Also known as a procurement management plan, a procurement plan is a document that’s employed to manage the process of finding & choosing a vendor. During the procurement planning process the procurement method is allotted and the expectations for fulfilment of procurement requirements decided.
What’s included in a procurement plan?
Procurement plans can be prepared for particular technical requirements and projects or different requirements associated to different systems. While the details may differ, effective procurement plans will include the below listed elements:
- Identification of the kind of agreement that’ll be employed in the deal.
- A clarification of the metrics that’ll be employed to judge the performance of the supplier.
- Strategic delivery or execution dates for the services or products that are being offered.
- Identifications of the managerial standards that must be compiled with.
- The number of vendors that’ll be involved & a clarification of how they’ll be supervised.
- A clarification of how obtaining the new services or products will have an impact on the constraints & limitations of the project plan.
- If known, identification of all vendors who’ve been prequalified for the project.
Why procurement planning is important?
Procurement planning is extremely critical since:
- It helps in deciding what to buy, when and from which sources
- It lets planner to decide if expectations are practical; especially the expectations of the requesting bodies, which generally expect their needs fulfilled on short notice and over shorter time span than the application of the corresponding procurement method permits.
- It brings a chance for all stakeholders engaged in the processes to meet for discussing exact procurement needs. These stakeholders could be end users, procurement department, requesting entity, technical experts, and even vendors to provide relevant inputs on exact requirements.
- It allows the formation of a procurement plan for procuring each requirement that’ll be included in the procurement plan.
- It lets planner to guestimate the time needed to finish the procurement procedure and award contract for each requirement.
- The need for technical proficiency to develop technical specifications for particular requirements can be evaluated, particularly where in-house technical capacity isn’t accessible or is non-existent.
- Planners are allowed to evaluate possibility of combining or dividing procurement requirements into diverse contract packages.
Procurement planning is critical for businesses to reduce their purchase expenses while maintaining their quality & quantity of good standards. To learn more about procurement planning and issue management, get in touch with KL iTech Solutions now. Call at +91 99406-68885 to discuss your requirements.