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BSBPMG518 – Assessment Task 2 (Project)
Caroline Bevilacqua Ghedini - 3306
Assessment Tasks
Task 1: Determine procurement requirements
1.1.
Describe how you would approach identifying your procurement items for the procurement register.
Step 1: Locate appropriate spend data Step 2: Remove non-supplier line items Step 3: Group spend data into categories
Step 4: Are sub-categories beneficial?
Step 5: Group procurements into sub-categories where beneficial
Step 6: Perform a sense check of categories and sub-categories Step 7: Document procurement categories and sub-categories
1.2.
Provide a procurement management plan using the template below.
Procurement
item
Procurement
Manager
Requirements
(incluing timeframes)
Sourcing Approach
Contract
Type and
Budget
Risks
Office supplies
Managers
One or more competitive quotes preferred.
1 week
Open Tendering
Fixed- Price contract
$1000
Understatement of the need
Event facilities
Managers
One or more competitive
quotes preferred.
2 weeks
Restricted
Tendering
Fixed- Price contract
$1500
Overstatement of the need
Bussiness cars
and rental
services
General
Manegers Delegated autjority only
through CEO
One or more
competitive quotes preferred 2 Weeks
Request
for quotations
Time and
materials contract and fixed-
price Contract
$10,000
Not matching the
expectations of
buyer and Tender
It technician and It service
General manegers delegated authority only
through CEO
One or more competitive quotes preferred 1 week
Restricted
tendering
Last
Cost reimbursa
ble contract
$2000
Terms and conditions unacceptable to tenderers
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Communication of procurement arrangements
1)
Consider branding the initiative.
2)
Create “change agents.”
3)
Use multiple communication channels and techniques to gain understanding.
4)
Be transparent.
5)
Prepare to answer the challenge email and regular meeting are adopted.
It is essential to know who it is that you are targeting with your communications.
The strategy is to have three important steps in mind, that are: segmentation, target market and positioning. You need to figure out the consumer’s needs, choose which or which ones to meet, and position your product, service, and brand image so that your target market sets them apart from the rest.
Proper positioning guides the marketing strategy.
A diagnosis is made detailing all internal and external variables associated with the communication of your company, from this it defines the targets, which is a most important part in the creation of the communication strategy, the segment and size of the targets and the goals to reach, having account of demographic, social, economic, consumer behaviour, lifestyle and attitude towards the product or service. Establishes objectives consistent with the overall strategy of the company. Defines the tools to
use as internet, social media, billboards to create direct marketing.
A good communication strategy allows you to turn your goals into concrete, effective communication
actions and lead to success.
Procurement processes for obtaining products and services including roles and responsibilities
The procurement process in an organization is unique to its context and operations.
Regardless of the uniqueness, every procurement management process consists of 3 parts, namely Process, People, and Paperwork.
Process - The list of rules that need to be followed while reviewing, ordering,
obtaining, and paying for goods/services. Checkpoints/steps increase with the complexity of the purchase.
People - These are stakeholders and their specific responsibility in the procurement cycle. They take care of initiating or authorizing every stage of the process. The number
of stakeholders involved is directly proportional to the risk and value of the purchase.
Paper - This refers to the paperwork and documentation involved in every stage of the
procurement process flow, all of which are collected and stored for reference and auditing reasons.
Every procurement management process involves several elements, including requirements determination, supplier research, value analysis, raising a purchase request,
reviewal phase, conversion to purchase order, contract administration, monitoring/evaluation of received order, three-way matching, payment fulfilment, and record keeping.
For procuring car rental service of a site-viewing tour:
Step 1: Need Recognition: Specific agents and managers acknowledge the need of a bus rental service.
Step 2: Specific Need: Specific agents and managers identify the bus should have a capacity of 20-30 people and in white which is consisted with the logo of the company.
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Step 3: Source Options: The interested vendors can offer options and quote to the
company according to the bidding information provided by the company.
Step 4: Price and Terms: Involved agents and managers will investigate all relevant information to determine the best price and terms for the product and three suppliers will
be chosen to further consider before making a final decision.
Step 5: Purchase Order: Involved agents and managers and the chosen supplier will defines the price, specifications and terms and conditions of the product or service and
any additional obligations.
Procurement processes for monitoring procurement
Set goals and objectives
Before starting the buying process, the objectives and goals to be achieved must be well
established. To do this, gather data on departmental demands, statement of expenditure over a given period, and how much is expected to be saved. It is thus possible to reach a
more realistic goal.
Have tight control of products
To avoid unnecessary expense, the purchasing industry must closely monitor the products in stock, while also analyzing the materials essential to business performance. It is also recommended the adoption of purchasing process automation software, which brings more efficiency to the processes. This gives you a clearer positioning of inventory, sales, and product replenishment lead time to avoid buying expenses without the real need.
Manage suppliers and have a good relationship with them
Procurement management to be efficient must be in control and have a good relationship
with suppliers. The company needs to maintain a properly registered and approved supplier base, as these can offer competitive advantages and better negotiations.
Search budgets
Promoting a good quote is not always easy and usually requires a lot of negotiation and
research at the best prices and conditions. However, this is a fundamental procedure for
the company to be able to reduce costs.
Remember that, in the quotation process, price should not be the only criterion. Trying to
save money without regard to product quality or delivery can end up costing the company more. Lack of material caused by late delivery, for example, can lead to major losses and downtime on the production line.
Keep shopping and inventory areas well aligned
Inventory at a standstill represents storage costs and risk of loss of goods, whether due to
failures due to downtime or expiration of the expiration date. In contrast, the lack of materials also reduces yields or even causes greater damage to the company.
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