In a post-Covid era, revenues are down and schools are under increased pressure to reduce their costs. Fundraising attempts have been exhausted and cutting salaries only makes a dent. Not to mention that teachers are already overworked and underpaid. Creating a procurement plan for a school can cut third-party costs by an average of 25%!
Roughly 30% of school operating expenses are paid to third-party suppliers. Suppliers are essential for the health and safety of staff and students, as well as smooth daily operations. However, supplier expenses are not a fixed cost and supplier cost reductions should be pursued with the same enthusiasm as trimming salaries and sourcing funds. One-third of operating costs may sound like a small portion of your school's operating expenses, but this untapped area of savings can have a meaningful impact. It can play a vital role in providing the quality education your learners deserve!
Creating a procurement plan for a school isn’t something you have to tackle alone. The Procurement Co. team offers unparalleled procurement expertise. We listen to your individual needs and create custom tenders on your behalf. We analyse and compare bids, leaving the final decision up to you. Our fee is a small percentage of what you save, so if you don’t save or don’t switch suppliers there’s no charge for our services. Again, our average school saves 25% with our procurement services.
Quality is key when selecting your suppliers, so we want to be clear that we aren’t just here to save you money. Yes, we aim to significantly reduce costs by making informed purchasing decisions, but we aim to improve your quality too! Defining a well-thought-out tender process positively maximises competition between suppliers. Most schools work with the same suppliers from one year to the next. While loyal, this approach doesn’t assist you in achieving your school’s financial objectives.
As you already know, it can be challenging to compare bids between similar suppliers. The Procurement Co. simplifies this process by working with each school individually. To keep supplier assumptions to a minimum we identify your specific purchasing needs and commercial terms. We present your detailed needs and terms to suppliers before they submit their bid.
Next, we request that prospective suppliers submit a breakdown of their services and prices in a standard template. This template makes it easy for schools to compare suppliers and crucially negotiate individual line items. Suppliers who do not submit their bids within our standard template often fall to the bottom of the bids pile, as it’s difficult to compare what they have to offer beyond their price quote.
Finally, we empower schools to make an objective decision. Many schools take a relationship-based approach to contracting with suppliers, often renewing their existing contracts. While relationships are essential, a more objective approach is needed to mitigate the risk of costs due to poor performance, or worse—supplier liquidation.
The Procurement Co.'s tender process doesn’t remove subjective considerations from the decision-making process, but reprioritises the objectives so that supplier capabilities and financial stability are considered first. The subjective components such as likeability come second. This objective approach to tenders minimises the risk of disappointment and provides schools with the confidence to contract with the most capable supplier, even if that means ending a relationship with an existing one.
Schools have exhausted the traditional means of raising funds, saving money, and opening up new revenue streams. To survive the post-Covid years exploring alternative avenues of saving money is essential. Tendering services with The Procurement Co. can have a tremendous impact on your school’s budget, empowering your school to do more with less! Creating a procurement plan for a school is easy with The Procurement Co. Reach out today to get started!