Wednesday, March 28, 2018

26-Procurement Execution

Procurement Management
A Procurement Management, is a method by which items are purchased from external suppliers. The procurement management process involves managing the ordering, receipt, review and approval of items from suppliers. A procurement process also specifies how the supplier relationships will be managed, to ensure a high level of service is received. This is a critical task in Procurement Management. In essence, the procurement process helps you "get what you have paid for".

When do I use a Procurement Management?
You need to implement a Procurement Process any time you want to buy items from external suppliers. By using this Procurement Management, you can ensure that the items provided meet your need. It also helps you manage the supplier relationship, ensuring that any issues are resolved quickly. By implementing a Procurement Process, you can ensure you get the maximum value from your supplier relationship

In the Procurement Management, you will: 
  • Identify the goods and services to procure
  • Complete Purchase Orders and issue to suppliers
  • Agree on delivery timeframes and methods
  • Receive goods and services from suppliers
  • Review and accept the items procured
  • Approve supplier payments

Procurement Management will enable you to: 

  • Identify supplier contract milestones
  • Review supplier performance against contract
  • Identify and resolve supplier performance issues
  • Communicate the status to management

Procuring goods and services from external suppliers can be a critical path for many projects. Often, the performance of the supplier will reflect on the performance of the overall project team. It's therefore crucial that you manage your suppliers performance carefully, to ensure that they produce deliverables which meet your expectations.
Procurement register allows you to keep a record of all goods and services purchased from suppliers, throughout the project life cycle. By recording your project procurement information in one place, you can easily identify and report the status of your project procurement at any time.