The Power of Purchasing
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Dora and Ariana from the MVC Purchasing department presented an overview of the purchasing cycle. The six step process includes: 1) determining division needs, 2) obtaining quotes, 3) budget review, 4) completing requisition forms and obtaining approvals, 5) receiving goods, and 6) paying for goods. Key aspects of the process include following purchasing limits, completing all forms fully, and communicating with purchasing staff to resolve any issues. The overall goal is to efficiently obtain necessary goods while ensuring compliance and responsible spending of funds.
The Power of Purchasing
- 1. POWER OF PURCHASING P R E S E N T E D BY D O R A & A R I A N A
- 2. WELCOME P U R C H A S I N G
- 3. WELCOME Who are We? • Purchasing • Student Services Building, Second Floor S-2090 • Dora – Time at MVC – MVC 2016 Alumni – Passions • Ariana – Time at MVC – Passions
- 4. PURCHASING CYCLE OVERVIEW B U S I N E S S O P E R AT I O N S
- 5. PURCHASING CYCLE OVERVIEW 1. Determining Need 2. Obtaining Quotes 3. Budget Review 4. Requisition Forms & Approvals 5. Receive Goods 6. Paying for Goods
- 7. DETERMINING DIVISION NEED • Identify Need • Determine Quantity and Specifications • Terms of Delivery • Quality and Past Service • Review CPI (Contracted Pricing Information) List
- 10. OBTAINING QUOTES Contracted Purchasing Limits • $1 - 24,999: Per CPI • $25,000 +: Per CPI. District Director of Purchasing Approval Required. Although not always required for contracted purchases, written quotes should always be obtained to secure best pricing.
- 11. OBTAINING QUOTES Non-Contracted Purchasing Limits The division is responsible for its due diligence in exhausting all options available via the CPI before soliciting outside quotes. • $1 - $2,999.99: One Written Quote. • $3,000.00 - $24,999: Three Written Quotes. • $25,000 - $49,999: Three Written Quotes. Chief Financial Officer Approval. • $50,000 +: Formal Advertised Bid: Board of Trustees Approval.
- 12. OBTAINING QUOTES Quote Solicitation Form • Set Deadline and Expectations Upfront • A Shopping Cart is Not a Quote • Non-Contract Purchases Under 3K = 1 Bid, 3K + = 3 Bids. • Quote Expiration Dates
- 13. 3. BUDGET REVIEW
- 14. BUDGET REVIEW Money, Money, Money, Money • Determine Budget Availability If funds are not available, determine if funds are available in another account. Pass that information along to your Division Approver for review. • Move Money Requisition will be delayed and/or rejected if funds are not available
- 16. REQUISITION FORMS & APPROVALS Campus Requisition Form
- 17. REQUISITION FORMS & APPROVALS District Requisition Form
- 18. REQUISITION FORMS & APPROVALS Which One Do I Choose? • All BPO (Blanket Purchase Order) Requests = District Requisition • All Non-Contract Purchases over $3K = District Requisition • All Other Purchases, Reference the CPI for Guidance
- 19. REQUISITION FORMS & APPROVALS Requisition Do’s • Always Complete a Requisition Form • Complete Requisition Entirely; Include all Supporting Documents • Include Name/Email of Vendor Contact • Obtain All Approvals, Including IT if Needed • Note any Special Instructions • Keep Copies of Everything Submitted to the BO • Deliver via Drop Box/Interoffice to BO • Submit at Least 15 Working Days in Advance
- 21. REQUISITION FORMS & APPROVALS The Great Mystery Solved • Campus Buyer Reviews Request • Obtains Approvals • Creates/Sends Final Official Purchase Order to Vendor to Place Order • Changes needed? Contact Campus Purchasing Immediately.
- 22. 5. RECEIVE GOODS
- 23. RECEIVE GOODS Where are my Goods? • Follow-up • Goods Delivered to Receiving Docks • Delivered to Ordering Division • Report Shortages/Discrepancies Immediately • Email Receiving within 3 Working Days • PO Status Updated
- 25. PAYING FOR GOODS Are we Done Yet? • Incoming Invoices, Send to Dora and Ariana Immediately • Direct vendor to send all invoices to A/P going forward • Invoice Paid, Ledger Updated • End of Purchasing Cycle
- 27. WE’RE HERE TO HELP When in Doubt, Ask…We are Here to Help You Help our Students, Employees and our Community Partners. Questions? Comments?