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Introduction to Purchasing – Back to Basics

Introduction to Purchasing – Back to Basics. Florence Gregg, figpc ltd E: florence@figpc.co.uk 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

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Introduction to Purchasing – Back to Basics

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  1. Introduction to Purchasing – Back to Basics Florence Gregg, figpc ltd E: florence@figpc.co.uk M: 078 3432 2134

  2. 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

  3. What can you influence? • College’s total expenditure A – Staff Pay B – Capital C – Revenue Sound procurement practices will improve the 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

  4. 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

  5. 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

  6. WLC > initial purchase price • Initial set-up costs • Purchase price, installation, training, preparing the space/conditions • Running or operating costs • Consumables • Maintenance • End of Life • Sale income or costs of disposal Empower Conference 2010 5th/6th May 2010 6

  7. 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

  8. 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

  9. 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

  10. 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

  11. Pick up good ideas on FELP Empower Conference 2010 5th/6th May 2010 11

  12. 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

  13. Any questions?

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