Procurement Systems and best practices

Supply Chain Management is a mechanism that consists of all processes that deliver different goods to the market and, in addition, create customer loyalty. These practices may include the purchase, transport, processing, operation, and delivery of goods (Helmold & Terry, 2017).

The best practices of supply chain management are discussed as follows; 1) Customer Relationship Management. This process gives the arrangement of how the relationship between the supplier and customer is organized and maintained. The supply management looks out for customer groups and targets them as a measurement of achieving the firm’s mission. 2) Customer Service Management. This process involves selling out the business ideas to customers. It indicates the necessary cause of information to customers such as goods availability, order status, and shipping dates (Maloni, 2017). The information reaches the customers by created interfaces linked to them from the firm for example logistics and manufacturing. 3) Demand Management. This management process balances the customers’ necessities with the businesses provide capabilities. This process includes focusing on request, distribution, procurement, and production. 4) Order Fulfillment. Fulfilling the customers need, and requirements is a key to effectively meeting customer order regarding fulfillment. For efficient order to be fulfilled, it requires incorporation of the organization’s logistics, manufacturing, and marketing plans. The firm has to develop strong partnerships with customers by meeting their requirements while reducing the total cost of delivery. 5) Manufacturing Flow Management. This management flow process covers the making of the products and well establishment of the industrialized flexibility, which is required to serve markets targeted.

Procurement

Project Procurement Process

Project Procurement Process is a way of creating the relationship among the external suppliers and an organization’s purchase sector to make orders, review, receive, and approve all procurement matters obligatory for the project implementation (Babich & Yang, 2017). This process tries to guarantee well-timed deliverance of the purchased goods that are chosen and acquired with relation to the terms and requirements that are set up by the purchase unit and permitted by the scheme manager.

The best practices for procurement process are carried out in key steps as follows: 1) Specification. The specification step entails communication of project manager with the purchasing unit to develop and endorse a list of procured items required for project execution. The department, therefore, must spell out the permitted items to outside vendors. 2) Selection. This selection process of project procurement method needs the unit to discover possible suppliers who can acquire the necessary items concerning the qualifications (Thai, 2017). The department, therefore, requires setting up selection criteria of vendors, which include cost, service quality, part performance, and delivery. 3) Contracting. While carrying out this process, all conditions and are listed. In addition, the delivery schedule should be detailed and negotiated with procures and be approved by the purchasing unit. The department, therefore, must enable communication between suppliers on payment condition and delivery dates so as to ensure timely delivery of the purchased items. 4) Control. For the control process to succeed, delivery and department controls should be done on time. 5) Measurement. This is the final step in the project procurement and management process (Anthony, 2017). The measurement process uses a scheme of performance pointer and measures to assess the efficiency and achievement of the whole process.

In conclusion, the management process involves both supply and chain management used together with project procurement process. The basic concept for essential business management process is successful to administer business change. This is particularly the case in the supply chain role. For example, for the provision and chain management process to be achieved, the whole process needs a series of activities to improve the organization’s process. The process includes; 1) Identifying key activities to enable easy manufacture and assembling all necessary tools. 2) The process involves moving from a local supply chain to global supply chain.

References

Anthony, A. (2017). Best Practice in South African Construction Procurement Law. In Global Public Procurement Theories and Practices (pp. 291-310). Springer International Publishing.

Babich, V., & Yang, Z. B. (2017). Supply Disruptions and Procurement Contracting. In Handbook of Information Exchange in Supply Chain Management (pp. 145-170). Springer International Publishing

Helmold, M., & Terry, B. (2017). Supply Management Organisation. In Global Sourcing and Supply Management Excellence in China (pp. 121-129). Springer Singapore.

Maloni, M. J., Hiatt, M. S., & Astrachan, J. H. (2017). Supply management and family business: A review and call for research. Journal of Purchasing and Supply Management.

Thai, K. V. (2017). Global Public Procurement Theories and Practices: An Introduction. In Global Public Procurement Theories and Practices (pp. 1-14). Springer International Publishing.