Contract and Procurement Management Assessment 2022

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CONTRACT AND PROCUREMENT MANAGEMENT
CONTRACT AND PROCUREMENT MANAGEMENT
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CONTRACT AND PROCUREMENT MANAGEMENT
Introduction
Contract management can be termed as the process of guiding the creation of new
contracts, their execution as well as analysis to improve the company’s financial performance
and minimize business risks. It also enhances the company's operations. This contract shows
the terms of agreement of the partnering organizations and the activities each organization is
going to engage in, in the fulfillment of the terms of the contract. Contracts need to be
appropriately phrased so as to earn profit for each company and to strengthen business
relations between the partnering institutions.
Purchasing as a strategic resource
What I learned and knowledge acquired: -
Purchasing is the attempt to acquire or provide goods and services to an institution
through the integration of many functions in the most efficient and effective way. Effective
purchasing gives the organization a competitive lead, minimizes company costs and also
affects customer loyalty in a positive way. Purchasing affects the organization’s sales and
costs; where effective purchasing maximizes the organization’s sales while reducing costs.
sales improvement is as a result of engagement and a good relationship with efficient
suppliers. Purchasing should be aligned with business strategies to have consistency and
contribute to the accomplishment of the organization goals (Merzifonluoglu, 2017)
Sourcing approaches
What I learned and knowledge acquired: -
Sourcing implies the process of acquiring raw materials, goods or services and
suppliers that are needed in the business. Sourcing aims at finding the best suppliers who are
not expensive. Sourcing should be done strategically to gain a competitive advantage in the

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CONTRACT AND PROCUREMENT MANAGEMENT
market and get the most reliable suppliers. Kraljic model for portfolio purchasing is a leading
strategic tool for guiding the strategies of sourcing for an organization. Partnership sourcing
is a combined approach where the buying company and its suppliers agree to work together,
aiming to improve the company's production and share the profits and the risks. This
partnership is always long term.
Supplier evaluation
What I learned and knowledge acquired: -
Supplier evaluation refers to the assessment process of possible suppliers to ensure
that the company gets the best suppliers. The process includes a quantitative and qualitative
assessment. Assessing the performance of suppliers enables the company to identify the
weaknesses of the supplier and ensure that the company’s requirements are met. The 10C
model can be used to assess the performance of the supplier (Govindan, Rajendran, Sarkis,
and Murugesan, 2015).
E-procurement for contemporary organizations
What I learned and knowledge acquired: -
E-procurement is a way of selling or buying supplies or services through the use of
software packages over the internet. The e-procurement involves the placing of the order,
authorization, and payment all done online. Kraljic model can be used to offer various e-
procurement strategic options. Different organizations need to identify an e-procurement
approach that works for them (Kim, Suresh, and Kocabasoglu-Hillmer, 2015).
Power and trust in buyer-seller relationships
What I learned and knowledge acquired: -