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 5 th /6 th May 20102

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 5 th /6 th May 20103

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 5 th /6 th May 20104

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! 5Empower Conference 2010 5 th /6 th May 2010

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 6Empower Conference 2010 5 th /6 th May 2010

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 7Empower Conference 2010 5 th /6 th May 2010

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 8 Empower Conference 2010 5 th /6 th May 2010

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? 9 Empower Conference 2010 5 th /6 th May 2010

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 10 Empower Conference 2010 5 th /6 th May 2010

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

12. Remember…. If you always do What you’ve always done You’ll get What you’ve always got Anon 12 Empower Conference 2010 5 th /6 th May 2010

13. Any questions?