Trinity & All Saints College - a case study
Trinity & All Saints College is an independent Catholic Foundation committed to the principles of care and community with approximately 2,500 students. The college originally opened in 1966 as two colleges on a single site. In 1980 the colleges formally merged into a single institution and in 1991 it was designated a full college of the University of Leeds. In addition to undergraduate and postgraduate courses, the College also offers a programme continuing professional education.
Assessment
The college commissioned its auditors to review and report on the procurement arrangements within the organisation. A number of recommendations were subsequently presented and the college tasked with the implementation. In 2002 CY Associates carried out a high-level purchasing audit in order to enhance the original audit recommendations. The areas covered by the audit were:
- Procurement Strategy – Aims, Roles & Responsibilities, Key Indicators for improvement
- Current Skill Sets – Training Requirements, Performance Measurement
- Supply Chain – Buying Groups & Preferred Suppliers, Stock Holding, Delivery Mechanisms, Payment Terms, Systems
- Benchmark – Specific areas to identify current position
To fully understand the current purchasing activities, CY Associates consulted with all the department managers that had responsibility for purchasing products or services.
Findings
An updated overview of the purchasing process was completed which highlighted strengths and weaknesses and additional recommendations for improvements. The purchasing policies and procedures were not comparable across the college which could result in some departments obtaining inferior agreements to other departments. Information on possible "quick win" areas for improvement and cost reduction were revealed via the benchmarking. The total cost of ownership was not always considered therefore the overall price may be higher than initially predicted. Preferential payment terms were not always taken and some suppliers were not invoicing in the most cost effective way.
Summary
By inviting CY Associates to review the purchasing practices within the College and provide solutions for the ongoing management of procurement at the College the recommendations of the auditors were implemented. CY suggested that the College implement a strategic approach to purchasing. Systems should be developed, effective methods/sources of supply appointed and training be delivered to those staff involved in the purchasing process to increase and enhance current skill levels. The supplier base should be reduced by appointing "Key Preferred" suppliers, with local ordering, direct delivery and consolidated invoicing. This would reduce administrative overheads and expenditure. The Benchmarking exercise revealed savings of 27% in one area which substantiated the need for standard tendering procedures for goods and services.
