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

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


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’


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 Purchase price, installation, training, preparing

the space/conditions Running or operating costs

Consumables Maintenance

End of Life Sale income or costs of disposal


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


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


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?


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


Pick up good ideas on FELP


Remember….

If you always do

What you’ve always done

You’ll get

What you’ve always gotAnon


Any questions?

introduction to purchasing – back to basics

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