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Procurement Analysis Report: Insights and Savings Opportunities

Dive into the analysis of procurement data for 2005/06, reviewing PO volume growth, invoice/PO comparison, electronic procurement impact, and potential savings opportunities. Understand the top POs by supplier and buyer, valuable comparisons, and the benefits of buying by category. Uncover how strategic procurement practices can lead to substantial cost savings and efficiency gains.

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Procurement Analysis Report: Insights and Savings Opportunities

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  1. 2005/06 Procurement Analysis Dick Leitch 8th November 2006

  2. Agenda • PO Volume growth • 2005/06 numbers • Invoice/PO Comparison • Electronic procurement

  3. No of POs 19159 17733 20000 12052 15000 10302 10000 5000 0 2002/03 2003/04 2004/05 2005/06 Year PO Volume Growth

  4. POs by Supplier – Top 20

  5. POs by Buyer – Top 20

  6. Invoice/PO Comparison

  7. Invoice/PO Comparison • PO Volume – 19,159 • Invoice Volume – 76,091 • PO Value – £7,075,243 • Invoice Value – £79,097,563

  8. Electronic Procurement • Tender via OJEU 12 July 2005 • Closing date 31 August 2005 • 22 downloaded documents • 15 completed PQQ • 6 invited to submit full ITT • 4 invited for full evaluation

  9. Schema

  10. The result ………….

  11. Potential Savings ProcHE savings measured at £44/PO Equals approx £775,000 on current PO volumes Buying by Category rather than by Supplier will reduce “maverick” buying Overall savings will be considerably higher

  12. Thank you very much Any questions?

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