...executive management over the years. This scenario is attributed to the exploitation of emerging Information & Communication technologies to realize the potential of revolutionizing, streamlining and improving supply chain operations (Patterson, Grimm & Corsi, 2003; Cagliano, Caniato & Spina, 2003). Particularly, electronic procurement or e-procurement has been established as a significant aspect of electronic business operational excellence (Barua, Konona, Whinston & Yin, 2001). Prior to commencing, one should first define the term e-procurement used in this context. According to Davila, Gupta & Palmer 2003, any ICT contrived to expedite the acquisition of goods and services over the net by either a public or private organization can be defined as e-procurement. These include software, B2B market exchanges, B2B auctions and purchasing consortia purported to atomize workflow, influence organisational spend, as well as seek out contemporary sourcing opportunities virtually (Davila et. al, 2003). E-procurement is evident as several norms. Some of the general types include, but are not limited to; - Electronic systems supporting conventional procurement such as - Web- enabled Electronic Data Exchange (EDI-IT) - EDI functions as an application that enables the transmission of messages between computer programs of 2 differing entities. The migration to open networks allows messages to be communicated in batches and eliminates for data duplication. A concern with EDI would be...
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..._______________________________________________________________ 09 January 2014 ProQuest Table of contents 1. How Procurement Excellence CREATES VALUE........................................................................................ 1 Bibliography...................................................................................................................................................... 11 09 January 2014 ii ProQuest Document 1 of 1 How Procurement Excellence CREATES VALUE Author: Blascovich, John D; Markham, William J Publication info: Supply Chain Management Review 9.5 (Jul/Aug 2005): 44-52. ProQuest document link Abstract: A.T. Kearney's 2004 "Assessment of Excellence in Procurement" (AEP) study reveals that senior executives expect supply management to go well beyond its traditional role. Rather than focusing on price reductions, executives are challenging the organization to capture value from the supply market. This view represents a huge advance in their understanding of procurement's potential. Nearly all leaders and most followers recognize that the key to their business strategy is value creation. Yet leading organizations use their foundation of excellence to create more value and gain competitive advantage from supply markets by focusing on four key areas: innovation and growth, value chain optimization, risk management and supply continuity, and advanced cost management. Leaders are involving suppliers in a systematic lean-design...
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...This includes all assignments, exams, term papers, and other projects required by your instructor. Knowingly submitting another person’s work as your own, without properly citing the source of the work, is considered plagiarism. This will result in an unsatisfactory grade for the work submitted or for the entire course. It may also result in academic dismissal from the University. | | PM-7000 | Dr. Christopher Barrett | | | Procurement Project Management | Assignment 7 | | | Comments: ------------------------------------------------- ------------------------------------------------- Faculty Use Only ------------------------------------------------- <Faculty comments here> ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- <Faculty Name> <Grade Earned> <Date Graded> Activity Seven: Close-Out Plan Max Boller Procurement Project Management Northcentral University Procurement project...
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...INTRODUCTION After millennia of unchallenged success, businesses and governments around the world are entering a new era of unprecedented openness. The movement to hold corporate officers and politicians accountable is spurred by three powerful forces: economics, technology, and zeitgeist. The entire world is experiencing a deep recession. The Internet, meanwhile, has revolutionized the speed and power of data analysis and dissemination. And financial institutions are being held responsible. In certain industries, Asian manufacturers dominate the United States’ consumer market. Third-world nations in Central and South America, Southeast Asia, and China continue to attract U.S. manufacturers seeking low wages for laborious tasks. And, in the midst of everything, the United States is a giant consumer base with an enormous command of technology but steadily losing the infrastructure needed to create jobs. In addition to significant events that have impacted the world’s business environment, individual firms have had to change radically in response to burgeoning technologies. Historically, the management of materials and component parts was the most neglected element in the production process. Only when the cost of materials and subassemblies increased did management attempt to investigate alternative methods to the planning and control of the acquisition and transformation functions in the organization. Instead, most firms emphasized minimizing the cost of capital and labor. The...
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...Procurement Planning Paper Lee Gomez CPMGT 302 December 14, 2015 Professor Burgess Procurement Planning Paper The needs of a project must be carefully identified, sourced and acquired to have a successful procurement process. Procurement planning is essential to the overall success of a project. It involves identifying the materials and services, finding the suppliers, and properly documenting the transactions. This paper includes a description of the procurement planning process. The most valuable output of the plan procurement process will be identified. Furthermore, the various contract types will be explained. A source criterion that would be applicable to any project will be described and three criteria that would apply to most projects will be identified. An analysis of the ethical concerns that should be considered when identifying source selection criteria is also included. Finally, the role of risk management in the procurement planning process is explained. The Procurement Planning Process The key tasks associated with procurement management planning are determining what items need to be procured, finding the suppliers that could satisfy the requirements, bidding process, and the approval process. These tasks must be completed step by step in the workplace. “The key benefit of this process is that it determines whether to acquire outside support, and if so, what to acquire, how to acquire it, how much is needed, and when to acquire it” (Project Management Institute...
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...expected. The confidence by which a bid is prepared is usually dependent on how much of a risk the contractor will incur through the contract. Certain types of contracts provide relief for the contractor since onerous risks2 exist. The cost must therefore consider how well the contract type covers certain high- and low-risk areas. Prospective clients are always concerned when, during a competitive bidding process, one bid is much lower than the others. The client may question the validity of the bid and whether the contract can be achieved for the low bid. In cases such as this, the client usually imposes incentive and penalty clauses in the contract for self-protection. Because of the risk factor, competitors must negotiate not only for the target cost figures but also for the type of contract involved since risk protection is the predominant influential factor. The size and experience of the client’s own staff, urgency of completion, availability of qualified contractors, and other factors must be carefully evaluated. The advantages and disadvantages of all basic contractual arrangements must be recognized to select the optimum arrangement for a particular project. Procurement can be defined as the acquisition of goods or services. Procurement (and contracting) is a process that involves two parties with different objectives who interact on a given market segment. Good procurement practices can increase corporate profitability by taking advantage of quantity discounts...
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...Conducting and Closing Procurements NAME;BRIAN TONY Institution; USIU Conducting and Closing Procurements Introduction For any project to be implemented, goods and services must be availed to be utilized. This is achieved through procurement whereby interested external suppliers are contracted to provide the goods and services needed. The procurement process ought to be planned in order to establish a formal and working relationship with the external suppliers. At the end of a project the procurement has to be closed and the formal relationship with the external supplier for that project then ends. Project procurement has a number of processes including planning and research, conducting the procurement, administration of the procurement and closing the procurement. Each of these components has a role in the success of the procurement process. (Sanghera, 2014) High-level process steps for conducting project procurements The process of conducting project procurements incudes an exercise whereby responses are obtained from sellers, selection of a seller who the project finds suitable and awarding the contract to this seller. This process involves utilization of various inputs, tools and techniques to obtain desirable output. The process of conducting project procurement is multistep and the process includes five major steps as follows: Specification is the first step whereby a decision is made on which products required...
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...Name of the Project: Highway 407 improvement Executive summary In 2013, following 3 years of program definition, research and planning, the province of Ontario’s ministry of transportation and infrastructure launched the project to improve the existing highway 407. This highway is the busiest route and convenient to access different parts of Toronto. The proposal of highway 407 was launched in 1959 and opened to the public in June 7 1997. 407 its one of the busiest highway, the total trips in 2010 was 114.691 Million. 407 ETR is the world’s first all-electronic toll road of its kind, and from the day it was opened up to the present day it continues to fulfill its mission of relieving traffic on local highways and roads. The goal of the project “Highway 407 improvement” includes reducing congestion and travel time; improve safety; expanding networks and transportation choice for high occupancy vehicles. Given the cost of the project and other provincial priorities, a key objective was to be self-financing, paid for through ERT system. The present value cost is estimated more than $5 billion, which is calculated over the period of 35 years. Key features of the project include extending the high occupancy vehicles lanes and commercial vehicle priority access. The project will also provide the reintroduction of the public transit to a corridor that has been too crowded to support reliable service for the past few years. The request of proposal was submitted on...
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...• The PMBOK phases of Project Procurement Management: Procurement Planning, Solicitation Planning, Solicitation, Source Selection, Contract Administration, and Contract Close-Out • Be familiar with Input, Tools and Techniques, and Output for each phase) • VERY IMPORTANT: Understand the viewpoint of the PMBOK. Project Procurement Management is discussed from the perspective of the buyer in the buyer-seller relationship. The buyer is the organization seeking the service or product. The seller is the provider of the service or contract and is referred to as the vendor, the supplier, or the contractor. Project Management should be done by both the buyer and the seller. • Understand the definitions and terms. (buyer, seller, express and implied warranties, "fitness for a particular use", invitation to bid, request for proposal, etc.) • Understand the viewpoint of the reading material. Is procurement management discussed from the viewpoint of the buyer (the organization or person seeking to outsource) or the seller (the person or organization selling their services / products)? • Understand the different types of contracts: fixed price, cost plus percentage, cost plus fixed fee, cost plus incentive fee, and fixed price plus incentive fee. Know who assumes the most risk (buyer or seller) in each type of contract. Study examples of each type of contract so that you are comfortable with the different types and can adequately distinguish between each type of contract (especially the...
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...INFORMATION COMMUNICATIONS TECHNOLOGY (ICT) PROCUREMENT MANUAL TABLE OF CONTENTS SECTION 1 INTRODUCTION ABBREVIATIONS AND ACRONYMS SECTION 2 PREPARING FOR ICT PROCUREMENT PLANNING How do we prepare for ICT Procurement? Looking at Total Cost Ownership What is the value of Hiring ICT Procurement Consultant? What are the classifications of ICT Procurement? Drafting the Technical Specifications, Scope of Work and Terms of Reference Drafting Service Level Requirements Reference to Benchmarks Use of Brand Names in ICT Procurement “Green” Considerations in Making Technical Specifications PREPARING THE BIDDING DOCUMENTS What are Bidding Documents? Who shall participate in the preparation of the Bidding Documents? BAC for ICT Projects What various types and sizes of contracts may be provided in the Bidding Documents How should Pre-Procurement Conference be conducted? Conducting Proof-of-Concept SECTION 3 INSTRUCTIONS ON THE PROCEDURAL STEPS FOR ICT PROCUREMENT Competitive Bidding ICTO-DOST Standards Development SECTION 4 GUIDELINES ON CONTRACT IMPLEMENTATION FOR ICT PROCUREMENT OF GOODS Dispute Resolution ANNEX A: Definition of Terms ANNEX B: Process Flow for Goods and Infrastructure ANNEX C1: Process Flow Quality Based Evaluation ANNEX C2: Process Flow Quality Cost Based Evaluation ANNEX D: Sample Technical Specification Checklist ANNEX E: Sample Bid Evaluation Template 1 2 3 3 4 4 5 7 10 11 11 11 13 13 14 14 14 17 17 18 18 18 19 SECTION 1 INTRODUCTION This Manual seeks to...
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...rights, and risk associated with a given seller. | | | | technical capability of seller, understanding of work by seller, and business type of seller. | | | | managerial approach of seller, capacity of seller to do the work, and ability of seller to make a reasonable make-or-buy decision. | | Instructor Explanation: | PMBOK® Guide, Chapter 12 | | | | Points Received: | 10 of 10 | | Comments: | | | | Question 2. | Question : | (TCO A) In industry, there are four processes one follows in the procurement area of project management. Describe and explain these four processes in the procurement management process for the buyer. | | | Student Answer: | | There are four processes in procurement management; plan, conduct, administer, and close procurement. Plan Procurement Process of documenting project purchasing decision, specifying the approach and identifying potential sellers. The first out of four procurement-related project management processes is in the Planning Process group, and is the process which creates the guidelines for all of the procurement activities on the project. It helps document the project procurement decisions, specifies the approach taken to identify potential sellers and carry out the procurement. Conduct Procurement Process of obtaining quotations, offers, information, and proposals from sellers, and then selecting a seller and awarding a contract. Administer Procurement Process of managing procurement relationship...
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...importance of manage suppliers. Moreover, the savings from transaction progress could contribute to a significant amount and also lead company products more competitive as well as provide funds for innovation. Therefore, it seems like procurers play an important role within firms. But how the firms could achieve best value for money in procurement management? It seems likely that firms should seek to ‘get their own house in order’ before attempting to deal with suppliers. This essay aims to discuss this issue and illustrated the discussion with some successful examples. In the following sections, it shows a standard purchasing & supply management process. Additionally, the factors of outsourcing decision will be pointed out, organization buying behaviour will also be included in the essay. 2. Purchasing & Supply Management Process 3.1 Standard Process In Figure1, this is a commonly standard purchasing and management process which used by different sizes of firms worldwide. However, some smaller entities probably skip some stages of purchasing process, but basically it appears sequence of operating procurement principle. It illustrated clearly that the best value for money involves internal and external management, not a single one can be omitted. And it is also a strongly evidenced that before firms manage suppliers, it should be get their house in order. Figure 1: Standard Purchasing & Management Process Source: Canvas, SP&SM...
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...Introduction………………………………………………………………………..……...3 The 3PL market…………………………………………………………………………...4 Procurement As competitive advantage…………………………………………………4 1. Center-led procurement…………………………………………………………..5 2. Strategic sourcing………………………………………………………………….5 3. Supplier integration……………………………………………………………….6 4. Enterprise spend management……………………………………………………6 5. Cross-industry benchmarking…………………………………………………….7 6. E – Procurement…………………………………………………………………...7 Advantages of Apple’s procurement……………………………………………………..8 Disadvantages of Apple’s Procurement…………………………………………………..9 Conclusion…………………………………………………………………………………10 Introduction: When Apple design guru Jony Ive wanted a new feature for the next MacBook: a small dot of green light above the screen, shining through the computer’s aluminum casing to indicate when its camera was on, the problem? It’s physically impossible to shine light through metal. Apple discovered it could use a customized laser to poke holes in the aluminum small enough to be nearly invisible to the human eye but big enough to let light through. Applying that solution at massive volume was a different matter. Apple needed lasers, and lots of them. Most of Apple’s customers have probably never given that green light a second thought, but its creation speaks to a massive competitive advantage for Apple: Operations. This is the world of manufacturing, procurement, and logistics in which the new chief executive officer, Tim Cook, excelled, earning him...
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...Benefits of sustainable sourcing Sustainable procurement is a high profile matter for businesses today. It can help to save money, reduce waste, improve competitiveness and build a business’ reputation. As part of their sustainability programmes, many oil companies have invested in local transportation networks or built schools. They provide jobs and by sourcing supplies locally help to develop the local economy. The global oil industry has a responsibility to the countries in which it operates to manage its operations in as sustainable way as possible. A purchasing manager might want to consider whether the supplier behaves responsibly, for example, adhering to ethical standards or sourcing raw materials in an ethical way. For example, Shell is working with its existing suppliers to implement the Shell Supplier Principles. These set out the minimum standards which Shell suppliers need to meet. These include using energy and natural resources as efficiently as possible to minimise impact on the environment and covering health and safety issues. Efficiency Other aspects of sustainable business include managing waste effectively and reducing the company’s carbon footprint. This can be improved by choosing suppliers who also take their responsibilities towards environmental impact seriously. For example, Marks & Spencer made £70 million of efficiency savings during 2010/11. Alongside reductions in waste and packaging and increased energy efficiency, the company is working...
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...What are today’s hot topics in procurement that are mostly shared/discussed on the Internet and on social media sites like Twitter, LinkedIn, Facebook, YouTube, etc.? Introduction “The procurement function is constantly evolving, with many organisations going through significant transformations over the past decade. Now more than ever, there is a considerable emphasis on the integration phase and the focus has shifted to delivering the value proposition through collaboration and partnerships.” (http://www.procurementleaders.com/forum-zurich) Financial crises have been troubling our economies and it seems that every new crisis has a bigger impact than the one before. As a result, top management is looking more and more towards procurement with the goal to improve their bottom line. But lately procurement has shifted from strictly operational to a more strategic function. Hot topics are not only low cost sourcing, but also supplier integration to become more innovative, procurement technology’s contribution towards profitability and growth, and how social media affects talent management (http://spendmatters.com/uk/procurement-hot-topics-agenda-2014-part-2/). However, the measurement of procurement contribution is often a very sensitive subject. There are no clear boundaries between the various functions involved and thus tensions are bound to occur when it comes to target savings per function at the end of the year. Among today’s hot topics is also the identification...
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