"Housing associations could make further saving from procurement worth over £100 per home and achieve wider goals as well as meeting efficiency targets. Well-managed associations with appropriate skills and knowledge are most likely to improve and there are clear factors for successful procurement:

Actively managing contracts and supplier performance;

Understanding how internal processes can increase or decrease the benefits from procurement;

Developing a performance culture that identifies procurement's contribution to wider objectives;

Employing a senior procurement champion;

Investing in skills and expertise;

Developing supply chain management."

The Audit Commission recommends that housing associations should identify gaps in procurement skills and take steps to fill those gaps, either by building internal capacity or seeking internal expertise.

'Better Buys' goes on to say….

"The research suggests that the skill set for procurement staff is broad. It requires staff to understand:

cost, price and lifetime costing;

specifications writing, quotations and tendering;

contract law;

negotiations;

contract and performance management;

benchmarking;

risk management;

supplier development and supplier relationship management; and

the role of IT

Effective procurement depends upon staff having sufficient levels of skills to improve procurement outcomes. ……. Associations need to recognise that the cost of a training course…can be minimal compared to the benefits that they can secure."

As the leading national procurement consortium, PfH has been helping housing associations achieve significant savings to their procurement budget.

In response to 'Better Buys', from September 2008 we are offering a wide range of Procurement Workshops to develop the internal processes and skills required to achieve even greater savings from the procurement process.

Please contact Gordon Hinchcliffe for further information on t: 01457 891974 or e: ghinchcliffe@cel.co.uk.