The Management Model describes how the planning, the execution, the follow-up and the potential rectifying actions take place within the framework of the University of Copenhagen (KU)
Purchasing Policy. For a more detailed description of the different roles mentioned here, including their field of responsibility and authority, please refer to the University of Copenhagen Procurement
Organisation.
The basis for the Management Model is The PDCA Model (Plan, Do, Check, Act). This model is also used to describe KU’s Budget Model. The PDCA Model is often referred to as a management loop; involving four management phases:


Planning (Plan), includes plans and objectives for the coming year
Execute and Register (Do), includes the daily tasks undertaken to realise the plan: invitation to (re-) tender and placing orders, but also maintaining the agreements, communication and education
 Report and Follow-up (Check), includes preparation of follow-up reports to the decisionsmakers
 Correction and Learning (Act), which includes decisions concerning actions for rectification in the case where deviations occur to ensure that the plans and objectives are being followed and met, as well as using the learning from the experiences when planning the next period
CORRECTION AND LEARNING
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DCC decides consequence on lack of fulfilment to budget targets

DCC decides consequence on lack of fulfilment to plans of (re-) tender
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INSE and purchasing coordinators evaluates agreements and suppliers fulfilment of agreements.
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INSE and purchasing coordinators evaluates internal behaviour
PLANNING

INSE sets out framework for (re-) tender for the following year and strategy per product category
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Approved by the Directors Coordination Committee

DCC sets up targets and savings for the coming budget
EXECUTE AND REGISTRE

INSE sets up project groups, carry out (re-) tender and signs purchasing agreements

INSE is maintaining lists of agreements and purchasing coordinator/purchaser
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Purchasing coordinator and purchaser is appointed at the appropriate organisation level
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Purchasing coordinators informs INSE regarding
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 updating the list of Purchasers
INSE regularly arranges courses
Employees place their orders with the purchasers
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Purchasing coordinators and purchasers have the duty to take initiative in reporting deficiencies
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Purchasers receive the product/service, check the quality and quantity and approve the invoice.
REPORT AND FOLLOW-UP
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INSE creates quarterly reports University, Faculty and Departments

Management at individual org. level initiates a follow up on report

DCC initiates a follow up on economical targets, compliance to purchasing policy and plans for (re-) tender

INSE initiates a follow up on purchasing policy and suppliers

Each phase is further detailed in the following sections.
The planning phase includes all activities concerning defining the tender plan for KU Purchase
Agreements for the coming years, as well as determining the performance and budget goals in the area of procurement within each product category. The phase consists of the following main activities:
 The Procurement Section prepares a proposal for KU’s tender plan for the product categories, containing dates for initiation, quotation, signing of contract and execution.
Likewise, for each product category suggestions concerning a purchasing strategy are prepared, for example central store, single or multiple sourcing etc.
 The tender plan is approved annually by the Director’s Coordination Committee. The
 approved tender plan will be available on www.indkoeb.ku.dk
The Director’s Coordination Committee decides on basis of the recommendation from the
University Finance performance and budget goals per product category. It primarily
 concerns greater versatility of the KU Purchasing Agreements within specific product categories – either existing or new ones, as set out in the tender plan
The performance and budget goals act as part of the ongoing budget discussions, between
University Management and the individual faculties
The Execution and Registration Phase includes all activities within the framework of the plans and the general Purchasing Policy. Therefore, this phase consists of a number of activities related to projects, as well as daily tasks. The main activities are:

Carrying out tender o The Procurement Section sets up a project group consisting of the Purchasing
Coordinators, subsidiary Purchasers, with knowledge of the market and the suppliers within the product category. In addition, the Procurement Section will contribute with representatives with expert qualifications in executing the tender procedure, contracts and the EU tender regulations o The project group specifies quality requirements, possibilities for substitution, storage, total volume etc. as basis for the Procurement Section’s tender material o The project group prepares the tender material, carries out the tender and signs a KU
Purchasing Agreement according to the current laws and regulations o After selecting the supplier(s) and signing a KU Purchasing Agreement and/or
Supplier Contract, it will be published on www.indkoeb.ku.dk
by the Procurement
Section o The Purchasing Coordinators, in collaboration with the Procurement Section, ensure that the rest of the Purchasing Organisation, to whom it is of interest, is informed about the content of the new KU Purchasing Agreement.


Appointment of and the maintenance of the information regarding the Purchasers and the
Purchasing Coordinators o The Purchasers and the Purchasing Coordinators are appointed respectively by the
Head of Institute, the Director of Faculty and the Vice-Director/ Manager at FA.
Two or three purchasers and one Purchasing Coordinators per product category per organisational level are appointed – please refer to the document, “Procurement
Organisation”, to see where the purchasing within each product category is anchored o The Purchasing Coordinators ensure that the Procurement Section have all the appointed Purchasers registered o The Purchasing Section publishes the outlines of the Purchasers and the Purchasing
Coordinators per product category per faculty per organisational level at www.indkoeb.ku.dk o The Procurement Section distributes newsletters to all the registered Purchasers and
Purchasing Coordinators – furthermore, the Procurement Section periodically arranges courses

Ordering Products and Services o Only appointed Purchasers can place orders with the suppliers – thus, employees/managers cannot place orders o Therefore, the employees place orders with the Purchasers, receive the product/service, checks the quality and quantity and approves the invoice o The Purchasers and the Purchasing Coordinators are obligated to report deficiencies and inexpediencies in the KU Purchasing Agreements, the Supplier Agreements and in the practical execution (events) in the Operation/Line Organisation o If the Purchasers discover that there are products or services not included in KU
Purchasing Agreements, it must be reported as a deficiency - the Procurement
Section must report back to the Purchaser concerning whether there is a suitable substitute in one of the existing KU Purchasing Agreements, or if the product can be purchased without using an KU Purchasing Agreement o Events must be reported to the Procurement Section, which registers all events for periodical follow-up/to learn from
The Purchasing Coordinators are organisationally placed in the Operation/Line Organisation, and for the duration of the Purchasing Agreements, they are part owners of them. Thus, they are the direct link between the Staff/ Project Organisation and the Operation/ Line Organisation, and as such a very important element in the Management Model.
The list where the Purchasing Organisation is registered is managed and maintained by the
Procurement Section, and it is available at www.indkoeb.ku.dk to ensure expedient communication, education and guidance from the Procurement Section to the Purchasers and the Purchasing
Coordinators.
The report/follow-up phase includes the report and the follow-up routines, carried out in relation to the tender plan, and the performance and budget objectives, which have been determined for each product category.

The Procurement Section provides quarterly purchasing reports for the University Director, the
Directors of Faculty and the Financial Managers.
The purchasing reports document the individual faculty's purchase volume per product category, and the reports are subdivided by institute. In addition, the reports present a comparison with the purchase volume from the previous three months.
The following is also shown in the report per product category:
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Number of suppliers
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Amount of private expenses
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Quota of purchases made with a KU Purchasing Agreement (including the SKI Agreements approved by the Procurement Section)

Quota of purchases made with a SKI Agreement (which have not been approved by the
Procurement Section)

Quota of purchases made without an agreement

Percentage distribution of purchases made with a KU Purchasing Agreement, SKI
Agreement and without an agreement
The following is documented per institute/faculty:

Number of invoices per expenditure interval
- Below DKK 100
- Below DKK 500
- Below DKK 1000
The Faculty Directors and the Financial Managers ensure that the purchasing report is distributed to the institutes.
The Heads of Institute, the Directors of Faculty and the Vice Directors/ FA Managers have the overall responsibility for compliance with the Purchasing Policy and they must therefore, based on the purchasing reports, adjust the behaviour in their part of the organisation to the necessary extent, so that the projected objectives for purchases made with the KU Purchasing Agreements can be achieved.
The follow-up is done mainly per Product Category, and is initiated in the following product categories:

Laboratory Material (consumer goods)
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Publication
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Administrative goods and services
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Inventory (furniture)
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Temps
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Computer Consumer Goods
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Movers

IT (pc, telephony, photocopier etc.)
In order to monitor the behaviour of the suppliers and the Purchasers, the Procurement Section periodically prepares a report showing the following for specific product categories:
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Difference in price between agreement and invoice


Purchase of goods outside agreement
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Degree of compliance with delivery time
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Purchases made by non-purchasers

Charges
This report is part of a continuous assessment of the suppliers’ compliance with the contract. In addition to the feedback from the Purchasers and the Purchasing Coordinators concerning the agreements’ fulfilment of expectations, this is one of the Procurement Section’s primary follow-up tools.
The overall objectives of the Procurement Policy, which are successively incorporated as performance goals for the various product categories are:
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Quota of purchases made with a KU Purchase Agreement (including SKI Agreements approved by the Procurement Section) must at least be 80% of the total purchase volume
(measured in DKK)

No private expenditures
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No credit card purchases
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No invoices less than DKK 100,-
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Max. 5% of the invoices may be less than DKK 500,-
Supporting follow-up parameters:

Quota of purchases made with a SKI Agreement, which have not been approved by the
Procurement Section, and purchases made without an agreement may not exceed 20% of the total purchase volume (measured in DKK)

The number of suppliers must be decreasing

The number of invoices must be decreasing
The Procurement Section reports to the University Director and the Directors of Faculty every quarter on the Operation/Line Organisation's compliance with the Purchasing Policy.
The correction and learning phase includes the activities which are initiated on deviations and lack of target fulfilment, as well as the learning activities which are meant to ensure that the experiences from the Purchasers and Purchasing Coordinators and others are systematically gathered and evaluated.
When deviations in relation to the performance goals occur, the Faculty Directors are obligated to take initiative in informing the University Finance and commence actions for rectification to ensure that the objectives are fulfilled. At the faculty meetings in connection with the quarterly purchasing reports in the area of finances, there is an ongoing dialogue concerning the performance of the faculties as it relates to the performance goals for purchases.
The Procurement Section has a corresponding duty to report deviations in relation to the tender plan. The University Director is responsible in the event of lacking implementation of the tender plan. This responsibility is de facto delegated to the Director of University Finance.

The Procurement Section and the purchasing coordinators likewise evaluate annually the delivery capability of the suppliers in relation to KU purchasing agreements. This evaluation forms the basis for decisions regarding future tender. Dispositions from use of the KU Purchasing Agreements are part of the experiential foundation when the tender plan for the coming year is prepared. They also assess internal behaviour in relation to the agreement/contract, and in case of lacking goal fulfilment, they assess specifically their own ability to communicate/guide.