PURCO SA Annual Report

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2017 PURCO SA Annual report

This year a concerted strategy was implemented to increase PURCO SA's reach and scope, resulting in growth and consolidation across all key performance areas. We achieved solid member growth, broadened the range of contract categories, maintained overall contract spend and increased returns for members.

Internally, prudent fiscal and operational management led to the organisation exceeding its budgeted surplus, achieving exceptional investment growth, and earning an overall improvement in member satisfaction levels.

Membership growth

We grew our membership to 49 institutions in 2017, with the acquisition of new TVET colleges. All public universities in South Africa and Namibia, as well as private institutions and allied organisations, remain members.

Procurement spend increase

Spending via PURCO SA negotiated contracts reached R1.45 billion in 2017, a remarkable achievement given the constrained environment and the redirection of procurement spend toward insourced services.

More contracts under management

A number of new contract categories were identified and contracts concluded during 2016-17, bringing the total number of contracts under management to 412, with 349 suppliers.

Skills and professionalism

In addition to augmenting our internal finance and operations expertise through the appointment of an experienced professional manager, we also made strong progress in appointing specialist consultants. Now properly resourced, our Consultancy Service was deployed into ten institutions, in the execution of thirteen project-based and long term contracts.

Increased savings and rebates

Savings attributable to contract expenditure reached R178 million in 2017, up from R139 million in the previous year. Crucially, the ratio of savings to expenditure improved by 31.9% to 12.3%. Members also received an equitable share of the R22.8 million earned in rebates, an annual increase of more than 22%.

Re-alignment and diversification

We continued our drive to to supplement our core business through diversification, and concluded negotiations for the launch of PURQ, a wholly owned qualification verification subsidiary that will be launched in 2018 

 

View prior Annual Reports