Process of Procurement

1. 0 Introduction

Procurement is an take action obtaining or buying any service and goods. This technique start from preparation and processing of a demand as well as the end receipt and approval of payment. Its including purchase planning, dealer research and selection, value analysis, price negotiation, making the purchase,

In the introduction, relating to my job our company start the new job which is the self-checkout system the machines of self-checkout which we have to obtain the international. So we have to decide where the machines are good to buy. (procurement, n. d)

2. 0 Procurement Management Approach

In the Procurement management strategy, incremental, and phased approach to management, including task activities there are a number of approaches.

The methodology employed, despite careful consideration of the overall project goals, time, and cost, as well as the tasks and responsibilities of most individuals and stakeholders.

In this project the project management procedure is first we saw the suppliers of the self-checkout service than we method of the all the suppliers and demand him to send us his proposals. After studying the all proposal start to see the additional features and warranties and guaranties of all the products. Aswell as discuss with the management chosen the which the offer the installation cheap and faster than the others. The suppliers are from the Korea and china.

3. 0 Kind of Contract to be Used

The reason for contract to be utilized is in terms of agreements and purchasing division can check out be used is referred to. Under company fixed-price deal for the task will be wanted to all goods and services procured. The job team caused the Department of deals and purchasing of items, volume, and services must define the required delivery times.

In this project, we choose the fixed price deal and processing office work with the this deal. As per agreement the supplier trust our terms and conditions like delivery time volumes, the grade of the product must be good, and set up the product promptly not delay bi weekly after arriving the merchandise.

4. 0 Procurement Risks

Procurement risk is the prospect of failures of your procurement process designed to purchase services, products or resources. Common types of procurement risk include fraud, cost, quality and delivery risks. Oftentimes, procurement dangers are also compliance risks as purchasing techniques are typically administration by anti-corruption laws.

All procurement activities bring some potential for risk which must be managed to ensure task success. In our project, all hazards will be managed in accordance with the project's risk management plan, there are particular risks that happen to be may be arise in the which pertain specifically to procurement which must be considered:

  • Unrealistic plan and cost anticipations for supplier
  • The capacity of the Creation of supplier
  • the current contracts and distributor relationships
  • delays in transport and effects on cost and timetable to install the products.
  • Questionable earlier performance for supplier
  • Potential that last product does not meet required specifications

5. 0 Procurement risk management

Risk management should form a fundamental element of good purchasing and supply practice (CIPS: Risk Management in Purchasing and Supply Management). It is essential to handle the 'right' hazards and use the 'right' strategies. Thus, organizations should comprehend the resources and motorists of risk before devising risk mitigation strategies which might require adding capacity, increasing inventories, having redundant suppliers, increasing responsiveness, increasing versatility, aggregating or pooling demand, increasing functionality, or having more customer accounts Additionally, source risk management activities can involve process improvement, buffer strategies, forming proper alliances and developing suppliers (Procurement, 2017)

In our task the all hazards are already recognized and before selecting the company check the all history and the feedback from the current customers of the provider as well as the back up plan we also contact with the one other supplier. Moreover, the shipment of the products in the contract we calculate the utmost days which take to the sipping and arrive in the stores if the dealer not supply in the given time the deal may be cancel or dealer hold the strong and genuine reason of hold off.

6. 0 Procurement Constraints

A constraint, in project management, is any restriction that defines a project's limits; the scope, for example, is the limit of the actual project is likely to accomplish.

The three most crucial task constraints -- timetable, cost and opportunity -- are sometimes known as the triple constraint or the project management triangle. A project's scope involves the specific goals, deliverables and duties define the restrictions of the job. The agenda specifies the timeline according to which those components will be provided, including the final deadline for conclusion. Cost consists of the financial limitation of resources insight to the task and also the overall limit for the total amount that can be spent.

Project constraints are also considered to be relatively mutually exclusive. In the task management triangle, it is assumed that making a big change to one constraint will have an impact on one or both of others. For example, increasing the scope of the task is likely to require more time and money.

That the truth is also indicated as the pick two rule, which sustains that for any given group of three desired features or objectives -- such as "good, fast and cheap" -- it is likely that only two can coexist: A given product might be provided quickly and inexpensively, for example, but the quality are affected. (Rouse, 2015)

In our job the major constraints like cost, scope, schedule, resources, technology are discovered we have the our big warehouse to store the machines over there prior to the assembly as well as this is a huge corporation so we already go the budget of the job by the table of director.

7. 0 Decision Criteria

The reason for this section is to identify the criteria utilized by the agreement review board to decide on what contract to award. Again, these requirements may vary between organizations but must be thought as part of the Procurement Management Plan. The steps are pursuing:

The strength of the supplier to provide all items on the delivery night out, Quality, Cost, expected delivery particular date, Past performance of the provider get the responses from the current customers.

After Analysis of the all proposals of the suppliers send the good proposal to the board of director after dialogue decide the nice proposal which complete the all requirements as I already make clear above.

8. 0 Merchant Management

Vendor Management's principal remit to ensure that the third-party merchant romantic relationships are successful and the risk is reduced. In large IT outsourcing, responsibility management drives the agenda of the regular monthly deliverables rule. Strategic focus, overall merchant and is focused on mutual relationships, all the consideration / seller management plan later. The plan would be like a purchase plan category. Supplier management professionals perform their contract relative to its strategic sellers to lead advancement in their connections using their business customers and provide thought leadership, regulations, and working within the requirements established by the company, and everything the security, compliance, business continuity, and industry guidelines are followed to safeguard the hobbies of the company. The wave of outsourcing bargains within the last ages and large associated with leading, merchant management and contract negotiations expertise RFX activities which concentrate on these skills to control multi-year contracts versus traditional procurement offer makers went to the sought.

So, both groups "to safeguard the hobbies of the business" and are working with the goal of reducing the risk, why there is a disconnect between these same business functions? I believe the problem stems from execution. Purchasing pros often believe that vendor management specialists focused and concerned about the day-to-day relationships with the exterior distributors are negotiating. Seller Management professionals believe procurement experts only worried about chasing the next dollar personal savings and savings going to targets in the partnership are willing to sacrifice. In my experience, this business unit is dependant on engagement, business goals and risk vendor without the involvement of the inner politics by being in a position to deliver inherited sponsors. All these factors will determine the engagement culture and patterns. (Carrideo, 2015)

In this job the purchasing division always in touch with owner and check the quality and performance of the product and do the quality check of the machines by appealing the own technicians. Supply the feedback to the distributor and present the feedback to enhance the quality and send the product quality report to owner. When the consignment not seriously the time than discuss in the assembly and take the steps to product do not wait in the future. Aswell as also connect owner by telecommunication in the meeting.


Carrideo, A. (2015, october 22). vendor-management-procurement. Retrieved from. linkedin. com: https://www. linkedin. com/pulse/vendor-management-procurement-whats-difference-agostino-carrideo

procurement. (n. d. ). Retrieved Mar 04, 2017, from www. businessdictionary. com: http://www. businessdictionary. com/definition/procurement. html

Procurement. (2017, march 4). Retrieved from www. cips. org: https://www. cips. org/Documents/Knowledge/Procurement-Topics-and-Skills/3-Risk-Mitigation/Risk-Analysis-and-Management/Risk_Management_in_Purchasing_and_Supply_Management. pdf

Rouse, M. (2015, march). project-constraint. Retrieved from /whatis. techtarget. com: http://whatis. techtarget. com/definition/constraint-project-constraint

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