Procurement Process

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  • Topic: Management, Project management, Supply chain management
  • Pages : 15 (4046 words )
  • Download(s) : 328
  • Published : August 24, 2012
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TABLE OF CONTENTS Page

1. INTRODUCTION…………………………………………….. … 1

1.1 Procurement and supply chain process……………………………. 2

1.2 What benefits does Procurement provide to Project Management?.. 3

2. SELECTION OF SUPPLIERS………………………………….. 4

2.1Identifying Potential Suppliers…………………………………….. 5

2.2 Supplier Selection Method…………………………………………. 6

3. CASE STUDY – NALEAP ……………………………………….. 8

3.1 Background ………………………………………………………….8

3.2 Public Procurement Process for selection of suppliers ………………8

3.3 NALEAP‘s Selection of suppliers…………………………………... 9

4. CONCLUSION…………………………………………………… 12

BIBLIOGRAPHY ……………………………………………… . 13

1.0. INTRODUCTION

Procurement is the acquisition of goods or services. It is favorable that the goods/services are appropriate and that they are procured at the best possible cost to meet the needs of the purchaser in terms of quality and quantity, time, and location. Corporations and public bodies often define processes intended to promote fair and open competition for their business while minimizing exposure to fraud and collusion.

All projects require materials to operate. The type of materials will depend on the type of project that is to be undertaken. Procurement does not only cater for acquisition of the materials but also how the materials are managed once they get into the organization.

This systematic management of material brings about the concept of supply chain management.

Supply chain management (SCM) is the management of a network of interconnected businesses involved in the ultimate provision of product and service packages required by end customers (Harland, 1996). Supply chain management is the whole all movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption (supply chain).

From this definition then one can conclude that indeed procurement is an element of supply chain management. this aspect is well captured in the definition according to the Council of Supply Chain Management Professionals (CSCMP), “supply chain management encompasses the planning and management of all activities involved in sourcing, procurement, conversion, and logistics management. It also includes the crucial components of coordination and collaboration with channel partners, which can be suppliers, intermediaries, third-party service providers, and customers.”

Projects are the new kid on the block in contemporary organizations; projects are unique, transient endeavors undertaken to achieve a desired outcome[1]. The Japanese define projects as”a value creation undertaking based on a specific mission, which is completed in a given or agreed timeframe and under constraints, including resources and external circumstance[2]”. From the above definitions there some common themes that are evident; the uniqueness, temporary nature and the deliverable or product; a project can thus be defined as a temporary endeavor undertaken to create a unique product, service or result.

Project management is the application of knowledge, skills, tools and techniques to project activities in order to meet stakeholder or customer expectations. The project output or deliverable should be achieved with the given time and budget constraints. Many organizations use this approach to manage ongoing operations.

Project management and procurement marry where it is necessary for a project to have materials for it to make its end product or meet its objectives. These materials needed for the project may either be in terms of goods or services.

Based on this then one can confidently conclude by saying that the absences of a procurement and supply chain management department in a project may lead to the failure of the project.

1. Purchasing process

Procurement life cycle in modern...
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