Procurement Manual - 3.0 Preferred Suppliers

05 September 2014

This section of the manual details what is meant by the term preferred suppliers, and how these suppliers become preferred.

3.1   Preferred Suppliers

3.1.1   This section of the manual details what is meant by the term preferred suppliers, and how these suppliers become preferred.


3.2        RATIONALE

3.2.1   Aggregation of demand increases negotiating power, improves Value for Money (VFM), reduces the number of supply sources and is crucial to the purchasing success of any organisation.


3.2.2   Recognition of these opportunities led to the creation of the Higher Education (HE) Regional Purchasing Consortia and National Working Parties which represent a major influence within UK purchasing. Work undertaken by these groups culminates in the formulation of Framework Agreements and Contracts under which all appointed companies are termed "Preferred Suppliers".



3.3.1   Contracts, Agreements and Purchasing Arrangements containing Preferred Suppliers have been formulated to improve VFM in specific commodity or service areas but there are several important principles and factors which are common throughout.


3.3.2       The procurement exercise or project is usually undertaken by a cross functional team representing the academic and technical interests of Faculties or Support Services and professional purchasers. For example Southern Universities Purchasing Consortium (SUPC) negotiations, the cross functional team is drawn from representatives of the member Universities.


3.3.3   The opportunity is taken to examine potential areas for savings before any approaches are made to the markets by standardising products or drawing up generic specifications which attract attention from a wider range of suppliers.


3.3.4       Tendering, evaluating bids and awarding of contracts are carried out using formal procedures which ensure that:


3.3.4a Terms and Conditions safeguard and reflect the interests of our University rather than the suppliers.


3.3.4b EU Public Procurement Regulations are complied with.


3.3.4c Demand is maximised to exert the strongest influence on the marketplace.


3.3.4d Environmental factors are applied as appropriate.


3.3.4e Proper supplier evaluation and monitoring procedures are implemented.


3.3.4f  Full life cycle costing is taken into consideration.


3.3.4e The successful suppliers become partners to foster relationships based on understanding and co-operation. This allows both parties to draw upon each otherís skills and develop contractual arrangements to mutual advantage.


The use of Preferred Suppliers enables purchasers within our University to achieve considerable saving in time and is one of the avoidable costs of purchasing.


3.4   Not Used



3.5.1   Devolved purchasing authority requires feedback. If the purchaser considers the performance of a Preferred Supplier to be sub-standard there is a responsibility to advise Procurement accordingly. Procurement will then review the service currently being offered by the supplier and take any necessary action.



3.6.1   Full details of all Agreements are held and distributed by Procurement using the following methods:


3.6.1a GeM  database of Contracts.


3.6.1b Procurementr Web Page


3.6.1c Details of new contracts are issued as appropriate to Deans of Faculties, Heads of Support Services, Resource Managers and other staff known to have an interest in a particular commodity group.


3.6.1d Periodic newsletters issued by Procurement.