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 £3m cashable and non-cashable savings during 2008 –
2011
• Development of electronic systems (eTendering and
ePurchasing
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
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)
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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
£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
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Develop procurement strategy
Monitor Procurement Plan
Compile procurement procedures
Manage Purchasing Regulations
Report annually to USG on procurement activity
Manage the tender process (£25k) 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
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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 (eTendering and eProcurement)
• Resources within CPU
• Cross section working-CPU/Finance