Procurement Function for SME Assignment 2022

Procurement
Function for SME
PRESENTED BY: -

Procurement
Such act which obtain good and service for business purpose is
called as procurement. It is associated with the business as the
firms usually purchase goods and services in a large scale.
Generally, it is refers to the final purchasing decision.

Tactical Procurement
The plan which is basically for the short time goal is refer as tactical
procurement. It is a tactical plan which is used to achieve the short
time strategic goal of the firm.
Here short term goals refers to those goals which company have
plan to achieve within a years or in lesser time period.

Merit of Tactical Procurement
 Cost reduction
 Increase in profitability
 Increase efficiency
 Help to achieve short term goal

Limitation of Tactical Procurement
 Time consuming process
 Only focuses to short term goals
 Requires special skills
 Not suitable for long term goal

Strategic Procurement
Strategic Procurement is the plan which is develop with the
objective of reducing the supplier base, communication, negotiation
and long term relationship with the supplier. In other words, it is
long range plan that ensure timely supply of goods and services
which is tough for firm to meet its core business objectives.

Merits of Strategic Procurement
 Increase profitability
 Risk management
 Continues Improvement
 Effective decision making

Limitation of Strategic
Procurement
 Based on long term goal
 Fixed plan
 Adaptation cost
 Time taking process

Sourcing options for PnuBioVax, a
London based SME
 Purchasing
 Project-based Developing
 Out tasking
 Selecting Outsourcing
 Business Process Outsourcing

Current Best Practices in the field
of procurement For PnuBioVax
The followings are the current best practices in the procurement
field: -
 Establish a government supply chain council
 Properly align and staff the supply chain
 Make technology work for you
 Alliance key suppliers
 Focus on total cost of ownership

Major development in the field of
Procurement
The followings development is observed in the procurement field
that can beneficial for the PnuBioVax: -
 Digital Strategy
 Risk Management
 Increasing focus on indirect spending
 Rising Artificial Intelligence
 Effective change management

Redesigning of Procurement for
improvement medium and long term
efficiency of PnuBioVax
The followings process can be used by the PnuBioVax in redesign
their procurement: -
 Finalize contracting T & C
 Creating recurring specification repository
 Adopt strategic sourcing
 Standardize evaluation process of proposal
 Make acquisition planning in advance
 Develop contract administration protocols

Bibiliography
 Christopher, M., Mena, C. and van Hoek, R., 2018. Leading
procurement strategy: driving value through the supply chain. Kogan
Page Publishers.
 Dong, B., Tang, W. and Zhou, C., 2018. Strategic procurement
outsourcing with asymmetric cost information under scale
economies. Journal of the Operational Research Society, 69(11),
pp.1751-1772.
 Edquist, C., Vonortas, N.S., Zabala-Iturriagagoitia, J.M. and Edler, J.
eds., 2015. Public procurement for innovation. Edward Elgar Publishing.
 Nair, A., Jayaram, J. and Das, A., 2015. Strategic purchasing
participation, supplier selection, supplier evaluation and purchasing
performance. International Journal of Production Research, 53(20),
pp.6263-6278.

Thank you.