Introduction to Purchasing

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Introduction to Purchasing Back to Basics

• Florence Gregg, figpc ltd
• E florence_at_figpc.co.uk
• M 078 3432 2134

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The role of purchasing is about

• Buying whats needed to get the job done
• Contributing to the Colleges success
• Maximising purchasing power of every 1
• Procedural compliance
• Managing risks

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What can you influence?

• Colleges total expenditure
• A Staff Pay
• B Capital
• C Revenue

Sound procurement practices will improve the
Colleges overall value for money activities on a
significant proportion of both these areas of
expenditure
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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

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What is value for money?

• The optimum combination of quality and
  whole-life costs WLC to meet the users needs
• Its about getting more with every 1 you have to
  spend
• Its about making best use of your resources
  including your time!

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WLC gt 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

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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 Colleges exposure to risk
• Streamlining your processes
• Becoming more sustainable

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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

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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?

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Practical pointers

• Senior management
• Support those involved in procurement activity
• Change the Colleges purchasing culture
• Remember where VFM is achieved
• When the purchase decision is made and contract
  formed

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Pick up good ideas on FELP
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Remember.

• If you always do
• What youve always done
• Youll get
• What youve always got
• Anon

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Any questions?