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Summary Procurement process part 1
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Procurement process (part 1)
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International sales & procurementProcurement process (part 1)
Specification phase
Identify needs: needs => requirements
- Assess/list the needs or requirements
- Collect the list of needs from the user departments
- Research the local market for the prices and availability of goods
- Determine quantities and estimated costs
- Determine when the requirements shall be ready for use
- Consolidate similar requirements
- Identify appropriate procurement methods and processes
Exercise: clarify the needs .. (see slides)
- A need for transport
- A need for BP/KPI software
WWWWW: why, what, where, who, when?
Does this means procurment is expert in everything?
Question is: how much budget to spend?
Identify stakeholders & compose DMU
- individuals or groups who depend on the organization to fulfil their own goals and on whom
the organization depends.
- are affected by the organization's activities in different ways and to different degrees.
Stakeholders also have power to affect the organisation's activities in different ways and to
different degrees.
- Can be Internal or external
What is stakeholder management?
the need to take stakeholders into account when formulating and communicating plans.
Once key stakeholders have been identified, it is possible to plan a stakeholder management
strategy/plan for each. …. but first do a Stakeholder analysis
Stakeholders have the ability to influence ..
- Reliability
- Quality
- Cost and Pricing Decisions
- Potential for Innovation
- Control of Strategic Resources
,Stakeholder relationship management can be relevant for ..
- Gathering information about groups and their interests
- Prioritizing groups which have most potential impact
- Establishing opportunities for co-operation and synergy
- Continuously monitoring, evaluating and adjusting the relationship over time
Internal External
Members of the organization: include a number of parties who are not
- The directors directly connected to the organisation, but
- Managers who contribute to its activities, or are
- Employees who operate witin the impacted on by its activities.
organisation’s boundaries
Include:
Key internal stakeholders: - the government
- Senior management - pressure and interests groups
- Procurement managers - the media
- Managers - local communities
- Staff of other functions or units of the - wider society…
organisation whose work and goals
interact with those of the
procurement or supply chain function.
Stakeholder analysis
Why Stakeholder analysis => Different Action Plan per group
Mendelow’s Matrix : valid for every kind of stakeholder analysis
Transformation project in Company
Replacement of new machine
Move to new Building
…
Exercise :
Our company has still an old in-house developped
Warehouse Mgt software system (maintain by an
internal IT person)
The plan is to buy a new modern software.
Stakeholder analysis !
, Stakeholders => DMU (decision making unit)
What ?
- team of individuals who participate in a buyer decision process.
- relates to business or organizational buying decisions.
Why ?
- Minimalise the risk by involving as many people as possible in the
decision making process.
Who ?
- Typical Roles (see scheme)
Case : Our company will replace the current company cars by E-Cars in the coming year.
=> Compose you DMU
Prepare procurement process & planning
The procurement process: 6 phases
Selection
- Define sourcing strategy (single/multiple suppliers?, fixed price
or not?,..)
- Supplier long list + RFI
- Supplier short list + RFP / RFQ
- (Final) selection of supplier (incl negotiation)
- Contracting
Sourcing strategy
- # Suppliers ?
Single vs. Multiple suppliers ?
- Type of contract
Fixed Price
Time & Material
- Pro & Cons ?
- Typical cases/industries for Fixed Price vs. Time & Material
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