IT Procurement Management and Vendor Management

Running head: IT PROCUREMENT MANAGEMENT AND VENDOR MANAGEMENT
IT Procurement Management and Vendor Management
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1IT PROCUREMENT MANAGEMENT AND VENDOR MANAGEMENT
1. Project procurement management processes
Various kinds of project procurement processes are there and after analyzing the
details of the project requirements and organizational background the companies are
needed to choose the most suitable procurement approach. In order to operate the
organizational culture the project manager needs to choose the most suitable
procurement approach. In order to grab more number of consumers and retain the
existing customers the functional and operation management of the businesses are
required to be very much accurate (Almorsy, Grundy and Müller 2016). Atleast three to
four months should undertake by the procurement managers to design the procurement
management plan for any company. Throughout the project development phase, the
project managers and the project team members are needed to consider the phases
sequentially to gain expected outcomes from the project. The processes those are
widely followed for developing the procurement plan are mentioned below:
 Plan procurement
 Conduct
 Administration
 Closing procurement
2. Components of enforceable contract
Before the development of the enforceable contract it is necessary for the project
or business owners to take legal advice and other essential components accordingly
(Fuller et al. 2017). After analyzing the type of the contract the type of the contract
should have to be considered such as whether it is written or oral. In the selling, buying
and leasing properties and for the dispute settings everyday new person do enter.
However if any person fails to enter to the system without proper consideration then the
entire process will be a failure. Depending upon the type of project or business all the
necessary elements of the contract are needed to be selected by the project manager.
In the below section the details of the components are illustrated:
Offers: The requirements or the demand are expanded through the help of offer.
Based on certain terms and condition the offers should be given to the project manager.
As soon as the offers will be accepted by the project managers will be ready to deliver
the contract details in terms of procurement management plan (Gurung and Prater
2017). Different ways such as letter, email are there through which the offers can be
given by the project managers and the project heads. The offers provided by the
enforceable contract include:
 A perfect statement of work based on the current project intention
 A specified proposal
 For detail process identification a details communication plan

2IT PROCUREMENT MANAGEMENT AND VENDOR MANAGEMENT
Acceptance: In order to create the enforcement contract the acceptance criteria
are the final and expression of the permission which is related to the project offerings. It
is necessary for the project manager to accept the given offer before the final
implementation of the project plan or the project idea professionally.
Mutual agreements: This kind of agreement is created between the customers
and the service provider or the contractors. The contract that will be prepared by the
project managers should be agreed by both the contractors and service providers
(Molla, Abareshi and Cooper 2014). There should always be a common intention
between the project manager and the contractor rather they should always possess a
shared project or business goal.
Consideration: Consideration is referred to as another very important term
associated to vendor management and application of IT in successful project execution.
After analyzing the business and project background the factors or the components
should have to be considered. It is expected that with the successful consideration of
the components the legal disputes and other issues associated to attorney can be
completely avoided (Meehan and Bryde 2015).
3. Different Components of offer
In order to analyze the complexity of the contract elements the different
components of offer are also required to be considered by the project managers before
the final project execution. The components of project offers are as follows:
Communicated: It is necessary for the contract developers to contact to the
person who is responsible to design the project. Based on communication whether the
offer will be accepted or rejected are decided accordingly by the project heads.
However, in some of the cases this particular component is ignored as a result serious
issues raised those are very much complex to resolve. Through successful
communication the contractual offerings will become more transparent to the project
managers.
Committed: For both the providers and the contractors the term committed are
very much important. In order to ensure that whether the offer will be accepted or
rejected is measured through the help of the commitment (Meehan and Bryde 2015).
Auction is one of the best rather most suitable ways used to change the content of the
contractual offers.
Definite terms: All the terms associated to contract offer should be well defined
and absolutely specified in nature. With the help of the defined terms the acceptance
and the timings should be stated accordingly. The acceptance offers are measured with
the definite terms
4. Difference between the independent and independent demand
It has been found that most of the time the consumers are familiar with the basic
supply laws and demand. As much demand from the consumers end will increase that