Unlocking Value: how do you get the best return on investment?

In the education sector where every pound spent should contribute to the holistic development of students, the procurement process plays a crucial role. However, it’s not just about finding the lowest price; it’s about identifying the best value solutions that align with the specific needs of the school. And the quest for the best value goes beyond the price tag. 

 

The Challenge 

Many schools and trusts in the UK find themselves navigating the complex landscape of procurement without the guidance of a specialist. Often, that role must be covered in-house and staff often wear multiple hats, so the responsibility of buying high-cost and high-risk goods and services can feel risky and resource-intensive. Schools are also inundated with marketing materials, sales calls, and emails which can further complicate decision-making, leading many schools to stick with incumbent suppliers for a sense of security, even if it doesn’t always translate to the best value. 

 

 

Other things need to be taken into consideration: 

 

Diverse Procurement Landscape: Schools should recognise the diversity within the procurement landscape. Not all suppliers are created equal, and exploring alternative options can be the key to unlocking better value. A dedicated procurement specialist can help schools navigate this landscape efficiently. 

 

Time and Resource Constraints: Understanding the time and resource constraints that school staff face is crucial. Procurement processes need to be streamlined and straightforward, allowing staff to focus on their primary responsibilities. This includes minimising the administrative burden associated with purchasing decisions. 

 

Breaking the Incumbency Bias: The inclination to stick with incumbent suppliers can be a common challenge. Schools should evaluate whether the existing partnerships genuinely provide the best value or if exploring alternatives could lead to cost savings, improved services, or both. 

 

Supplier Relationships: Building and maintaining relationships with trusted partners is essential. Schools should prioritise suppliers who not only offer competitive pricing but also understand the unique needs of the education sector and are committed to providing quality services. 

 

 

So what is the best way to tackle procurement to get the best value and return on investment? 

Invest in Procurement Expertise: Consider allocating resources to a dedicated procurement specialist or look to your Support Team for help and ideas. This investment can significantly streamline the procurement process, ensuring that the school gets the best value for its money. 

 

Implement Technology Solutions: Explore technology solutions that can simplify the procurement journey. E-procurement platforms (e.g. G-cloudScoStore) can centralise information, provide insights into supplier performance, and facilitate a more transparent and efficient process. 

 

Regularly Review Supplier Relationships: Conduct regular reviews of supplier relationships to ensure they align with the school’s evolving needs. This practice can help identify opportunities for improvement, renegotiation, or exploration of alternative options. 

 

Encourage Competition: Foster an environment that encourages healthy competition among suppliers. This can lead to more competitive pricing and innovative solutions, ultimately benefiting the school. 

 

Educate Staff on Procurement Best Practices: Provide training for staff involved in the procurement process. Educating them on best practices, including how to assess value beyond price, can empower them to make informed decisions. 

 

 

By understanding the complexities of the procurement landscape, acknowledging the challenges faced by staff, and implementing strategic recommendations, schools can get the best value for their investments. Ultimately school leaders and those with procurement and finance responsibilities want to ensure that every pound spent contributes to the success and well-being of the students they serve, so arming yourself with knowledge and support beforehand and exploring all the options out there is a great first step. 

12 ideas and strategies to help schools successfully navigate procurement while ensuring compliance

Across the education sector resources are often stretched and budgets closely monitored, so procurement is a critical process. For schools in the UK, understanding the complexities of procurement can be akin to navigating a minefield. The consequences of poor procurement decisions and non-compliance with procurement legislation are far-reaching, including legal challenges from suppliers, contract cancellations, and hefty financial penalties. These challenges are not only costly and time-consuming but can also tarnish your school’s hard-earned reputation.

 

So, how can schools successfully navigate procurement challenges while ensuring compliance? Here are some key ideas and strategies worth exploring:

 

  1. Embrace Procurement Expertise

Procurement is a specialised field that requires a deep understanding of laws, regulations, and best practices. Schools should consider bringing in or training staff members with expertise in procurement. These individuals can guide the process, ensuring that the school remains compliant while obtaining the best possible value for goods and services.

 

  1. Stay Informed About Legislation

Procurement legislation is not static; it evolves over time. Schools must stay informed about the latest changes in procurement regulations. Subscribing to newsletters, attending training sessions, and engaging with relevant professional organisations can keep your staff updated on the latest legal requirements.

 

  1. Define Clear Procurement Procedures

Having clear, well-defined procurement procedures in place is crucial. These procedures should outline the steps to be followed, the responsible personnel, and the thresholds that trigger various procurement methods (e.g., competitive bidding, quotations, or direct contracting). Clear procedures minimise the risk of errors and non-compliance.

 

  1. Use Framework Agreements or Dynamic Purchasing Systems

One way to simplify procurement is to utilise framework agreements. These pre-negotiated contracts with suppliers can save schools time and effort. By leveraging the collective buying power of multiple schools, framework agreements often lead to better value for money. Schools can access these agreements through central procurement organisations or consortia. Equally, using a Dynamic Purchasing System offers access to pre-vetted supply chains and can significantly reduce timescales compared to traditional procurement processes.

 

  1. Promote Competition

Competition is a cornerstone of sound procurement practices. Encourage suppliers to submit competitive bids by reaching out to a diverse range of potential suppliers. Open and transparent competition helps ensure that your school secures the best deals.

 

  1. Conduct Regular Audits

Regular audits of your procurement processes can help identify areas where compliance may be lacking. These audits should assess not only the legality of procurement decisions but also their efficiency and transparency. Corrective actions can then be taken to rectify any shortcomings.

 

  1. Collaborate with Peer Schools

Collaboration is a powerful tool in navigating procurement challenges. Schools can share their knowledge and experiences with procurement, learning from one another’s successes and failures. Establishing a network of peer schools can provide valuable insights and support.

 

  1. Leverage Technology

In the digital age, technology can streamline procurement processes. E-procurement systems and software solutions can automate many aspects of procurement, making it easier to track compliance, generate reports, and maintain a paper trail of all transactions. Using these tools can save time and enhance accountability.

 

  1. Seek Legal Counsel When Needed

When facing complex procurement decisions or legal challenges, don’t hesitate to seek legal counsel. Procurement law can be intricate, and legal experts can provide guidance and representation when necessary, safeguarding your school’s interests.

 

  1. Prioritise Ethical Sourcing

In addition to legal compliance, schools should prioritise ethical sourcing. Consider the ethical implications of the products and services you procure, such as fair labour practices, environmental responsibility, and support for local businesses. This not only aligns with your school’s values but also sets a positive example for students and the community.

 

  1. Train Your Staff

A well-trained procurement team is a critical asset for your school. Ensure that your staff members are knowledgeable about procurement regulations, ethical practices, and efficient procurement methods. Training programs and workshops can help build their expertise.

 

  1. Communicate Transparently

Maintain open and transparent communication throughout the procurement process. This includes clearly communicating your school’s requirements, evaluation criteria, and timelines to suppliers. Transparency fosters trust and reduces the risk of disputes.

 

 

Conclusion

Navigating procurement challenges while ensuring compliance is no small feat, but with the right strategies and a commitment to best practices, schools can overcome these obstacles. By embracing procurement expertise, staying informed about legislation, defining clear procedures, using framework agreements, promoting competition, conducting regular audits, collaborating with peer schools, leveraging technology, seeking legal counsel when needed, prioritising ethical sourcing, training your staff, and communicating transparently, you can successfully navigate the procurement minefield.

 

Remember that procurement isn’t just about getting the best deals; it’s also about demonstrating your school’s commitment to responsible, ethical, and transparent practices. By doing so, you not only protect your school’s financial interests but also uphold its reputation and set a shining example for your students and community.