Willcock's and Lacity's Sourcing Lifecycle Model

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.

The first step will be to look at the goals of the project, and align them with the mission of the company. Systematically, the project will be broken into phases: Planning, Organizing, Staffing, Directing, Coordinating, Budgeting, Evaluating, and Reporting. Each phase will be further broken down into tasks and placed into a work breakdown structure. From this view, one is able to see the entire project duration, critical path, and milestones. The Planning phase is integral in any project. This phase of the project defines project objectives, mission, goals, and approach. In addition, outlining key elements of the project is critical: performance expectations, risks analysis, and contingency plans. However, after completion

b) Another alternative should be using the negotiation method in order to develop a “win-win” situation. A negotiating party would have to be applied, “When a long period of time is required to produce the items purchased” (p 375). In these circumstances, suitable economic price adjustment clauses must be negotiated. Opportunities for various improvements may develop, such as the new manufacturing methods, new packaging possibilities, substitute materials, new plant layouts, and new tools. Negotiation permits an examination and evaluation of all these potential improvements. Competitive bidding does not. The advantage would be assurance of a long-term business with the Company along with reasonable profit for the supplier and reasonable cost for the buyer.

Global business environment has become more unstable, supplier negotiations have taken important new role on helping improve corporate competitiveness. The goal of most supplier negotiations today is no longer just to get the lowest price. It is also to find new and innovative ways to meet a wide variety of business challenges, often by tapping into the knowledge and expertise of the supplier community and a good relationship.

business. After you complete all phases of this project, you will have good understanding of how

........................................................................7 7.0 Financial Plan .........................................................................................................................................7 7.1 Start-up Funding ...........................................................................................................................7 7.2 Important Assumptions ..................................................................................................................8 7.3 Break-even Analysis ......................................................................................................................8 7.4 Projected Profit and Loss ..............................................................................................................9 7.5 Projected Cash Flow....................................................................................................................12 7.6 Projected Balance Sheet .............................................................................................................14 7.7 Business Ratios ...........................................................................................................................15

Developing a sourcing strategy is vital with my new “buyer” position at General Mills. I need to consider what General Mills is looking for and what best suits their company.

In planning for my negotiation, I reviewed the Supplier Payoff Matrix for each of the issues to be resolved. The issues which were likely to offer least resistance were the Electronic Integration and the Inventory. The next issues that were likely to have some pushback were the Quality and lot size. We kept to the last the more contentious issues that included price, volume flexibility, development fees and contract term.

From the given situation, I believe that purchase contract negotiation involves clarification and mutual agreement on the structure and requirements of the contract and I acknowledge the positions of both parties to gain the first step of forming the contract. I utilize active listening and collaborative communication techniques at the first stage of forming a contract. These techniques allow me to focus on both sides must recognize basic areas of contract agreement and the importance of other terms and conditions.

The nature and scope of a project is determined at the initiation stage. This involves analyzing the business needs, developing goals, budgets, tasks, deliverables, and the stakeholder analysis. The project planning stage determines the planning team, develops the scope, and identifies work breakdown structure and activities that will be needed to complete deliverables. The planning stage also estimates time and cost activities, develop schedule and risk plan, and gain formal approval for work to begin. The executing stage involves all processes used to meet the project requirement and involves managing people and resources. The process that entails the identification of potential problems and

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)

Key outputs in this phase are the Projects Requirements definition, the capability and capacity assessment, project delivery strategy and the Project Management plan. The role of the construction/ project manager in this phase is, once project authorized, it is the project manager’s responsibility to implement the project. In terms of the Project Requirements Definition the, the project manager refines and details the project authorization and details what the project is required to accomplish in terms of the products/services the project will deliver and the scope of work that needs to be done. The project manager must provide project team members, corporate sponsors, and other stakeholders with a common understanding of what the project is all about, and is the authoritative reference document that defines the project.

One of the key issues to address at the outset of a project finance transaction is a determination as to whether the project is within a regulated industry. If it is, the project sponsor will need to engage specialized regulatory counsel to address issues related to obtaining permits, managing industry-specific risk and other particular requirements and conditions precedent that will lead to deal completion.

We should be prepared. Also, we need to hold firm to our principles. Do not forget we have something the supplier wants; they need us as much as we need them. When something is important to us, stick to our guns. Suppliers will respect us for it. Moreover, we do not be intimidated. We do not automatically accept the contract terms a supplier suggests/offers us. Remember that it is their job to get the best possible outcome for their company. However, that is our job too. Furthermore, acknowledging the strengths in the supplier’s proposal or positive past performances before identifying weaknesses can make them more receptive to considering our point of view. Additionally, we have to Control the Negotiations. We have to leading the agenda, tabling the objectives, and control the pace of the meeting all help to assert our position in the negotiation process.

During the project initiation phase, I can work collaboratively with the project sponsor in the development of project charter and lead up to the formal authorisation of the project/ new phase. From the sponsor’s project SOW (Business need, product scope), Business case etc., I can identify measurable project objectives, high level requirements, risks, summary milestones and budget and approval authorities. The key deliverables in this phase are project charter and stakeholder lists.