Procurement & Contracts: Management, Logistics, and Globalization

This essay provides an overview of procurement and contracts, emphasizing the importance of understanding contracts and procurement within business organizations. It highlights the objectives and challenges in procurement, the functions of procurement within an organization, and the consequences of entering into incorrect contracts or failing to fulfill contractual obligations. The essay also touches on legal actions that can be taken if a party fails to meet their contractual responsibilities. Key modules discussed include procurement management, demand control, storehouse and materials handling, inventory control, global operations, and Incoterms. It further elaborates on the importance of practical application of learned concepts, covering topics such as receipt reconciliation, vendor bill management, storage controls, and the impact of globalization on logistics. The essay concludes by advocating for continuous assessment and the application of theoretical knowledge in practical work environments for a better understanding of procurement and contract management.

Running Head: PROCUREMENT & CONTRACTS 1
Procurement & Contracts
Institution
Course
Date

PROCUREMENT & CONTRACTS 2
Procurement & Contracts
Procurement and contracts is a significant study for students to perform in the procurement
departments of companies and other business organizations. At the beginning of the course, the
student should be able to define a contract and procurement. He/she should also comprehend the
objectives and challenges in the field of procurement. Upon completion, the participant should
be fully conscious of the concepts of procurement and contracts, understand the functions of
procurement in the organization, understand the consequences that come along with entering into
a wrong type of a contract or failing to fulfil it, learn the legal actions he/ she should take in case
a party fails to fulfil his or her responsibility in a contract. The participant should practice the
acquired skills in their area of work and improve the value of quality in the organization’s
operations. (Jefferies & Rowlinson, 2016)
Various modules in procurement and contracts include procurement management, demand
control and consumer services, storehouse and materials handling formulas, inventory control,
global operations and Incoterms. During class sessions, a lesson plan is important which should
be able to cover the following sections: problems experienced in the field of purchasing and
supply management by procurement practitioners. A benchmarking process in a company can be
done so as to learn some of the common goals in various organization’s successful procurement
process and communication strategies such as negotiations, quality requirements and
scrutinization, how to choose best suppliers and retain them, elements of a good contract, legal
requirements of a contract, outsourcing agents connection and international supply executions.
Revisions and regular examinations should also be part of class activities. (Hackett & Statham,
2017)

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In the above modules the participant should be able to able to correspond receipts to bought
orders, wake modifications made to the initial orders using audit path, a faster reconciliation
vendor bills with receipts, contract options which are learned under demand control and
customer entity module. Under store management, the participants should learn storage controls,
different forms of stores and their costs. (Project Management Institute, 2013). They should also
be able to comprehend the impacts of globalization on logistics, address main issues of
international business deals, and elaborate disagreements and arbitration process under global
logistics and incoterms 2010. Under storehouse and material control systems the participant
should fully grasp the knowledge of functions of warehouses, how to plan it, learn about its
layout, storage shelve systems and upholding warehouse accomplishment. Under procurement
management he/she should be aware of various logistics theories, its transformations, logistic
interconnection points and programs, bonded logistics and how to present supply chain
management (Project Management Institute, 2017)
Participants should be encouraged to answer tactical questions covering various topics through
assignments and continuous assessment tests. The student should refer to the theories and
conception learned during the lecture sessions in their working environment for better
understanding.

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References:
Hackett, M., & Statham, G. (2017). The Aqua Group Guide to Procurement, Tendering, and
Contract Administration. Wiley.
Jefferies, M. C., & Rowlinson, S. (2016). New Forms of Procurement: PPP and Relational
Contracting in the 21st Century. SAR, China: Routledge.
Project Management Institute. (2013). Guide to the Project Management Body of Knowledge
(PMBOK® Guide)–Fifth Edition. Project Management Institute.
Project Management Institute. (2017). A Guide To The Project Management Body Of Knowledge
(Pmbok(r) Guide) (German). Project Management Institute.