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Space Invaders

UEA Estates would like to remind staff to consider storage options before making purchases.

Storing goods costs money whether they are stored on site at the UEA or in an external facility. A common estimate of the holding cost (money spent to keep and maintain goods in storage) is at least a third of the value of stored goods per year.

 

When purchasing goods staff need to consider all costs including storage, handling and maintenance.  The initial purchase price is just a small element of the whole life cost of the product.

There have been a number of instances over the last 12 months where goods have been purchased without consideration to these additional costs. The items have required storage which has led to large unexpected bills.

 

The example below is based on a real example where a number of gazebos were purchased without thought to storage and handling costs.

 

Initial purchase price of 5 gazebos

£1,800

Storage Costs per annum (third of initial purchase price)

£600

Gazebo erection costs per annum (requires a 3 man team five times a year at overtime rates)

£1,064.25

Gazebo removal (requires a 3 man team five times a year at overtime rates)

£1,064.25

ACTUAL ANNUAL COST OF GAZEBOS

£4,528.50

 

The University is driving to make efficiency savings through the Headroom Project, and to promote sustainability.  By considering purchasing habits, looking at alternative options such as renting or borrowing, and considering whole life costs, significant savings could be made.

 

The Executive Team have approved a new storage policy, for details contact the Space Management Team at space@uea.ac.uk.