Project Procurement Assignment
Improving Best Practices
Jethra Penix
INF336: Project Procurement Management
Instructor: Daniela Green
June 26, 2013
There are several types of spend categories that can be identified. Some of these categories include: strategic spend, nonstrategic spend, direct spend and indirect spend.
Strategic spend is critical to the organization’s mission. As relates to the supply process, Johnson, Leenders, and Flynn, (2010) asks,
How can the supply process for the strategic spend be made more efficient (get more things done in a set amount of time) and more effective (get more of the right things done)? And what is the trade-off between efficiency and effectiveness, (Improving Process Efficiency and Effectiveness, Strategic Spend para. 1)?
It is important to have a cross-functional sourcing team, which contributes to good communication throughout the process, and it is equally important to apply the available resources, such as, human and financial capital, as well as, other resources that would be important to mission-critical spend.
Nonstrategic spend involves non-mission- critical purchases, such as, small-dollar threshold non-strategic acquisitions, in which it may be more beneficial for the company to use efficiency tools, procurement tools blanket orders, systems contracts, e-procurement, online catalogs, and so on.
Direct spend covers any acquisitions that contribute to the end product, where as indirect spend covers other things not involved in the production of the end product. These might include other types of purchases, for example, utilities, employee benefits, professional services, and these are generally not a part of the structured sourcing process.
Identifying suppliers with capabilities for global business can be improved by utilizing websites, such as, global sources, (n.d.) http://www.globalsources.com/SITE/PSS-POPUP.HTM. Global sources website verifies supplier’s authenticity, registration validity, and they reject any company that has
Jethra Penix
INF336: Project Procurement Management
Instructor: Daniela Green
June 26, 2013
There are several types of spend categories that can be identified. Some of these categories include: strategic spend, nonstrategic spend, direct spend and indirect spend.
Strategic spend is critical to the organization’s mission. As relates to the supply process, Johnson, Leenders, and Flynn, (2010) asks,
How can the supply process for the strategic spend be made more efficient (get more things done in a set amount of time) and more effective (get more of the right things done)? And what is the trade-off between efficiency and effectiveness, (Improving Process Efficiency and Effectiveness, Strategic Spend para. 1)?
It is important to have a cross-functional sourcing team, which contributes to good communication throughout the process, and it is equally important to apply the available resources, such as, human and financial capital, as well as, other resources that would be important to mission-critical spend.
Nonstrategic spend involves non-mission- critical purchases, such as, small-dollar threshold non-strategic acquisitions, in which it may be more beneficial for the company to use efficiency tools, procurement tools blanket orders, systems contracts, e-procurement, online catalogs, and so on.
Direct spend covers any acquisitions that contribute to the end product, where as indirect spend covers other things not involved in the production of the end product. These might include other types of purchases, for example, utilities, employee benefits, professional services, and these are generally not a part of the structured sourcing process.
Identifying suppliers with capabilities for global business can be improved by utilizing websites, such as, global sources, (n.d.) http://www.globalsources.com/SITE/PSS-POPUP.HTM. Global sources website verifies supplier’s authenticity, registration validity, and they reject any company that has