefits • Upfront in terms of low prices, significant savings • Back- end rebates • • • • • Staff & admin cost reduction Single point of contact for 100’s of goods Single channel of communication No duplication of activities Eliminates request for 3 quotations by using PURCO contract • Aligned to members’ financial policy • Members are shareholders in the company Why it’s good for Suppliers? • 1 Point of contact • Increase of volumes • Long term partnerships – trusted personal relationships • Higher profits, reduced time • Central point for promotions and marketing • Access to PURCO website and newsletter • Access to National forums – JPPF, User groups, Regional Meetings Scope of Operation Institution Name Province PURCO Region 1 Venda University Polokwane Central 2 Univ of Limpopo – Turfloop Polokwane Central 3 Tshwane Univ of Technology Gauteng Central 4 Unisa Gauteng Central 5 Univ of Pretoria Gauteng Central 6 Univ of Johannesburg Gauteng Central 7 Univ of Witwatersrand Gauteng Central 8 Vaal Univ of Technolgoy Gauteng Central 9 Univ of Limpopo – Medunsa Gauteng Central 10 Council on Higher Education (Ass. Member) Gauteng Central 11 CSIR (Ass. Member) Gauteng Central 12 NRF (Ass. Member) Gauteng Central 13 MINTEK (Ass. Member) Gauteng Central 14 SABS (Ass. Member) Gauteng Central 15 Gauteng Central Gauteng Central Gauteng Central 18 Monash University ECSA (Engineering Council of South Africa UMALUSI (Council for Quality Assurance in General and Further Education and Training) North West University North West Central 19 Central Univ of Technology Free State Central 20 Univ Free State Free State Central 16 17 Scope of Operation Institution Name Province 21 Univ Zululand KZN PURCO Region KZN 22 Univ KwaZulu Natal KZN KZN 23 Durban Univ of Technology KZN KZN 24 Mangosuthu Univ of Technology KZN KZN 25 SANPAD (Ass. Member) KZN KZN 26 Univ Fort Hare E Cape E Cape 27 Walter Sisulu Univ E Cape E Cape 28 Rhodes Univ E Cape E Cape 29 Nelson Mandela Metro Univ E Cape E Cape 30 Univ Western Cape W Cape W Cape 31 W Cape W Cape W Cape W Cape 33 Stellenbosch University Cape Peninsula Univ of Technology Univ Cape Town W Cape W Cape 34 Univ of Namibia Namibia Central 35 Univ of Swaziland (Ass. Member) Swaziland Central 32 Control & Reporting FINANCIAL CONTROLLER P. MATSHOBA Board Members Chris Liebenberg University of Free State Chairman Nicolene Andipatin Cape Peninsula University of Technology Gladman James University of Fort Hare Prof Susan Adendorff University of Pretoria Johan Wasserman Nelson Mandela Metropolitan University Prakash Naidoo Vaal University of Technology Jurie Roux University of Stellenbosch Dheo Kumar Durban Universtiy of Technology Shakes Njapa University of Zululand Morgan Govender University of KwaZulu Natal Vuyo Memani-Sedile Unisa Trevor Adams University of Cape Town Kobus Odendaal Tshwane University of Technology Prof Henk Kriek University of Johannesburg Regional Chairpersons Trevor Adams Western Cape Region University of Cape Town Jakes Jacobs Eastern Cape Region Nelson Mandela Metropolitan University Pravin Gareeb KwaZulu Natal Region University of KwaZulu Natal Trevor van Noord Central Region University of Johannesburg What it takes to become a member? What are the qualifying criteria? • Higher Education or research and development associated with Higher Education. What is the cost? • Membership Fees R17 600 pa What is the commitment? • Commitment to participation in Consortium Purchasing. PURCO tender process • • • • • • Public Transparent Open Objective Aligned with Member procurement policies Independent Benchmarks Membership of 34 Institutions We’re looking forward to working with you! Thank you Switchboard number : 012 349 0850 Fax number: 012 349 2522 Company e-mail: [email protected] P O Box 2077 Brooklyn Square 0075