Applying procurement expertise and whole life costing at the University of Edinburgh

Equipment is an important component of the £3 billion per annum which UK HE spends on goods and services each year.  Much of this equipment remains in operation for long periods of time, with the result that its lifetime operating costs – much of which is energy and water consumption - greatly outweigh the initial purchase costs.Because – under devolved purchasing procedures - most equipment purchases are handled at departmental or faculty level it is very easy for buyers to focus on the capital costs (which comes out of a grant or other academic budget) and ignore longer-term operating costs. This case describes a successful attempt by the University of Edinburgh to overcome these problems by training devolved purchasers in whole-life costing techniques, and creating a buyer who specialises in equipment purchases. 

WLC focuses on identifying all costs associated with the purchase, from initial acquisition through use and maintenance to final disposal. HE-specific software has been developed to support this activity. Edinburgh now stipulates that WLC must be considered for all purchases over £25,000, and provides training for academics, administrators and others in applying the WLC approach.

A key equipment purchasing unit, the Medical and Veterinary Medicine Faculty Group (now College) also agreed to fund the salary of an Equipment Procurement Manager, based on the expectation that the costs will be more than offset by the financial benefits of more effective purchasing.

The University believes that these initiatives have already reduced the financial and environmental costs of equipment purchases and plans to extend WLC to other areas. The case also shows how training academics and administrators in the use of WLC enables good procurement practice to be reconciled with devolved purchasing.

 

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