Procurement Specifications:
The procurement process usually requires crucial planning based on the complexity and size of the specific procurement. The process involves generating and reviewing requirements and specifications for procurement. Generating and reviewing these requirements and specifications is geared towards ensuring effective planning. The most appropriate process for generating and reviewing procurement specifications would include defining the outcome, defining specifications, identifying risks, researching the procurement market, and preparing a business case (“Guidance on the Mandatory Procurement Procedures”, 2005).
Defining the outcome is the first important step in generating and reviewing procurement requirements and specifications because it provides clear and precise description of what needs to be satisfied by the procurement and how it will be satisfied. The description of the outcome in turn helps in identifying the required product or service, the necessary quantities, and the delivery of the product or service. This is followed by defining specifi...
Burt, D., Petcavage, S., & Pinkerton, R. (2010). Purchasing descriptions and specifications. In Supply management (p. 129). New York, NY: McGraw-Hill/Irwin.
...hing that was not ever the easiest type of contract to navigate but over the years the requirements have continued to get more complicated and require a lot of additional effort on the contract and the contracting officer. A contracting officer does not just accept the data supplied by the supplier as acceptable. A contract officer will have to perform due diligence and verify the information submitted. This means that the contracting officer will have to verify the material costs, the labor costs, the travel costs, and any of the data supplied.
Obtain Phase: Obtains the capability through procurement or systems design and development activities; and evaluates, tests, and verifies that the capability satisfies requirements.
Target’s main focus is to develop and deliver products as well as service that exceeds its consumers’ expectations. The company offer’s real cost saving and decreased operating cost, allowing them to make the processes easy and increasing the abilities in procurement to free up resources so they can focus on making along with maintaining competitiveness on advantage. The use of EDI software within Target makes procurement simplified and requires all suppliers to use EDI for procurement process.
Procurement – providing national coverage, but local expertise, local market knowledge, local relationships, and local resources as much as possible (Zuckerman & Reavis, 2014).
The optimal management of procurement activity requires the minimization of not only direct and obvious costs such as unit costs but also related but less tangible costs. The primary costs related to procurement are composed of: unit cost, inventory holding cost (storage and handling costs), finance costs (corporate capital charge) and order cost (quote and PO placement cost). This procurement optimization process and the resulting quantity are commonly referred to as “Economic Order Quantity” analysis. The primary focus of this paper is to outline potential approaches to optimizing AAR’s procurement processes through Economic Order Quantity analysis.
...e steps that are required to be addressed while coming to deal with vendors. The Proposed idea, looks satisfactory in meeting the outcomes. One thing that should be ensured is that they should incorporate the clauses pertaining to risk in the plan.
Explain the importance of defining the objectives, scope and success criteria of the decisions to be taken
This paper examines the legal aspects of procurement management and specifically how procurement management can be used as an effective tool for the overall management of a project. This paper focuses on the basics of common contract laws, the basics of agency law, the Uniform Commercial Code (UCC), and some aspects of that pertain to the Federal Acquisition Regulations (FAR). A summation of the company’s position in relation to a given supplier (provided the company decides not to procure all of the material in a contract) will be examined along with how that position is strengthened by understanding the legal aspects of procurement management. Finally, the paper will analyze how the project manager is supported by the contracting management function.
Of course the coordination and integration of the total flow is rather critical for many organizations. As the days are passing on, the demand of Supply Chain training is increasing day by day.
Public procurement in organizations previously was treated as a low level operational function that only achieved minor contributions to cooperate performance (Ammer, 1974). However in recent times competitiveness and importance of public procurement to organization’s success has led to the shift of procurement being operational to tactical (Gonza´les-Benito, 2007; Narasimhan and Das, 2001; Kraljic, 1983). The drive to improve the effectiveness of public procurement from the traditional procurement approach lead to the introduction of E-procurement, which has been adopted by some countries worldwide whiles other countries are in the process of
This system connects, accumulates, processesas well as provides imperative information to all parties thus enhancing continuity in the procurement process. However, if valid output is to be expected, features as well as requirements of the procurement process must be compatible to current system technologies (Giner, et al, 2011). The harmonization of suppliers as enhanced through the adoption of electronic sourcing enables firms to readily identify new potential suppliers for specific needs when old suppliers` capabilities are in question. The adoption of E-tendering that supports sending requests of pricesand information to suppliers as well as receiving suppliers responses improves on procurement efficiencies as it leads to significant cost reductions thus leading to better procurement performance through cost savings.For this system to achieve desired results however,all users must beready and willing to adopt the new systemsso enable seamless adoption and consequently ensure optimal
Procurement Logistics: This consists of activities such as market research, requirements planning, make or buy decisions,
Among the issues of concern to the procurement officer which are being addressed in this study are; the level of accountability, the adherence to professionalism and ethics and the adoption and use of ICT technologies in the organization. There is a direct influence on the profits because procurement stands for such a large part of the company’s costs. There is also an indirect influence on the performance due to the large part of the internal costs affecting what happens in the interface between the company and its suppliers (Gadde and Hakansson,
In general, there are different types of procurement type for various situations due to no one method can be suitable under the all different construction project. In this case, there are four procurement paths, which are traditional, design and build, management and design and manage, will be advised to use. However, each method has different aspects of advantages and disadvantages.