University of Abertay Dundee PROCUREMENT STRATEGY

Transcription

1 University of Abertay Dundee PROCUREMENT STRATEGY April 20

2 Introduction The McClelland report was written in 2006 by John McClelland after an extensive review of Public Sector Procurement. This report highlights the potential opportunities and threats that have a direct effect on the public purse. This strategy sets out the involvement of procurement and related activities at the University of Abertay Dundee in the furtherance of the University s Corporate Aims and Objectives as set out within the Strategic Plan Procurement has the overarching responsibility and advisory role for all of the Universities procurement activities ensuring compliance and governance of all non-pay spend throughout the University. All procurement activity at Abertay must be carried out in accordance the University s Financial Regulations and all staff must make themselves aware of the detail of these regulations set therein. The University s Financial Regulations set out the minimum procedural requirements for purchasing works, goods and services and must be strictly adhered to. Vision This Procurement Strategy is in support of the overall University of Abertay Strategic Plan Aim To facilitate the University s ability to deliver best value and cost effectiveness in support of Schools and Services. Objectives To ensure that the University is obtaining Best Value for money by reviewing non-staff costs to identify opportunities which improve value for money. To develop and maintain responsible and effective procurement strategies, such as to promote sustainability, equal opportunities and use of small and medium enterprises. To improve the quality and usage of purchasing systems to improve transaction efficiency, provide procurement management information,reduce errors and minimise maverick spending. To establish and maintain effective communication both internal and external to the University. To develop the skills and provide support for staff engaged in Purchasing and Procurement. To progress and report regularly on Key Performance Indicators to benchmark institutional procurement. Please see table at Annexe A. Roles of Procurement The role of the Procurement team in the delivery of the Procurement Strategy is set out below.. Develop and implement procurement policies and plans consistent and compliant with University policies and regulations to release savings and efficiencies to reinvest in University, school and service objectives. 2. The management and negotiation of contracts for commodities, equipment, services and longer term projects equal to or above the EU threshold and for such lower value contracts as directed by the Head of Finance or as resources allow to achieve savings in the delivery of value adding and sustainable goods and services to the University. The management of the supplier database limiting the number of suppliers to those necessary to maintain the efficient and effective operation of the University s activities. 2

3 3. To work in partnership with schools and services to tailor service delivery, assist in the delivery of procurement efficiencies and identify value adding procurement solutions. 4. Assist in the development and implementation of effective and efficient purchasing systems to reduce transaction costs, improve procurement management information, reduce transaction errors and minimise maverick expenditure. 5. The provision of purchasing and procurement best practice training to buyers in schools and services. 6. To establish and develop value adding relationships with suppliers, purchasing consortia, other organisations with similar goods and services requirements and other external bodies which enhance the University s procurement capabilities. 7. To manage all procurement staff and resources in the University (either directly or indirectly). Role of Management Team The role of the Management Team and staff in delivering the strategy is set out below:. The Management Team and staff have a key role to play in supporting the procurement strategy. The assistance of the Management Team and staff in the delivery of purchasing policies and procedures is crucial if the potential improvements and savings are to be forthcoming. 2. Managers and staff in schools and services need to ensure that procurement policies and plans are delivered in their areas of responsibility. Where areas of non-compliance are identified it is important that they be brought within the parameters of procurement policies. 3. It is clear from the complex nature of many of the University s activities that a simple one size fits all approach to procurement will not be successful; however it is also clear that deviation from the standard process should be kept to a minimum to avoid administratively expensive and error prone sub processes being developed. Annexe A 3

4 KPI Table Total Procurement Expenditure 872, ,000 Procurement Spend Analysed by Geographical spend-dd postcodes,089,060,090,940 Total no of Procurement transactions 4,69 4,230 Total cost of Resources in Procurement Department 55,825 55,545 Total cost of Resources in Procurement Process i.e. including support depts. 02,739 02,688 Procurement Department Cost per of spend Process cost per transaction Year to year movement in basket of Procured Commodities tracked* Number of suppliers active/inactive Spend Identified by supplier 3,268,566 2,807,697 Average spend by supplier 4,33 2,9 Average spend by order placed,40,02 Savings achieved year on year 5,543 Procurement Expenditure Analysed by Spending Department Procurement Expenditure Analysed by Commodity or Serv ice* Procurement Department Cost per of spend of Specific Commodity Spend* Data comes from Scottish Govt - expected early 20. Total Procurement Expenditure - This is calculated by adding together all the tender values for the period, the total of the orders over 2,000 and the total spend from collaborative contracts. Procurement Spend Analysed by Geographical spends DD postcodes - This information is gathered by using the Spikes Cavell reporting tool. No of Procurement transactions - This is the total no of orders raised on our finance system APTOS. This is used as all orders are reviewed by Procurement. Total cost of Resources in Procurement Department - This information was provided by Payroll and includes Procurement Manager and Procurement Assistant posts. Total cost of Resources in Procurement Process i.e. including support departments - Payroll provided these figures which relate to Procurement Manager and Procurement Assistant and Accounts Assistants x 2. 4

5 Procurement Action Plan Annexe B Objectives Actions Desired Outcomes Timescale To ensure that the University is obtaining Best Value for money by reviewing nonpay costs to identify opportunities which improve value for money. Review all areas of spend greater than 2k.Identify potential improvement in procurement and best value, review expenditure categories against agreements available, arrange mini competitions or tenders for gaps in contracts. Agreements in place for all significant spend areas, with leakage minimised and outcomes related to relevant stakeholders. Value for Money delivered in major procurements. Continuous process. 2 To develop and maintain responsible and effective procurement strategies, such as those to promote sustainability, equal opportunities and use of small and medium enterprises. Develop draft sustainability guidelines for University procurement proposals, which will help influence the development of the University Sustainability Policy. Ensuring that purchases are assessed against their impact on the environment and sustainability. Ensure that procurement decisions can be assessed against their local, national and international impact. Equality Impact Assessments are undertaken on all University policies. Formulate Sustainable Procurement Policy document by December To improve the quality and usage of purchasing systems to improve transaction efficiency, provide procurement management information, reduce errors and maverick spending. To lead the rollout of PECOS, e-procurement system. To use the website for all tendering. PECOS is the e-procurement system used in the majority of higher education systems in Scotland. The aim is to achieve cost savings through the delivery of a Best Value procurement solution. PECOS should be rolled out by October To establish and maintain effective communication both internal and external to the University. To produce a monthly newsletter to internal stakeholders with procurement news. To actively participate in purchasing consortia, both local and national. Collaborative tenders both locally and nationally. Continued collaboration with local and national partners. Monthly newsletter to be produced by September To develop the skills and provide support for staff engaged in Purchasing and Procurement. Examine any skill gaps that may become apparent. To provide advice on Purchasing on the intranet page. To give assistance on purchasing when requested. Reduction in maverick spending. More stakeholder confidence when placing orders and fewer problem orders in Finance. Portal advice will be available from Summer To progress, then report regularly on Key Performance Indicators to benchmark institutional procurement. Please see table at Annexe A. Investigate whether KPIs can be measured on a shorter timescale to allow corrective action. Annual submission of Key Performance Indicators to Audit Committee. Annual KPIs to be produced by January 202.