Sourcing in Procurement a Case Study of Un Procurement System.

Topics: Supply chain management, Procurement, Requirements analysis Pages: 2 (639 words) Published: October 16, 2008
In modern procurement, sourcing aims at collecting and analyzing information about capabilities within the market to satisfy the organization’s requirements, such as obtaining updated cost information and appropriate supplier qualification criteria as well as identifying alternative products in the market. A through sourcing process in procurement or supply chain management leads to identification and subsequent invitation of relevant suppliers as well as ensuring maximum competition. It can as well lead to better understanding of the market.

With this understanding, you can be assisted in determine the following: when to buy, buy or lease decision, work a realistic delivery schedule, identify price evaluation factors, sourcing justification and work on the general/ special terms and conditions for solicitation. In the UN, sourcing is conducted in parallel with requirement definition. Whiles requisitions are being raised with regards specifications, an informal market research is required to ascertain potential suppliers and prices. This information though important can well be sensitive as it can give rise to biased specification or favor a particular vendor or suppliers which nullify the essence of competitiveness.

The process requires Market Research, in which relevant suppliers and products that could meet the needs of the organization. The time required in doing this research will depend on the value/risk of the requirement. It is always advised in the UN that for small standard procurement activities research may be limited to searching existing rosters and previous contracts. For larger or more complex procurement, a more extensive market analysis is mostly required or encouraged. Because the procurement activities are widely known to potential suppliers, a standard information on specification for standard products like IT equipment are mostly required to provide supplier with opportunities to express interest, open tenders as a means of reaching...
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