Budgeting by Priorities: Budget Proposal Purchasing and Warehouse. Support Services

Transcription

1 Budgeting by Priorities: Budget Proposal Purchasing and Warehouse Strategic Plan Goal: Support Services Problem Statement: 1. Ensure the District has the purchasing, warehousing, distribution service systems in place, as well as the supplies, textbooks, services and equipment needed, to operate all schools and departments in an effective and cost efficient manner. 2. The Purchasing staff will achieve consistently outstanding results through the use efficient business process design and implementation. Leadership will emphasize LEAN practices of waste elimination, as well as promoting process redesign and change. 3. The Purchasing Warehouse staff will achieve consistently outstanding results through the use of daily and weekly planning, teamwork, economical routing, and efficient business processes. Leadership will emphasize safe operation of vehicles and equipment, especially in schools. Staff will be properly trained to operate all vehicles and equipment. Forklift and pallet handling equipment training will be provided and certifications will be maintained. In addition, the Purchasing Warehouse will conduct district-wide inventories of fixed assets each year. Further, the Warehouse will handle the pick-up, transport, and tracking of all surplus materials and equipment for the District. Purchasing staff will receive professional purchasing training. Staff will be encouraged to grow professionally, will be customer service oriented, and will be creative in their approaches to business operations, issues and problems, while ensuring the District strictly adheres to State of Washington and District policies and requirements. Case Statement: Why: The Purchasing Department provides centralized procurement support in a timely and cost effective manner. Customers not only achieve considerable cost avoidance benefits, but also receive fast and efficient service in meeting their day to day needs. Without this support, customers would have to spend over $3 million per year in additional funds to acquire services and supplies. (see savings in Performance Measures). The Purchasing Warehouse provides centralized mail, supply and distribution services in a timely and cost effective manner. Customers not only achieve considerable cost avoidance benefits, but also receive fast and efficient service in meeting their day to day needs. The Purchasing Department ensures all District purchases are transacted in a timely, accurate, professional and legal manner. Purchasing is responsible for processing all requisitions and purchase orders; the District Procurement Card (PCard) program; the Purchasing Warehouse; the Textbook Warehouse; fixed asset system and program management; contract creation and review; competitive procurements, to include management of all quotes, bids and requests for proposal; the safe delivery to all schools and departments of: inter-district mail and distribution; acquisition of school and office supplies for warehouse stock program; management of the surplus program; management of the State Arts Commission art loan program in schools; contract management of district-wide contracts; and a variety of other school support services as needed.

2 An effective and efficient Purchasing Department allows customers to obtain the goods and services needed in a timely manner. Purchasing uses the Lawson Requisition Center and Purchasing modules in order to effectively and efficiently manage and process customer requirements. In addition, the Purchasing Department manages a PCard program (Visa) with over 500 cards in force. The PCard program is a delegation of purchasing authority that allows schools and departments to make small purchases without the need for a requisition and purchase order, thereby saving time and resources. The Purchasing Department is goal oriented and data driven. The Department uses numerous metrics to help ensure goals are being met and customers are getting the best possible service. The Purchasing Department has developed and implemented efficient work processes. These are written down and monitored to ensure they stay current. The Purchasing Department meets monthly to specifically address LEAN opportunities to eliminate waste, improve processes and find ways to improve customer service. Two Purchasing Department Buyers achieve LEAN "Green Belt" certification in 2014 and they are helping guide our LEAN initiatives. The Purchasing staff implements innovative changes in order to achieve better outcomes for customers. The Department sponsors all Buyers for membership in the National Institute of Public Procurement (NIGP). This opens up many professional purchasing training events to them which supplements local professional development opportunities. An effective and efficient Purchasing Warehouse allows customers to receive the supplies, textbooks, furniture and other things needed in a timely and cost effective manner. The Warehouse uses the Lawson Mobile Supply Chain Management module in order to effectively and efficiently manage warehouse supply and textbook orders. The Warehouse uses a system of barcodes and handheld readers, just like a modern commercial warehouse would, in order to provide a high level of order accuracy and speed. The Purchasing Warehouse seeks continuous improvement by evaluating its processes and its delivery routes every six months. Innovations and adjustments are made in order to keep these processes and routes as efficient as practical. Employees receive training in safety and each person is trained to be able to perform all warehouse specialist duties. Mail and delivery drivers perform daily vehicle safety checks and provide management with a weekly activity summary report. Effective supply chain management, aided by technology, allows the Purchasing Warehouse to receive, warehouse and distribute supplies and equipment in a seamless and timely manner for its customers. The Warehouse conducts regular vehicle and equipment checks. All vehicles and equipment are on planned preventive maintenance programs allowing the Warehouse to maintain its assets in a safe and effective manner. The Purchasing Department adds value to the district's long term strategic goals by saving money and by providing the supplies, materials, equipment and services needed for student teaching and learning. Stakeholders: All District staff and students may be users of the variety of services provided. Communications to Stakeholders - Purchasing uses an on-line requisition system and easily handles customer issues via phone or . The Department has a very robust web page that includes extensive "how to" information and video presentations on doing business with the Department. The Purchasing Warehouse ensures the timely and safe delivery to all schools and departments of: inter-district mail and distribution; commonly used school and office supplies; textbooks; furniture; fixed asset equipment; folding chairs for events; science kits; USDA food/commodities; and a variety of other school needed items upon request. Every month the Purchasing Department issues a newsletter which keeps customers informed about current issues and programs and the Warehouse corner of the newsletter communicates

3 current warehouse issues and programs to customers. The Purchasing Department has created an extensive web site that hosts numerous guidelines, forms, video tutorials and other help for customers, both internal, and external (vendors). Purchasing regularly provides customer training to ensure school and department staff have the information needed to make purchases and manage things like fixed assets. In addition, the Department provides How to do Business with TPS training for vendors every six months. Scope of Work: What does the immediate work entail? Purchasing provides services related to all aspects of purchasing in direct support of school and department activities and operations. During the school year the Purchasing Department created 2,175 purchase orders valued at $60.2 million. In addition, Purchasing oversees a PCard program of over $20 million in purchases in achieving a rebate of over $290,000; manages 39,000 fixed asset items valued at over $70 million; and conducts competitive bids and quotes to lower the cost of District goods and services. For the savings achieved was $2,497, Purchasing maintains stock orders for the Purchasing Warehouse ensuring over 740 items are available at a great price. The Purchasing Warehouse provides needed mail, distribution, supplies, equipment and other things in support of school and department activities and operations at 65 District locations. During the school year the Purchasing Warehouse filled 2,796 stock orders valued at $1.2 million, filled 5,190 textbook orders for over 57,000 textbooks, and filled 419 furniture requests covering over 2,100 pieces of furniture. Success Criteria and Goal Statements: 1. Procurement Savings Ratio - This is the annual amount of savings as compared to the total amount of purchasing. The goal is to use competition and market analysis to generate the maximum amount of savings compared to spend as possible for the District. 2. Competitive Procurements Ratio - this is the amount spent through competitive purchasing relative to total spend. The goal is to increase use of competition in order to achieve higher levels of savings (Goal 1). 3. PCard Purchasing Ratio - this is the total dollar amount purchased using PCards divided by the total spend (not including construction spend). The goal is to maximize the use of the PCard versus the typical purchase order process (note: the typical PO process costs $93 versus a PCard transaction cost of $22) 4. Warehouse Operating Expense Ratio - this is the operational cost of the purchasing warehouse divided by the total value of all issues/sales from the warehouse). The goal is to have an efficient and effective warehouse that provides measurable value to the District. The Great City Schools benchmark for this is 21.4%) 5. Performance Measures: 1. Annual savings for school year of 2.5% of spend (progress will be measured on a monthly basis) 2. The amount spent through competitive purchasing is 20% or more of total spend for the school year. 3. The annual PCard spend is more than 85% of the total spend for the school year.

4 4. The annual Purchasing Warehouse Operating Expense Ratio for is 20% or less. 5. What specific Board adopted benchmarks will be influenced by this work? Save Budget dollars in support of all goals and provide supplies and services needed for student teaching and learning. What do you predict your results will look like after: 9 Weeks of Implementation Very satisfied customers are getting the supplies, equipment and services they need quickly at below market prices with savings of 10 to 50% on average. 18 Weeks of Implementation 27 Weeks of Implementation 36 Weeks of Implementation Attach documents associated with this proposal here: File Attachment File Attachment File Attachment File Attachment File Attachment File Attachment File Attachment File Attachment

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