Bahria University, E-8 Islamabad.

Course: Introduction to Procurement Management

Submitted by: Enrollment no:

› Abdul Hannan 01-116222-001

› Amaan Ali Sadiq 01-116222-006

› Muhammad Faizan 01-116222-017

› Naveen Rasul 01-116222-029

Semester: Bs SCM 3

Section: A

Submitted to: Sir Zaheer Tariq

Submitted on: 22nd December 2023

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Contents
Procurement Management...............................................................................................................3
Importance of Procurement.............................................................................................................3
Role of a Procurement Manager......................................................................................................3
Skills of a Procurement Manager....................................................................................................3
Interviewee Information..................................................................................................................3
Emotional Intelligence and Influencing Skills (htt) (htt1)...............................................................4
Explanation..................................................................................................................................4
Example.......................................................................................................................................4
Innovation and Disruption Adaptability (htt2) (htt3).......................................................................6
Explanation..................................................................................................................................6
Example.......................................................................................................................................6
Supplier Relationship Skills (htt4) (htt5).........................................................................................7
Explanation..................................................................................................................................7
Example.......................................................................................................................................7
Supplier Performance Evaluation (htt6) (htt7)................................................................................9
Explanation..................................................................................................................................9
Example.......................................................................................................................................9
Market Forecasting or Intelligence (htt8) (htt9) (htt10)................................................................10
Explanation................................................................................................................................10
Example.....................................................................................................................................10
Ethical Decision Making (htt11) (htt12)........................................................................................11
Explanation................................................................................................................................11
Example.....................................................................................................................................12
Global Supply Chain Awareness (htt13)........................................................................................13
Explanation................................................................................................................................13
Example.....................................................................................................................................14
References......................................................................................................................................15

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PROCUREMENT MANAGEMENT
Procurement management means the overseeing and directing of procurement activities
including purchase of goods and services, creation of purchase orders, and record keeping. The
role of a procurement manager is to ensure that the best value for investment can be achieved in
tools, office supplies, raw materials, and other essential business supplies.

IMPORTANCE OF PROCUREMENT
An effective procurement process is crucial for profitably operating a business as it helps in
managing needs through cost-effective methods. By putting good procurement management
processes in place, businesses can avoid overspending, poor vendor relationships and production
cycles that drag on while keeping overheads low leading to a secure business environment.

ROLE OF A PROCUREMENT MANAGER

Procurement managers are responsible for the entire procurement process that includes sourcing,
negotiation, contract management, and supplier relationship management. They also manage
teams of procurement officers who undertake activities that are in line with the company’s goals
and facilitate teamwork. Procurement managers oversee a company's sourcing capabilities for
suppliers’ evaluation; negotiating contracts; getting cost effective deals with quality maintained.
They must lead and motivate their teams to ensure alignment with business objectives.

SKILLS OF A PROCUREMENT MANAGER

The procurement manager possesses various skills that can significantly enhance the value of the
organization:
• Emotional intelligence and influencing skills.
• Innovation and disruption adaptability
• Supplier relationship skills
• Supplier performance evaluation
• Market forecasting
• Ethical decision making
• Global supply chain awareness

INTERVIEWEE INFORMATION
An interview with Leftinent Retired Shabir Ahmed, procurement officer at Bahria University
E-8 Campus, provided an explanation of the skills mentioned above.
Sir Shabir has been serving as a procurement officer at Bahria University E-8 Campus for the
last 1.5 years and before that he served in different services in Pakistan Navy for 33 years. He
works with a highly efficient procurement department at the University ensure the best value for
different investments.
Contact: 0321-5140660

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EMOTIONAL INTELLIGENCE AND INFLUENCING SKILLS (HTT) (HTT1)
Explanation
1. Relationship Building:
Emotional intelligence is vital for building positive relationships, understanding diverse
viewpoints, fostering trust, and promoting collaboration among managers.
2. Negotiation:
Effective negotiation requires understanding and recognizing the emotions and motivations of all
parties involved, enabling managers to navigate the process with sensitivity and reach mutually
beneficial resolutions.
3. Conflict Resolution:
Emotional intelligence is crucial in conflict management as it helps managers understand
underlying emotions, find common ground, approach conflicts with empathy, and find peaceful
resolutions.
4. Effective Communication:
Effective communication is crucial for procurement managers to convey ideas, negotiate terms,
and align stakeholders, with emotional intelligence enhancing their ability to influence and gain
support.
5. Adaptability:
With the help of emotional intelligence, a manager can easily adjust to evolving situations,
comprehend the concerns of stakeholders, and take appropriate actions.
6. Decision Making:
Emotional awareness empowers an individual to make well-thought-out and compassionate
decisions that consider the potential effects on different stakeholders.
7. Leadership
Possessing strong emotional intelligence and exceptional influence enables them to be inspiring
and effective leaders, leading their teams towards shared objectives.
Example
Sir Shabir, in an interview, highlighted the procurement department's commitment to building
strong relationships with suppliers, understanding their businesses and challenges, and
leveraging EI skills to adapt their communication style to different suppliers. They address
conflicts respectfully, seeking win-win solutions for both the university and suppliers. The
department uses influencing skills to present convincing arguments, considering both qualitative
and quantitative aspects, and considering both immediate costs and long-term impacts on the
university's objectives. By utilizing emotional intelligence and influencing skills, the department
successfully builds rapport, manages conflicts, and makes decisions that consider both financial

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and relationship aspects, leading to favorable agreements between the university and the
suppliers.

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INNOVATION AND DISRUPTION ADAPTABILITY (HTT2) (HTT3)
Explanation
1. Technological Advancements:
Managers must adopt technological advancements and implement new tools, such as e-
procurement platforms, to stay competitive and efficient.
2. Market Changes:
Managers must adapt their strategies to market changes, economic shifts, geopolitical events, and
evolving consumer behavior to ensure supply chain continuity and minimize risks.
3. Supplier Relationships:
Procurement innovation involves fostering and maintaining relationships with suppliers through
new partnerships, diversifying sources, and negotiating innovative contract terms.
4. Risk Management:
Adaptable managers understand the importance of risk management. They proactively anticipate
potential risks, create contingency plans, and make necessary adjustments to ensure business
continuity.
5. Cost Optimization:
As sustainability becomes a top priority, managers must integrate it into their supply chain
strategies.
6. Sustainability Initiatives:
Managers are increasingly tasked with incorporating sustainability into supply chain practices.
7. Agile Decision-Making:
Being able to think innovatively and adjust to changing circumstances allows managers to make
swift and sound decisions.
8. Competitive Advantage:
By continuously innovating and adapting to disruptions, organizations gain an advantage over
competitors, positioning them for success in the market.
Example
Sir Shabir mentioned in the interview that the university has launched a new system named
‘ePad’ in which everything will be done online. The procurement department is required to
attend the training for the new system for which they are scheduled to leave on 21st December
2023. Using ePad, the procurement department of the university will request quotations online
and the vendors will be required to submit their quotations online as well. The quotations will be
received and analyzed on the system (ePad). Work orders will then be issued using ePad. This
innovation will end the manual work that is done in RFQ process.

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SUPPLIER RELATIONSHIP SKILLS (HTT4) (HTT5)
Explanation
1. Quality and Reliability:
A procurement manager's strong supplier relationships lead to higher quality products and
reliable deliveries, ensuring consistent customer satisfaction and reducing operational
disruptions.
2. Negotiation and Cost Savings:
By taking the time to build rapport with suppliers, a procurement manager can secure favorable
negotiation terms, resulting in significant cost savings.
3. Innovation and Collaboration:
By nurturing strong relationships with suppliers, businesses can leverage innovation and foster
collaborative solutions, leading to positive outcomes for all parties involved.
4. Risk Management:
During times of uncertainty or disruption, positive supplier relationships serve as a buffer,
allowing for quicker problem-solving and minimizing operational impact.
5. Supplier Development:
Building strong relationships with suppliers is crucial for enhancing capabilities and aligning
with organizational standards.
6. Conflict Resolution:
The ability to navigate conflicts effectively is a valuable skill in developing strong relationships
with suppliers.
7. Long-term Strategic Partnerships:
Establishing long-term relationships forms the basis for successful strategic partnerships.
8. Ethical and Social Responsibility:
Maintaining strong relationships with suppliers allows for effective communication and
adherence to ethical and social responsibility standards.
9. Adaptability and Flexibility:
Strong relationships facilitate open communication and flexibility.
Example
Sir Shabir discussed that the procurement department has different criteria for selecting
suppliers. When choosing suppliers, they consider various factors. For example, when procuring
computers, they check the supplier's experience. They also check if the supplier is registered with

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the National Tax Number (NTN), if they file returns with the Federal Board of Revenue (FBR),
and if they pay GST. They also assess the supplier's financial power by looking at their one-year
bank statement. This is done to ensure that the supplier has the financial strength to handle
projects and avoid any delays or financial risks. This concept of due diligence was discussed
during our very first lecture.

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SUPPLIER PERFORMANCE EVALUATION (HTT6) (HTT7)
Explanation
1. Quality Assurance:
Ensuring consistent product or service quality by identifying high-performing suppliers.
2. Risk Mitigation:
Early identification of potential risks, such as delivery reliability, financial stability, or
compliance issues.
3. Cost Efficiency:
Optimizing costs by identifying efficient suppliers who deliver quality products/services at
competitive prices.
4. Contract Compliance:
Monitoring adherence to contractual terms, such as delivery schedules, quality standards, or
pricing agreements.
5. Continuous Improvement:
Feedback from evaluations provides valuable insights for constructive discussions on areas
needing improvement.
6. Relationship Management:
Consistent evaluations contribute to building strong relationships with suppliers.
7. Strategic Decision-Making:
Utilizing data from evaluations enables informed decisions on supplier selection, diversification,
and consolidation.
8. Performance Benchmarking:
Evaluation against predefined metrics aids in identifying top-performing suppliers and areas for
improvement.
9. Supplier Development:
Feedback from evaluations plays a pivotal role in guiding supplier development initiatives.
10. Upholding Standards:
Evaluating suppliers' adherence to regulatory requirements and ethical standards ensures ethical
practices are upheld and potential legal or reputational risks are mitigated.
Example

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MARKET FORECASTING OR INTELLIGENCE (HTT8) (HTT9) (HTT10)
Explanation
1. Strategic Decision-Making:
When it comes to making strategic decisions, utilizing market intelligence is crucial. By
providing valuable information on market trends, pricing, and supplier capabilities, it allows for
informed sourcing strategies and effective contract negotiations.
2. Risk Mitigation:
Market intelligence aids in risk mitigation by enabling procurement managers to identify
potential risks and plan for supply chain disruptions, ensuring continuity.
3. Cost Optimization:
Market intelligence aids in cost optimization by identifying opportunities for cost reduction or
avoidance, leading to significant procurement process savings.
4. Supplier Relationship Management:
By consistently evaluating supplier performance based on market insights, it creates an
environment for fostering innovation and adapting strategic approaches.
5. Supply Chain Resilience:
Market intelligence is crucial in anticipating disruptions and strengthening supply chain
resilience.
6. Strategic Partnership
With access to market intelligence, businesses can build strategic partnerships with suppliers.
7. Compliance and Ethics:
Market intelligence ensures compliance with regulatory changes and ethical standards in
procurement practices.
8. Competitive Advantage:
Market intelligence provides a competitive advantage by allowing businesses to capitalize on
market opportunities and optimize their procurement processes.
Example

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ETHICAL DECISION MAKING (HTT11) (HTT12)
Explanation
1. Upholds Integrity:
By conducting all procurement actions with honesty and transparency, the organization upholds
the principles of integrity.
2. Ensures Legal Compliance:
To prevent any legal challenges stemming from unethical behavior, it is crucial to comply with
all applicable laws and regulations.
3. Preserves Reputation:
The organization's reputation and credibility can be significantly impacted by unethical conduct.
Thus, it is essential to prioritize actions that maintain the trust of key stakeholders, customers,
and the public.
4. Promotes Fairness and Equity:
Achieving a level playing field for all suppliers is paramount. In doing so, the organization
ensures fairness and equity in the procurement process.
5. Mitigates Risks:
By avoiding unethical behavior, the organization protects itself from potential financial, legal,
and reputational risks. This safeguards the overall success and sustainability of the organization.
6. Fosters Supplier Relationships:
Nurtures enduring and mutually beneficial connections with suppliers, resulting in stronger
partnerships and increased dependability within the supply chain.
7. Enhances Employee Morale and Engagement:
Upholds a role model for employees, fostering a work environment of honesty and ethical
conduct.
8. Contributes to Society:
Promotes ethical labor practices, ecological preservation, and responsible procurement for the
betterment of society.
9. Leads to Cost Savings:
Conserves resources and prioritizes sustainable practices for cost-effective business operations.
10. Builds Stakeholder Trust:
Nurtures trust among stakeholders, essential for lasting partnerships and the overall success of
the organization.

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Example

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GLOBAL SUPPLY CHAIN AWARENESS (HTT13)
Explanation
1. Risk Management:
By gaining an understanding of global supply chains, managers can effectively identify and
mitigate any potential risks that may arise when sourcing goods internationally.
2. Diversification and Sourcing Strategies:
With a global perspective, managers can diversify their sourcing strategies by identifying
potential suppliers from various regions, ultimately optimizing their supply chain.
3. Cost Optimization:
Through a comprehensive understanding of global markets, businesses can capitalize on cost-
effective sourcing opportunities, reducing expenses and increasing profitability.
4. Cultural Understanding:
Developing an understanding of different regions' unique cultures and business practices enables
managers to navigate any cultural differences and establish strong relationships with suppliers.
5. Regulatory Compliance:
With knowledge of international trade regulations, organizations can ensure they follow all legal
and regulatory standards, avoiding any potential legal issues.
6. Supplier Evaluation and Selection:
Selecting the best suppliers for business success requires a global perspective, as it offers
valuable insights into their capabilities and track record.
7. Technology and Innovation:
Keeping up with global market trends also allows for the utilization of cutting-edge technologies
and innovative solutions.
8. Environmental and Social Responsibility:
Understanding a supplier's commitment to environmental sustainability and ethical labor
practices is crucial in today's socially conscious business environment.
9. Supply Chain Efficiency:
By having a comprehensive understanding of global logistics and transportation networks,
supply chain efficiency can be optimized.
10. Strategic Decision-Making:
This global perspective also equips managers with the ability to anticipate market trends and
make strategic decisions that drive competitiveness.

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Example

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