The document discusses procurement management and outlines the procurement cycle which begins with identifying a need and developing a business case, then defining an approach, evaluating suppliers, awarding a contract, and managing the contract. It notes critical success factors include not taking a mechanistic approach, using good judgement and transparency, recognizing procurement as a profession, and considering risk profiles. It provides advice to future operations managers to involve experts in strategic procurement and aggregate routine procurements. Finally, it discusses the importance of ethical procurement behavior especially with public money.

1. Procurement
Management
October 28, 2013
PIYUSH GARG
MAIT
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2. WHAT IS PMS?
A solution to conduct centralized purchase based
on the demands and approvals.
PIYUSH GARG
MAIT
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3. Procurement Cycle
A process that begins with establishing a justifiable
need, through development of business case,
competition, awarding and managing the contract
and preparing for what will happen when the
contract expires.
PIYUSH GARG
MAIT
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4. Identify
need
Develop
business
case
Benefits
evaluation
Manage
contract
Define
approach
Award
contract
Supplier
appraisal
Tender
evaluation
PIYUSH GARG
MAIT
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5. Critical success factors
 Do not apply it in a mechanistic manner
 Good judgement, ethics and transparency is
important.
 Should be recognised as a profession
 Risk profile should be considered.
PIYUSH GARG
MAIT
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6. Risk Value Matrix
PIYUSH GARG
MAIT
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7. Understanding value bands
PIYUSH GARG
MAIT
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8. Advice to future operations
managers
• No decision about me without me
• No strategic procurement without expert
advice
• Routine procurements should be aggregated
• Ethical procurer will attract ethical suppliers
PIYUSH GARG
MAIT
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9. Ethical procurement behaviour
Ethics are rules of conduct which ensures
that organisations are trusted and respected
by those with whom they deal.
Its of particular importance when public
money is involved.
PIYUSH GARG
MAIT
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10. Issues of ethical procurement
•
•
•
•
•
Disclosure of interest
Gifts and hospitality
Confidentiality
Fair competition
Professionalism
PIYUSH GARG
MAIT
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11. RESPONSIBILITIES OF
MANAGERS
 Set examples by acting in a fair and ethical
manner
 Present an open and approachable image
 Ensuring that guidelines are understood
 No conflicting roles among officers
 Periodic rotation of staff posts
PIYUSH GARG
MAIT
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12. Do you have any doubts
PIYUSH GARG
MAIT
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13. PIYUSH GARG
MAIT
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