A procurement network is one of the most successful ways of managing procurement. It allows purchasing at a decentralised level where each department has its own budget and a ‘lead buyer’ who is the departmental head of the network buying team and knowledgeable about the products/services being bought. Processes governing accountability, policy and practice are agreed by the procurement board whilst the procurement liaison officer can provide support and guidance about the right procurement approach from the centre.
Decentralised model - Some institutions use a decentralised model when each department manages its own budget; however, local interests can be put before those of the institution, spend is uncoordinated and too many untrained people can get involved in procurement.
Centralised model - In the centralised model the heads of department must request procurement from a central point; this can be bureaucratic and result in long waits, bottlenecks and maverick buying.
The procurement network offers the best of both worlds – the departments deliver results while the procurement champion and procurement liaison officer provide support, ensuring procurement is efficiently managed at every level.
Benefits
Demonstrates a clear commitment to procurement
Helps to ensure that a consistent procurement message is delivered
Sends the correct messages to staff and external colleagues
Uses specialist product/service/market knowledge to best effect
Up-skills key buyers
Secures ‘buy-in’ from those who purchase
Avoids fragmentation and creates leverage for best value
Releases resources
Delivers procurement management efficiencies
Minimises risk
Who does what?
The procurement champion and procurement liaison officer work together to:
Co-ordinate the network – convening meetings, agendas, actions, contracts etc
Provide leadership, focus and coaching through training and workshops
Provide all terms and conditions, templates and tools
Maintain the procurement section of the intranet and communicate with network members
Assist with all major purchases
Disseminate management information
And, depending on requirements, they:
Forecast demand and detail whether suppliers and sometimes markets (such as the construction industry) can meet it
Develop the network to keep it relevant
Run a risk management programme
Represent the institution externally
The network buyers are departmental staff with authority to place orders and contracts. A lead buyer will execute your institution’s procurement strategy with regards to a specific category and will draw on the supplier and product knowledge of other buyers. They are also responsible for:
Promoting good deals to the staff who place the orders
Facilitating training e.g. ‘how to…’, ‘why we…’ or ‘get the most from…’
Making sure the institution gets the ‘best deal’
Managing relationships with suppliers
Providing feedback on supplier performance
Working with buyers in other teams
Other ways to organise a procurement network include:
By department rather than spend category
Through creating a hybrid model that combines departmental structures
Category management techniques for significant cross-cutting categories such as: ICT, catering and books
What matters is that a network of leads is established to gather and disseminate information throughout the institution, working with the procurement lead to actively manage and co-ordinate procurement activity.
School / MAT members - the information on this page aligns with the following ISBL Professional Standards: 3.1, 3.2, 3.3, 3.4