Procurement involves acquiring goods, services, or works from an external source. It is important that items procured meet needs in terms of quality, quantity, time, and location, while also obtaining the best possible cost. There are various types of procurement like single, stock, vendor managed inventory, and just-in-time procurement. Procurement requires identifying needs, suppliers, negotiations, and logistics management. It is a major part of government and public spending and aims to promote competition and minimize fraud. Performance is measured through metrics like spend under management and annual savings.
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Use content-ready Procurement PowerPoint Presentation Slides to execute the process of acquiring goods and services from an external source via tendering. Meet customers & stakeholders demands, analyse processes, optimize strategies and ultimately reduce procurement costs. Incorporate professionally designed procurement PowerPoint PPT templates to transform your business which bring you benefits. This deck comprises of templates such as procurement strategy structure, procurement steps, procurement workflow process, procurement strategy, approach to procurement, formulating procurement strategy, creating procurement strategy, and more. Use this presentation for purchase planning, value analysis, financing, price negotiation, inventory control and stores, standards determination, etc. These procurement PowerPoint templates are completely customizable. Edit color, text, icon and font size as per your requirement. Add or remove content, if needed. Grab ready-to-use procurement PowerPoint complete presentation to go step by step process of acquiring goods and services from external suppliers. Good expression is guaranteed with our Procurement Powerpoint Presentation Slides. Communication becomes explicitly clear. https://bit.ly/3oihfzw
Basic Procurement Principle is the module taught at College of Business and Management (CBM-TZ) to all scholars undertaking Basic Technician Certificate in Procurement and Supplies Management
Use content-ready Procurement PowerPoint Presentation Slides to execute the process of acquiring goods and services from an external source via tendering. Meet customers & stakeholders demands, analyse processes, optimize strategies and ultimately reduce procurement costs. Incorporate professionally designed procurement PowerPoint PPT templates to transform your business which bring you benefits. This deck comprises of templates such as procurement strategy structure, procurement steps, procurement workflow process, procurement strategy, approach to procurement, formulating procurement strategy, creating procurement strategy, and more. Use this presentation for purchase planning, value analysis, financing, price negotiation, inventory control and stores, standards determination, etc. These procurement PowerPoint templates are completely customizable. Edit color, text, icon and font size as per your requirement. Add or remove content, if needed. Grab ready-to-use procurement PowerPoint complete presentation to go step by step process of acquiring goods and services from external suppliers. Good expression is guaranteed with our Procurement Powerpoint Presentation Slides. Communication becomes explicitly clear.
The presentation is about procurement and sourcing strategies. The process, types, importance and goals of procurement and sourcing have been discussed briefly.
"You can download this product from SlideTeam.net"
Use content-ready Procurement PowerPoint Presentation Slides to execute the process of acquiring goods and services from an external source via tendering. Meet customers & stakeholders demands, analyse processes, optimize strategies and ultimately reduce procurement costs. Incorporate professionally designed procurement PowerPoint PPT templates to transform your business which bring you benefits. This deck comprises of templates such as procurement strategy structure, procurement steps, procurement workflow process, procurement strategy, approach to procurement, formulating procurement strategy, creating procurement strategy, and more. Use this presentation for purchase planning, value analysis, financing, price negotiation, inventory control and stores, standards determination, etc. These procurement PowerPoint templates are completely customizable. Edit color, text, icon and font size as per your requirement. Add or remove content, if needed. Grab ready-to-use procurement PowerPoint complete presentation to go step by step process of acquiring goods and services from external suppliers. Good expression is guaranteed with our Procurement Powerpoint Presentation Slides. Communication becomes explicitly clear. https://bit.ly/3oihfzw
Basic Procurement Principle is the module taught at College of Business and Management (CBM-TZ) to all scholars undertaking Basic Technician Certificate in Procurement and Supplies Management
Use content-ready Procurement PowerPoint Presentation Slides to execute the process of acquiring goods and services from an external source via tendering. Meet customers & stakeholders demands, analyse processes, optimize strategies and ultimately reduce procurement costs. Incorporate professionally designed procurement PowerPoint PPT templates to transform your business which bring you benefits. This deck comprises of templates such as procurement strategy structure, procurement steps, procurement workflow process, procurement strategy, approach to procurement, formulating procurement strategy, creating procurement strategy, and more. Use this presentation for purchase planning, value analysis, financing, price negotiation, inventory control and stores, standards determination, etc. These procurement PowerPoint templates are completely customizable. Edit color, text, icon and font size as per your requirement. Add or remove content, if needed. Grab ready-to-use procurement PowerPoint complete presentation to go step by step process of acquiring goods and services from external suppliers. Good expression is guaranteed with our Procurement Powerpoint Presentation Slides. Communication becomes explicitly clear.
The presentation is about procurement and sourcing strategies. The process, types, importance and goals of procurement and sourcing have been discussed briefly.
Procedure for purchasing, purchasing orders, and selection of suppliersQusi Alqarqaz
The purpose of this procedure is to ensure, evaluate and select suppliers of materials on their ability to fulfill specific contract requirements, procurement, communication of adequate details of requirements to the supplier and receiving inspection and verification of purchased products.
Purchasing and procurement in Material managementKaustubh Vartak
Purchasing is a subset of procurement. Purchasing generally refers simply to buying goods or services. Purchasing often includes receiving and payment as well.
Procurement training course -introduction to procurementSheila Elliott
Business Services Support offers its introduction to procurement training course for buyers. Buyers learn how to procure goods and services effectively to maximise value for their organisation. Value is a concept that many are unclear about. Procurement adds value through better product development, increased customer satisfaction, improved net cash flow and profitability and much more. Our course materials help you understand the nitty gritty of effective purchasing and procurement skills.
it includes, research and development, example, operation strategy its kinds and functions, its kinds and functions,purchasing strategy its kinds and functions,logistics strategy its kinds and functions, , HRM strategy its kinds and functions, Creating the Business Scenario,stages.
Procedure for purchasing, purchasing orders, and selection of suppliersQusi Alqarqaz
The purpose of this procedure is to ensure, evaluate and select suppliers of materials on their ability to fulfill specific contract requirements, procurement, communication of adequate details of requirements to the supplier and receiving inspection and verification of purchased products.
Purchasing and procurement in Material managementKaustubh Vartak
Purchasing is a subset of procurement. Purchasing generally refers simply to buying goods or services. Purchasing often includes receiving and payment as well.
Procurement training course -introduction to procurementSheila Elliott
Business Services Support offers its introduction to procurement training course for buyers. Buyers learn how to procure goods and services effectively to maximise value for their organisation. Value is a concept that many are unclear about. Procurement adds value through better product development, increased customer satisfaction, improved net cash flow and profitability and much more. Our course materials help you understand the nitty gritty of effective purchasing and procurement skills.
it includes, research and development, example, operation strategy its kinds and functions, its kinds and functions,purchasing strategy its kinds and functions,logistics strategy its kinds and functions, , HRM strategy its kinds and functions, Creating the Business Scenario,stages.
Un travail effectué par Soufiane AL KHATIRI et Fadel IDBRAIM, Option "Manager de Plateformes Offshoring" sur le Sourcing et le Supplier Relationship Management (Logistique)
Présentation sur le sourcing et le supplier relationship management (Logistique) réalisée par Soufiane AL KHATIRI et Fadel IDBRAIM (Managers de Plateformes Offshoring à l'ENCG Settat)
What is Procurement Methods and Process ITFCWalter Deagle
Know what is procurement, process, and different methods to ease the procurement cycle. And tips for procurement management and know about the other terms related to the procurement.
CONTEMPORARY PROJECT MANAGEMENT, 4ETimothy J. KloppenborgVit.docxaidaclewer
CONTEMPORARY PROJECT MANAGEMENT, 4E
Timothy J. Kloppenborg
Vittal Anantatmula
Kathryn N. Wells
‹#›
Project Supply Chain Management
Chapter 13
‹#›
Chapter 13 Core Objectives:
Identify the role of supply chain management in project management and its importance for ensuring project success.
Describe how to plan, conduct, & control project procurements.
Chapter 13 Technical Objectives:
Describe the various formats for supply contracts and when each is appropriate.
Given a project situation, determine which activities, supplies, or services should be purchased; create bid documents; determine criteria you would use to select a seller; & determine which type of contract you would use.
Chapter 13 Behavioral Objectives:
Explain how to use the contemporary approach to project partnering and collaboration.
Super Absorbent Polymer Turf (SAPTURF)
“The SAPTURF project required a strong team. Successful commercialization of IP is a long shot, so room for project management error is slim. I realized I would need to compensate for lack of in-house resources. Lack of in-house resources is an advantage! I was free to look for the best resources…”
Chris Tetrault, owner and founder, SAPTURF
6
Introduction to Project Supply Chain Management
Inter-organizational purchasing-related issues supply chain management
A supply chain consists of all parties involved in fulfilling a customer request
Integrating SCM into PM can significantly enhance the effectiveness of project management
Introduction to Project Supply Chain Management
Integration of related functions to acquire needed products and services
Purchasing
Supply management
Procurement
Project Supply Chain Management
A system approach to managing flows of physical products, information, & funds from suppliers and producers, through resellers the project organization for creating customer satisfaction
SCM Components
Make-or-buy decision
Contract types
Collaboration and cooperation
System integration
Make-or-buy decisions – deciding whether to make something in-house or purchase it from a vendor
SCM Factors
The importance of SCM to general project management depends on a number of factors:
Value of outsourced products/services relative to value of the project
The timing of the work being purchased
Capability of the project team
Role of the outsourced work in the entire project
Number of suppliers required
Structure of the procurement supply chain
SCM Decisions
Distribution network configuration
Inventory control in supply chain
Logistics
Supply contracts
Distribution strategies
Supply chain integration & strategic partnering
Outsourcing & procurement strategies
Product design
Information technology & decision-support systems
Matching internal inadequacies with external experience
Project Procurement Management Processes
Plan Procurement Management
Conduct Procurements
Control Procurements
Plan Procurement Management
Plan for purchasing and acquisition
Complete most of pr.
The entire consequences, such as, loss in life and finances, a tarnished reputation,
staff turnover of committed professionals, safety incidences, fines, and so many
other areas could have been avoided if best practice in each area, along with communications
and accountability, were in place.
How important is best practice and risk management to you and your organization?
Is it worth it to cut corners?
Is it better to be proactive instead of reactive?
Project Procurement Management (PPM) includes the processes necessary to purchase or acquire products, services, or results needed from outside the project teams. It also includes the contract management and change control processes required to develop and administer contracts or purchase orders issued by authorized project team members.
Running head CONTRACT CLOSEOUT 1CONTRACT CLOSEOUT 16.docxjoellemurphey
Running head: CONTRACT CLOSEOUT 1
CONTRACT CLOSEOUT 16
Contract Closeout
Deirdre Martin
Colorado Technical University
September 8, 2015
Procurement Terms and Statement of Work
Deirdre Martin
Colorado Technical University
Professor Johnny Maddox
SCM320-1503B-01
Individual Project 3
Definition of procurement terms
Some of the most widely used procurement terms include: make or buy decisions; terms and conditions, sourcing plans; as well as requests for information, proposal and quotation. Make or buy decisions can be described as the challenges met by a firm when determining whether a product or service need to be purchased from external sources or produced internally. Some of the elements of make or buy decisions include: financial aspects, technological elements, marketing factors, purchasing elements, and strategic aspects (Martland, 2005). The financial elements can be in terms of fixed or variable costs.
A sourcing plan is a well-documented and systematic document that provides guidance to individuals responsible for implementing acquisition policies(Sollish & Semanik, 2010a).A request for proposal is an expression of need or solicitation for services and products. Request for information is a tool utilized in sourcing to assist in determining a supplier’s capacity and financial strength. Furthermore, a request for quotation is a demand for price and delivery where other terms have already been specified. Finally, terms and conditions in procurement refer to the general and specific policies, provisions, guidelines and rules that guide the procurement process (Sollish & Semanik, 2007b).
Statement of Work
A procurement statement of work, such as the one stated below, provides a description of the requirements for products or services. In most cases, statements of work are written down in comprehensive and prescriptive form, detailing not just what has to be done, but also the strategies to be employed. In addition, they indicate how regular the products or services required need to be provided. (Sollish & Semanik, 2007b) The statements may be simply provided in terms of the anticipated products or services. The table below shows a statement of work with defining quality and delivery requirements, alongside the expected schedule and costs.
Project Name:
Project Number:
Prepared by:
Date:
ERP System Project, Webb Communication Company
3454784
John Stevens
25-08-2015
Customer:
Business Unit/ Function Name:
Contact Name:
Project Type (Standard/Complex):
Webb Communication Company
IT Department
Systems Administrator, Telephone Number: 758-378-9272
Complex project involving securing of the company’s information resources
Introduction
Webb Communication and IT Company requires its information systems to be protected from unauthorized access.
Procurement Statement of Work
Procurement Summary
Webb Communications Company requires its information resources to be secured from access, use, and modification by unauthorized pa ...
Purchasing mangement - Puchasing Process - Make Or Buy Decisions - Supplier S...FaHaD .H. NooR
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Accomplish this as economically as possible, within acceptable standards of quality and service.
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Marketing Strategies of the Different companies with respect to the competition prevailing in the market and there Strengths....
Hope you will find it Helpful.
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Procurement
1. Procurement:
Procurement is the acquisition of goods, services or works from an outside external source. It is
favorable that the goods, services or works 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.
Procurement is the process of purchasing goods or services. There are many different routes by which
the design and construction of a building can be procured. The selected procurement route should
follow a strategy which fits the long-term objectives of the client's business plan. Considerations are
likely to include:
Speed.
Cost.
Quality.
Specific project constraints.
Risk.
Asset ownership.
Financing.
In the public sector:
Public sector organizations use procurement for contracts to achieve benefits such as increased
efficiency and cost savings (faster and cheaper) in government procurement and improved transparency
(to reduce corruption) in procurement services. E-procurement in the public sector has seen rapid
growth in recent years.
Procurement in the public sector is emerging internationally. Hence, initiatives have been implemented
in Singapore, UK, USA, Malaysia, Australia and European Union. Procurement projects are often part of
the country’s larger e-Government efforts to better serve its citizens and businesses in the digital
economy. For example, Singapore’s GeBIZ was implemented as one of the programmes under its e-
Government master plan.
E-procurement systems:
An e-procurement system manages tenders through a web site. This can be accessed anywhere globally
and has greatly improved the accessibility of tenders. An example is the System for Acquisition
Management (SAM), which on July 30, 2013 combined information from the former Central Contractor
Registration and Online Representations and Certifications Application (ORCA), in the United States.
2. Types of Procurement:
Single procurement
Single procurement is triggered by a specific customer order and initiates the supplier’s process of
production.
Stock procurement
Stock procurement means that goods are shipped to stock in periodically defined terms without any
specific order of a customer. The important premise is, that the demand can be forecasted. When
finishing the production process, the goods will be stocked until the next order is received from the
customer. One way of applying stock procurement by the customer is to define the minimum stock
level. If the stock level falls below this defined limit, the procurement process is initiated. This type of
procurement offers high flexibility to the customers, but the procurement costs tend to be higher.
Vendor Managed Inventory (VMI)
By using the VMI-concept the supplier is responsible for the stock at the customers company. A crucial
premise to achieve optimized processes, lower costs and high flexibility is a close network with the
supplier.
Just in time procurement
This integrated concept is based on the production system of Toyota / Japan. Toyota Just-in-Time-
System
Just in time procurement is characterized by low stock levels at the customers’ company. This leads to a
reduction of costs and to lean and balanced processes. The entrepreneurial appliance of just in time
delivery only makes sense, if the suppliers' place is in the maximum radius around 100 km to the
customers’ place. In times of global sourcing, logistic centers are therefore established in strategic areas
close to the customer.
For a successful implementation of just in time procurement it is very important to install and build up
an operating, close network. Therefore processes with the suppliers, communication, transport and
logistics as well as quality management are crucial processes. These processes need to be perfectly
coordinated.
Just in sequence procurement
This concept is based on the just in time concept. It is extended by the supply of goods in the required
sequence at a defined time. This leads to a very efficient and lean way of procurement.
Ship to line
The goods are directly delivered from the last value added process of the supplier to the first value
added process of the customer. That means that only few logistical steps are needed.
3. Direct procurement and indirect procurement
TYPES
Direct procurement Indirect procurement
Raw material and
production goods
Maintenance, repair, and
operating supplies
Capital
goods and
services
FEATURES
Quantity Large Low Low
Frequency High Relatively high Low
Value Industry specific Low High
Nature Operational Tactical Strategic
Examples
Crude oil in
petroleum industry
Lubricants, spare parts
Crude oil
storage
facilities
Procurement vs. Acquisition
The US Defense Acquisition University (DAU) defines procurement as the act of buying goods and
services for the government.
DAU defines acquisition as the conceptualization, initiation, design, development, test, contracting,
production, deployment, Logistics Support (LS), modification, and disposal of weapons and other
systems, supplies, or services (including construction) to satisfy Department of Defense needs, intended
for use in or in support of military missions.
Acquisition is therefore a much wider concept than procurement, covering the whole life cycle of
acquired systems. Multiple acquisition models exist, one of which is provided in the following section.
Acquisition process
The revised acquisition process for major systems in industry and defense is shown in the next figure.
The process is defined by a series of phases during which technology is defined and matured into viable
concepts, which are subsequently developed and readied for production, after which the systems
produced are supported in the field.
4. Model of the Acquisition Process
The process allows for a given system to enter the process at any of the development phases. For
example, a system using unproven technology would enter at the beginning stages of the process and
would proceed through a lengthy period of technology maturation, while a system based on mature and
proven technologies might enter directly into engineering development or, conceivably, even
production
Concept and Technology Development: is intended to explore alternative concepts based on
assessments of operational needs, technology readiness, risk, and affordability.
Concept and Technology Development phase begins with concept exploration. During this stage,
concept studies are undertaken to define alternative concepts and to provide information about
capability and risk that would permit an objective comparison of competing concepts.
System Development and Demonstration phase. This phase could be entered directly as a result of a
technological opportunity and urgent user need, as well as having come through concept and
technology development.
The last and longest phase is the Sustainable and Disposal phase of the program. During this phase all
necessary activities are accomplished to maintain and sustain the system in the field in the most cost-
effective manner possible.
Procurement systems
Another common procurement issue is the timing of purchases.
Procurement process
Procurement may involve bidding process known as tendering. A company or organization may require
some product or service. If the price exceeds a threshold that has been set (e.g.: government
department procurement policy: "any product or service desired whose price is over X must be put to
tender"), depending on policy or legal requirements, the purchaser is required to state what is required
and make the contract open to the bidding process. The concept of total cost also comes into play. At
times, not just price, but other factors such as reliability, quality, flexibility and timing, are considered in
the tendering process. A number of potential suppliers then submit proposals of what they will provide
and at what price. Then the purchaser will usually select the lowest bidder; however if the lowest bidder
is deemed incompetent to provide what is required despite quoting the lowest price, the purchaser will
select the lowest bidder deemed competent. In the European Union, strict rules on procurement must
be followed by public bodies, with contract value thresholds determining the processes required
(relating to advertising the contract, the actual process etc.).
Procurement steps
Procurement life cycle in modern businesses usually consists of seven steps:
5. Identification of need: This is an internal step for a company that involves understanding of the
company needs by establishing a short term strategy (three to five years) followed by defining the
technical direction and requirements.
Supplier Identification: Once the company has answered important questions like: Make-buy, multiple
vs. single suppliers, then it needs to identify who can provide the required product/service. There are
many sources to search for supplier; more popular ones being Ariba, Alibaba, other suppliers and trade
shows.
Supplier Communication: When one or more suitable suppliers have been identified, requests for
quotation, requests for proposals, requests for information or requests for tender may be advertised, or
direct contact may be made with the suppliers. References for product/service quality are consulted,
and any requirements for follow-up services including installation, maintenance, and warranty are
investigated. Samples of the P/S being considered may be examined or trials undertaken.
Negotiation: Negotiations are undertaken, and price, availability, and customization possibilities are
established. Delivery schedules are negotiated, and a contract to acquire the P/S is completed.
Supplier Liaison: During this phase, the company evaluates the performance of the P/S and any
accompanying service support, as they are consumed. Supplier scorecard is a popular tool for this
purpose. When the P/S has been consumed or disposed of, the contract expires, or the product or
service is to be re-ordered, company experience with the P/S is reviewed. If the P/S is to be re-ordered,
the company determines whether to consider other suppliers or to continue with the same supplier.
Logistics Management: Supplier preparation, expediting, shipment, delivery, and payment for the P/S
are completed, based on contract terms. Installation and training may also be included.
Additional Step - Tender Notification: Some institutions choose to use a notification service in order to
raise the competition for the chosen opportunity. These systems can either be direct from their e-
tendering software, or as a re-packaged notification from an external notification company.
Procurement performance
In July 2011, Ardent Partners published a research report that presented a comprehensive, industry-
wide view into what is happening in the world of procurement today by drawing on the experience,
performance, and perspective of nearly 250 Chief Procurement Officers and other procurement
executives. The report includes the main procurement performance and operational benchmarks that
procurement leaders use to gauge the success of their organizations. This report found that the average
procurement department manages 60.6% of total enterprise spend. This measure commonly called
"spend under management" refers to the percentage of total enterprise spend (which includes all direct,
indirect, and services spend) that a procurement organization manages or influences. The average
procurement department also achieved an annual savings of 6.7% in the last reporting cycle; sourced
52.6% of its addressable spend, and has a contract compliance rate of 62.6%.
6. Public procurement
Government procurement
Public procurement generally is an important sector of the economy. In Europe, public procurement
accounts for 16.3% of the Community GDP.
Green public procurement
In Green public procurement (GPP), contracting authorities and entities take environmental issues into
account when tendering for goods or services. The goal is to reduce the impact of the procurement on
human health and the environment.
In the European Union, the Commission has adopted its Communication on public procurement for a
better environment, where proposes a political target of 50% Green public procurement to be reached
by the Member States by the year 2010.
Alternative procurement procedures
There are several alternatives to tendering which are available in formal procurement. One system
which has gained increasing momentum in the construction industry and among developing economies
is the Selection in planning process which enables project developers and equipment purchasers to
make significant changes to their requirements with relative ease. The SIP process also enables vendors
and contractors to respond with greater accuracy and competitiveness as a result of the generally longer
lead times they are afforded.
Procurement frauds
Procurement fraud can be defined as dishonestly obtaining an advantage, avoiding an obligation or
causing a loss to public property or various means during procurement process by public servants,
contractors or any other person involved in the procurement. An example is the kickback, whereby a
dishonest agent of the supplier pays a dishonest agent of the purchaser to select the supplier's bid,
often at an inflated price.