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What are all the things we have to consider before going for procurement?

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Question added by Santhamurthy Kesavan , Consultant , Self Employed
Date Posted: 2016/04/04
Md Fazlur Rahman
by Md Fazlur Rahman , Procurement Specialist , Engineering and Planning Consultants Ltd

The answer to this question could be varied significantly based on type of product, intended use, urgency etc. Accordingly, the following points may be taken into consideration before going into procurement.

1.     Purpose: Normally, the item is requested by Production or Operations of Program section. However, the Procurement department shall discuss and check with Production for intended use for clarification as it needs be stated in the specifications

2.     Duration of use: In case of equipment, if the intended use is for a short period, the same could be arranged through rental at a much cheaper cost

3.     Availability of the item in sister organization: It is better check whether the same item is available for use in any of the sister organizations.

4.     Approximate cost and availability of funding.

 Based on the response to the queries above, procurement department shall initiate procurement process, that is finalizing specifications, market research, soliciting bid etc.

Ashok Srinivasan
by Ashok Srinivasan , Regional Head of Internal Audit - Indochina & Philippines , Nestle Thailand Ltd

In simple words, I would ask questions like WHAT, WHEN, HOW, WHERE (possibly WHY) to buy, keeping in context of cost and service levels.

WHAT: Detailed Product specification is key

WHEN: Timing to know priorityand procurement terms and conditions

HOW: Process of P2P process, good understanding is needed. Like competitive bidding, supplier audit, creation of vendor master in ERP, effective negotations, etc.

WHERE: Identifying source

WHY: Procurement can add value sometimes in asking this questions. There could be an alternative solutions. Budgets?

 

 

Vinod Jetley
by Vinod Jetley , Assistant General Manager , State Bank of India

Have a detailed spend map across your entire organisation, updated quarterly.

Be a driver of sustainable savings (when, where,why and how) across the organisation.

Be engaged with the wider organisation to understand how procurement can reduce costs across the value chain.

Ensure that value is realised through contract management and supplier relationship management frameworks which are operationalised.

Be delivering procurement within an operating model that connects commercial and technical capability to drive optimal client outcomes.

 

Deleted user
by Deleted user

First of all the availability in stock. Then the annual budget restrictions (if any) and finally every historic data regarding the specific item or service.

Nadeem Asghar
by Nadeem Asghar , Supply Chain Consultant/Trainer , Independent Practitioner

I fully agree with very eloquent answer provided by Md. Fazlur Rahman and would like to add the following as well.

When the product or service is required so that procurement is scheduled accordingly.

Location where the product or service is to be used or stored so that tender enquiry documents specify this  for bidders to quote accordingly.

 

Ahmed Mohamed Ayesh Sarkhi
by Ahmed Mohamed Ayesh Sarkhi , Shared Services Supervisor , Saudi Musheera Co. Ltd.

what my budget and requirement

are i'm really need this things as a primary 

 

Deleted user
by Deleted user

Thank you!  Really it is difficult to answer your question  including the words (... all things...). Better you search and ask Mr. Google.

 

In brief, as experience at commercial procurement. Before procuring something, the technical administration aware much of the real need for procuring.  How, what and when.

 

Procurement officers play an important role depends on their good experience for going further 

Wasi Rahman Sheikh
by Wasi Rahman Sheikh , WAREHOUSE SUPERVISOR , AL MUTLAQ FURNITURE MFG

Fully agree with Mr. Md. Fazlur Rahman

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Ibrahim Saleh
by Ibrahim Saleh , Centralized Procurement Director , Aluminum Products Company (ALUPCO)

I think that you talking about conception of purchasing, if so, just go through the following principles which are always used to be followed in the purchasing process: Needs + Planning + PRW + 5WQ + POW = Implementation. Now you can say that we have a complete justified purchasing transaction.

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