Implement

Private Institutions: Enter Purchasing Commitments

After determining who will manage food operations and defining vendor eligibility requirements, the next step is to establish purchasing agreements with vendors. Purchasing commitments, when formed strategically, can drastically increase an institution's values-based purchasing.
  • Private Institution
  • Self-Operated
Implement: 

Buying Directly from Values-Based Vendors: Single Purchase Orders

Single purchase orders are stand-alone purchases that allow an institution to buy values-based products without long-term commitments. They help values-based vendors by allowing them to get to know the institution while building capacity to take on longer-term agreements. Effective single purchase orders should:

  • Include Clear Terms: Clearly specify price, quantity, quality, and delivery requirements to ensure both parties agree on the terms of the sale.
  • Be Tailored to the Vendor’s Needs: Adjust delivery schedules or order details from standard purchase orders to ensure that the vendor can fulfill its commitment. Clear communication ensures the arrangement benefits both the vendor and the institution and sets the tone for future purchasing agreements.

For private institutions, single purchase orders offer a low-risk way to increase values-based purchasing incrementally and build relationships with vendors that can lead to longer-term commitments through standing orders or forward purchasing commitments. 

Note:

Standing purchase orders are easiest to set up through informal procurement. Accordingly, the recommendations here assume that no formal solicitation is issued to find a vendor. If a formal solicitation is required, it can still be tailored to ensure bidders align with the institution’s values (see Values-Based Purchasing When a Formal Solicitation is Required).