Value for money through procurement

With over 21,000 homes under management, and with a discretionary spend in the region of £100m each financial year, it is very important for us at Flagship to control our expenditure. In today's tough economic climate, it is imperative that all housing associations ensure that their products and services demonstrate value for money for its customers. We have managed to achieve this through our procurement functions in a number of ways. From pulling together an online library of policy, process and operational documents, to implementing a contracts register and including customers in our procurement process, we have ensured that our procurement activities are both efficient and cost effective. Here are our top three ways to keep your spending under control: 1. Creating an internal database of electronic procurement documents should be the first stage in ensuring value for money as it establishes the basis of an effective control system. Make sure this is widely accessible for staff across your organisation's internal website. Flagship's tendering process was standardised into template documents and processes, 80% of which can be accomplished online by simple use of the templates. This has led to a number of key benefits for us – not only has it decentralised operational responsibility, it has reduced the time between identifying the demand and delivering the goods and services. As we are now in a position to execute contracts within reduced timeframes, our online system also saves both time and resources which can be reinvested into more complex procurements. 2. The second key stage in obtaining value for money through procurement is to implement a searchable electronic contracts register . This register should contain the details of all existing commercial agreements, along with key information such as the contract owner, key terms and conditions, start and end dates and a flag date to commence retendering, prior to the contract's end. This has enabled Flagship to accurately build a tendering work-plan into future financial periods. With this information in mind our teams can then plan and timetable contracting activities into their annual planning. This, coupled with the standardised procurement and contracting methodologies available on our internal website, provide the basis for efficient and effective results. 3. Finally, make sure you incorporate your customers in building specifications and evaluating tenders where a procurement exercise may effect tenants' levels of satisfaction. We have included tenants representatives onto our evaluation panels to assist us – not only in constructing the core specification requirements, but in evaluating answers to the tender questions that bidders are asked. In summary, value for money can be maximised by organisations that operate effectively with smooth and easy-to-use tendering processes. Through implementing a standard company-wide electronic purchasing manual and maintaining an electronic contracts register with an early warning function ensures not only control, but provides an environment which frees up the organisation to operate efficiently. These processes provide value for money and help avoid the bureaucratic overheads often wrongly associated with public contracts regulations. Neil Bloomfield is head of procurement at Flagship Group Attend Public Sector Procurement North , a one day conference for public sector buyers and suppliers. This content is brought to you by Guardian Professional. Join the housing network to receive more like this direct to your inbox.