Premium Essay

Procurement Acquisitions

In: Business and Management

Submitted By FITZ8062
Words 1480
Pages 6
Summarize Procurement Management Project procurement management is all about the processes related to purchasing or acquiring the products, services or results needed from outside the project team. Project management, a new foundation of a successful organization, has revolutionized the way businesses operate and the realization of effective project procurement management. Through our own research and ability to adapt over time, we have learned the power of proper project management and its ability to have a positive influence on procurement and acquisitions. Like most companies, procurement and acquisitions is one of many operations and is also one of the most important due to its ability to have a direct correlation to success and/or failure. This paper is going to look at procurement management and help define its fundamentals in association to my project on development of a Spanish queue for a call center.
What exactly is Project Procurement Management? To answer this we must first go back to the principle ideological foundations of project procurement management we have learned from our earlier educational years. We understand that project procurement management is part of the project management process in which products or services are acquired or purchased from outside the existing employee base in order to complete the task or project (Farnham, 2013). Interestingly enough we learn from the beginning how there are multiple processes involved in project procurement including plan purchases and acquisitions, plan contracting, requesting seller responses, selecting sellers, contract administration and contract closure (Farnham, 2013). Projects routinely require procurements. All projects need materials, equipment, consultants, training, and many other goods and services. It is with this understanding of the project procurement phases that I believe all…...

Similar Documents

Premium Essay

Procurement

...Contracts and Procurement Management Notes: E-PROCUREMENT E-Procurement is the business to business (B2B) purchasing of goods and services through the Internet. These days, E-procurement is an invaluable tool for streamlining the procurement process. There are several varieties of e-Procurement, each of which can offers benefits to manufacturing enterprises in ensuring both that materials are delivered in time to meet production schedules and that they are at the best price to maximize profit margins. The state of Kentucky uses two methods to manage their contracts. These processes are: the competitive sealed bidding where by the bid is opened publicly at the time and place of solicitation and the competitive negotiation by RFP of which they are not opened publicly. E-Procurement.gov. helps the government and the citizens realize the vision of growth via profitable B2B e-commerce. The proven platform used by the largest companies in India and the world, it enables trade between companies of different sizes, platforms and locations.To this end,eProcurement.gov.in will provide services like eProcurement, eTendering, eSelling and eAuctions. E-procurement Auction Services offers government departments easy-to-use, web-based solutions for conducting dynamic exchanges in an on-line environment. It provides real-time bidding solutions for buyers and sellers as control, and simplicity to corporate procurement and liquidation processes. The state of Kentucky uses two methods......

Words: 8347 - Pages: 34

Premium Essay

Procurement

...Procurement Process Procurement is the acquisition of goods or services. It is favorable that the goods/services are appropriate and that they are procured at the best possible cost to meet the needs of the purchaser in terms of quality and quantity, time, and location. Corporations and public bodies often define processes intended to promote fair and open competition for their business while minimizing exposure to fraud and collusion. All projects require materials to operate. The type of materials will depend on the type of project that is to be undertaken. Procurement does not only cater for acquisition of the materials but also how the materials are managed once they get into the organization. This systematic management of material brings about the concept of supply chain management. Supply chain management (SCM) is the management of a network of interconnected businesses involved in the ultimate provision of product and service packages required by end customers (Harland, 1996). Supply chain management is the whole all movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption (supply chain). Procurement is the acquisition of goods or services. It is favorable that the goods/services are appropriate and that they are procured at the best possible cost to meet the needs of the purchaser in terms of quality and quantity, time, and location. Corporations and public bodies often define......

Words: 254 - Pages: 2

Premium Essay

Procurement

...ASHESI UNIVERSITY COLLEGE INVESTIGATING THE EFFECT OF THE PUBLIC PROCUREMENT LAW ON THE GHANAIAN EDUCATIONAL SECTOR By EYRA LYDIE GNANIH Thesis submitted to the Department of Business Administration Ashesi University College In partial fulfilment of Bachelor of Science degree in Business Administration APRIL 2012 i Declaration I hereby declare that this thesis is the result of my own original work and that no part of it has been presented for another degree in this university or elsewhere. Candidate’s Signature:…………………………………………………………………… Candidate’s Name: Eyra Lydie Gnanih Date: Thursday, 12th April 2012 I hereby declare that the preparation and presentation of the thesis were supervised in accordance with the guidelines on supervision of thesis laid down by Ashesi University College. Supervisor’s Signature:…………………………………………………………………….. Supervisor’s Name: Dr Stephen E. Armah Date:………………………………….. ii Acknowledgement Gratitude goes to my parents for their encouragement, support, and inspiration. To Dr Stephen E. Armah, my thesis supervisor, thank you for the constructive criticisms and timely feedback which were of exceptional help in completing this project. For the reception and openness of the Secretary of the Public Procurement Authority and for the reports and information made available by Mr Alex Osei-Bonsu of the same institution, thank you. This project would not have been possible without the generosity and willingness of the......

Words: 14700 - Pages: 59

Premium Essay

Procurement

...• 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......

Words: 3835 - Pages: 16

Premium Essay

Procurement

...which help aid in the process of handling several areas of the job, including conflicts of interest, personal purchases, and bribes. Contract administration spreads the responsibility of sound contract management over several employees to ensure that contracts are carried out effectively. With sound contract management, the procurement manager helps improve supplier performance and maintain good business relationships by making sure communication is clear, roles are clearly defined, and everyone is acting within the terms and agreements of the contract (Sollish & Semanik, 2007). The Supply Relationship Manager (SRM) monitors performance and manages supplier activities. The legal implications of not having sound contract management could be minimal to huge because contracts are written agreements that need to be followed. Moral implications could be how the public defines the company and whether or not customers will repeat purchasing. References Rentmeester, C. (2006). What’s legal? What’s moral? What’s the difference? A guide for teaching residents. American Journal of Bioethics. 6(4). 31-33. Sollish, F. & Semanik, J. (2007). Procurement and supply manager’s desk reference. John Wiley & Sons, Inc. (US); 2007. Available from ebook Collection (EBSCOhost), Ipswich, MA. Accessed October 9, 2011....

Words: 396 - Pages: 2

Free Essay

Procurement

...Sustainable Procurement: Question1: Short definition of sustainable procurement Sustainable procurement is a process where organization meets their needs for goods and services, works utilities (water, gas, electricity etc.) in a way that they will achieve value for money. Not only benefit to the organization but also to the public and society, the economy while the damage toward environment is minimized. Question2: why it is needed? Sustainable procurement is needed because we need to reduce the waste that we are producing. It is the long term cost effectiveness. Saving energy, reducing water consumption. Encourage reuse and recycle, to protect the environment and the biodiversity. Question3: what unique challenges do sustainable buyers face? With buyers will not know where the products they are purchasing made from as in where and what kind of materials. It is a tricky situation for the buyers, as not always the suppliers will tell them. Buyers will face the difficulties of not knowing if the product is sustainable or not and therefore may making the wrong decision. With the suppliers implementing that the products is sustainable but is this really true? Question4: which tools are available to buyers in order to help them make the best ethical buying decisions? Buyers can look at the suppliers CSR, the ISO that they have in order to have a clear view. Company that have ISO in hold mean they are following the indication of the International......

Words: 413 - Pages: 2

Free Essay

Procurement

...shift emphasis from real-estate management to real-estate investment, and expand throughout the western United States. But Guardian’s technology infrastructure didn’t support these goals, so the company embarked on comprehensive infrastructure optimization. Discover why the new infrastructure is more available and  2/20/2009 10:00:00 AM Rentable Procurement Rightworks chose Exodus to host its on-line procurement solution. Rightworks plans to provide a service that outsources procurement solutions via the web. CASH MANAGEMENT RESEARCH PROPOSAL SAMPLES: purchase order systems, reverse auction software, reverse auction sites, online reverse auctions, procurement companies, purchase order system, e procurement software, purchase order software, purchasing software, reverse auction site, eprocurement solutions, online reverse auction, procurement software, b2b procurement, b2b reverse auction, procurement service providers, spend management, online purchasing software, services procurement, procurement services provider, procurement service provider, reverse auction process, procurement solution, procurement service, procurement outsourcing, .  1/3/2000 The Third Paradigm Supply chain systems to date have represented the back-end of that process of servicing markets and have taken us a long way in replacing assets with information. But the fact is, building products still takes a long time. Contrastingly, markets require short response times--days. For the last few......

Words: 1692 - Pages: 7

Premium Essay

Procurement

...EFFECT OF PROCUREMENT SYSTEMS ON THE PERFORMANCE OF CONSTRUCTION PROJECTS Abstract: Project procurement has been described as an organized methods or process and procedure for clients to obtain or acquire construction products. Apart from the traditional approach, there are now other “fast-tracking” or innovative procurement systems used by the construction industry world wide. The different procurement systems differ from each other in term of allocation of responsibilities, activities sequencing, process and procedure and organizational approach in project delivery. These differences have invariably affected the project performance. Project performance has been defined as “the degree of achievement of certain effort or undertaking” which relates to the prescribed goals or objectives that form the project parameters. There are many other elements that determine project success, but the focus of this paper is on the three critical parameters or project performance i.e. time, cost and quality. The aim of this paper is to look into the effect of the different procurement systems on the project performance. Since there are many different project procurement systems, it is appropriate for the purpose of this presentation to limit to the common ones i.e. traditional system, design and build and management contracting. Keyword: Project procurement, performance, time, cost and quality INTRODUCTION The procurement of construction project is vast in scope because it involves......

Words: 4166 - Pages: 17

Premium Essay

Procurement

...2005 CONTENT ActPAGE The Public Procurement and Disposal Act, 2005 ……………… 45 ________________________________________________ PRINTED AND PUBLISHED BY GOVERNMENT PRINTER, NAIROBI THE PUBLIC PROCUREMENT AND DISPOSAL ACT No. 3 of 2005 45 No. 3 Public Procurement and Disposal 2005 Date of Assent: 26th October, 2005 Date of Commencement: By Notice ARRANGEMENT OF SECTIONS PART I - PRELIMINARY 1—Short title and commencement. 2—Purpose of the Act. 3—Definitions. 4—Application of Act. 5—Conflicts with other Acts. 6—Conflicts with international agreements. 7—Conflict with conditions on donated funds. PART II – BODIES INVOLVED IN THE REGULATION OF PUBLIC PROCUREMENT A — Public Procurement Oversight Authority 8—Establishment of Authority. 9—Functions of Authority. 10—Director-General of the Authority. 11—Term of office of Director-General. 12—Restrictions on activities of Director-General. 13—Terms of service. 14—Resignation of Director-General. 15—Removal of Director-General. 16—Staff. 17—Acting Director-General. 18—Financial arrangements. 19—Audit. 20—Quarterly and annual reports. 46 No. 3 Public Procurement and Disposal 2005 B – Public Procurement Oversight Advisory Board 21—Establishment of Advisory Board. 22—Composition of Advisory Board. 23—Functions of Advisory Board. 24—Procedures of Advisory Board. C – Public Procurement Administrative Review Board 25—Review Board. PART III – INTERNAL ORGANISATION OF PUBLIC ENTITIES RELATING TO PROCUREMENT 26—Threshold matrix and......

Words: 18686 - Pages: 75

Free Essay

Acquisitions

...Premier Dairies | Presentation to Shareholders: Acquisition of Lagos Dairies | | MBA 1 – 2014: Business Management Group 3 4-18-2014 | Introduction Since its inception in 1957, Premier Dairies has been supplying a variety of quality and nutritious milk products thus becoming a household brand name in Southern Africa. The company is listed on the Johannesburg Stock Exchange with a market capitalisation of R 1.5 billion and a price earnings ratio of 20:1, thus reflecting strong growth expectations. However, as consumers are exposed to a weak rand, rising interest rates and high fuel prices coupled with high food inflation, the environment does not bode well for sustained sales volume during the remainder of the year. Furthermore, farm gate milk prices have increased 8.9% in the last quarter which will have to be recovered through further selling price increases, invariably putting extra strain on sales volumes (IOL, 2014). Strategy As a result, the management of Premier Dairies has decided to expand their market share via a cross border acquisition of Lagos Dairies based in Nigeria. Lagos Dairies is a listed company with a market value of R 250 million and a price earnings ratio of 5:1. This acquisition will be financed via an all share offer coupled with an extensive growth and remodelling strategy so as to achieve a post-acquisition price earnings ratio of 20:1 or more for the combined entities. This can be achieved by creating operating synergies from the......

Words: 1350 - Pages: 6

Premium Essay

Principles of Procurement

...assignment 2013/2014 Module | | Principles of Procurement | | Learner number: | 2/14/2014 | Word count: 1972 | Concept of LCC The concept of Life-cycle-cost (LCC) was originally proposed and used by the U.S. Department of Defence, mainly applied to the procurement of important U.S. military equipment. LCC refers to total costs involved in the entire life cycle of a product, mainly covering research , experimentation, procurement, maintenance, transportation and storage . As a frontier cost management theory, it believes that the value of procurement activity is not simply limited to purchase price, but has more significance in terms of other associated costs, such as transaction costs, financing costs, maintenance and use costs, and opportunity losses. Although invisible, these costs cannot be ignored. The basic meaning of LCC is to achieve the lowest cost of equipment in the total life cycle of ownership on the basis of meeting requirements of reliability. According to the international standard for life-cycle-cost prepared by International Electro technical Commission, LCC includes costs occurring in a number of stages, such as concept and definition, design and development, manufacturing, installation, operation, maintenance, and disposal. The total costs can be calculated by summarizing related costs at each stage and generally be divided into procurement costs, ownership costs and disposal costs. ( International standard 60300-3-3,......

Words: 2881 - Pages: 12

Premium Essay

Procurement

...QUESTION 3: Discuss on the Effects of Procurement System in the performance of construction projects I. INTRODUCTION Procurement is also called as sourcing, which means gathering services and goods from the preparation and of request through the approval of statement for payment. This involves purchase planning, financing, making the purchase, inventory control and stores, specific development, standard determination, supplier research and selection, supply contract administration, disposal and other related functions, value analysis and price negotiation. Procurement plays major role in work relationship between parties involved in the construction process. Identify the primary and secondary objectives of the projects, Risk innate in the proposal, Environmental determination, which it will be implemented and selecting the appropriate procuring method for the proposed project. Procurement was not about a building, it was about entire project which includes obtaining goods and services, also includes obtaining human recourses like, consultants, contractors, sub-contractors, suppliers and specialists for some purpose. It is the very important step which can show some significant impact on the project success. Procurement is essentially a series of considered risks – each method has individual strengths and weaknesses, which must be carefully calculated by clients and industry alike. There are a number of different types of procurement routes available for clients to......

Words: 5134 - Pages: 21

Premium Essay

Procurement

...become part and parcel of everyday life in many business circles as a large number of organizations are involved in one form of e-businessor another such as e-procurement. The effect of e-business and in particular e- procurement on internal customer service is being addressed in this study because e- business and internal customer service are all important issues in today’s globalisedworld which is characterised by stiff competition among organisations.One of theResearch suggest that e-business activities bring three types of benefits to theorganization: value benefits (perceived by both buyers and sellers as a result of reducedsearch and costs), revenue benefits (allowing the organization to exploit newopportunities such as disintermediation, free service, etc.), and logistics benefits (finding the proper position in a supply chain).Procurement is an important part of the supply chain and does not only affect external stakeholders but also internal stakeholders. This entails that it has potential to add value not only to the external side of the supply chain but also to the internal supply chain. The electronic application of procurement (e-procurement) has had many benefits to organizations such as cost savings and profits. It thus makes it an important area of study and this particular study addresses how e-procurement is affecting internal customers in organizations and goes further to determine how external customers are affected by Internal Customer Service. Internal......

Words: 2493 - Pages: 10

Premium Essay

Procurement

...| The Future Role of Procurement in the Global Supply Chain | | Strategic Sourcing and Procurement | | Quiqueena Cintadita | Presented to: Tim Parker Msc. Logistics and Supply Chain Management December 10 2015 | Role of purchasing has changed from year to year. Years ago, it was considered as a job to buy materials. Now, purchasing is an essential function, which is used as a strategy by companies (Monczka et al. 2010). There are many reasons leading to the changes, such as increase in competition between companies, rise in technology, and growth in customers request (Lysons and Farrington 2012). These changes make the relationship with suppliers more important and therefore transparency is needed. Nevertheless, new concepts are needed which involves technology to keep a track to organize a global supply chain (Monczka et al. 2011). Supply chains are mergers from all activities, processes, and functions, which involve all the suppliers to support organizations or companies to deliver the products and services that customers or consumers needed (Business Dictionary). As a function, purchasing took part in the process of supply chain and all the internal organizations that related with supply chain, such as engineering, manufacturing, marketing, finance, information technology, logistics, and legal. Firstly, engineering, purchasing can help the engineering to reduce the defect. For example, in one global electronic manufacturing company, the......

Words: 3482 - Pages: 14

Premium Essay

Procurement Risk

... Project Procurement Process Kristen R. Dinger University of Maryland University College PMAN 641 Author Note Kristen R. Dinger, Graduate Student, Project Management, UMUC Correspondence concerning this article should be addressed to Kristen Dinger. Contact: Kristen.r.dinger@gmail.com Abstract Project procurement is concerned with establishing, maintaining and continuing to grow the relationships that one has with suppliers. The relationships made, aid in the procurement of goods and services for a project. Establishing the relationships needed to procure the appropriate goods for a project are critical in the completion of the project life. Once the relationship between the vendor and the project company is established goods and services can be procured in a timely manner. There are four major processes concerned with procurement. They are as follows: Plan procurements, Conduct procurements, Control procurements, and Close procurements. Within the analysis, each process will be thoroughly reviewed, in ordinance of importance, in the process of project procurement. Project Procurement Process Project procurement starts with establishing, then maintaining, and then closing the relationship with the supplier in order to obtain a material or service. There are four main process involved with project procurement. Each of the four process outlines a distinct step that is required in order to...

Words: 1727 - Pages: 7