Pdf strategic procurement management lecture notes by. Mastering procurement a structured approach to strategic. Procurement strategy defines a plan for optimizing external spend, procurement operations and other value contributions in a manner that supports the overall corporate agenda without a comprehensive procurement strategy in place, its impossible to know whether or not your procurement organization is aligned with the corporate. Daft can formulate and implement strategies that can ignite growth and revive the troubled company. Some of the leading minds are set to come together at the world procurement congress to talk successful category management. How do you manage your relationship with your supplier. This is of course still a fundamental aspect of strategic sourcing but this practice. A practical guide for procurement planning and management of strategic public health supplies 7 preface access to medicines and strategic public health supplies is a global priority which has assumed a central position in national health agendas in the region of the americas. These perceptions are also variable between institutions. A library of procurement tools, templates and guides, starting with resources for schemes and contracts. Procurement strategy university of gloucestershire. Each agency should develop an understanding of the importance of procurement to achieving its overall public policy outcomes and. Project procurement strategy for development ppsd ppsd. Develop a local procurement strategy tactics include.
Clearly understand corporate procurement strategy development options manage tools and methods to implement strategies in business units align procurement systems, processes and functions with the procurement spend and risk profile of the organisation. Checklist 2 is specific to the procurement of bus public transport units. Who will develop a simplified procedure to manage lowvalue purchases. Engage effectively with centres of expertise, scottish government and apuc in relation to issues of. Notification of decision, 10 days grace time and signing of agreements contracting party to prepare the tender documents. Insufficient consideration at project inception of the procurement strategy has led to the adoption. Based on the information gathered in the first three steps, an organization can develop a. For procurement activities, this often involves developing an overarching procurement strategy. This document sets out the councils strategy for the development and implementation of e procurement across its five business groups. Strategic sourcing strategy cips has formulated positions on strategic sourcing as this is a key activity for purchasing and supply management professionals.
Case studies of each enterprises experience, including business challenges, strategies. Procurement strategy develop a strategy for procurement in 9 steps. A procurement plan describes the process used to approach the market, evaluate bids and identify the recommended supplier. Before you can develop an effective procurement strategy, it is important for you to first sit down and assess the details that you have to work with, such as the projects objectives, the available and existing resources and supplies at your disposal, and the budget and project timeline.
Create and embed optimum procurement strategies across the university in consultation with stakeholders. Table 1 lists in alphabetical order the enterprises we recognized as demonstrating best practices in e procurement and the supporting solutions they used to achieve results. Japans fuji photo film company developed a strategy of being a lowcost provider to compete with. Before selecting the procurement strategy for a government building project, whether at a strategic or detailed level, it is necessary to first identify the factors which will determine the. Contract management is one of these areas and we intend to develop tools which will assist our staff with managing suppliers once contracts have been awarded. The purpose should be clearly stated, in written format, through the development of a mission, vision, and values statement that is specific to the procurement. Development of a procurement strategy and making the aquisition and purchasing choice by derek hendrikz. An effective procurement strategy should be based upon a shared understanding of the role and purpose for the procurement process. This strategy serves as a compass to guide the organization and should be updated at least annually to ensure ongoing alignment with the overall corporate strategy. Developing a construction procurement strategy pgguidance 2012. Eckerson is an industry analyst, consultant, and educator who has served the dw and bi community since 1995. Develop, promote and implement appropriate procurement strategy, category procurement strategies and. Procurement strategy in construction projects by swee im tan abstract construction projects contribute a significant percentage to the gross domestic product of most nations. Sending tender documents, receipt and examination of 5.
Developing a successful category management strategy. How to build a sourcing strategy pushed by tactical problems, pulled by strategic trends, overwhelmed by sourcing complexity, many enterprises are struggling with their sourcing strategies. Engage effectively with centres of expertise, scottish government and apuc in relation to issues of policy, practice, information sharing and collaboration. For free, you can download these procurement strategy reports, prepared as pdf guides, analysis reports, and even case studies. E procurement will enable the council to improve its routine purchasing function and deliver better services to customers. Performance management strategies about the author wayne eckerson is the director of tdwi research at the data warehousing institute. You cant help but learn how to be a wiser business person with these resources. Developing and implementing a strategic sourcing strategy. This document helps in ensuring the efficiency of using resources and acquiring new items that can benefit the business and its operations in the best way possible.
A procurement strategy plan is one of the most important documents or plan examples that your business should have. We employ a series of local procurement strategies based on the demands of our operations, these. Committee of the executive board that the procurement strategy will focus on. It is particularly relevant in light of globalisation on the sales side it. At the end of the market research stage, beneficiaries should develop a range of procurement. Appendix a procurement strategy checklist overview this appendix contains checklists to assist approved organisations to develop a procurement strateg y. Watermeyer bsceng, deng, ceng, preng, prcm, prpcm, fsaice, fistructe, fice. Pdf developing a construction procurement strategy. Procurement strategy development procurement academy. Procurement strategy develop a strategy for procurement. Where there is no prior business case you should consider using the combined business case procurement plan template instead. Yet it is an industry mired in uncertainty of outcome. Pdf procurement strategies in multilayered supply chains.
The right choices in the procurement strategy and plan will. The latter enables any department or entity to prescribe localisation requirements in public tenders with the support of nt and dti. This practice note outlines a a methodology to develop construction procurement. Strategic procurement management is the process of planning, implementing, evaluating, and controlling strategic and operating purchasing decisions for directing all activities of the purchasing function toward opportunities consistent with the. Pdf in the past few decades, the strong competition and globalisation manifest in world markets have led companies to develop international. Strategic procurement incorporates actions aimed at reducing the supplier base, negotiations, communication and maintaining longterm relationships with suppliers ryals and rogers, 2006.
These details will include the business or projects objectives, the available and existing resources and supplies, the budget and the timeline. Supplier relationship management srm is first and foremost an approach used for engaging with suppliers on a level that reflects the priorities of the customer organisation and how best these needs can be achieved. A framework for developing construction procurement strategy r. The term procurement strategy refers to a longterm plan to costeffectively acquire the necessary supplies from a list of efficient vendors who will deliver quality goods on time, abiding by the purchasing terms. If you are seasoned procurement professional it is very likely that you would know the answer of this question and may talk for hours, if there is no time limit. Procurement strategy and contract selection capital works management framework guideline 6. Remedies for non compliance on the conditions of the contract. Announcement and invitation to participate tenders 3. Corporate strategic planning is a continuous and crucial activity. Frequently there are different perceptions of this at principal, senior management, enduser, and supplier levels. Checklist list 1 is a generic checklist that can be used for most procurement strategy development. Definition of e procurement e procurement in the context of the strategy is the.
A framework for developing construction procurement strategy. A practical guide for procurement planning and management. The 7 steps of a strategic procurement process trade ready. Develop and build skills in your team to support new procurement roles. Five steps to building a successful procurement strategy. Agencies are encouraged to take a strategic approach to managing public funds. This strategic analysis report provides a framework to assess and develop a sourcing strategy. A construction procurement strategy can be developed for a single project, a programme of projects or a portfolio of projects to identify the best way of achieving objectives and value for money, whilst taking into account risks and constraints.
Guidelines, modules, reference materials and other supporting documents. Traditionally, sourcing was considered to be the identification of new or potential suppliers. To develop an effective procurement strategy or sourcing strategy, first it is necessary to sit down to assess the details that you have to work with. A procurement strategy is one of the most important tools that a procurement organization has to maximize its value contribution to the company. Among his numerous published works, eckerson is author of the bestselling book performance. Who procurement strategy world health organization. A guide to the development of procurement strategies for.
This template is designed to be used in conjunction with a business case. A model of interrelated decisions article pdf available in supply chain forum 71 january 2006 with 17,774 reads how we measure reads. Public procurement practice strategic procurement planning standard public procurement should understand its purpose in relation to the organization and constituency that it serves. Typically, a procurement strategy depends on a number of factors like purchase timeline. This article briefly talks about procurement strategy development which could be a good start to gather your thoughts. Project procurement strategy for developmentdevelopment.