Stategic Purchasing

From AgriLife WIki

Contents 1 Situation 2 Goal 3 Procedure 4 Considerations, Questions, Concerns 5 Additional Thoughts/Pilot test

Situation

Computer purchasing is currently decentralized with each unit expending resources to determine what is needed, what is available, placing the orders and receiving the computers. This takes staff time, results in purchases of varying quality and from varying sources. This also makes tracking purchase requirements and dollars difficult. Purchasing computers for county Extension offices through the semiannual cost share program is generally effective, but doesn't necessarily meet the needs of counties whose budget cycles, or even critical computer needs, do not match up with our 6 month interval.

Goal

To make computers readily available in a way that uniformly manages purchasing requirements, costs, warranties and support, and reduces staff time involved in acquisition and support.

Procedure

Following the agency's purchase of an initial stock of computers, a unit needing a computer would place an order, a computer would be taken from inventory, possibly configured to some extent, and shipped to the requester's office. The unit would provide an account number which would be used for the next order of stock. In the case of units (counties) using non-TCE funds, an invoice would be immediately generated, the proceeds placed in our current cost share account (07-257400), and that account then used on the next purchase.

Considerations, Questions, Concerns

Acquisition of “Stock”

• What configurations of computers will be stocked?
• How many to stock?
• How can we prevent stock from going stale?
• How can we handle this in inventory?
• Initial funding
• Where can we house the stock?

Delivery

• How do units order a computer?
• How do we deal with "special requests" or large orders
• Funding for shipping
• Pre-configuration of systems (software installations)?
• EIT staff resources involved

Replenishment

• What are the restocking thresholds?
• How will units be charged back for resupply? Can an internal transfer be done? Currently, if we place an order using several unit accounts, each unit must approve its portion of the R-Doc. This causes a delay in timely ordering. Could a funds transfer be done at the time the unit receives a computer so that re-stocking orders can be expedited?
• Is it possible to have a quarterly contract with a vendor; i.e., a blanket R-Doc under which we can place small purchases? (Allows us to stock fewer units but speeds purchasing)

Additional Thoughts/Pilot test

One of the biggest benefit of this strategy would be to County Extension Offices. Rather than have 2 large County Cost Share purchases per year county offices could order when they have the need and when they have their part of the funds available. The strategy could be put into place with counties beginning in January 2008 as a pilot test. A centralized purchasing process might then be done for other units by June 2008 in time for the normal end-of-year flurry of purchasing, settling into the ongoing purchasing process in September.