AN OVERVIEW OF THE UNIVERSITY PROCUREMENT STRATEGY Keith

AN OVERVIEW OF THE UNIVERSITY PROCUREMENT STRATEGY Keith Mason Deputy Director of Estate Management (Purchasing)

Agenda • Current procurement strategy and plan • How to identify suppliers, products and pricing for goods and services • University Purchasing Regulations • How to buy goods and services • Role of Central Purchasing • Questions

New procurement strategy and plan (1) Strategy and plan based on 5 key objectives: • Opportunities owing to the implementation of a new FMS • Introduce consistency throughout the procurement process • To take account of the environment in the procurement decision making process • Target of £ 3 m cashable and non-cashable savings during 2008 – 2011 • Development of electronic systems (e. Tendering and e. Purchasing

New procurement strategy and plan (2) • Roll out the Agresso purchasing module throughout all departments and sections • Competitive quotations to be obtained by staff with procurement skills • Implementation of a stock profile that facilitates the maintenance of the campuses via the Agresso module • Locations for the receipt of non-stock goods

How to identify suppliers, products and pricing for goods and services • CPU website • National, regional or local contracts • Hardcopy catalogue/price list and online catalogue/pricing • Email/telephone contact

CPU website

University Purchasing Regulations • The University Purchasing Regulations should be considered in the purchasing process Value £ 1 - £ 499 £ 500 - £ 1, 999 £ 2, 000 - £ 24, 999 £ 25, 000 + £ 130, 000 + Approach Price List/Telephone Single written quotation 2 -3 written quotations 3 -4 tenders + EU

How to buy goods and services (1) • Purchase orders must be raised on the Agresso system for goods and services Permitted exceptions: • Books and publications ordered by the Library • Internal suppliers e. g. catering, hospitality, printing and reprographics

How to buy goods and services (2) Permitted exceptions: • Utilities, telecoms, postal and mail services • Low value petty cash purchases • Travel and subsistence reimbursed via expense claims • Goods and services procured by use of a purchasing card

How to buy goods and services (3) Purchasing cards should be used in accordance with the purchasing procedures: • Travel – air/rail/road • Hotels and accommodation • Books and periodicals • Office stationery

How to buy goods and services (4) • • • Procedure for purchasing stationery Previous Hard copy requisitions Stock and non-stock routes of supply Stock management Current Non-stock supply via Agresso Frequent deliveries Invoiced following each delivery Next Stage Purchase stationery on-line Utilise purchasing card (monthly statement) 3 deliveries per week-desk-top service available

Authorisation structure for requisitions Order Value <£ 10, 000 - £ 100, 000 >£ 100, 000 Description Self approval or Departmental Administrator/Purchaser for approval Departmental Administrator/Purchaser plus HOD for approval (further bands within this range can be decided by Departments separately) Departmental Administrator/Purchaser plus HOD plus PVC for approval

Role of Central Purchasing Unit • • Develop procurement strategy Monitor Procurement Plan Compile procurement procedures Manage Purchasing Regulations Report annually to USG on procurement activity Manage the tender process (£ 25 k) in collaboration with users Offer help and advice to staff including: OJEU advertising Development of tender documentation, including contract award criteria Evaluation of bids Award of contracts

Contracting Procedure

Key Considerations • • • CPU website Purchasing Regulations National/Regional contracts Environmental Savings Purchase orders Purchasing cards Authorisation structure Contracting procedure Advice and support

Areas To Be Addressed • Responsibility for management of the Supplier Master File • Responsibility for the regular analysis of management information from Agresso to determine where greater value can be achieved • Introduction of Purchasing Cards throughout the University • Further development of processes (e. Tendering and e. Procurement) • Resources within CPU • Cross section working-CPU/Finance