Procurement Planning and the Procurement Plan: Why are they Important?

procurement planning is the action of procurement in general and broader form.

procurement plan  is the plan we put tp start searching,prospecting suppliers,negotiating,and making the purchase.we also include time frame and shipping time lines and processes.

Procurement planning and procuremnt plan are important for....

• Cost minimize and effective procurement
• Save time and production lost
• support production line within lead time
• To implementation of TCO ( total cost of Ownership)

To save time, to reduce cost.

Let's put it this way: If you don't have a procurement planning, how are you going to be efficient as a procurement professional?

If you don't have a supply base, if you don't have been prepared for future requirements, if you haven't sourced enough and if you have no timetables, then you will create cost instead of deduct it.

Procurement planning is the backbone for purchase decision.

Procurement planning is important because

1) we can reduce cost  and time.

2) we can select the right supplier for material

3) We can choose right material required for the project.

4) We can buy the material within budget5) we can also implement the JIT (Just In Time Delivery of material)

6) We can implement group buying.

Procurement planning is the process of deciding what to buy, when and from what source. During the procurement planning process the procurement method is assigned and the expectations for fulfillme...