New Formula for Procurement Management Techniques
Procurement is typically a subset of activities and processes within the procurement management approach. It intended to focus on operational purchasing requirements from the information limited environmental scan. Procurement management relates to the management of procurement activities such as drafting specification (of goods, works and services); selecting and contracting of suppliers. Procurement Management Techniques
It is majorly constituted of pre-procurement and actual procurement activities. The pre-procurement or pre-bidding activities are those activities performed by organizations in preparation for a given procurement.
These include, needs assessment, procurement planning, drafting solicitation documents, budgeting; confirmation of funds, determining procurement method and conducting market research, among others. While actual procurement relates to those activities involving the actual contracting of a bidder.
They include; conducting preliminary evaluations, financial evaluations, technical evaluation, negotiations, award of contract and debriefing unsuccessful bidders.
This is because the procurement is the most sensitive in the procurement process, since it is what determines the quality of a bidder to be contracted. If the tactical procurement process is poorly managed for example, there is a high possibility of having poor services delivered and the reverse is true.
In procurement is usually given high considerable attention and involvement of key stakeholders or actors as early as possible in order to ensure joint planning and implementation of required tasks.
This helps minimize risks of delay, and procurement of substandard items thus effective service delivery management. Procurement management involves countering the negative effect that procurement operations from achieving efficiency and effectiveness in service delivery management.
Such interventions majorly take a form of; collaborative business management, supplier development and market analysis (Online) forecasting in order to promote visibility and accuracy in supply chain management, hence effective service delivery and organization performance.
In the private sector, because of the high desire to obtain competitiveness, procurement is more rigorous in nature than the public sector. For this matter, a combination of approaches or strategies have been devised, which include, supplier development approaches, and collaborative business but also incorporating of modern business management practices such as e-Procurement. This has increased efficiency in the operations of many firms leading to improved service delivery management.