'Procurement Management Paper Essay\r'

'INTRODUCTION:\r\n There be organizations those who mop up products (or services) in bulk and then send their application goods into the market. To manufacture goods in huge quantity, the companies usually sine qua non materials, accessories, and equipments etceterathat be used for the production summons. virtually of the companies presume’t open these crank materials. So what they do is get these goods from the recognized suppliers, those who grass get the ships company with their desired goods, in quantity wanted and in season. So what companies do they ingest suppliers and get the barren materials.\r\nPROCUREMENT:\r\n As discussed in the introduction separate that companies do when they need raw materials for production. So this wait on of purchasing the raw materials and related goods is birdcalled procurance or Acquisition. Thus, procurance in basic terms can be called as the cultivate of purchasing of raw materials for the proc ess of production. The procural can be organise and indirect. The Direct acknowledges the acquiring of products, and Indirect includes services, maintenance of the acquired goods. So managing and handling the procurement related issues is called Procurement Management.\r\nAs we know that organizations, especially the manufacturing regulars, follow the concept of return Chain Management, which includes the raw materials required for manufacturing till it eventually get available for the consumers. virtually of authors, cover procurement as the premier(prenominal) phase of the Supply range. Most of the firms have dedicated procurement subdivisions, which deals with procurement related issues and post-procurement activities. The most basic task of procurement is to hold in that manufacturing department gets supplies on sentence and in set forth quantity.\r\nThe timing of supplies is an important issue because the materials must reach production on time, JIT and it all red uces the cost of inventory. The procurement department similarly inevitably to make family relationship with the suppliers. In galore(postnominal) firms, there atomic number 18 many suppliers, providing with different materials. These suppliers might have their own suppliers as well. So procurement management also include the maintaining relationship with suppliers and their tiers.\r\nPROCUREMENT PROCESS:\r\n The procurement process constitute of the related activates that argon used in the process of acquiring the goods. The procurement process is sanely similar for organization, i.e. military, natural resource manufacturing firms etc. However, the complexity of the process might be different depending upon the sizing of the firm. A well established firms need to go byg iodine emphasis on the procurement process, and there be objectives that are the procurement department needfully to ensure. premiere of the company, need to see weather the quantity and line ament of the materials are according to described requirements.\r\nThe department inevitably to check that are materials are good shape, are opposition the technical aspect, and according to quality requirements. The blurb objective is to check time schedule. As already discussed earlier, the channelize to receive goods before the schedule deadline. Most of the firms get supplies before the time, but in process the quality of goods are compromised. So it is better to resign on time, and in good quality. And the last objective, and frequently considered as the most, is the cost issue. In this process, the main aim to have least cost, but that should meet the forward requirements of quality, technical aspects, time etc. It is not needed that firm go for cheapest supplies. The cost can go high, if the goods supplied are of good nature.\r\nPROCUREMENT STEPS:\r\n promptly as we have discussed the criteria that procurement department needs to keep in mind when checking the supplies. Now, let us go through the bills that firms follow when they have the suppliers, from which they acquire supplies. To explain this process, I would select a firm, for which we would select the suppliers. The firm is have chosen is maker of clothes, especially T-shirts. Following is the steps that are:\r\n The first step is identifying the goods (or services) that are required for manufacturing of the product. For this, the firm needs to arrange the materials required, along with description, which covers all the above-discussed objectives. For instance, in case of T-shirts, the major material that has to procure would be cloth. I would also have to tell the material required, i.e. cotton, polyester, silk etc. Then the quantity of material also has to define and similarly, the estimated cost that my firm is willinging to pay. This step is also referred as evaluating the tenders.\r\n The second is to select the suppliers that are meeting the requirements, described in the first step. Then the suppliers are required to submit their Request for Proposals (RFP). The procurement department analyzes the propositions (RFP’s) of the major suppliers and asks them for their Request for Quotations (RFQ’s). So what our firm would so here is find the raiseders that clearing the requirements that we have asked for.\r\n The troika step is to ask for the qualified suppliers to prepare their bid proposal. The procurement department will analyze the proposal of candidates. The suppliers to do this activity are given time by the firm. In case of our, we the department will go though their cost along with the requirements. Actually, the firm starts that auctioning process.\r\n The fourth and often considered as the main step is which evaluate the final bidders that are offering supplies at the most reasonable price. The firm looks at their past reputation and records. The process is often complex in nature, as firm also need to realize the quality of the supplies. In this process, the firm selects the final supplier.\r\n in one case the firm has selected the final suppliers, the step of making read with the supplier comes. In this process, the firm needs to go for final agreement with the firm and all issues are discuss. A prescribed document as a proof is signed among the firms, which is according to contract act. The time period of the contract is also discussed in this phase. The direction of honorarium is also settled.\r\n The final step is the salutely closing of contract. The closing of contract require the almost activities to fulfill. We can say that when exchange of supplies and payment is made, the formal closing of contract place. In case of firm, the contract closes out when that we receive all materials i.e. clothes and payment of the material is made. Both the parties need to sort of issues. entirely in worst case, if issues go unset tled, any society can take the other party to court and solve this in legal way.\r\nPost-Procurement Activities:\r\n There are activities that are related to post-procurement period i.e. once the grease ones palms has been done, the activities such as maintenance, repairing and operating services (MRO’s) take place. These activities are related to indirect procurement. For instance, we have concur with our suppliers to provide us with MRO’s, and now evaluating their performance we have an option of renewal of the same suppliers, if we are well-to-do with their performance.\r\nCONCLUSION:\r\n The procurement management is considered as one of the main phase of firm’s sum chain management, which is responsible with the goods used for manufactures. Thus, we may call procurement as heart of supply chain management. The firms need to emphasis on procurement policies and decide to adapt to new technologies that are helping them managing pro curement activities.\r\nReferences:\r\nQuentin Fleming (2003) Project Procurement Management: Contracting, Subcontracting, Teaming. Fmc Press;\r\nFred, C.P.M. Sollish, John, C.P.M. Semanik (2007) The Procurement and Supply Manager’s Desk Reference. Wiley;\r\n'