Frequently Asked Questions

Discounts are applied at the supplier level, at the agreed-upon rate / pricing level and are applied directly to their pricing model. In some cases, additional discounts can be applied and rebated back to the organization, depending on the structure of the contract and the willingness of the vendor.

No, to the contrary. For your situation, best practice procurement dictates that sourcing and vendor selection should be done centrally on behalf of the group, but ordering and day-to-day interaction with suppliers done at the local church / organization level.

We are always looking for feedback and suggestions regarding the areas of spending that could be addressed.

Category selection is chosen by members of PAOC's Procurement Team. Typically, spend categories with a good potential for savings (and other benefits) are the first area of focus, along with those that reflect the most vital aspects of operations. Sometimes, an area where savings can be quickly realized - a "quick hit" - may often be given priority.

There is also an attempt to balance the potential impact to be spread across multiple areas of operations so that benefits are as widespread as possible.

Large volume agreements can be negotiated without taking possession of large quantities of goods all at one time. The ideal supplier agreement has the supplier storing inventory for you, therefore you order and pay for only what you need.

There are several factors taken into consideration when choosing spend categories to prioritize. The suppliers' ability to service our locations is top priority. For overall efficiency, economies of scale and program co-ordination, it's ideal if our chosen preferred suppliers can perform on a broad level, but we will give consideration to regional and local vendors.

Historical vendor relationships are also taken into consideration. We recognize previous relationships are important, so we will examine them - with feedback from members - focusing on costs and level of performance.

There are several factors taken into consideration when choosing spend categories to prioritize. Typically, Preferred Suppliers are selected through a formal selection process. Selection is always conducted by the Procurement team and based on a balanced set of criteria that usually include:

• Pricing
• Total Cost
• Quality
• Service
• Availability across membership
• An understanding of the non-profit sector
• A proven track record of success working with similar organizations
• other criteria specific to the expense category

For overall efficiency, economies of scale and program co-ordination, it's ideal if we can have a single or small number of Preferred Suppliers who can service a wide area, but there is an openness to consider multiple and/or local vendors where appropriate.

Historical vendor relationships are also taken into consideration as well; we recognize previous relationships are important, so we will review them with feedback from membership.

Finally, but certainly of equal importance, is a combination of pricing and total cost. A vendor who is able to see the "larger picture" as far as an increase in potential business, and whose pricing reflects this foresight, will be given closest attention.

Nothing changes as far as your current billing and payment processes are concerned. Although pricing levels and initiatives are set by the Procurement Team, orders and payments are still made at the local church/organization level - essentially by the same organization who placed the order.

All discrepancies in pricing should be brought to the attention of the vendor first. The Procurement team should be notified of the issue, and should the problem persist, we can help you resolve the issue.

Please check with the Procurement team regarding ANY contract issues. Whether you are signing a new contract, renewing an existing one, or are curious as to the status of a particular contract, send us an e-mail and we will review it for you.