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OBJECTIVE 2: Manage The Procurement Process and The Supply Base Efficiently and Effectively

The document outlines four key objectives for managing the procurement process and supply base efficiently: 1) Identify opportunities where procurement adds value such as evaluating suppliers, reviewing specifications, and purchasing as the primary supplier contact. 2) Manage internal operations like procurement staff, policies, technology, and strategy. 3) Develop strong relationships with other groups through liaison, communication, and information sharing. 4) Support organizational goals by developing purchasing strategies that monitor markets, identify critical supplies, and support diversity and global competitiveness.

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Bhavish Ramroop
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45 views2 pages

OBJECTIVE 2: Manage The Procurement Process and The Supply Base Efficiently and Effectively

The document outlines four key objectives for managing the procurement process and supply base efficiently: 1) Identify opportunities where procurement adds value such as evaluating suppliers, reviewing specifications, and purchasing as the primary supplier contact. 2) Manage internal operations like procurement staff, policies, technology, and strategy. 3) Develop strong relationships with other groups through liaison, communication, and information sharing. 4) Support organizational goals by developing purchasing strategies that monitor markets, identify critical supplies, and support diversity and global competitiveness.

Uploaded by

Bhavish Ramroop
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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OBJECTIVE 2: Manage the Procurement Process and the Supply Base Efficiently and

Effectively

To manage the procurement process and supply base efficiently and effectively, procurement
must follow the following key steps:
• Identify opportunities where the procurement team adds true value:

– Evaluation and selection of suppliers based on sound ethical norms and standards
a) All purchases must go through the approved procurement processes
b) Engineering and other functional inputs are part of this process
c) Contractual agreements will be done with the involvement of Procurement
d) Increased use of sourcing teams

– Review of specifications or scope of work


a) Review the requirements for the material or service being provided
b) If possible, suggest alternative standardized materials that can save the organization money
c) Periodic review of categories can allow greater leveraging of requirements

– Purchasing will act as the primary contact with the supplier


a) Manage the supply base, identification and mitigation of risks
b) Identify new potential suppliers and develop relationships
c) Improvement and development of non-competitive existing suppliers
d) Determine the method of awarding contracts
e) Support local business (local procurement) and consider social responsibilities wherever
possible without compromising objective 1

• Manage internal operations


– Management of procurement staff
– Development and maintenance of policies and processes
– Introducing and leveraging appropriate technology and systems
– Defining procurement strategy and structure
– Provide procurement leadership to the organization
– Provide professional training and growth opportunities for employees
OBJECTIVE 3: Develop strong relationships with other groups within the organization
– Continued liaison with internal customers to achieve greater understanding of requirements
and integration
– Timely, pro-active communication with internal customers
– Sharing of information i.e. market trends, price, quality, delivery, forecast and demand
– Highlighting achievements

OBJECTIVE 4: Support organizational Goals and Objective


– Develop purchasing strategies that support organizational strategies:
a) Monitor supply markets and trends i.e. material price increases, shortages, changes in supply
and
interpret the impact these trends will have on the organization
b) Identify the critical materials and services required to support the company strategies
particularly during new project development
c) Support the organization’s need for a diverse and globally competitive supply base
d) Develop supply options and contingency plans that support company plans
e) Quality reporting as required and continued improved communication

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