**London**: Nexus Multi Academy Trust has pioneered a proactive approach to supplier relationship management, transforming procurement into a vehicle for value creation. This strategy has not only led to significant cost savings but also empowered schools to enhance educational resources amidst budget constraints and evolving regulations.
Nexus Multi Academy Trust (MAT) has implemented an innovative approach to supplier relationship management (SRM) within its educational framework, positioning procurement as a powerful enabler rather than a mere compliance tool. This strategic shift towards value creation has proven particularly essential in a climate marked by budget constraints and evolving regulations, as highlighted by Lana Stoyles in her recent article for Education Executive.
Stoyles points out that the education sector often lacks robust procurement strategies and central support, a gap that Nexus MAT has endeavoured to fill. By centralising certain procurement functions and fostering collaboration across its schools, Nexus MAT has consolidated resources efficiently, enabling the reinvestment of savings back into educational resources. This approach exemplifies how procurement can be leveraged to enhance educational outcomes rather than solely acting as a compliance mechanism.
Underlining the importance of adaptability, the Nexus MAT has successfully standardised contracts across various categories, including energy and supplies. Implementing a preferred supplier list allows for flexibility, which streamlines processes and significantly reduces administrative burdens. For example, schools within the trust are now empowered to operate under a higher threshold for expenditure without the previously required red tape—eliminating the need to obtain three quotes for purchases over £2,000 has afforded them greater operational freedom.
The financial impact of these strategic enhancements is notable, with Nexus MAT reportedly saving approximately £608,048 in a single year. This achievement is attributed not just to cost-cutting measures, such as consolidating energy contracts and reducing agency expenses, but to a comprehensive strategy aimed at redirecting resources to generate social value for both students and staff.
As the Procurement Act 2023 approaches, Stoyles emphasises the necessity for school leaders to view procurement through a transformative lens. She advocates for a systematic assessment of procurement needs, encouraging schools to avoid complacency in maintaining contracts without periodic evaluation. Embracing the ‘why’ in procurement decisions helps to reaffirm the commitment to educational excellence while continuously seeking efficient operational methods.
Furthermore, Stoyles suggests utilising frameworks and trusted contracts to navigate high-spend areas effectively, such as energy, IT, and capital projects. This is vital for ensuring compliance with both established regulations and internal policies while maximising the value derived from each expenditure.
In conclusion, Nexus Multi Academy Trust’s proactive stance on procurement exemplifies the potential for schools to harness their commercial capabilities. By focusing on collaboration, developing stronger supplier relationships, and adopting a proactive procurement mindset, the trust is not only securing financial savings but also fostering resilience and enhancing the overall educational environment. The strategic pivot towards value creation sets a benchmark for other educational institutions as they navigate the complexities of modern procurement practices.
Source: Noah Wire Services
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