Procurement management is defined as the systematic approach that is effectively used in the organisation. It is used for buying all goods and services that are required by the organisation to stay sustainable. As per my analysis, Proper management of the procurement is very effective for increasing the overall business practices and business opportunities effectively. Typically, procurement management works on following themes are as listed below-
· Theme 1. Identification of need.
· Theme 2. Finding and qualifying suppliers.
· Theme 3. Requesting proposals.
· Theme 4. Communicating with suppliers.
· Theme 5. Contracting.
· Theme 6. Delivery.
· Theme 7. Analysing results.
The procurement management sets a procurement framework for the effective development of a project. It will act as guidance to manage the procurement throughout the life cycle of a project, and it will be updated as acquisition needs change. This plan defines and identifies the items to be procured, the decision criteria and approval process are the types of contracts which is used to support the project.
Procurement management is a process of acquiring products and services from outside source. It includes purchasing and outsourcing the good and services. The processes include in procurement management are- plan procurements, conduct procurements, administer procurements, close procurements.
Plan procurements- It is first process of procurement management in which purchasing decisions are documented in order to identify potential sellers. Procurement management plan is designed by the project manager in which all the information about products that need to be acquired are documented.
Conduct procurements- It is process of identifying and selecting seller, obtaining response from the sellers, appreciating and awarding contractor who is responsible for establishing connection.
Administer procurement- It is a process of monitoring the performance of the contractor, managing procurement relationships with the outsiders/sellers, and make changes in procurement document if required.
Close procurement- In this process contractor provides a legal notice to seller that contract has been completed.
Procurement management is the process of management which deals in the procurement of goods and services. As per my learning, procurement management is a procedure of handling and managing purchasing of goods and services from outside. Procurement manager is responsible to carry out the procurement strategies across all channels of purchasing. Procurement management helps the organization to reduce overall expenses of purchasing while increase productivity. Following steps are considered when it comes to procurement management;
· Analyze the requirement of goods and services need to be purchased from outside. This will help to determine the impact of purchasing on budget.
· Predefined strategies and criteria are defined and followed in order to select the best provider for purchasing goods and services
· Keep track of the progress of the procurement to ensure the flawless purchasing of goods and services.
· Complete purchase orders and issue to suppliers.
· Receive procured items and approve supplier payments.