State, Local Government and Education fiscal year end is upon us ending on June 30th. There are three things to consider as you navigate fiscal year end spend season those being category management, product category reach and the benefits of using contract vehicles.
The Wall Street Journal policy analysts estimate state and local revenue losses due to the coronavirus pandemic will total about $300 billion through fiscal year 2022, though that doesn’t include rising expenses. As your state or locality continues to fight the COVID-19 pandemic, you are also up against your fiscal year-end deadline. Another deadline to keep in mind is the CARES act use of funds deadline was extended to December 31, 2021 and is to be used for necessary expenses incurred due to public health emergency as a result of the COVID-19 pandemic.
Another consideration is that according to ONVIA, 46 state agencies' fiscal year-end dates fall at the end of June, while 86% of school districts align with the school year in June. (Keep in mind, New York 3.31, Alabama 9.30, Texas 8.31, and Michigan 9.30 have different fiscal year deadlines.
As a purchasing professional, you may be facing the question of how to spend your year end as well as those CARE act dollars.
Three important aspects to consider during this busy time of year are category management, product reach, and contract vehicles. All of which will help you streamline your purchasing process.
Why to Consider Category Management During Year End Spend
It may be worth considering a category management approach similar to the Federal Government’s implemented in early 2019 to encourage smarter decision-making across purchasing departments. During the rush through the state and local fiscal year-end spend season, this approach allows state and local governments to streamline and complete their final purchases in time to meet the June 30th deadline.
Category management is brought into this process to ensure that all of these procurement departments are collaborating and streamlining their processes. By working closely with one another, they can identify the best way to purchase products and services in order to consolidate, avoid product duplicates, and save money.
Expanding Your Product Category Reach
Establishing a partnership with an organization that can help build relationships with key suppliers can help in consolidating and reducing product costs. The more product categories that your partner has the ability to serve, the more products and services you can leverage through that relationship.
With the right partner you can expand your product category reach utilizing WESCO and Anixter’s three strategic business units:
Electrical and Electronic Solutions (EES) - Lighting, Electrical, Automation
Communications and Security Solutions (CSS) - Data Communications, Security, Safety
Utility and Broadband Solutions (UBS) - MRO, Outside Plant, Broadband
The Benefits of Contract Vehicles
According to the National Institute of Governmental Purchasing (NIGP), cooperative procurement refers to the combining of requirements of two or more public procurement entities to leverage the benefits of volume purchases, delivery and supply chain advantages, best practices, and the reduction of administrative time and expenses. WESCO and Anixter offers multiple statewide and cooperative contracts.
We hold multiple statewide contracts, including states that have to spend their remaining funds by the June 30thdeadline.
NPPGov – Electrical Products and Lighting Equipment
OMNIA Partners – MRO Supplies and Related Services
OMNIA Partners – Cabling and Networking Products and Services
OMNIA Partners – Security Systems Services
Sourcewell – Facility MRO Supplies and Related Services
Considering category management, product reach and contract vehicles in your year-end purchases will allow your agency to confidently buy the necessary products and solutions to meet your June 30th deadline. WESCO and Anixter has a dedicated team focused on the state, local, and education market ready to meet your fiscal year-end needs and beyond.