Procurement strategy 2011-2013
Vision
The University of Exeter will aim for procurement processes and organisation that proactively support strategic goals and operational requirements while ensuring best value.
Aim of the strategy
The aim of the Procurement strategy is to facilitate best practice and best value in procurement by colleges and services.
Objectives
a. Support the University’s strategies with procurement policies and action.
b. Apply and embed the following principles of sound procurement: planning, specification, aggregation, competition, best value, whole-life costing (WLC), negotiation, reputation, compliance, and focus (higher value, risk or volume).
c. Release an additional £600,000 of annual savings and minimise procurement risk by competing high-value revenue and capital spend categories. This will require two additional FTE procurement specialists in Procurement Services.
d. Improve procurement efficiency and compliance by developing information systems:
(1) Conduct all reasonably possible procurement by e-procurement (Parabilis). The replacement (FM) system for concept should procure through Parabilis.
(2) Implement e-invoicing for suitable suppliers by December 2011.
(3) Complete introduction of In-tend (the tender and contract management system) with the major users by May 2011.
(4) Ensure all known University contracts are recorded on In-tend by May 2011.
e. Achieve compliance and best practice in operational procurement by developing a University procurement network of proactive procurement contacts, appointed by each college and service, who will be professionally developed, trained, monitored and supported by Procurement Services with the full support of colleges and services.
f. Improve sustainable procurement (including CSR) by applying the Flexible Framework for sustainable procurement, to reach level three for Procurement Services by June 2011.
g. Involve the TDV and TCS purchasing officers in the University procurement network.
h. Commission a spend-management system to assimilate the disparate transaction data from all systems and provide clear analysis. This may cost up to £20,000 a year, but will allow clear targeting of savings opportunities (est at least £50,000 pa) and create persuasive cases for action.
i. Introduce supplier management through the University procurement network.
The role of Procurement Services in delivering the procurement strategy
a. Implement policies and practices that support sound procurement practice and align with University strategies.
b. Establish and build arrangements with suppliers and external organisations that enhance the University’s procurement capacity.
c. Ensure the University and its procurement complies with University regulations and legislation.
d. Lead the implementation of procurement systems including e-procurement, e-tendering, the supplier list, spend management and savings recording.
e. Support the major projects and procurement programmes to release savings, maximise efficiencies and ensure compliance.
f. Identify potential savings and engage colleges and services to begin programmes of recovery. Savings will remain with the budget holder.
g. Professionally support all procurement staff and resources in the University by:
(1) Developing, training and maintaining the personnel of the Procurement Network so that operational procurement adopts best practice in compliance, efficiency and supplier management.
(2) Working with the procurement leaders of colleges and services in a common action team.
(3) Holding termly procurement reviews with each college or service to assess and prioritise the development of procurement practice.
The role of colleges and services in delivering the procurement strategy
a. Ensure all procurement complies with University regulations and legislation, and ensure all standard contracts are re-competed at least every four years.
b. Develop their part of the University’s procurement network by:
(1) Appointing a Procurement Leader who will lead the college or service’s procurement activity and liaise with Procurement Services.
(2) Appoint a Commodity Champion for commodities or services for which the college or service is the major user or is the technical expert.
(3) Release those personnel and others involved in purchasing for liaison and formal professional training.
c. Identify savings projects with Procurement Services and appoint a leader for each project.
d. Adopt procurement processes and systems.
e. Adopt procurement policies and practices, adapting them to local conditions by agreement with Procurement Services.
Performance Reporting
Progress against the Strategy will be reported to PSMG and measured by performance indicators, including:
- Savings (cashable and non-cashable).
- Invoices matched and non-matched (quantity and proportion).
- Invoices that pre-date purchase orders (quantity and proportion).
- E-procurement use (number of orders, proportion of eligible orders and proportion of all orders).
- E-tendering (proportion of all EU threshold acquisitions).
- Single supplier set-up (number of requests).
- Suppliers used (size of supplier list and number of suppliers used pa).
- Supplier relationships (number of suppliers formally managed).
- Staff training (numbers by course, and proportion of all buyers trained).
The number deemed by Procurement Services to be possible to achieve in a year, which will change as work is done to remove restrictions.
