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PURCHASING PLAN 2000
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Objectives
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Negotiate 5-7% price reduction with 2 suppliers by
end of Q2.
Reduce total cost of ownership by 6-8% through
standardization of laptops and desktops.
Streamline the purchasing process through the
implementation of 3 process changes by the end of
Q3, resulting in 25% reduction in cycle-time.
Research enterprise-wide software licensing
agreements, resulting in 4-6% cost reductions.
Develop and write clear purchasing procedures by
end of Q4
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Negotiations
Influence purchasing patterns and prices.
Identify purchasing as a resource for endusers.
1)
Printer/Copier Lease *IT & END-USERS*
i. Identify possible suppliers (Feb)
ii. Submit RFP (Feb)
iii. Evaluate Proposals (Mar)
2)
Computer-related Purchases *IT &
ENDUSERS*
i.
1)
2)
3)
4)
Coordinate Implementation
Identify potential suppliers (Mar)
Identify/Negotiate pricing structure, % above cost (Mar)
Evaluate administrative support provided (Apr)
Transfer purchases to selected supplier (Apr)
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Standardization
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Standardize Dell purchases *IT &
ENDUSERS*
1) Identify current standards used (April)
2) Obtain access to Premier Page (April)
3) Arrange Road Map meeting with local dell rep,
repeat quarterly. (April, July, Oct)
4) Arrange contract pricing (May)
5) Propose Standardization (May)
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Software Licensing
1) Determine what software to propose for
enterprise-wide licensing (May)
2) Identify what software licenses currently
exist (May)
3) Negotiate discount agreements as
necessary (Jun-July)
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Process Changes
In order to streamline the purchasing process,
we propose to:
1)
Expand use of requisition beyond IT *END-USER & IT*
1) Identify and document unwritten policies (Apr)
2) Obtain and/or develop signature authority information (Apr)
3) Propose written policy to Finance (May)
2)
Expand use of requisition beyond IT *END-USER & IT*
1)
2)
3)
4)
3)
Contact Lotus Notes Administrator (May)
Submit spending policy (May)
Identify obstacles and solutions to expanding use of requisition (Jun)
Lead Implementation (Jun)
Expand use of purchasing services on off-site locations *END-USER*
1) Identify how off-site purchases are currently being made (July)
2) Determine what purchases can benefit from The Purchasing Group
involvement (July)
3) Announce corporate purchasing department (July)
4) Begin providing services for off-site locations (July)
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Purchasing Infrastructure
To strengthen the purchasing process, we
propose clearly defining the procedures and
guidelines.
1)
2)
Develop spending policy (see Process Changes)
Analyze Spending *FINANCE*
1) Obtain A/P tab (July)
2) Identify top suppliers (July)
3) Develop strategic initiatives based on analysis, resulting in 79% savings with top 5 suppliers that currently bypass
purchasing system. (July-Nov)
3)
4)
Requisition Form (see Process Changes)
Training Manual
1) Document spending policies and guidelines (Sept)
2) Write step-by-step purchasing instructions (Sept)
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Timeline
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
Copy/Print
Lease
Comp-related
Negotiations
Spending
Policy
Software
Licensing
A/P Analysis
Dell
Standards
Road Maps
Expand to
Off-site
locations
Strategic
Initiatives
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