PROCUREMENT FOR CHARITIES
The current recession has made generating funds increasingly difficult so when it comes to spend, charities need to make every penny count. ProVantage can help by offering a free detailed spend review to identify potential savings that can be turned into quick wins. can reduce running costs and redirect funds back to front line activities.
We’ll help review any contracts already in place – and address areas where contracts have been overlooked where they should exist. We will identify and mitigate risk where we find it, challenge costs as appropriate and across the piece look to renegotiate or re-tender to reduce costs and improve quality of supply.
Saving money is just as important as raising money, finance professionals were told at a recent CFDG members’ meeting. Charities spend lots of time and effort raising money so they need to ensure they spend it efficiently, demonstrating good stewardship. A key element to this is a professional approach to procurement. Charities that procure effectively can generate significant savings that can then be invested in service improvement.
Most charities don’t have the luxury of a professional in-house procurement team meaning the purchasing function is often an additional role performed by personnel already extremely busy in their main role. This can lead to contracts that don’t always deliver best value for money.
SHOULD YOU OUTSOURCE YOUR REQUIREMENTS?
Avoiding the costs of full-time qualified staff, ProVantage can act as an outsourced procurement function for your organisation, engaging as-and-when required to give dedicated commercial support and guidance in the tendering, negotiating and implementation processes to ensure that the your ever-stretched finances always deliver the best value possible.
Clearly that having this can bring some very tangible benefits such as an emphasis on the importance of procurement; empowered staff; greater control of spending; better supplier management; and a clear understanding of the value provided. It also allows you to consider procurement within a strategic context and focus on contract management and supplier performance.
We can provide Procurement resource for specific projects or to cover a temporary shortfall in resources. We can provide short term Procurement support to keep pace with demand fluctuations and we can provide training to staff with ongoing procurement responsibility.
KEY BENEFITS OF WORKING WITH PROVANTAGE PROCUREMENT
- Your key staff freed up, to carry on with running of the organisation.
- Cash savings – seen on the bottom line.
- Improved control, visibility and accountability.
- Improving working capital.
- Improving working processes and performance.
- Improved spending and performance.
THREE KEY ISSUES FOR CHARITIES
The Impact of Brexit
Brexit will dominate the political agenda and almost completely monopolise the attention of decision makers. Charities will need to quickly understand the threats and opportunities, so they can be part of the debate. The parliamentary timetable is also likely to be taken over by Brexit for several years at least, even where policy hasn’t changed, and charities will have to be vigilant about significant changes being introduced without meaningful parliamentary scrutiny.
While the economic outlook may be changing, the direction of travel for government continues to point towards a reduction of public spending. This, combined with changing local authority finances, reduced public service provision and lower incomes for poorer households, is likely to increase demand for many forms of charity services and place further pressure on their resources. These will not be new trends for many charities, but the fact they are now set to continue for longer than expected will be significant.
The regulatory environment, which has already undergone substantial changes, will continue to present further changes and challenges to NFP organisations and the people working within them. These new requirements will be introduced at a time when charities are already facing the consequences of a drop in the public’s trust, and when therefore it is more important than ever to have the right checks and balances in place.
SEE HOW PROVANTAGE CAN SAVE YOU MONEY