It argues that organisations should develop strategically aligned supply. Public procurement practice strategic procurement planning. Definition strategic planning is the process of creating alignment and. Reference section event name event due date section 1. 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 most suitable procurement. Procurement planning processes economy and efficiency in procurement planning asset disposal planning 2. The complexity, risk, and value of the project and its procurement contracts will drive the level of research and analysis undertaken to ensure the procurement approaches are proportional and strategic procurement planning asian development bank. Strategic sourcing strategic sourcing overview carol conner, business process manager denny feldman, manager, strategic sourcing strategic sourcing what is strategic sourcing. The right choices in the procurement strategy and plan will.
Our objectives sourcing strategies based on a thorough understanding of our clients priorities, needs and objectives enhanced contract management practices to ensure we maximise procurement. External internal assembling gym equipment at the gimpack plant in mexico city. Adopting a structured approach to procurement planning results in. 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. A strategic procurement plan can be used for most procurements as a guiding document and can acts as a business caseimplementation plan. Corporate procurement and supply services will support the clt strategic focus areas through the. Strategic plan for defense wide procurement capabilities. Strategic procurement plan 3 example council is committed to the procurement of what is being procured through where has council received the funding from this procurement, i. Strategic procurement planning office of the auditor. Chapter 11 it procurement planning and strategic sourcing v6. It is particularly relevant in light of globalisation on the sales side it. The implementation links strategic planning with operational planning and financial planning and management.
Strategic procurement planning new zealand government. This act helped shape the next decade for public purchasers, as it placed them in a position to handle large, complex projects using new and valueadded techniques. 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. Procurement should then develop a strategic plan that aligns goals and objectives in accordance with the mission, vision and values, while fulfilling the obligation to meet the needs of the organization and the public. Strategic procurement planning an introduction presented by. For agencies, strategic procurement happens at two levels. A strategic sourcing plan requires procurement to assess and manage the change so that the benefits of the procurement strategy are realized. Procurement strategies for infrastructure projects dr ron watermeyer deng w itwatersrand, fsaice, fistructe, fice, fsaae. The purpose of this corporate procurement strategy is to assist nifrs in delivering its overall strategic goals and objectives and defines the role of procurement in ensuring that procurement planning reflects nifrs corporate objectives. The benefits identified in the strategy are delivered in full and on time. This involves data gathering around the operating environment, supply markets, and key risks. Developing the strategic sourcing strategy is a fundamental part of the purchasing and supply management process. Public procurement practice strategic procurement planning standard public procurement should understand its purpose in relation to the organization and constituency that it serves. The plan sets out targets for delivery over the next three years.
This lesson will explain the four types of planning used by managers, including strategic, tactical, operational and contingency planning. Targets clear alignment of the procurement strategic intent with the university vision, mission and strategic. Strategic procurement incorporates actions aimed at reducing the supplier base, negotiations, communication and maintaining longterm relationships with suppliers ryals and rogers, 2006. The procurement office is seeking planning information with which to commence this process. It helps to decide what to buy, when and from what sources. Developing and implementing a strategic sourcing strategy. Activities such as best value purchasing, direct supplier negotiation, and strategic planning. A guide to the development of procurement strategies for the. The note enables borrowers to take a flexible approach to developing a procurement strategy and procurement plan. We will commit to support the delivery of the university of glasgow strategic plan 2015 2020. We will maintain and enhance the procurement policy. Terms, such as singleuse plans, continuing plans, policy.
This chapter discusses information technology it procurement planning, which include efforts by all personnel responsible for significant aspects of an it project to ensure that they are coordinated and integrated in a comprehensive manner. Effective and strategic procurement planning helps ensure that fitforpurpose procurement approaches are developed to achieve value for money and the projects development objectives. Strategic sourcing is a logical process involving the application of tools by skilled, competent and knowledgeable people. Here are the 7 steps that lead to a successful procurement process. Through procurement planning and strategic execution, companies can be more aware of the factors and elements that are necessary to be considered before buying materials andor items or selecting the source to whom the needs of the company. Procurement planning can prepare agencies for negotiating mutually collaborative agreements with it suppliers. Strategic planning is the process of creating alignment and consistency of action that results in. Change will take place successfully and in accordance with a realistic time plan. A practical guide for procurement planning and management of.
Strategic sourcing is organized since some type of methodology or process is needed. Managing funding arrangements with external parties, we discuss the need for a public entity to take a strategic approach to managing public funds. Procurement strategy and action plan 2016 2020 foreword by david reeves, director of finance this strategy has been designed to ensure legislative compliance with the procurement reform scotland act 20141 and other relevant legislation and is aligned with the universitys key strategic aims as detailed in strategic plan. It can have a profound impact on a companys financials and can strongly influence the purchasing and procurement processes. In recognition of the unique procurement needs of the federal government, and defense department, dod is pursuing a mixed. Implementing a new strategy is usually a balance of science building a plan and art designing the rollout. Strategic procurement planning importance of procurement planning procurement planning and budgeting market survey lead times budgetary considerations in the planning process 3. Strategic procurement plan local government victoria. Make sure that you will set all the strategic planning process expectations involving procurement. The purpose of a project procurement management plan is to successfully establish and maintain relationships with vendors of goods and services during the. Strategic procurement in construction this book explores the appropriateness of procurement strategies in certain situations. Strategic sourcing is a procurement process that continuously improves and reevaluates the purchasing activities of an organization. The 7 steps of a strategic procurement process trade ready. Define and assign roles and responsibilities for the duration of the 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. Strategic procurement practices and procurement performance. Develop procurement plan methodology and framewor k. Strategic procurement practices for the industrial supply chain article in journal of construction engineering and management 1407 march 2014 with 2,238 reads how we measure reads. Undps 20152017 procurement strategy represents a meaningful commitment to undps mission of helping countries achieve the simultaneous eradication of poverty and significant reduction of inequalities and exclusion, as articulated in its strategic plan.
Pdf increasingly, procurement management is becoming a strategic priority of firms for their sustainable competitive advantage in turbulent times. Strategic procurement planning asian development bank. Five steps to building a successful procurement strategy. A strategic procurement plan is extremely beneficial when there are a number of parties involved in the procurement. The team will then use the data from the strategic procurement process to develop and implement a strategic procurement plan. Effects of strategic procurement planning on utilization of. Procurement planning is the process of deciding what to buy, when and from what source. Follow these tips for successful procurement strategy planning. This uses the data gathered to develop and screen potential strategic procurement. Pdf guide to a strategic procurement planning approach on.
This guidance note aims to assist borrowers including grant recipients in developing a procurement strategy and procurement plan for projects financed in whole. The training will enable programme staff to understand the importance of key procurement stages such as planning, sourcing and contracting as well as risk management and monitoring. Strategic procurement practices for the industrial supply. Strategic procurement from a sector wide standpoint has many benefits for caudit members. The strategic procurement planning approach described in this note follows three main steps. The strategy presents a planned approach to procurement. Achieving strategic procurement outcomes involves setting strategic priorities and direction. A practical guide for procurement planning and management of strategic public health supplies. The need for a shared understanding of the procurement process an effective procurement strategy should be based upon a shared understanding of the role and purpose for the procurement process. This team sets the overall direction for procurement, aligned with the business strategy. Organizations should set up a strategic procurement team.
Cost reduction a reduction in the cost to do business. This uses the data gathered to develop and screen potential strategic procurement options for their suitability, acceptability, and. Mastering procurement a structured approach to strategic. Be objective when assessing your current state incorporate input from stakeholders, suppliers, and external providers. For purposes of this paper, strategic sourcing will be defined as the.
Economy and efficiency in procurement planning asset disposal planning 2. This strategic plan articulates requirements for defense wide procurement capabilities to use established data standards, enterprise services, internal controls, and business intelligence. Corporate procurement and supply services business plan. Chapter 11 it procurement planning and strategic sourcing. It argues that organisations should develop strategically aligned supply chains to deliver predictable and sustained performance improvements and asserts that the assumption that one approach is appropriate to manage all. However, strategic sourcing can go well beyond cutting costs. Adopting a structured approach to procurement planning.
During the procurement planning process the procurement method is assigned and the expectations for fulfillment of procurement requirements determined. Procurement reform act and the pubic contracts scotland regulations 20154 and the key strategic and operational requirements therein. Developing a strategic plan that articulates clearly the various initiatives. Pdf strategic procurement management lecture notes by. Developing procurement plans principles of procurement planning. Chapter 11 it procurement planning and strategic sourcing vita. The objective of the proposed paper is to present a guide to a strategic procurement planning for the manufacturing industry on regulated commodity markets. Strategic planning services for university of maine at farmington. A procurement management plan must provide procurement strategies that will allow the business to maximize its benefits in the processes of procurement. Introduction module 5 covers the first step in the procurement process phase of reproductive health rh supply element 5 of 10.
County development funds at uasin gishu county government. These agreements should reflect the best agreements in the marketplace. The procurement strategy plan the procurement team will create must be aligned and related to these goals so that the implementation of the strategy plan can positively affect and impact the business operations. Procurement will need the support and involvement of all of. Its difficult for a procurement strategy to be considered effective unless it brings about change that improves the organizations overall performance.
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