Education Business

Purchasing goods for the education market can seem rather like the croquet game in Alice in Wonderland. If you remember, the croquet balls were live hedgehogs and the mallets were live flamingos. The playing-card soldiers had to double themselves up and stand on their hands and feet to make the arches. Everybody played the game with enthusiasm, but there were no rules; the flamingos flew away and the hedgehogs hid; the role of the playing cards was literally to ‘move the goalposts’ at any opportunity. Lurking behind this scenario was the threat of the Red Queen and her executioner – “Off with their heads!” It is not surprising that Alice is confused!
    
It is clear that some of the key issues, which purchasers in schools and colleges have to face at the moment, are the confusing state of finances and the uncertainty of the funding situation. Three-year budgets are now in place, which should allow schools to plan for the future; to be able to use their money wisely to buy whatever they really need. But are LAs handing over to schools all the money to which they are entitled?
    
Although we cannot answer these questions for you, we can provide policy makers with impartial information, with which they can influence others. Hence the latest BESA research highlighting some of the interesting changes occurring in procurement at the moment.

Using funds appropriately
It is a part of BESA’s mission to avoid ‘confusion’ – to provide the variety of support necessary so purchasing decisions can be informed and enure the best quality and value – because BESA is a trade association with over 300 member companies. Schools, quite rightly, have the right to use their funds appropriately. After August 2008, there will be no ring-fenced grants obvious to schools. Their funding is theirs to spend as they deem appropriate ‘according to local need’.
    
BESA research has found that in primary schools, there is a likely shift from schools using printed catalogue order forms, which are then faxed or posted to suppliers. In 2008 it is estimated that 41 per cent of primary schools will make more than 50 per cent of orders in this way. This is expected to decline to 18 per cent by 2010.
    
A higher proportion of schools will then be making more than 50 per cent of orders using other methods including email and supplier e-commerce websites. The largest increase is expected to be in the use of e-procurement solutions. Secondary schools are currently more likely to procure most products using either printed forms or via electronic order systems (e.g. SIMS). Secondary schools are most likely to extend their use of supplier e-commerce websites and e-procurement solutions.
    
Procuring via electronic ordering systems such as SIMS is currently used in 90 per cent of primary schools. More than half of the sampled primary schools conduct at least three-quarters of ordering via electronic ordering systems. By 2010 nearly every primary school will make use of electronic order systems, with many of these new entrants intending to procure 26 per cent to 50 per cent for ordering, with this method. Secondary schools are currently less likely than primary schools to indicate the use of electronic ordering systems for the procurement of resources. In 2008 around 80 per cent currently use this method for ordering, with nearly half of secondary schools indicating that at least three-quarters of orders are made using this system.

e-commerce websites
Many schools have taken the route of using suppliers’ e-commerce websites to place orders. For 2008 it is only expected that around 11 per cent of primary schools will order in excess of 25 per cent of orders via supplier e-commerce websites. By 2010 it is anticipated that 30 per cent of primary schools will make at least a quarter of purchases via supplier websites. However, only a few primary schools anticipate most orders being procured in this way and a third of all those contacted indicate no order being procured through supplier e-commerce websites by 2010.
Secondary schools are more likely to procure at least some products via supplier e-commerce sites during 2008. A majority (69 per cent) of those schools contacted suggest that between one and ten per cent of orders will be procured in this way. This view is likely to change by 2010 with 29 per cent expecting to make up to 25 per cent of orders using this method.
    
By 2010 a significant number of primary schools expect to be making at least some use of e-procurement solutions. Only 38 per cent of primary schools expect not to use such solutions at all by 2010. It is suggested that 18 per cent of primary schools will be making at least half of all purchases by this method in 2010. E-procurement solutions are expected to be used by over half of all secondary schools during 2008. However, the majority will only be making a few purchases using this method of procuring products and services. By 2010, three-quarters of secondary schools anticipate making at least some use of e-procurement solutions.

The decision-maker
Who has control over budgets and who makes the all-important decisions about purchasing? In primary schools the member of staff most likely to authorise classroom resource purchases is the relevant subject co-ordinator in 37 per cent of sampled schools. For the majority of the remaining schools the head teacher is most likely to authorise resource purchases. This is especially the case in smaller schools – often with fewer than 150 pupils. In secondary schools the member of staff most likely to authorise classroom resource purchases is the relevant head of department in half of the sampled schools. For the majority of the remaining schools the bursar or resource manager is most likely to authorise resource purchases. In some smaller secondary schools it may be the deputy head teacher who authorises classroom purchases. The results suggest that head teachers in secondary schools are unlikely to be the person who authorises the purchase of classroom resources.
    
Two-thirds of primary school respondents indicate regularly using general search engines to search for products. It is most likely to be administrative officers and finance managers that use this method, whereas bursars are most likely to go direct to supplier websites. However, a quarter of bursars also make use of BESA’s website of suppliers, www.besa.org.uk. Another popular option, especially for deputy head teachers, is subject association websites. Nearly half of sampled deputy head teachers frequently use this method of searching for products. Compared to primary schools, respondents in secondary schools are more likely to indicate using more than one method of finding products online.

Online Procurement
A new initiative being promoted to schools is OPEN (Online Procurement for Educational Needs), which aims to provide a web-based central marketplace and e-procurement solution for schools. The solution is currently trialling in 1,150 schools with the aim of making OPEN available to all schools in England. As OPEN is being trialled in 1,150 schools it was expected that around five per cent of the sampled schools will be fully aware of OPEN. However, our results indicate only two per cent of primary and one per cent of the sampled secondary schools are fully aware of OPEN.
    
It is BESA’s belief that we all need ‘rules’ to play the ‘game’, and it is a part of our mission to provide them. If we can avoid the confusion in procurement, (and the executioner!), then it will be to the benefit of all – supplier and purchaser – and most importantly to the end user – pupils and students in schools and colleges.

About BESA
BESA, the British Educational Suppliers Association, is the trade association representing over 300 educational suppliers in the UK, including manufacturers and distributors of equipment, materials, books, consumables, furniture, technology, ICT hardware and digital-content related services to the education market.

With 75 years of experience, BESA offers unparalleled support, research, events and advice on both UK and International markets, and the future of the education supplies industry.  BESA is focused on promoting and providing support and advice to their members, the industry and to schools.

BESA has a Code of Practice to which all members must adhere, along with a stringent membership process, both of which assure buyers of a high standard of quality in both product and customer service.

Celebrating its 75th anniversary in 2008, BESA is at the forefront of discussion on the changing face of education, and will be celebrating this milestone by leading the way on solutions and ideas to overcome challenges in the future of education in the UK.

For more information
Web: www.besa.org.uk