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:

• Management consulting

• Accounting & auditing

• Medical

• Legal

• Software design

• Facilities management

•Architecture & engineering

• Buildings

• Street repair

• Park and playground improvements

• Utility systems and repairs

• Janitorial

• Security

• Pest control

• Landscaping

• Moving

Professional Services

ConstructionGeneral Services

DPW Bureaus

• 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– Shifts warehousing burden to retailer– Optimizes inventory– Increases internal efficiencies– Frees up capital