How to improve the procurement experience for schools and suppliers: White Paper
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How to improve the procurement experience for schools and suppliers:
Executive Summary The National School Procurement Survey 2013 reveals what schools really want from suppliers. The survey, of school business managers (SBMs), headteachers and other school leaders responsible for procurement decision making in schools across the UK, shows that more than 60 per cent of those responsible for school purchasing don’t have complete confidence in their buying decisions. The survey has highlighted the need for action to improve the procurement experience for both schools and suppliers.
Introduction July 2013 saw the first national survey into the state of school procurement. School business managers, headteachers, bursars and governors were invited to take part in the National School Procurement Survey (NSPS13). The survey was designed to gain the first detailed national picture of the procurement practices of schools. It was primarily intended to explore the challenges faced by schools nationally when it comes to procurement, to share tips on best practice and to identify training requirements.
Key Findings The findings revealed that 60 per cent of those responsible for school purchasing don’t have complete confidence in their buying decisions. The issue of confidence was underpinned by what the respondents regarded as key procurement challenges. According to respondents the five most significant challenges were:
Lack of funding
Keeping abreast of the latest policies and legislation
Accessing grants
Getting enough information about companies before using them
Finding companies available to work with schools
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94% of schools willing to rate and review companies … The majority of headteachers and school business managers are willing to collaborate with other schools to help them make good buying decisions – 94 per cent are willing to recommend, rate and review companies with experience of working with their school in order to help other school with their buying decisions.
62% of schools use the internet to find out about suppliers … School procurement has gone digital – 62 per cent of school business managers and other procurement leaders use the web to find out about companies that they could work with.
70% of secondary SBMs prefer to search for suppliers … 70% of secondary school business managers prefer to search for their own suppliers when it suits them rather than being sold to.
In-house comparisons increase need for buying confidence … 88% per cent of respondents compare service costs and quality of suppliers inhouse making it essential for schools to be more confident of the prices they are paying.
Value for money and reliability beats cost for SBMs … Schools place value for money (VFM) and reliability above cost when deciding on awarding contracts – 96 per cent of schools said VFM was very important and 97 per cent of schools said reliability was very important.
Schools keen to buy locally if they can achieve VFM … Schools want to use local suppliers but feel limited by the apparent lack of reputable companies. 84% of those surveyed believe that schools could be encouraged to buy locally as long as they could be reassured that they would receive best value for money, therefore pushing forward Socially Responsible Procurement (SRP). 3
Current issues in school procurement As of 1st September 20013 Department for Education figures put academies in England at 3,304. The increase in academies and slow retreat of local authority powers has led to greater autonomy for schools allowing them to take much greater control of their budgets. The advantages of this are significant – schools can operate in a more nimble and responsive way to the needs of pupils and their communities. However, this transformation has brought with it a range of new challenges for schools including how they should get value for money from the services and products they buy in. Schools are still expected to deliver value from a marketplace where they are small players. As schools set their own procurement strategies and fewer get involved in collective purchasing then the likelihood is that they will each be spending more to buy goods and services. This puts schools at a severe disadvantage so there is much to be said for attempting to understand these issues more thoroughly through the National School Procurement Survey.
The relative importance of factors influencing schools' procurement decisions
Source: NSPS13
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The factors most schools identified as being very important when procuring goods and services are value for money, reliability, quality and customer service. Cost, although seen by many as very important falls into fifth position in terms of relative importance against these other factors.
The results of the National School Procurement Survey 2013 gives us baseline data from which to assess future developments in school procurement. The impact of the survey will come from shared best practice between schools, training in procuring the best suppliers at the best value and the implementation of support offered to buying clubs and consortia for schools. Peter Melville, School Business Director, William Edwards School, Grays.
Cause for optimism While the survey shows that school buyers face significant challenges there is also cause to be optimistic about the state of school procurement. Responses show that the overwhelming majority of headteachers and school business managers (94 per cent) are willing to recommend, rate and review companies with experience of working with their school in order to help other schools with their buying decisions. How goods and services are procured by schools is also changing dramatically. The internet is now the most important source used by school leaders to find out about prospective suppliers. A minority of respondents liked direct sales approaches. The survey is revealing, showing school procurement to be a rapidly changing and increasingly important area of responsibility for schools today. Now that schools and suppliers have a shared understanding of the current challenges facing school procurement all parties should work together to ensure that schools find it easier to get the best possible value from their spending decisions. The survey results are an effective tool for suppliers when planning their education marketing – an area that is recognised as a particularly important area to get right. By listening to what schools really want from suppliers they are at a distinct advantage when implementing their education marketing strategy. 5
Solutions for Schools The National School Procurement Survey has revealed how procurement professionals are changing the way goods and services are purchased in schools. The survey also reveals 62% of schools have had to rely on general internet searches to source trusted suppliers in the past and 88% of schools then attempt to compare service costs and quality of suppliers as an in-house exercise. It is little surprise therefore that 60% of school leaders lack complete confidence in their buying decisions. Schools now have a solution not only to build their confidence in their procurement decisions but to help them achieve far better value for money with companies who offer greater reliability, quality and customer service. Incensu.co.uk is the register of education suppliers rated and reviewed by schools. Built by the school business management profession Incensu has been pivotal in supporting schools in the procurement process. With nearly 300 suppliers already on the Incensu register and an additional 43% of schools set to use Incensu this year it is an invaluable resource to compare education companies.
RATE SUPPLIERS AGAINST VALUE FOR MONEY, RELIABILITY, QUALITY & CUSTOMER SERVICE AT INCENSU.CO.UK Suppliers are encouraged to be more transparent in their education marketing by being open to ratings and reviews from schools rather than relying on the push marketing strategies common in the past. School business managers cite lack of funding as the top challenge in school procurement in 2013 and are realising that collaboration is vital to maximise restricted budgets. Supplier profiles on Incensu.co.uk show whether companies are part of buying groups and consortia where they can achieve additional savings by collective purchasing.
Incensu is a great idea. School Business Managers need to know as much as they can before procuring goods and services and Incensu gives them the level of information required to kickstart the procurement process with their selected companies. Miles Carter, School Business Manager, Gable Hall Academy.
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A school’s 5 step guide to increasing confidence in the procurement process
1 Search for suppliers using the Incensu register at incensu.co.uk
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Use benchmarking tool to compare costs (new to incensu.co.uk in January ’14)
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Source suppliers using a general internet search
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View company profiles at incensu.co.uk, check accreditations, expertise and experience
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Compare profiles against value for money, reliability, quality & customer service Check whether Incensu profile shows supplier belongs to a buying club to achieve savings
Identify companies via trade shows, education magazines, word of mouth etc.
Companies displaying the Incensu Registration Mark have a profile to view
Negotiate with supplier
GAIN GREATER CONFIDENCE IN THE PROCUREMENT PROCESSS
Collaborative Purchasing Working together to purchase goods and services gives schools combined power to get a better deal than the school that goes it alone. As well as more buying power, collaborative purchasing also means that schools can share best practice, knowledge and recommendations about which suppliers to use – and which to avoid. Schools are called upon to ‘Stand together’ and implement the three R’s.
1. Recommend 2. Rate 3. Review 7
Solutions for suppliers The greatest challenge for education suppliers and contractors is responding to the rapid changes in schools procurement. However, as schools gain clarity over what they want from suppliers it is becoming easier for those companies willing to act on such information from schools to implement effective education marketing strategies.
VALUE FOR MONEY & RELIABILITY BEAT COST FOR HEADS AND SCHOOL BUSINESS MANAGERS Schools have said they prefer to use the internet to search for suppliers at their own convenience with very few liking the direct sales approach. The key questions for suppliers now are:
Can you be found on the internet when schools are searching for suppliers?
Do you have a profile on the Incensu register of education suppliers?
How does your company compare to your competitors with respect to value for money, reliability, quality and customer service when rated and reviewed by schools on the Incensu register?
Does your Incensu profile show you belong to buying groups and consortia from which schools can achieve best value for money through economies of scale achievable by collective purchasing?
Does your Incensu profile show you have the appropriate accreditations within your industry?
SCHOOLS ARE NOW MORE LIKELY TO USE INCENSU.CO.UK TO SOURCE SUPPLIERS THAN DIRECT & E-MAIL MARKETING COMBINED It’s time now for suppliers to focus their energies on demonstrating how they can provide best value for money for schools and encourage customers to rate and review their performance at incensu.co.uk. Money previously spent on expensive marketing can be more intelligently spent with a far greater return on investment.
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Incensu provides us with a great opportunity to promote ourselves as tried tested and trusted by schools, directly to budget holders at more schools. Daniel Collinson, Managing Director, Collinson PLC.
With schools needing to be even more rigorous in their tendering process, we understand why this site is so important. We endorse this and are glad to be on board! Brett Smallcombe, Managing Director, LG Networks.
We provide many schools with new systems and alarm maintenance and realised that we could have more business if we came recommended. We have signed up to the premium package and are really pleased and excited to market through Incensu. Andy Cowen, Managing Director, Premier Fire Systems.
How can Incensu support reputable suppliers to the education sector?
Extensive network of education professionals
Genuine commitment to improving the experience of school procurement for both schools and businesses
Strategic partnerships with leading education organisations such as the NAHT, IAAS and FD Forum
Incensu.co.uk attracts an average of 6,000 register page views per month
Advice available from experienced school business managers and procurement professionals
Incensu is at the forefront of developments in school management helping you keep up to date with school purchasing habits.
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Conclusion The key conclusion from the first annual National School Procurement Survey (NSPS13) is that school leaders want detailed, objective information on prospective suppliers so they can be more confident about their buying decisions. The survey reveals the rapidly changing nature of school procurement and highlights the need for action to improve the process for schools and suppliers. Schools are called to stand to together and share knowledge of suppliers by recommending, rating and reviewing companies at incensu.co.uk – The register of education suppliers. Reputable suppliers are encouraged to create a profile at incensu.co.uk enabling to schools to easily find, check and compare companies against value for money, reliability, quality and customer service – the very criteria schools say are most important to them in the procurement process.
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