Effective Purchasing and Inventory Management for Educational Settings

1. Purchasing and Inventory An important part of the business of teaching

2. Performance Objective • Using your own laboratory and classroom setting, build a “wish list,” identify one piece of equipment needed, secure bids, and complete a purchase order that meets your school division’s purchasing guidelines .

3. Enabling Objectives • Identify equipment needed • Write specifications • Secure bid or bids • Complete appropriate purchase order • Receive shipment • Process Invoice • Enter inventory • Maintain a “wish list”

4. Public monies • School division budget approved by Board of Education • Superintendent allocates funds to school • Principal allocates school funds to departments • Vocational (Career & Technical) Director may allocate vocational funds to programs • Administrators almost always hold back funds for contingencies at all levels • Not your money

5. Program Budget • Supplies & Materials • Repairs & Maintenance • Equipment • Budgeting • Previous budgets • Available monies • Contingency hold backs • May or may not seek teacher input

6. Purchasing • Superintendent sets purchasing policy • Purchasing Department/Office sets and monitors purchasing procedures • Purposes: • Get the best prices possible • Safeguard public funds • Squandering • Theft • Protect school employees

7. Purchasing Procedures • Central purchasing and warehousing • Common supplies • Common equipment • Teacher requisitions • Individual program purchasing • Small purchase • Large purchase

8. Definitions • Varies between school divisions • Small purchases may not require bids • Low cost at Tech < $2,000 • Typical school defines low cost < $500

9. Small purchases • Simple process • Complete PO • Submit through administrative channels

11. Large Purchases • Secure bids • Write specifications • Secure 3 (typically) bids • Written bid from local vendor • Find catalog prices • Sole source • Document unique nature of product or vendor • Complete PO • Submit bids & PO through administrative channels

12. “Spec-ing Out” • Write detailed description of what you want • Usually cannot specify brand • Must be specific enough to avoid mistakes • Generic enough to allow vendors to fill order

13. Specifications • Digital camera • Zoom lens capability, 3 X optical, 10 X digital • Automatic focus, and light exposure • Built in flash • Rechargeable batteries • Battery charging pack • 3-1/2” diskette storage • Case included

14. Secure bids • Lee Hartman & Sons, Roanoke submits written bid • MicroWarehouse, Web Site printout • OfficeMax, photocopy catalog page • Attach printed copies of bids to PO

16. Receiving/Authorizing Payment • Inventory on receipt • Compare items to PO • Compare items to invoice • Sign invoice for all items received • Submit signed invoice through administrative channels for payment

17. Received, 9/21/00D. Smith

18. Inventory Control • School division typically maintains equipment inventory • Teacher should maintain departmental inventory • On receipt, enter durable equipment in inventory

19. Departmental Inventory

20. Wish List • There is always money • Contingency money from every level • Cancelled POs • Unexpected new funds • Usually short fuse • Develop wish list • Write specs • Locate vendors for quick bids • Secure a tentative price • Prioritize • Maintain current at all times • Don’t wait for the money to come to you – seek it

21. Summary • Purchasing is important • Following policies and procedures is critical • Safeguards public money • Safeguards you • Enter in inventory on receipt • Always keep a current wish list • No job is complete until the paperwork is done!!