The modern definition of Procurement is that is an end to end process, from the recognition of a need, through to its ultimate fulfilment. It is often seen as being the part of an organisation’s operation that can reduce costs and add value. At DPSS part of our definition is concerned with securing the supply of goods and services that are essential to continued operation the organisation. Not just to obtain the goods and services but to ensure the supply will be there for as long the organisation needs it.
It is also about ensuring that these goods and services are not just fit for purpose, in the sense that they are of satisfactory quality but fit for purpose in the context of the business requirement. This has been gaining increasing importance, as Procurement searches for innovative and creative ways of meeting these needs, by looking at what the solution to our business need, rather than buying what has been bought in the past.
Non –Procurement staff are becoming more involved in the transactional aspects of procurement and being aware of the whole process reduces maverick buying and gains commitment to using the organisation’s procurement process.
This is a practical course tailored to the requirements of the audience but could include some or all of the following areas:
The Procurement Process
This explains why following a robust process will lead to better value and can reduce the probability of problems arising in the future.
There are a variety of different types of specifications that can be used to communicate the business need, each one having a different cost and risk implications. It is essential, particularly with service contracts, that all stakeholders have a ‘shared vision’ of the outcome.
Understanding the Supply Market
Based on Porter’s 5 forces, this helps to analyse and understand the other players in the market and to view the balance of power between suppliers and the buyers.
There are a range or relationships we may be used in a variety of situations. Establishing commercial relationships may be used to gain mutual benefits with the supplier but may also secure future supply of goods and services. There are a range or relationships we may be used in a variety of situations.
Supplier Selection & Evaluation
This looks at a range of criteria that can be used at pre and post contract award in addition to the traditional 5 rights approach. The DPSS 10C’S approach is a recognised methodology that has been widely adopted by a number of organisations and can be adapted to suit a range of requirements.
This looks at how suppliers can be measured and monitored to ensure that they are performing at the required level and seeking ways of continually improving their performance and extracting maximum value from the contract.
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