Small changes, big savings

Seminar session on procurement.

Postage: 2nd class rather than 1st class significant savings for non-essential mail, use smaller envelopes to take advantage of differential postage prices. Send texts to students instead of routine mail, can automate and save time cost as well as stationery and postage

Thomas Rotherham College - energy efficiency measures (some of which EHWLC are already doing):

T5 and LED lighting
PIR sensors for lighting
Voltage optimisers
Secondary double glazing for listed buildings
Timer switches on vending machines (I particularly like this one)
Thin client PCs (MK will have a view)


Peterborough College - centrally-forced IT shutdown after 9:30pm, estimated saving £6k pa electricity

CONWEL - waste disposal: leased compactors to reduce volume of waste, saved net £5k pa

Leicester College - procurement cards, took cautious approach because of control concerns, borrowed procedures from reference site. Initial limit £300 per transaction, limited suppliers, piloted "friendly" cost centres. Now over 130 cards, usually technicians and administrators. Big change programme, some resistance, big emphasis on training one to one. Majority of transactions now on P cards. Real saving is time and effort in cost centres, redirect Purchase Ledger to other higher value added activities. Next steps to concentrate on areas with low P card use. Differential transaction limits for cost centres according to need.

Preston College - collaboration to aggregate a 200 PC order with other local colleges, combined demand over 1200 PCs led to a total £121k saving, plus improved specs.

West Notts College - vending machine contract costly and inefficient, changed model so that provider would not charge college, in provider's interest to keep machines new, full and clean etc. Saving £250k since 2005 including income benefits.

Stafford College - reverse e-auction for computer contract, saving £100K (22%) over 4 years.

Lambeth College - e-auction saved 40% on furniture for new build

Westminster Kingsway College - set up procurement team using e-procurement system (Sprinter Purchasing Manager from Bottom Line) with workflow plus outsourced invoice scanning system plus invoice data capture direct into accounts package. Automates invoice/PO matching for approval and payment, encourages staff to use the system. Need to make the right thing the easiest to do. Effectively created a purchasing team for free as the Purchase Ledger team was redeployed.

Loughborough College - move to plumbed in water coolers (not bottles) saves £14k a year plus environmental benefits. [EHWLC are moving to these]

Walsall College - negotiated with C&G re exam fees by committing to higher volumes in exchange for lower costs.

[Just realised there's a booklet at the back of the room with some of these examples, still, good typing practice for me...]

[I now have a couple of copies of the leaflet, available electronically at www.felp.ac.uk]