Newton Public School - New Purchasing Activity and Strategies

Case Study

Newton Valley Public Schools

Table of Contents

• Executive Summary                                                         3
• Issue Identification                                                         4
• Environment and Root Cause Analysis                                 5
• Alternatives and Options                                                  6        
• Recommendations and implementation                                 8
• Monitor and Control                                                         9

Executive Summary

The following report will describe a new purchasing activity and strategies at Newton Valey Public Schools Organization.

Throughout the report I will provide a description of every strategy that was executed by NVPS and I will outline key problems of every single project.

After analyzing major problems I provide 5 main ideas showing advantages and disadvantages for each of them.

As a result I am providing 2 different recommendations for the future purchasing strategies and describe the details of every recommendation, when this options has to be used and what will be the benefits to our organization.

Issue Identification

Being in charge of whole purchasing department I have implemented couple new purchasing strategies that from the first sight had to end up with a nice cost saving results.

After considering some bad feedback from internal employees it became obvious that something is going wrong or was implemented without considering small or big details.

We had few different models of cooperative purchasing but all cost saving results were not so great as was expected.  

Through our 2 purchasing plans which we where using I found few major issues that made our report not that optimistic.

Different specs to buy

During our first cooperative purchasing with Redditch School Board it was discovered that we were forced by Redditch to buy computers that meet their specs, not ours.

Unpredicted Shipping Surcharges

After executing the same project it was clearly stated that the supplier will not ship us computers directly, and 3% surcharge was established by supplier to ship computers directly. In order to get rid of them – we agreed to pick up computers directly from RSB warehouse.

Ignoring by bigger player