Purchasing and Supply in Project Management
Purchasing and Supply in Project Management Advanced Project Procurement
Purchasing and Supply in Project Management To ensure the quality of purchased capital equipment and services, rigorous standards and processes must be followed. There are important components and elements of purchasing that play a role in corporate and organizational strategy. A well-implemented supply management and purchasing strategy will result in greater profitability for a firm. Legal aspects of purchasing involve terms of contracts, purchase orders, and other legal implications. Purchasing professionals must be aware of pricing decisions, possess effective interpersonal communication, and evaluate and manage strategic alliances with suppliers. Technology also plays an important role in modern project procurement. This paper will provide an overview of the various concepts of procurement, contract management, components of purchasing and supply management, and how purchasing managers can effectively enable project success via sound purchasing decisions (Benton, 2010). One important aspect of project management is the acquisition of materials and supplies. Project managers along with purchasing managers must work in conjunction to acquire goods and services for the project. According to Investopedia (2012), procurement is defined as attaining possession of something or purchasing something usually for a company, government, or other organization. The energy industry is an example of an industry that has retailers that commonly undergoes the procurement of gas, electricity, coal, and other energy sources. The procurement process has gained critical importance in various projects such as those in public sector organizations and it has become important for organizations to assess, measure, and improve each organization’s procurement process (Rendon, 2008). Purchasers and buyers are in charge of determining top values, choosing the appropriate
Purchasing and Supply in Project Management To ensure the quality of purchased capital equipment and services, rigorous standards and processes must be followed. There are important components and elements of purchasing that play a role in corporate and organizational strategy. A well-implemented supply management and purchasing strategy will result in greater profitability for a firm. Legal aspects of purchasing involve terms of contracts, purchase orders, and other legal implications. Purchasing professionals must be aware of pricing decisions, possess effective interpersonal communication, and evaluate and manage strategic alliances with suppliers. Technology also plays an important role in modern project procurement. This paper will provide an overview of the various concepts of procurement, contract management, components of purchasing and supply management, and how purchasing managers can effectively enable project success via sound purchasing decisions (Benton, 2010). One important aspect of project management is the acquisition of materials and supplies. Project managers along with purchasing managers must work in conjunction to acquire goods and services for the project. According to Investopedia (2012), procurement is defined as attaining possession of something or purchasing something usually for a company, government, or other organization. The energy industry is an example of an industry that has retailers that commonly undergoes the procurement of gas, electricity, coal, and other energy sources. The procurement process has gained critical importance in various projects such as those in public sector organizations and it has become important for organizations to assess, measure, and improve each organization’s procurement process (Rendon, 2008). Purchasers and buyers are in charge of determining top values, choosing the appropriate
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