CPMGT 302 Week 4 Procurement Planning Paper
Procurement Planning
CPMGT 302
Procurement Planning The needs of a project must be carefully identified, sourced and acquired to have a successful procurement process. Procurement planning is essential to the overall success of a project. It involves identifying the materials and services, finding the suppliers, and properly documenting the transactions.
This paper includes a description of the procurement planning process. The most valuable output of the plan procurement process will be identified. Furthermore, the various contract types will be explained. A source criterion that would be applicable to any project will be described and three criteria that would apply to most projects will be identified. An analysis of the ethical concerns that should be considered when identifying source selection criteria is also included. Finally, the role of risk management in the procurement planning process is explained.
The Procurement Planning Process
The key tasks associated with procurement management planning are determining what items need to be procured, finding the suppliers that could satisfy the requirements, bidding process, and the approval process. These tasks must be completed step by step in the workplace. “The key benefit of this process is that it determines whether to acquire outside support, and if so, what to acquire, how to acquire it, how much is needed, and when to acquire it” (Project Management Institute, 2013, p. 1). When dealing with a similar project, a firm can use historical data to compare and determine what needs to be procured for the project. The potential sellers must be properly identified. This can be easy for firms who have already established a good relationship with their previous suppliers and the projects they deal with are almost similar. Then it would be easier to undergo the bidding and supplier selection process. The bidder who can satisfy the needs of the project will be chosen and the signing of contract follows. An
CPMGT 302
Procurement Planning The needs of a project must be carefully identified, sourced and acquired to have a successful procurement process. Procurement planning is essential to the overall success of a project. It involves identifying the materials and services, finding the suppliers, and properly documenting the transactions.
This paper includes a description of the procurement planning process. The most valuable output of the plan procurement process will be identified. Furthermore, the various contract types will be explained. A source criterion that would be applicable to any project will be described and three criteria that would apply to most projects will be identified. An analysis of the ethical concerns that should be considered when identifying source selection criteria is also included. Finally, the role of risk management in the procurement planning process is explained.
The Procurement Planning Process
The key tasks associated with procurement management planning are determining what items need to be procured, finding the suppliers that could satisfy the requirements, bidding process, and the approval process. These tasks must be completed step by step in the workplace. “The key benefit of this process is that it determines whether to acquire outside support, and if so, what to acquire, how to acquire it, how much is needed, and when to acquire it” (Project Management Institute, 2013, p. 1). When dealing with a similar project, a firm can use historical data to compare and determine what needs to be procured for the project. The potential sellers must be properly identified. This can be easy for firms who have already established a good relationship with their previous suppliers and the projects they deal with are almost similar. Then it would be easier to undergo the bidding and supplier selection process. The bidder who can satisfy the needs of the project will be chosen and the signing of contract follows. An