Strategic Issues in Procurement Management

This presentation explores the various strategic issues in procurement management and their impact on project success. It covers topics such as planning, risk management, stakeholder management, resource availability, and budget management. The presentation also provides recommendations and best practices for effective procurement management. References to relevant sources are included for further reading.

NEW ROYAL
ADELAIDE
HOSPITAL
REPORT

PART 1 : INTRODUCTION
• Planning of business
• Management of risk
• Structure of the organization
• Assurance of process
• Management and contract of administration

PART 2: PERFORMANCE DRIVERS AND
PERFORMANCE-BASED OUTCOME
• Creativity
• Measurable outcome
• Trust
• Appropriate tools

PART 2: PROCUREMENT MANAGEMENT
AND COMPLETION EFFORTS
• Decide what to procure
• Chose appropriate vendors
• Assign roles and responsibilities
• Layout contract requirements

PART 2: RELATIONSHIP MANAGEMENT, ETHICS,
TRANSPARENCY AND OTHER EFFECTIVE
CONTRACT MANAGEMENT PROCESSES
• Interaction between both the parties
• Vendor and purchaser
• Meet respective obligations
• Operational, functional and business objectives
• Profitable interaction

PART 2: IMPORTANCE OF COMPLETIONS
DOCUMENTATION, PROJECT CLOSURE
AND LESSONS LEARNT
• Keeps the record
• Protect oneself from being accused falsely
• Good project management
• Complete knowledge of roles and responsibilities
• Track records

PART 3: ROLES AND RESPONSIBILITIES
OF THE PROJECT MANAGER
• Initiation
• Planning
• Designing
• Execution
• Monitoring
• Controlling
• Closure of a project

PART 3: RECOMMENDATIONS ON THE ROLES
AND RESPONSIBILITIES OF
PROCUREMENT MANAGER
• Purchase goods and services
• Maintains competitive prices
• Ensuring budget
• Operate profitably

PART 4: STRATEGIC ISSUES
• Mission
• Values
• Resources
• Structure
• Process management

PART 4: STRATEGIC MANAGEMENT
• Planning of business goals
• Deciding the time frame
• Business plans
• Minimize strategic issues

PART 4: RISK MANAGEMENT
• Happens by chance
• Quick action
• Better decision-making ability
• Understanding of risk and issues

PART 4: RISK PLANNING
• Revise the procurement approach
• Analyse the approach
• Ensure timings of the project
• Cost of modification

PART 4: STAKEHOLDER ISSUES
• Disbelief
• Lack of engagement
• Unrealistic expectation
• Constraints

PART 4: STAKEHOLDER
MANAGEMENT
• Engaged in all activities
• Must be consulted
• Communicated
• Trust and relationship

PART 4: RESOURCE
AVAILABILITY
• Manage resource
• Maintain competition
• Inadequate staff
• Require marketing scheme

PART 4: RESOURCE
MANAGEMENT
• High-value work
• Right resources
• Check on availability
• Avoid bottleneck

PART 4: BUDGET ISSUES
• Inadequate budget
• Expenses allocation
• Barrier
• Decision regarding expenditure

PART 4: BUDGET
MANAGEMENT
• Comparing project cost
• Forecasting appropriate variations
• Tracking the cost of the contract
• Proper allocation of budget

REFERENCES
• Project Management Institute. (2013a). A guide to the project management body of knowledge (PMBOK guide) (5th
ed.). Newtown Square, PA: Author.
• Sollish, F., & Semanik, J. (2012). The Procurement and Supply Manager’s Desk Reference. Upper Saddle River, NJ: Wiley.
• Barrett, P. (2016). New development: Procurement and policy outcomes—a bridge too far?. Public Money &
Management, 36(2), 145-148.
• Beuve, J., Moszoro, M. W., & Saussier, S. (2019). Political contestability and public contract rigidity: An analysis of
procurement contracts. Journal of Economics & Management Strategy, 28(2), 316-335.
• Buvik, A., & Halskau, Ø. (2016). Contract complexity and contract administration costs in small supplier alliances in the
Norwegian offshore market. International Journal of Procurement Management, 9(1), 1-14
• Calfa, B. A., & Grossmann, I. E. (2015). Optimal procurement contract selection with price optimization under
uncertainty for process networks. Computers & Chemical Engineering, 82, 330-343.
• Fejes, A., & Holmqvist, D. (2019). Procurement as a market in adult education.
• Hackett, M., & Statham, G. (Eds.). (2016). The aqua group guide to procurement, tendering and contract
administration. John Wiley & Sons.
• Iossa, E. (2015). Contract and procurement design for PPPs in highways: the road ahead. Economia e Politica
Industriale, 42(3), 245-276.
• Jefferies, M. C., & Rowlinson, S. (Eds.). (2016). New forms of procurement: PPP and relational contracting in the 21st
century. Routledge.

THANK YOU