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Friday, 17 June 2016

On average 600 purchasing transactions take place each day around the University, with an average daily (non-salary) spend of $1.2m. In an organisation this size having a university-wide strategic procurement plan saves millions of dollars of public and private money each year.

“Last year alone our preferred supplier and efficiency savings through good procurement practice totalled $8.7million,” says Joyce Dacruz, UWA’s Chief Procurement Officer.

UWA’s strategic approach to procurement was acknowledged last week when the University was awarded the internationally recognised Chartered Institute of Procurement and Supply (CIPS) Standard Corporate Certification.

“This certification provides an international benchmark that recognises our robust policies and processes. It is an acknowledgement of the value our team brings to the University.  It also makes us more determined to continue our efforts to improve efficiencies and cost savings,” she says.

At the presentation Vice-Chancellor Paul Johnson noted that only one other Australian university had the certification reinforcing the progress that UWA has made in the field of procurement.

“This certification is a real credit to everyone who has been involved and is the sort of external international benchmarking that will help us become a top 50 university,” said Professor Johnson.

By taking a strategic approach to procurement, the total cost of ownership of goods or services over their lifetime is evaluated and analysed to ensure the best outcomes are achieved.

“We have 65 preferred supplier agreements at UWA spanning over 23 categories, details of which can be found on the Procurement website . It’s not about buying the cheapest product, but buying smartly, which includes obtaining quality at the right price, whilst managing procurement risks.

“Negotiating a contract with good commercial terms for the University involves consideration of a range of complex legal and commercial issues which we as procurement professionals understand and can analyse,” Joyce says.

Ms Dacruz says that issues can arise when supplier contracts are signed without guidance from the Procurement team.

“Supplier agreements are often legally weighted in the supplier’s favour with poor commercial terms for UWA and if equipment breaks down or the vendor doesn’t provide what they were meant to, we won’t have the documentation in place to manage these issues.  In the worst cases the University may have to pay out a whole contract,” she says.

“We’re here to assist you. If you’re looking into a major or high risk purchase, contact the Strategic Procurement team before you buy, and we will ensure that the risks are mitigated from the outset.”

UWA has also recently joined a Universities Procurement Hub that will enable around $1.3billion of non-salary spend to be leveraged across 17 Australian universities for goods and services, such as lab consumables, computer supplies and print management service.

“The hub’s participating universities include Curtin, Murdoch and Edith Cowan. It’s really great for UWA to be part of this venture.  It means that we can leverage costs, reduce duplication and source goods and services together, giving us far greater purchasing power than if we were doing it as an individual university, she says.

“As procurement professionals our objective is to deliver value for money for the University in every procurement decision we make and to protect the University’s reputation throughout the process.  We have a very dedicated team who are happy to talk through any questions you have.  Ultimately, we want to work in partnership with you and take the finance administration tasks off your hands, so you can focus on your important work.”

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