How To Describe Reprocurement Definition

Is Reprocurement a word in the dictionary? Probably not, the colloquial expression is used to describe recurring purchases. Therefore the best way to describe re procurement as a definition is the “procurement of goods of services that are a recurring requirement”

Why do organisations have a requirement for reprocurment? There are certain goods and services that are required as evergreen contracts, basic examples that everyone can identify with i.e. contract such as stationery items unless your hi-tech organisation doesn’t use pens and papers if that’s the case perhaps you might have a recurring requirement for laptops and notebooks.

Depending on the value of the contract suppliers typically have to bid to win the right to supply goods or services. Sometimes there is a danger that clients prefer to re-procure with the same supplier because they know and trust suppliers that they have worked with in the past. New suppliers should not be discouraged from participating in a bid, though existing suppliers may have an advantage in knowing the customer’s preferences, this isn’t an automatic done deal, in fact, it’s far from it.  If the contract is of a certain value, its likely that it needs to be competitively tendered. Public sector organisations are subject to EU regs, even after Brexit, the 2015 Public Regulations will still exist as part of UK law. Private sector companies are obliged to tender contracts transparently and genuinely in line with the law to avoid fraud or misrepresentation cases. In addition to the law being on allowing for a level playing field, some existing suppliers get complacent and without good contract management contracts go wrong, and there may be a desire to switch suppliers and initiate a reprocurement exercise.

Most procurement departments will have a contracts register, either a cloud based contact management system or a simple excel sheet with dates of existing contract expiry. Every couple of years there will be a new need to carry out a reprocurment exercise.

Sign up to some contract finder opportunities

 

How To Use Psychology of Colour in Business

procurement templates colour

Use psychology & colour in business to make a difference. Most people are visual and subconsciously react to colours. You might notice that most men like to wear blue because it creates the sensation of trust and security i.e. police officers, or a businessman.

Wearing head to toe in one colour for business meetings can be a bit overpowering, and change up your outfit by wearing accent colours such as a tie. Females have a wider choice on how they want to wear colour.

Different color evokes similar emotional responses in most people. however there may be cultural difference people of different cultures may have different thoughts and emotions about certain colours, for example, red is normally seen as confident and fiery but in Chinese culture, it is also a sign of good luck.

When humans see the color red, their reactions become faster and more forceful. However, that boost of energy is likely to be short-lived and ultimately, red reduces analytical thinking.

Research has linked green with broader thinking and more creative thought. People generally like green. “There seems to be a positive association between nature and regrowth,”

<script async src=”//pagead2.googlesyndication.com/pagead/js/adsbygoogle.js”>
<ins class=”adsbygoogle”
style=”display:block; text-align:center;”
data-ad-format=”fluid”
data-ad-layout=”in-article”
data-ad-client=”ca-pub-4932427839501536″
data-ad-slot=”4349415924″></ins>
<script>
(adsbygoogle = window.adsbygoogle || []).push({});
</script>

When asked what their favourite colour is, the most common answer around the world is blue. This may be because when our ancestors used to see blue – like a clear blue sky or a watering hole. It’s linked to our survival instincts.

Overall, yellow remains the least likely favourite colour for most people, so pick a different colour if you want to appeal to the masses. Don’t write it off altogether, just use smaller splashes of colour and different hues.

People associate the colour orange with a good value. Sometimes I also associate it with technology.

Pink is serene, romantic and a calming colour.

Black and white are classic colours where you can’t go wrong but I wouldn’t recommend wearing just black every day as you might be perceived as boring with no flair.

Doing business is about using all the senses and an array of toolkits at your disposal to make you stand out from the crowd.

 

 

Approved Supplier List for New Supplier

What is an Approved Supplier List (ASL) and how do new suppliers get onto this list. In my experience client groups sometimes gets confused. I’m going to bust some common myths.

  1. I want to use a supplier I have used before therefore they are on an Approved Supplier list- that’s inaccurate, just because you filled in new supplier form and the supplier is in the finance system this doesn’t mean that they are on the ASL.  It just means at one point someone in the company bought goods or used their services.
  2. I want to nominate a company to become an Approved Supplier and my Procurement Department is making it difficult. You cannot just nominate a company, they need to go through a competitive tendering process in line with the organisation’s procurement policy
  3. I have tendered the supplier- therefore they are on the Approved Supplier List, this is not necessarily true, you may have tendered the requirement but it depends on what the contract allows.. If the tender was for a specific project then yes you have a contract but this does not mean it becomes an Approved Supplier where you can keep putting work through the same supplier without further competition.

<script async src=”//pagead2.googlesyndication.com/pagead/js/adsbygoogle.js”>
<ins class=”adsbygoogle”
style=”display:block; text-align:center;”
data-ad-format=”fluid”
data-ad-layout=”in-article”
data-ad-client=”ca-pub-4932427839501536″
data-ad-slot=”4349415924″></ins>
<script>
(adsbygoogle = window.adsbygoogle || []).push({});
</script>

This is a bit of a minefield but largely the problems crop up when people think there is such thing as an Approved Supplier List but the procurement department hasn’t set one up.

Approved Supplier list are useful to have but require a bit of work upfront. Firstly the contract needs to be set up to allow for multiple call offs, the best option is to advertise for a framework contract. The contract is sufficiently large should be controlled centrally with local procurement either via a direct call off or further mini competition, for example, a stationary contract is not required to be competed each time but a consultancy contract might have the different scope of works for different clients within the same organisation.

The list needs to be accessible if you are a procurement department ideally this should be published on your intranet page and updated regularly.

Approved supplier list are not evergreen, contracts should have a definitive end date and re-tendered if the requirement is ongoing.

You might want to read more about framework agreements 

 

 

First Impressions Count

First impressions count, but how do you back up the first impressions by making sure that you stand out from your competitors? You need certain skills!

Data analysis and research

The ability to identify sources of credible data, develop a fact base and format it for presentations and reports is crucial. Knowing how to collect, cleanse and collate information is, however, just the start. Expertise in analysing and interpreting it is just as important. You need to be able to identify key issues and apply analytical frameworks to identify potential for improvement. Your analyses and insights will be enhanced if you can find relevant information and market intelligence in professional magazines, on the internet or by tapping the existing knowledge within your procurement department.


Communication – verbal and written

Knowledge and insights are of little use in procurement, a very people-based profession, if you don’t know how to communicate them to others. The rising procurement professional must be able to communicate effectively both verbally and in writing. The ability to speak and write in a clear, concise and user-friendly fashion – in every format from emails through meeting notes to detailed reports and presentations – is essential.


Stakeholder management

Procurement people can often find themselves in a “piggy in the middle” situation at work, as they are mediators between different sets of stakeholders, with seemingly very different demands. Being able to identify stakeholder groups, analyse their needs and then formulate strategies to manage them in a way that works for all concerned is a crucial skill.

Strategy-setting

Attention to detail is taken as read in a competent procurement professional. In addition, you should be able to see the big picture and work out the best way forward. The ability to set a credible, workable strategy is essential for the aspiring high-flyer. Further, you must be able to implement a defined strategy efficiently with teams and revise it as necessary to produce the best results.


Project management

A successful manager is able to deliver effective projects with clearly defined objectives, methodology and outcomes. This includes identifying key milestones, dealing with risks and escalating any potential delays to relevant stakeholders as appropriate. Modern management often involves advanced structured approaches and using software project management tools. If you’re familiar with or qualified to use these, then so much the better.

Mentoring and coaching people

The best managers are not only good at what they do but are also skilled in passing on their knowledge. This is often best done informally or on the job, through mentoring and coaching. It will not only benefit those who receive your help but also make them feel valued and contribute to achieving better results for the group, and the organisation as a whole. Being recognised as a good teacher or coach is a valuable asset.

Teamwork

As many an Oscar winner has observed, the support of a team is crucial to the star’s success. Working effectively in a team allows you to deliver more than you would be able to do on your own, and will bring untold achievements. Going it alone is okay for heroes, but in the world of modern business, the group effort is what makes a real difference. As a good team worker, you need to recognise your colleagues’ different abilities and inclinations and work with them to leverage everyone’s skills and achieve the best results.


Leadership

The nature of authority has changed dramatically since the time when the boss told workers what to do and they obeyed. Now it’s all about motivating and inspiring your team to do their very best. And remember, you don’t actually have to be in the leader’s position to show leadership. Focus on nurturing and encouraging others, whoever they may be. To do this well, you need to understand other people, gain their confidence and promote objectives that they will sign up to.


Negotiation

The skill of negotiating effectively and winning agreement on a deal that is acceptable for all parties requires strong communication skills, empathy and creativity. It also needs to be supported by an ability to evaluate various options quickly. In practice, this is likely to call for comprehensive modelling and analysis of various options, and packaging these into formal meeting documents outlining negotiating strategies.

Professional image

Looking the part is essential. Like it or not, people judge others on their appearance and, if you present yourself as smart and businesslike, you are more liable to be treated as such. You should aspire to demonstrate honesty in all your dealings, a professional approach and respect for your colleagues and business partners.

Framework Award Letter

Copy and paste the framework award letter into MS word and PDF before sending to the supplier

[insert supplier name and address]  [insert date]

Dear [insert name or Sir/Madam]

Invitation To Tender for [insert product/service]

Tender OJEU Contract Notice Reference Number [insert reference number eg eg 2008/s – xx/xxxxx]

Framework Agreement Reference [insert framework agreement reference number]

I am pleased to inform you that the [insert name of the authority awarding the contract ie xyz (the “Authority”) has made the provisional decision to select your company to be a party to the framework agreement for [insert product/service].

Your company was successful in the following Lots(s): [insert Lot number(s) and description].

With this letter, I am enclosing two copies of the framework agreement for this tender. I should be grateful if you would arrange for them to be signed where indicated (but not dated) and returned to me as soon as possible.

Under Regulation 32 of the Public Contracts Regulations 2006 (as amended), public contracting authorities are obliged to introduce a “standstill” period between announcing a provisional decision in relation to the award of certain government tenders and entering into any form of binding commitment. We have therefore written to the other bidders explaining our decision.  Assuming the provisional decision remains unaltered as a result of any representations made during the standstill period, I will then arrange for the framework agreement to be executed on behalf of the Authority and completed once the standstill period expires and will send you one copy for your records.

You are strongly advised not to incur any expense or enter into any binding arrangements until such time as you receive the signed and dated framework agreement back from the Authority.

I hope that it will not cause you any inconvenience to bear with us for this short period that is necessary to allow us to meet our obligations under European law.

 

I look forward to working with you in the future.

 

Yours faithfully

[insert name and title]

Team Meeting Agenda

Capture information on Team Meetings so you don’t waste time by talking but not capturing actions. This Team Meeting Agenda should do the trick.

The purpose of a team meeting is to catch up on a regular basis to discuss a status update. Team members should all be aware of what workload their colleagues have on at any moment so they can provide a consistent service level to internal and external stakeholders at any given time.

Perhaps take it in turns to chair the meeting, giving everyone a chance to lead, some members of the team are naturally quieter than others so this gives everyone an opportunity to practice chairing meetings.

The optimal frequency is once a week but if you have fast moving projects you might want to have a quick 15-30 minute briefing session on a daily basis.

If you are attending a more formal meeting check whether if your company has official templates to be used or check brand guidelines if the Agenda is to be issued to a wider audience outside of the company.  Normally attendees are listed in order of seniority and its optional but you can list in alphabetical order and don’t forget to include job titles.

 

                                                                                                                                                                              

Location:                                                                                             Time:                   

Attendees:                                                                                                                                                                    

Purpose: Review performance & plans daily    

Project Attendees:

Agenda                                                                                Project lead

Project team

  1. Resources (planned v actual)
  2. Stakeholder visits to the hub/Meetings

Daily tasks

– Review previous day

– Plan for current day                                                                                    Input from:                                                                                                                                                                                                                          

Meeting Rules:                                                                

Adhere to the rhythm and make sure this is priority

Everybody to have an input

No interruption of others

Respect others opinions

Ask anything

Safe environment to discuss issues

What is discussed in the room stays in the room

Everybody to note their action coming out of the meeting

Be respectful

Be open, honest and supportive

Be professional and corporate

Challenge in a positive and constructive way

Be positive and upbeat – ‘can do attitude’

What Expenses Can A Contractor Claim?

As a contractor, it can be a minefield trying to figure out what you can and can’t legitimately claim as expenses. For instance, if you’re buying a new laptop, is it pushing the mark to claim for that?

Business mileage
(use of your personal car)
You can currently claim 45p per mile for the first 10,000 business miles you do in your car each year and then 25p per mile after that. This mileage includes travelling to and from temporary locations and between different sites. Of course, you need to get valid VAT receipts for fuel and these must be kept to support your claim.

Subsistence
You’ve got to eat! So, while working at a temporary location, you can claim reasonable meal and drink costs supported by valid receipts. So if you buy a sandwich and coffee for lunch, keep the receipts!

Accommodation
There are several categories for submitting accommodation costs and here’s how they all stack up:

All accommodation (hotels and B&B’s) must be accompanied by an original receipt

If you’re claiming accommodation rental costs, your rental agreement must be made under the name of your business and must be the original signed copy. It must also meet HMRC Dual Purpose rules, which means you’re already maintaining a property and are renting a second property for the purpose of your contract

You may be able to make a claim for staying with friends or family while at a temporary work place.

Travel
You can claim rail, bus, taxi and air travel as well as other travel-related costs such as tolls, tunnel fees and congestion charges, subject to the general travel rules explained at the bottom of this document.

Parking charges
Parking can be claimed as long as an original receipt detailing the date and cost is available for each amount.

Training and tuition
Any training or tuition to do with your current trade can
be claimed. Training is treated like any other deductible
business expense; it must be ‘wholly, exclusively and
necessarily’ in the performance of duties. It must also be
directly linked to existing income, if not then it cannot be
treated as a deductible expense through your
limited company.
Manuals and text books
A reasonable amount may be claimed for the cost of
manuals and text books required for business purposes
where receipts are provided.
Eye sight tests
An eye test may be claimed for as long as a receipt is
provided. The cost of spectacles may be claimed if they are
prescribed for VDU use only. This will need to be confirmed
on the receipt from the optician.
Computers and other
office equipment
The cost of hardware, software and other office equipment
essential to your business can be claimed. There’s no limit to
the amount that can be claimed.
Postage
Office consumables
Any office consumables (printer ink, pens, etc) and stationery
you use for business may be claimed. This total cost must be
for a reasonable amount and you’ll need original receipts to
validate your claim.

Telephone
Itemised business calls from home or a personal mobile
phone are fully claimable, while unfortunately private calls
or line rental costs are not. To claim business calls a copy
of your itemised telephone bill must be kept. Internet
subscriptions cannot be claimed.
If the telephone/internet contract is taken in the company
name the full cost of the line rental/call charges can
be claimed.

Advertising/marketing
Costs of advertising your business is an allowable expense,
so for example online search engine listings, telephone
directories or even sponsorship of a local team.

Childcare
Up to £55 per week, per employee, paid to a registered
childcare provider can be claimed through your company.

Bicycle
You could claim for the cost of a bicycle through the Cycle to
Work scheme.
Charitable donations
Donations to a UK registered, HMRC approved, charity
are allowable.

Use of home as office
In 2012 a fixed rate of £4 a week was announced as an
acceptable flat rate claim for general costs associated with
the use of home as office, and it was confirmed that no
detailed expense claim needs to be prepared to justify such
an amount.

Staff entertaining

The cost of an annual staff function can be claimed through
your company. This should be supported by receipts and it’s
important that the receipts for this expense do not exceed
£150 per employee.

Pension contributions

Pension contributions made by an employer on behalf of its
employees are an allowable expense. I

Life insurance
You can save tax by paying for some life insurance policies
through your limited company.

NOTE INFORMATION HERE IS SUBJECT TO CHANGE DEPENDING ON ALLOWABLE EXPENSES, ALSO ADVICE SHOULD BE TAKEN FROM A PROFESSIONAL ACCOUNTANT- IF YOU NEED A REFEERAL TWEET ME @procuretweets and send me a direct message with your name and I will send you details of the company I use.

How To Use A SWOT Analysis

What is a SWOT analyis? Use the template below to undertake relevant business planning using SWOT

Business Planning Checklist
Using the Strength, Weakness, Opportunity, and Threat (SWOT) analysis framework, develop a checklist of the key activities that need to be performed when preparing a formal business plan in the table, below.
Activity Owner Completion Date
Strengths: Define the company’s current mission statement.
Strengths: Identify market segments in which the company will participate by conducting primary and secondary market research.
Strengths: Identify the company’s value proposition and how it will differentiate itself within the marketplace.
Weaknesses: Identify any barriers to market entry (for example, capital requirements, technical barriers, patents, and process barriers) that the company needs to overcome.
Weaknesses: Identify any risks inherent to the organization that need to be mitigated so that the company can realize the business plan.
Opportunities: Identify areas where the current market is underserved that provide an opportunity for the company.
Opportunities: Identify any key processes, intellectual capital, or other resources that the company can use to its advantage in the marketplace.
Threats: Identify primary competitors, and then analyze competitor performance by using all available data and additional data that can be verified.
Threats: Identify secondary and potential future competitors that might affect the business plan.
Threats: Develop strategies for mitigating primary and secondary competitive threats.
<Add additional key business plan activity.>
<Add additional key business plan activity.>
<Add additional key business plan activity.>
<Add additional key business plan activity.>  

Business Planning Checklist
Using the Strength, Weakness, Opportunity, and Threat (SWOT) analysis framework, develop a checklist of the key activities that need to be performed when preparing a formal business plan in the table, below.
Activity Owner Completion Date
Strengths: Define the company’s current mission statement.
Strengths: Identify market segments in which the company will participate by conducting primary and secondary market research.
Strengths: Identify the company’s value proposition and how it will differentiate itself within the marketplace.
Weaknesses: Identify any barriers to market entry (for example, capital requirements, technical barriers, patents, and process barriers) that the company needs to overcome.
Weaknesses: Identify any risks inherent to the organization that need to be mitigated so that the company can realize the business plan.
Opportunities: Identify areas where the current market is underserved that provide an opportunity for the company.
Opportunities: Identify any key processes, intellectual capital, or other resources that the company can use to its advantage in the marketplace.
Threats: Identify primary competitors, and then analyze competitor performance by using all available data and additional data that can be verified.
Threats: Identify secondary and potential future competitors that might affect the business plan.
Threats: Develop strategies for mitigating primary and secondary competitive threats.
<Add additional key business plan activity.>
<Add additional key business plan activity.>
<Add additional key business plan activity.>
<Add additional key business plan activity.>

Contracts Finder

Here is my top 10 list of places for suppliers to go to for tender opportunities aka Contracts Finder.

  1. Contracts Finder https://www.gov.uk/contracts-finder On this website you will find all public sector contract opportunities.  It is the number one place to look for tender opportunities.
  2. London Tenders Portal https://www.londontenders.org/The London Tenders Portal is the public sector procurement portal for the London boroughs listed in the navigation panel.This portal will support the procurement process and help local authorities and other organisations in the public sector to achieve better value from their buying, whilst providing suppliers with easier access to new business opportunities and contracts.Registering on the London Tenders Portal is FREE for all Suppliers and is a simple and straightforward exercise. Once registered, as a Supplier you will receive email updates on new contract opportunities issued by the public sector that match your capabilities. To register on the London Tenders Portal click on the Suppliers Area.
  3. Tenders Direct https://www.tendersdirect.co.uk/ they call themselves the most comprehensive source of public sector tender opportunities in the UK.
  4. Supply Contracts https://www.supplycontracts.co.uk/features/To make your life easier, they research contracts from over 1000 sources and put them all in one place.
  5. Big Lottery Fund https://www.biglotteryfund.org.uk/about-big/tender-opportunities
  6. B2Quote https://www.b2bquote.co.uk/
  7. City of London https://www.cityoflondon.gov.uk/business/tenders-and-procurement/Pages/useful-links.aspx The City of London Corporation use a procurement portal called capitalEsourcing for all new tender opportunities. All suppliers interested in working with the City should register on capitalEsourcing
  8. BBC http://www.bbc.co.uk/supplying/opportunities/
  9. My Tenders https://www.mytenders.co.uk/ mytenders is one of the main business streams of Millstream Associates and has been in operation since 2002, with over 700 public sector organisations actively publishing both low and high value tenders. mytenders pro technology is the system behind the national web portals that have been developed and operated by Millstream in Ireland, Norway and Scotland. mytenders was initially established for buyers to create tender notices for submission to the OJEU. It has now grown into the portal it is today where buyers can create, publish and manage both OJEU and non-OJEU tenders
  10. Tenders UK https://www.tenders-uk.com/ technically not a contracts finder but useful if you need help putting a bid together. Or you can work with me, technically I am not a bid writer though I do write the ITT and know what a buyer views as a quality response.

How Price Affects Gross Margin

How does Price affect Gross Profit/ Gross Margin?

The first step is to understand how a Gross Profit is calculated.

Example

You sell a painting for £100 and you paid £60to produce it, the “cost of goods” is 60%. Gross Margin is 40%. Your gross profit is £40.

Calculation

  • (selling price)- (cost of goods)/ (selling price)

*selling price is also known as revenue

Let’s say you want to reach a specific gross margin and you know the cost

Use this formula

  • (cost of goods)/1-(gross margin %)= selling price

In this example, if you pay £60 for a painting and want 40% gross margin, subtract 40% from 1 to=0.60, so £60/.06=£100 selling price

Here’s an example using the same numbers as above. Let’s say your cost on a product is £100.00 and you want to make a 20% gross margin. Subtract 0.2 from 1 to get .0.8  and £100 / 0.8 = £125.

If you prefer you can use an online calculator

Now we can look at Mark Up (It’s subtly different and people get confused, myself included. so I refer back to these notes.

Markup percentage is the percentage difference between the actual cost and the selling price, while gross margin percentage is the percentage difference between the selling price and the profit.

Calculation

  1. determine your COGS (cost of goods sold). For example  £40
  2. find our your gross profit by subtracting the cost from revenue. We’re selling for £50  so the profit is £10
  3. divide profit by COGS.  £10/£40 =0.25
  4. express it as percentages: 0.35*100= 25%

If it’s easier use the markup calculator 

Margin vs Markup Chart

15% Markup = 13.0% Gross Profit
20% Markup = 16.7% Gross Profit
25% Markup = 20.0% Gross Profit
30% Markup = 23.0% Gross Profit
33.3% Markup = 25.0% Gross Profit
40% Markup = 28.6% Gross Profit
43% Markup = 30.0% Gross Profit
50% Markup = 33.0% Gross Profit
75% Markup = 42.9% Gross Profit
100% Markup = 50.0% Gross Profit

This is handy to know when calculating agency cost for contingent and permanent labour. Make sure when you are doing comparisons to ask the agency if they are using a margin or markup calculation. If you want to buy contingent labour and want to purchase the quick guide click here