Procurement Department PROCUREMENT STRATEGY

Transcription

1 Procurement Department PROCUREMENT STRATEGY

2 CONTENTS Section Page Introduction 3 The University s Mission Statement 3 Aim of the Procurement Department Considerations by the Procurement Department 3 4 Who are the stakeholders 4 Strategic aims 4 Increase the value of non pay spend covered by contracts 5 Meets the present and future needs and expectations of all the stakeholders 5 Improve efficiency and ensure the best use of resource 5 Achieving excellence in procurement International Agenda Sustainable Procurement Relationships with suppliers 6 Operational Issues 6 2

3 1 Introduction This document sets out the University s Procurement Strategy. It supports the University s overall mission, strategy and values. It will set out the plan for the future of purchasing activity at the University for the period 2012 to Higher Education is undergoing significant change and this is being felt through the institution, including purchasing. Now more than ever there is a need to spend University money wisely. Better procurement has the potential to deliver significant efficiencies, releasing resources for the University to use for our core activities of teaching and research. Nonpay expenditure in Higher Education now exceeds 4 billion, and external bodies such as HEFCE, the Research Councils, and the National Audit Office are all taking a much closer interest in university procurement activity. 2 The University s Mission Statement We are one of the United Kingdom s leading research intensive universities, a major contributor to the knowledge economy, and internationally recognised for our excellence in teaching. Our mission is to promote the growth, transfer and application of knowledge. Our vision is to translate our excellence into a major contribution to culture, economic well-being, and the quality of life. We will achieve our vision by developing a culture that stimulates and supports our staff and students. 3 Aim of the Procurement Department The Procurement Department will reflect and support the University s aims by working with staff and suppliers to optimise the procurement of works, goods and services. It will support the University s Corporate and Operating Plans, and the Financial Strategy. It will provide professional support to Schools and Directorates in obtaining the Works, Goods and Services best suited to the application. This will be underpinned by consideration of: Value for Money Whole Life Costs The Environment The department will define the type, size and phasing of the procurement to comply with EC procurement rules, after having made a decision on the most appropriate sourcing option. The aim is to balance efficiency against risk factors in achieving value for money. The department will continue to promote sustainable procurement with suppliers and end users using our Guide to Sustainable Procurement 3

4 4 Considerations by the Procurement Department The procurement team must consider: The University s objectives government initiatives Financial strategy the risks relating to achievement of the objectives evolving requirements. Factors influencing risk uncertainty and/or innovation in the requirement the complexity of the project the scale of the project the length and flexibility of the timescales for implementation the local environment the priorities of the business benefits to be achieved the possibilities of change availability of project management and technical expertise the ability of the market to respond. Sustainable procurement issues 5 Who are the Stakeholders There are many stakeholders and customers that Procurement need to consider and involve in the strategic aims of the department. They are: Senior Management Board Budget Holders All University staff both in the UK and internationally Suppliers Other Universities Higher Education Funding Council for England (HEFCE) Research Councils Purchasing Consortia Government Procurement Service Government 6 Strategic Aims This strategy document sets out four key aims for the Procurement Department: Increase the value of non-pay spend covered by formal contracts Meet the present and future needs and expectations of stakeholders Improve efficiency and ensure the best use of resources Achieving excellence in procurement Develop, manage and implement procurement policy and procedures on the international agenda To assist the University in its targets for the sustainable and environmental strategy 4

5 7 Increase the value of non pay spend covered by contracts It is imperative to ensure that the Procurement Department continues to increase the University s value of non-pay spend covered by formal contracts. In order to achieve this aim the following objectives need to be taken into consideration: (i) (ii) (iii) (iv) to analyse aggregated spend to ascertain high risk and high spend areas; to negotiate the best contracts and supply framework agreements to best suit the needs of the University and meets the University s Corporate Plan and its Financial Strategy; to collaborate with other University s and other public sector bodies in the Thames Valley so to be able to improve terms of the contracts; to support national consortium and the use of collaborative agreements. 8 Meets the present and future needs and expectations of all stakeholders The strategy should take account of customer and stakeholder current and future needs and recognise wider government initiatives and strategies. This needs to be done through: (i) communicating to all stakeholders such as customers, suppliers, audit, finance, senior management board; (ii) regular reviews with stakeholders to ensure there is a system for collating and analysing feedback; (iii) flexible plans to handle the widely differing demands throughout the University; (iv) providing regular reports to audit and senior management board and committee s as and when required; (v) organise and provide a training and marketing schedule for all stakeholders; (vi) introducing guidance notes on all areas of purchasing activity; (vii) ensuring early stage involvement from the Procurement Department in all major projects. 9 Improve efficiency and ensure the best use of resource Procurement processes affect the overall organisation and can represent a significant proportion of the total cost of a transaction. Time is often a critical element of overall cost and procurement processes should be flexible to accommodate particular needs of customers and stakeholders. This can be done through: (i) (ii) (iii) (iv) further developing an E-procurement system; continued use and development of an E-tendering system; establishing ways to remove costs from procurement; reducing the supplier base and work towards building better relationships with key suppliers to eliminate any unnecessary costs; 5

6 (v) (vi) (vii) (viii) ensuring the Procurement Department works effectively and efficiently; supporting government procurement strategies and initiatives continued use and development of purchase card; keeping up to date with new technology and initiatives. 10 Achieving excellence in Procurement To enable the procurement role to add value to the overall University s objectives it must strive to ensure that: (i) (ii) (iii) (iv) (v) (vi) It has professional staff with the right skills who continue to develop; It complies with all necessary legislation; It works with University staff to produce a sustainable procurement policy and guidelines with appropriate action plans which includes all environmental issues where required; It produces action plans which demonstrate where resources will be used and timescales in which projects will be achieved; It demonstrates value for money through success criteria with key performance indicators and savings; It promotes the role of procurement through marketing and education. (vii) Considering and achieving appropriate accreditations in procurement 11 Develop, manage and implement procurement policy and procedures on the international agenda (i) Develop policy and procedures that are appropriate to the international campuses dependent on the local environments. (ii) Develop the appropriate best practises for the international agenda (iii) Where necessary develop appropriate contracts for the international sites which in some cases this would be of a collaborative nature with other Universities in the same location. 12 To assist the University in its targets for the sustainable and environmental strategy The Procurement Department recognises its responsibilities to carry out its activities in an environmentally responsible and sustainable manner and will aim to assist the University Environment Policy in achieving its aims and targets. 13 Relationships with Suppliers Managing a supplier is about ensuring consistency of delivery across a range of customers, assessing quality, making good deals even better, benchmarking price and performance against recognised best practice, and working in partnership with suppliers to ensure that future requirements are identified and planned for. This can be achieved through undertaking the following: 6

7 Supplier review and rating Supplier audits Customer Feedback Financial Monitoring Price benchmarking Sustainability Effective supplier management is about establishing a professional relationship and a framework for action in which both parties can derive ongoing benefits and value. 14 Operational Issues Details of the University s approach to the key strategic aims, as set out above, are set out in the Procurement Policy and the department s action plan. 7