Back to School: Why procurement practices need better education

Annabel Sim at Compleat Software

 

Not having the right tools, technology, or even stationary is every teacher’s worst nightmare.

Yet when it comes to accountability, schools and education organisations have a level of duty in making sure they secure best value for money from any and all purchases made.

UK schools are currently spending around £9.2billion in areas such as catering, technology, and other back office supplies, and with many schools feeling the financial squeeze right now, we need to get smart about the way we procure goods in education right now.

The pressure is on to find ways to maximise finances and deliver cost savings, but simply finding a better, more effective way of procurement can lead to significant financial savings that can be re-invested in other areas.

 

A lesson in education procurement practices

There’s no doubt that the education sector works incredibly hard to try & make financial ends meet, but manual processes in the procurement phase are creating unnecessary stress.

Current processes for purchasing, budget checking, invoicing & approvals, as well as checking against a growing list of suppliers, waste valuable time & money – resources that could be better spent elsewhere.

One of the biggest issues is that education departments get bogged down with the same suppliers year after year, without thinking if this is the most financially and operationally efficient option for them.

But just because you don’t have the capacity to really explore other options, such as sourcing new technology and learning platforms, doesn’t mean you should be stuck using the same supplier.

Another issue is a lack of visibility over the procurement process. As staff are effectively told to take control of their own purchasing, only showing the accounts payable (AP) department the invoice once it arrives, there’s no way for the AP team to compile accurate records for spend forecasting or even identify unnecessary spending.

Then there’s the issue of a lack of funding, with schools having to compromise over areas that impact the entire school. Twinned with high costs from an inability to switch suppliers and purchase from preferred ones online, the issue is only getting worse.

But education and AP departments are fighting back. Armed with purchasing automation and platforms that provide flexible online purchases, staff are working hand-in-hand to improve procurement in schools.

 

Bringing consumer shopping to schools

Technology that facilitates a more efficient online buying process provides a simple yet effective solution that enables school staff to buy what they need online, when they need it, and at the best possible price.

What’s more, because the whole process is managed automatically, AP teams receive better visibility and control over spend – including where purchases have been made, by who, and how much spend has been allocated.

Purchase orders are instantly submitted to the AP team who can cross-reference purchase orders against invoices, send purchase orders onward for approval, and ensure staff use legitimate suppliers.

And, just as you would use an online marketplace to buy items at home, the same can be provided for your teachers, too.

Staff are also able to compare new products, prices, stock, and the quality of what’s on offer to ensure the best possible value. More importantly, it opens up the opportunity for suppliers to compete for your business, meaning you get the best possible prices with the least amount of effort and ensuring staff only use preferred suppliers.

It sounds too simple to be true, but it is – by simply integrating online buying, schools can provide staff with the marketplace of their choice while improving procurement processes and reducing cost.

To identify potential areas where spend could be saved or better invested, Girls Day School Trust (GDST) needed to find a better way to view and analyse its spend data. By simply implementing procurement automation, GDST were able to identify and review more than £900k worth of spend across 11 different suppliers which helped realise immediate savings of around £200,000 and more than £700,000 per year.

By extending this capability to your staff and AP team, schools can regain control over their procurement channels while improving financial processes that benefit everyone.

 

It’s not rocket science

If time really is money, schools need to stop wasting the scarce resources that they do have and start looking at ways to maximise their spend.

By providing your school’s AP team with real-time insight into spend and giving them back control over purchasing behaviour, significant savings can be found on cost, time, and effort.

Procurement automation tools combined with online buying platforms put AP teams back in the driving seat while allowing teachers to spend where, when, and what they want, with the wider impact being felt through the entire school.

 

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