Pros And Cons Of Procurement Management

Procurement is the act of obtaining or buying goods and services. So it’s the process an organisation uses to buy the products or services it needs, from other organisations. So procurement department for Tesco is essential in order for them to be able to sell products and offer a service to their customers. Without the good and services it needs Tesco would not be able to operate so it’s essential the procurement team do a good job.

One of the main activities in the Kraft Heinz Company is done by the procurement department. It deals with the buying of all resources needed for the company. Currently, the procurement team is being divided into four spend areas due to the costing of the products. They are the ingredient team (which is dealing with the buying of raw materials), packaging team (which is dealing with the buying of packaging materials), co-pack team (which is dealing with the buying of finished goods from contract manufacturers), and lastly indirect team (which is dealing with other resources that are not directly relates to finished goods, such as travel, consultancy, utilities, etc.).

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.

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.

Purchase of goods/services: At my job, the procurement manager is the one that decides the contract of vendors. He also decides what suppliers are to be used and approves all purchase

: As a procurement officer what lessons can be learnt from this case study and what actions would you put in place?

2. (TCO 3) How are the procurement responsibilities divided between the project manager and contract administrator?

The operation manager must insure informed purchasing decisions are made and to improve procurement effectiveness by providing purchasing expertise and

Manage the procurement process from start to finish, including the development of Requests for Information (RFI), Invitation for Bids (IFB) and Requests for Proposals (RFP) while strictly adhering to procurement policies, statutes and disclosures; evaluate proposals, prepare award recommendations, negotiate and execute Contract. Facilitate the integration of new or revised programs/contracts; prepare an impact analysis resulting from changes.

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)

Federal agencies normally purchase in three different methods: sealed bids, negotiation, or simplified acquisitions. The easiest method is the simplified acquisitions method its provide the simplest path to federal contracts acquisition for small businesses: The procurement process is streamlined, and many federal contracts are reserved exclusively for smaller firms. A high degree of particulars in the context of a procurement mechanism for a federal agency, it is very necessary that they have a streamlined procurement process.

It is important that an owner designate one individual to act as the contact person for questions from bidders during the bid period. This organizational approach assures that questions are handled in a consistent manner and that all bidders receive the same answers to questions. The answers to individual questions from bidders during the bid period that are not responded to at a pre-bid meeting are also important supplemental information to the original RFP. The procurement group representative assigned to a contract is often the designated contact person for an owner. The Instructions specify

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

In my role as assistant-procurement logistics, I involved a part of the bidding committee, which I have to assess the bidding document, verify and participating in decision to choose vendors, in accordance with the requirements and specifications have been defined by the user by firm and fair practice. As my role as Senior Office Manager, I have to handling a problems on large seedlings procurement issue (more than $100,000) conducted by Implementing Partners and funded by us. some of which are not in accordance with specifications. I have to make a decision based on operational aspects and sustainability of the program. to solve this problem, I have collect informations from Program Staff User, and the implementing partner.

In order to institutionalize best procurement and acquisition practices in an organization, I would begin by forming a cross-functional team made up of supply management personnel, finance personnel, attorneys, human resources, engineers, and other subject matter experts. As was highlighted in chapter ___ of the class text, this is the best approach for ensuring that the broadest possible range of ideas and perspectives are incorporated early into the planning process. Additionally, it ensures that a great idea conceived of by one functional area is viewed from within the restrictions and/or limitations imposed by another. As with specifications development, this process allows the team to develop a reasonable, effective, and implementable plan that works across functional areas and provides the greatest return on investment.