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University of Waikato 2010 Purchasing Case Study FINAL

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University of Waikato 2010 Purchasing Case Study FINAL University of Waikato Hamilton, New Zealand Purchasing: Fleet Vehicles SCHOOL University of Waikato, Hamilton, New Zealand New Zealand is an English-speaking country with a population of approximately 4 million people. The Waikato River meanders through the green valleys of the Waikato region and the region’s largest city, Hamilton. Hamilton is a city of education and scientific research. During the summer months, the average maximum temperature ranges between 15-30º C (59-86 ºF), and in winter 5-15º C (41-59 º F). Forest parks and lakes can be found all over the Waikato region. From modest beginnings on what was largely farmland, the University of Waikato has grown to a student population of about 13,000 of whom more than 4,000 complete a qualification annually. Today the University has the largest campus site in New Zealand, and employs nearly 2,000 academic and support staff, making a significant contribution to the local and national economy. In 2009 the University was home to more than 1,800 international students from 70 different countries. Qualifications taught include 3-year and 4-year undergraduate degrees, postgraduate degrees, and a variety of diplomas and certificates. The University of Waikato is one of New Zealand’s leading research universities and is at the centre of a Waikato network of research institutions and industry responsible for a significant proportion of New Zealand’s research. ABSTRACT School Support Services, which is part of the Faculty of Education, has 56 cars. The 2009 spend on fuel just for School Support Services was NZ$141,000 (US$100,700). The University has 178 registered vehicles in total including tractors and trailers. In the last few years the fleet has been reduced by ten vehicles by making the vehicles more available under a centralized management system instead of being exclusively owned by one particular faculty or department. Now that one person is managing the fleet, the most efficient affordable vehicles available can be purchased, purchasing power can be maximized, and service deadlines are much more likely to be met. By taking ten vehicles off the road and replacing older vehicles with newer more efficient ones, significant savings in fuel expenditure and carbon emissions have been made. A fleet management system interface is about to be released and soon acquiring electric vehicles or Segways for on the campus and building a central fleet storage facility will be considered. GOALS AND OUTCOMES Goals John Ireland, Vehicle Fleet Manager for the University, aims to: • purchase vehicles fit for their purpose, • reduce fuel consumption, • select vehicles that could be passed down from one department to the next, • set a rule to purchase all future vehicles in white, for consistent branding, National Wildlife Federation • Campus Ecology • 2010 • centralize all University of Waikato vehicle purchasing to a) achieve the best purchase price, possible, b) have a consistent approach, c) maximize purchasing power with services such as panel beaters, and d) maximize resale values, • eventually phase out older inefficient vehicles from the list of assets, • manage the vehicles centrally, to a) share resources, therefore reducing the fleet size needed and associated fixed costs, and b) ensure that all vehicle service deadlines will be met on time and fees are negotiated at a good price. John’s goals for the next two to three years include to: • keep working on making the fleet both modern and fuel efficient, • increase the rate of sharing of vehicles, while reducing University expenditure on rental vehicles, • ensure vehicles are as fit for purpose as possible when purchased, • investigate feasibility of equipment such as an electric vehicle or Segways to use on campus, • develop and implement a fleet management system interface so staff can book vehicles online, • investigate the feasibility of building a place to store vehicles centrally such as a cage. Accomplishments and Outcomes The University has established a “hand-me-down” system where new vehicles are only exclusively purchased for the departments with the highest number of kilometers travelled, and are chosen with a future transfer to other departments in mind. For example, high users might drive approximately 25,000km (15,500 miles) per year around the Central North Island, and low users might only need to drive 4,000km (2,500 miles) per year. Some vehicles have been taken off one department and given to another department where there is a better fit for use. Having only one person in charge of purchasing has meant that money has been allocated in an intelligent manner for the benefit of all University employees. The fleet management system is in development and not only will it include a booking system, it will also have functionality to keep track of drivers license details and vehicle service records – which will prove to be valuable when a vehicle comes up for resale. The fleet size has decreased; we have lost ten vehicles in the last few years. The eight-seater minibus that was formerly only a Faculty of Education vehicle is now used campus-wide. The vans at Facilities Management Division were changed to turbo diesel, so they only need filling half as often now, saving a considerable amount of fuel. A large Toyota vehicle was replaced with a small Mazda. Challenges and Responses Getting people to share vehicles that have historically been owned by just one part of the University has been a challenge. Departments don’t own vehicles any more. To achieve the improvements it was important to talk to all people involved to explain the overarching benefits that could be gained. Campus Climate Action: Your School’s Carbon Footprint By using vehicles that are more fuel efficient, and using vehicles stored on campus rather than in town at a rental car facility, the University would have reduced the carbon footprint of its work-related land vehicle use by a noticeable percentage. While vehicle purchasing continues to be managed centrally this carbon footprint should continue to decrease. National Wildlife Federation • Campus Ecology • 2010 Commentary and Reflection It is essential to get buy-in from senior managers – an initiative like this one would not succeed otherwise. Getting financial support is also a key success factor. ENGAGEMENT AND SUPPORT Leaders and Supporters A Vehicle Policy Committee was established. Key supporters of the initiatives included: • David Blackwell, Team Leader Internet Development, Faculty of Education; • Jenny Boyd, Accountant – Financial Management Services; • John Cameron, Director of Facilities Management; • Tony Dicks, Group Manager Facilities; • Virginia Duncan, Manager Procurement; • Andrew McKinnon, Director of Finance; • Mike Pratt, Dean Waikato Management School; and • Jill Waugh, Administrative Secretary – School Support Services Funding and Resources Minimal financial investment was required for the software. Selling the excess vehicles no longer needed has financed some things for the project. John is employed one day a week by Financial Services Division. Having funding support from the Director of Finance is definitely beneficial; the budget allows for items such as sign writing; panel and paint repairs; and refurbishment to maximize resale prices. Education and Community Outreach Information about the project has been placed in the Official Circular for staff, and distributed by word of mouth and by way of meetings with faculties to inform them about what resources are available. Nobody external to the University staff has been involved in the initiatives at this stage, other than the relevant suppliers and contractors. CONTACT INFORMATION Contacts John Cameron, Director of Facilities Management [email protected] +647 838 4001 John Ireland, Vehicle Fleet Manager [email protected] +647 856 2889 x 5220 Chris McKinnon, Faculty of Science and Engineering [email protected] +647 838 4024 Case study submitted by: Katie Laurence Property Assistant 2007-2010 email: [email protected] MORE ABOUT YOUR SCHOOL Campus Sustainability History The University of Waikato provides courses and undertakes research in a number of sustainability fields such as biological sciences/restoration, chemistry, economics, earth and ocean sciences, education, engineering, environmental sciences, geography, law, philosophy, politics, public relations & marketing, science & technology education, and strategic management. The University’s Environmental Policy is available at http://calendar.waikato.ac.nz/policies/environmentalpolicy.html Waikato EnviroNet is available to share information between staff and students: http://www.waikato.ac.nz/environet/ Facilities National Wildlife Federation • Campus Ecology • 2010 Management Division has implemented a number of initiatives to address energy, water, and waste management practices (see http://www.waikato.ac.nz/fmd/environment.shtml). In 2007 we became the first New Zealand university to achieve the Bronze level of Enviro-Mark TM http://www.enviro- mark.co.nz. We work closely with the Sustainable Business Network http://www.sustainable.org.nz and the Waste Exchange http://www.nothrow.co.nz and donate used equipment to nearby schools. We have faculty members on the Hamilton City Council Environmental Strategy working group http://hamilton.co.nz/page/pageid/2145842771/Environmental_Sustainability. We host sustainability events. Planting on our campus consists of at least 90 percent native species. National Wildlife Federation • Campus Ecology • 2010 .
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