How does PURCO SA add value for our Member Institutions?

A group purchasing organisation such as PURCO SA offers far more than just procurement savings. We have a much broader value proposition. 
As a purchasing consortium, PURCO SA adds value for our Members by: 

  1. Giving them access to group purchasing contracts with favourable pricing and terms that are based on the buying power and leverage of a much larger organisation than a single institution.
  2. Using a reduced number of quality suppliers with member input on identification, qualification and selection of the successful suppliers;
  3. Reducing their staff and administrative costs inherent to the popular 'three quote system' used for repetitive buying;
  4. Saving time for their buyers, allowing them to make their skills and resources available to attend to matters of strategic importance;
  5. Spreading costs over a greater turnover;
  6. Creating an opportunity for the experts that are available at different member institutions, to contribute to the structuring of a common beneficial business transaction;
  7. Creating an environment for interchange of ideas, sharing of new developments and benchmarking of activities;
  8. Focusing on and specialising in specific goods and services contracts that are common to the majority of our members;
  9. Ensuring that an objective and transparent tender process is used
  10. Offering user-friendly catalogues and auditable contracts.

Determine your return on investment with PURCO SA

Like any investment, a member institution's investment in PURCO SA should produce a satisfactory return
To determine your return on investment requires three calculations: 

  1. Baseline your institution's current procurement spend on the relevant commodity or service and compare it to the pricing available through PURCO SA's National contracts. Your actual savings will improve as you encourage your buyers and end users to to channel their spend through the PURCO SA contracts.
  2. Compare your cost of staff and other resources that are involved in procuring the commodity or service, with your Institution's annual membership fee to PURCO SA
  3. Calculate any other expenses related to your membership of PURCO SA and compare that to the annual rebate that your institution receives from PURCO SA.

If any of the above savings exceed your investment, your purchasing department can count the net savings towards its savings goals for the year. Also, if your purchasing department does not have the capacity to put a contract in place due to an already full workload or absence of skills, using PURCO SA or our network of specialists can multiply the success of your purchasing department.