Project Of A Commercial Environment- Hpro4004 Procurement Process

1008 Words5 Pages
Projects in a commercial environment- HPRO4004-Procurement
By Georgina Grant -1611161

Executive summary
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.

Table of contents
Introduction …………………………………………………………………………………….. Page 1
The procurement process ……………………………………………………………... Page 2-4
Supplier Reimbursement and Contract Relationships
…show more content…
The procurement process
The procurement life cycle can be made up into 13 key stages. The stages I am going to follow the CIPS stages of procurement and supply management. (Cips.org, 2017)

(Cips.org, 2017)
Stage 1
The first stage of the process is to understand and define the buyer’s needs. This is where the procurement department need to recognize that a product is needed in order to purchase it. This needs to be done with a high level specification which can be achieved by using a variety of stakeholders. This stage is where all the requirements for the product need be identified.
Stage 2
The second stage is market/commodity this needs to be taken place after the buyer has got the buyer needs to a high specification to ensure that at this stage the right product is chosen. At this stage the procurement department need to research all options available within the market. By getting an estimate of what is on the current market, it enables the buyer to pick out potential suppliers also familiarising the buyer with the competition in the market. This is also the stage where the procurement department would be able to look into conducting an analysis on how they are going to achieve the product i.e. make or purchase it/ utilize the service. By conducting market research it gives stakeholders a clear picture of the market.
Stage 3
The third stage is developing the plan. Once the specification has been

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