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Most of the ongoing activities of a municipality are cyclical in nature, following a regular pattern from year to year. The cyclical pattern of activity imposes a regular pattern of resource on the municipal organization.

The identification of this pattern of consumption provides the basis for the annual purchasing cycle through which the ongoing needs of the municipality for goods and services of specific types are purchased and made available at relevant points throughout the year.

Some types of goods and services (e.g., fuel for the bus system) are relatively uniform throughout the year, although there will no doubt be some slight seasonal fluctuation to reflect the impact of weather on ridership and other factors relevant to consumption.

To a very large extent, in order to address needs properly it is essential to carry out proper business planning. Although the purchasing department has a role to play in this regard, primary responsibility (at least with respect to major purchases) must reside with the operating departments of the municipality.

In order to provide continuous and otherwise reliable service to residents, it is essential the staff of the municipality be able to anticipate needs before they arise. For instance, the annual requirement for fertilizer, weed killer and grass seed can be based upon previous years’ consumption.

If this is not done, critical shortages are less likely to arise. To that end, routine purchase needs can and should be monitored by the purchasing department itself. This can be done on the basis of past requirements and also by a routine survey of ordering departments.

To as great an extent as possible, a municipal purchasing department should play a proactive role to assist client departments in identifying needs before they arise and to initiate purchasing activity as needs are emerging, rather than only when they become critical.

In addition to affording opportunities for cost saving, a proactive approach also allows more realistic budgeting.

Relevant measures include:

• Inventory monitoring;
• identification of historic market price trends in order to time purchasing with optimal market conditions;
• interfacing with suppliers to see if special price discounts are available for off-setting purchases; and
• exploring bulk purchase opportunities with other municipalities and nearby government organizations, such as schools and hospitals.

Surprisingly, measures of this kind are rarely pursued. However, by so doing, the price paid for many types of commodity or service can be minimized. One responsibility of the purchasing manager is to monitor the extent to which buyers discharge such proactive responsibilities.

Much as snow falls in the winter, we know that grass grows in the spring. The cyclic pattern of much procurement relates equally to capital equipment as to consumables. Grass-cutting equipment has a fairly predictable life cycle. There is no excuse for not monitoring the age of such equipment to determine when the existing stock is reaching the end of its expected life.

A proactive approach allows the municipality to secure its sources of supply on a timely basis and thereby reduces its exposure to seasonal shortages and consequent price spikes. For many types of items, the determination of need cannot necessarily be made by reference only to the resources and requirements of a single department, or on the basis of established practice.

For instance, one department within a municipal organization may need additional computer equipment; meanwhile another department may have a number of redundant units sitting idly by. The mere fact an ordering department can establish it has a need for additional supply of materials does not mean there is a need for the municipality as a whole to purchase additional materials of the sort in question.

Often the need of a particular department can be satisfied simply by redeployment of existing stock.