Implementing Best Procurement And Acquisition Practices

Acquisition is a process that requires teamwork with each individual and/or group working together to ensure that the customer is provided the greatest overall benefit in response to their requirements (best value). Acquisition planning should start once the need for supplies or services are identified. Integrated Product Teams (IPT) should be used when needed to help develop the acquisition strategy. The use of these teams will reduce false starts and delays resulting from unclear scopes of work. In the following paragraphs the steps in the acquisition process will be defined and discussed.

{Build the Supply Base: supplier selection1. supplier evaluation- find potential suppliers, supplier certification (qualification, education, certificationISO 9000,14000). 2. Supplier development- integrate supplier in system, quality require, product specs, schedule/delivery, procurement polices, training, engineer/production help, information transfer procedures. 3. Negotiation- significant element, strategies: Cost based price model (open books to supplier, based on time and materials) Market based price model (based on published, auction, index prices: commodities) Competitive bidding (most common, no longterm relationship, request for rfq). 4. Contracting- share risks, benefits, incentives. Centralized purchasing, E procurement (online catalogs/exchanges, online auctions).} Logistics MGT- obtain efficient operations through integration of all material acquisition, movement, and storage activities. Frequent for outsourcing, allow competitive advantage from reduce costs and improve customer service. 1.Shipping systems: truck(flexible, moves majority manufactured goods) rail( large loads, containers) Airfreight( fast/flexible light loads, expensive) water( used for bulky low value cargo, oldest way of transportation) Pipelines( transport oil, gas,

10. Prepare pricing and scoring schedules and have project team members meet to discuss the scores and agree. Also, confirm the strengths and weaknesses of each proposal. No more than three vendors should still be involved in this process.

In this assignment I will be writing a formal report that will explain a typical procurement process, I will outline a variety of methods of supplier reimbursement and contract relationships; I will also outline the pros and cons of each contract type. As well as this, I will explain a typical supplier selection process through the use of Carters 10 C’s and a typical selection process model.

Create a consulting contract that defines the boundaries of your analysis and objectives of the project.

Procurement management is the processes to purchase or acquire the products, services or results needed from outside the project team to perform the work. Project Procurement Management involves not just purchasing products, services or results, but also ensuring that those that are purchased are right for the project, meets standards and is based on project requirements. This life cycle includes tracking from order through deployment and completing with invoice reconciliation.

It is quite challenging to discuss about procurement management without stating the importance of its strategies. There are four main basic procurement strategies that serve different functions within a procurement management. To begin with, a “Partnership” strategy focuses mainly on constructing mutual commitment in long term relationship with suppliers. While a “Secure Supply” strategy aims to secure short and long term supply while reducing risk from suppliers. In addition, a “Category Management and E-Procurement solutions” serves as a tool to reduce logistic complexity, improve operational efficiency, and attempts to reduce the number of suppliers. Lastly, a “Competive Bidding” strategy emphasizes on obtaining the “Best Deal” for short term transactions with suppliers.(van weele) Each of these four strategies involves a unique purchasing methodology, which implies that the complexity is embedded in an individual strategic implication. Therefore, it requires different tools to accomplish the specific strategical characteristics. A business entity may need to support and execute procurement decisions with other strategic apparatus with analytical methods, including market analysis, uncertainty analysis, price forecasting, supplier relationship and along with others.(Harvard)

We must remember that government contracting or “acquisition” guidelines, Federal Acquisition Regulations (FAR), exist for the key purpose of providing "uniform policies and procedures for acquisition." which satisfies customer's needs in terms of cost, quality, and timeliness; minimize administrative operating costs; conducts business with integrity, fairness, and openness; and fulfill other public policy objectives.

It should be noted in the first instance that shipping and freight is specialist in nature and it is best to entrust arrangements for long distance transport, shipping, airfreight, seaport, airport and international frontier formalities to a specialist organisation (Lock, 2007, p.348) in such circumstances if a relationship has been developed with a freight specialist there may be an argument not to go out to competitive tender in the first place and adopt a nominated supplier attitude. It is my opinion however that even though there may be limitation of choice of freight and shipping companies a recommendation should be given for at least three companies to be approached.

terms of time can be managed in this scenario, as there is no specific delivery

While, continuous decisions are made to improve its processes around stable business practices that provide a sound framework that is vital within the institutions mindset (Amare, 2012). Research will then illustrate the relevance of constructing a contract process model that gives explicit instructions, which includes standard business practice within an institution. Concurrently, it promotes quality products and services, highlights deficiencies in a timely

Morris, P. W., & Pinto, J. K. (2007). The Wiley Guide To Project Technology, Supply Chain & Procurement

This review has focussed on the theories and solutions put forward by practitioners with a wealth of experience. There appears to be no standardised methodology for the management of procurement processes. Organisations must manage relationships effectively and incorporate up to date procurement systems to achieve organisational goals. It must be recognised that power is a two

The term e-procurement gained popularity around the year 2000. Emergence of the two competitors Ariba and Commerce One, companies that specialized in the support of electronic procurement for MRO products, changed the way indirect MRO spend used to be looked upon. Introduction of internet-based procurement applications prompted a change from a centrally organized procurement (central buying) department to ‘desktop procurement’ environment, where the employee in need of a product would initiate the purchase transaction electronically. With these two trends, ‘decentralized purchasing’ and ‘multi-vendor catalogues’, the conduit toward electronic support of the MRO buying process was paved. Thus, over the period, spend analysts have started observing carefully, to increase spend under management and implement better control over tail spend in order to reduce the amount of fulfilling formalities and time consumed in procuring these products.

Marthandan ,Malarvizhi , Tehrani (2016) Analysis the quality factor that significant impact on the success Of E-procurement implementation. This study has focused on critical success aspects of E-procurement when, it comes to implantation. This research paper leads through a structural equation model. Information gathered from 208 directors to convey quantitative method to research the relationship between E-procurement quality factor .In the outcome this investigation demonstrates that quality of organization culture affect the E-procurement. On the other IT infrastructure does not have critical relationship at E-Procurement success implementation. In addition, quality of knowledge has moderate relationship in the success of E-procurement but these variables do not influence directly to the dynamic capacity of Organization. In the suggestion, electronic service is most common need to precede industry environment and monetary development. We have to adapt the quality components that can apply on supply chain network at worldwide level to enhance success implantation of E-procurement.