The Procurement management process

Running head: PROCUREMENT MANAGEMENT PROCESS
Procurement Management Process
Week 2 - Assignment 1: Analyze Project Plans and Statements of Work (SOW)
Name of the Student:
Name of the University:

1PROCUREMENT MANAGEMENT PROCESS
Overview
Procurement management plan is referred to as a knowledge area of project management
that helps to define project requirements effectively and also help to manage the process
followed by essential steps (de Araújo et al., 2017). The procurement management plan for the
chosen project needs to be flexible to make changes with altered acquisition requirements.
The purpose of using procurement management plan for the project is to address and
identify all probable issues like identification of the product that have to be procured, contract
approval approach, the aspects based on which final project decision will be taken, risk
management plan, cost identification, contract life cycle management etc.
Statement of Work (SOW)
Vendor management plan
Vendor management is an important part of procurement management plan. In order to
manage and implement any project successfully within the assigned time and budget the
contractor needs to manage the vendors or suppliers also sophisticatedly. In order to manage the
vendors successfully the contractor and project subcontractor needs to share all useful
information with the vendor considering the priorities (Putri et al., 2019). However, confidential
information should not be shared. An accurate vendor management system will give better
productivity. The information that are to be shared to the vendors include forecast information,
launch of new products, design level changes, relocation etc. In order to gain project support
commitment of the vendors is very essential. On the other hand, the vendors also expect

2PROCUREMENT MANAGEMENT PROCESS
commitment from the contractors and sub contractors as well (Bradley, 2016). However, the
contractor should never accept the competitive bid the will be provided by the vendors.
The contractors need to build up the partnership for long term to earn commercial and
economic profits because short term vendor relationship mostly gives marginal cost savings.
Apart from that, most importantly the project manager should always understand the business
strategy of the vendors to build a much better relationship (Lahti, 2018). A good vendors
management always utters that, negotiation much be accomplished in such a way so that it give
benefits to both parties (Walker, Davis & Stevenson, 2017). It is found that lowest price can
bring lowest quality project also. Therefore, negotiation should have been based on win-win
agreement only. These are the ways through which vendors associated to the project can be
managed effectively.
Procurement process
In order to develop the procurement management plan the steps or stages that are to be
accomplished are as followed:
Step 1: Identification of the requirement for services and products from the different
business units
Step 2: Negotiating the contract with selected suppliers
Step 3: Raise of a purchase requisition as well as the purchase order
Step 4: Completion of payment process based on feedback and invoice
Step 5: maintain the detail record of feedback

3PROCUREMENT MANAGEMENT PROCESS
Roles and responbilities
stakeholders roles responsibilities
Contractor External The contractor is responsible
to plan the project and manage
the project throughout the
construction development life
cycle. Legal and regulatory
responsibility and project
monitoring are the
responsibilities. Apart from
that the contractor is also
responsible to maintain health
and safety of the labours
sub contractor External The sub contractor need to
maintain continuous
communication adhere to the
procedures and prcatices. The
need to participant in all the
safety events and make sure
that all the equipments are
safe.
project manager Internal The responsibility of the
project manager is to control

4PROCUREMENT MANAGEMENT PROCESS
and monitor the project
progress and make sure that
the project is accomplished
within time
Resource manager Internal The responsibility of the
resource manager is to
develop a resource
management plan followed by
the resourced required.
Identified procurement needs
 To make sure uninterrupted quality raw material supply with lowest cost
 To improve the quality of the ultimate objectives produced or implemented
 To optimize customer satisfaction
Timing
The procurement process needs to accomplish at the project initiation stage before
beginning the project.
Change review and approval process
In order to make sure that the implemented changes are accurate and followed by the
project requirement the changes are needed to be reviewed and approved before final execution.
The steps to be followed to approve the process and review the changes are as follows:
 Review the changed project objectives and changes

5PROCUREMENT MANAGEMENT PROCESS
 To review that whether the project tender and agreement is accurate or not
 To check that the project is accomplished within assigned an time or not
 To make sure that the vendor management and procurement process are properly
followed or not

6PROCUREMENT MANAGEMENT PROCESS
References
Bradley, S. (2016). Cross-cultural factors impacting successful project procurement management
implementations.
de Araújo, M. C. B., Alencar, L. H., & de Miranda Mota, C. M. (2017). Project procurement
management: A structured literature review. International Journal of Project
Management, 35(3), 353-377.
Lahti, M. (2018). Total cost of ownership in project procurement.
Putri, S. M., Pratami, D., Tripiawan, W., & Rahmanto, G. (2019, May). Assessing of project
management process knowledge area: procurement based on project management
maturity model pmmm)(case study of pqr company). In IOP Conference Series:
Materials Science and Engineering (Vol. 505, No. 1, p. 012004). IOP Publishing.
Walker, D. H., Davis, P. R., & Stevenson, A. (2017). Coping with uncertainty and ambiguity
through team collaboration in infrastructure projects. International Journal of Project
Management, 35(2), 180-190.