Procurement Strategy And The Contracting Of Manned Guarding Services

A basic definition for the procurement is “the way the building is realised” and “involves assembling and organising the skills and services of a team of construction professionals”. (the Construction Round Table, 1995). More precisely, the construction industry describes procurement as “a system that establishes the roles and relationships which make up a project organisation”; hence the overall organisation and communication structure for the management, administration and control of a project is established by the procurement system. (D.C.H Coles, 2010)

Security departments and employees commonly have to work with the organizations budgeting process to be able to plan for the replacement, maintenance, or installation of new security controls and systems. Often a security manager must create an outline or summary of the benefits, total system life costs, and the need for the system to justify the expenditures. They should also create a budget that allows the budgeting team to assess the proposal and compare it to other departments that are trying to allocate capital for their department’s use. This in turn requires the use of several different metrics to identify the best allocation of capital. (McCrie, 2007; Fitzgerals, 2008)

Recommendations for the management, staffing and operation of an organisation providing manned guarding services on a static

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.

To understand the role(s) of a Security Manager, a person must know what security is and what it means to an organization. According to Ortmeier, “security may be defined as a public or private service-related activity that provides personnel, equipment, and creates policies and procedures designed to prevent or reduce losses. These losses, caused by criminal action as well as by noncriminal events resulting from human error, emergencies, man-made and natural disasters, and business intelligence collection by competitors”. (2009).

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)

The procurement section of Target’s supply chain is an essential part of how it replicate costs to customer requirements. The overall affiliation between customer fulfillment and the supply chain are closely linked to products that are designated based on benchmarks that have been appropriately matched to target costing structured with market criticism and feedback provided. When focusing on purchasing products to sell to customers, the organization selects and processes the best option that best matches Target’s

As if it were not complex enough, the Defense Acquisition System (DAS) resides within a complex system. Congress, industry, and national strategy all influence and affect the acquisition process. Mass-producing the effectiveness of the Mine-Resistant Ambush Protected vehicle (MRAP) acquisition may tempt the amateur. However, although the unprecedented speed and strategic leader attention afforded the MRAP acquisition resulted in relative success, the process should not be used as a model for future acquisitions.

Private Military and Security Companies (PMCs) have been in the international interest for the last few years. Their most famously known actions are the actions of the PMC Blackwater (now renamed Xe Services) in Iraq. There are many thoughts regarding each nation about PMCs. Some say that they are a “good thing” and that they help countries to save economic resources. Others argue about the lack of regulation and about the fact that in some occasions they kill innocent people.

Comparing to the option of upgrading the whole procurement system, my recommendation aligns with Russell Menere (National Procurement Manager of BAL)’s idea, which is to implement short term improvements based on current procurement system in

The security guard services industry consisted of two segments: proprietary guards and contract guards. The historical growth was driven by companies realizing, that contracting guards allowed them gain operating flexibility instead of managing their own security personnel. In 1987 security guard services was a $10 billion industry growing at 6% a year. Due to the industry being very mature, fragmented, and price competitive there was an ongoing consolidation trend.

The American Society for Industrial Security (ASIS) is today’s main association of private security. The year of 1955 is considered the beginning of the modern age of security. Private security was needed everywhere, in hospitals, hotels, retail etc… as stated in (chapter 2, P.38) that ‘’ Retail establishments, hotels, restaurants, theaters, warehouses, trucking companies, industrial companies, hospitals, and other institutional and service functions were all growing and facing a serious need to protect their property and personnel’’. After the events of 9/11, private security agencies were required to play more roles in crime prevention. Private security agencies were required to review and standardize their method of training and to review the pay of employees. Lot of recommendations have been made to improve the education and training, above all the extension of training time.

Strategic sourcing is the process used in the supply management as a tool to decide which supplier will be used to provide product/service to the organization.

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