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MAN5410 - Project Integration and Procurement

   

Added on  2020-05-04

17 Pages4451 Words148 Views
Business DevelopmentProfessional Development
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Running head: PROJECT INTEGRATION AND PROCUREMENT MANAGEMENTProject Integration and Procurement ManagementName of the Student:Name of the University:
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1PROJECT INTEGRATION AND PROCUREMENT MANAGEMENTTable of Contents1.0 Background of the Company.....................................................................................................22.0 Determining the key factors used when negotiating an agreement or evaluating competitiveproposals..........................................................................................................................................22.1 Development of negotiating strategy for MFB......................................................................53.0 Analyzing and selecting effective contract management techniques........................................64.0 Analyze the role of commercial terms and conditions, the uniform commercial code (UCC)and applicable government regulations on the outcome for MFB..................................................95.0 Conclusion...............................................................................................................................11References......................................................................................................................................13
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2PROJECT INTEGRATION AND PROCUREMENT MANAGEMENT1.0 Background of the CompanyFood and beverage industry is most challenging as well as competitive industry in theentire world. Multinational F&B Company (MFB) is an organization which produces innovativefood products for their customers. The company requires assessing direct as well as indirect rawmaterials sourcing contracts. Instability into price of the raw materials assesses the suppliers ondifferent parameters and then discusses contract terms in order to drive high savings (Ludema &Mayda, 2013). Negotiation of the goods as well as works procurement is not negotiated except insome of the cases based on the complexity of requirement of the food industry. Negotiations withthe consulting firms are based on the method of procurement. The report is based ondetermination of the key factors required to negotiate and evaluate of the competitive advantageof the MFB. The food industry requires developing of their negotiating strategies. In order tonegotiate of their food products, MFB analyzes and selects of contract management techniquesfor their successful negotiation. It controls the cost of contract, schedule and performance,managing of contract changes, contract claims with contract close out of the MFB. Uniformcommercial code (UCC) and applicable government regulations are required to analyze thecommercial terms for MFB. 2.0 Determining the key factors used when negotiating an agreement orevaluating competitive proposals With schedule of natural gas contract for renewal, then the client should have completeunderstanding of the factors which may affect their natural gas pricing. Lack of supplier marketintelligence is a key challenge while negotiating on the price and other contract terms. Effective
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3PROJECT INTEGRATION AND PROCUREMENT MANAGEMENTnegotiation helps the organization to build stable business relations, overcome with the conflictswith the suppliers and bring more income to the company (Carneiro et al., 2013). MFB Companysaves of millions in their sourcing of energy throughout GEP market intelligence. The globalenergy experts of GEP help the client to determine the supplier of natural gas and negotiate ofagreement. MFB wants to negotiate based on the factors such as time of delivery, payment,culture and quality of the goods (Merrills, 2017). The food and drink industry views good dealfor meeting with the customer’s requirements. Following are the list of key factors used at thetime of negotiation of the agreement:Price: Before the negotiating of the agreement, the food industry should require to get theprice list of the products from the suppliers. It is required to calculate the cost of each productfrom the supplier separately. When the price is low, then the organization should check for thequality of the food and drink (Li & Du, 2013). If MFB is a premium customer of the supplier,then they ask for huge discount to get best deal of the food items. Quality: It is required to do a basic research about the potential supplier to get an idea ofthe quality of services they offer to their customers. It should make sure that the suppliers havecash flow to deliver quality food products as per customer’s requirements (Amorim et al., 2016).Proper time to make an agreement with the supplier is also important which should be in end ofthe month. The sales person is needed to meet monthly sales quota. The contract administrationshould ensure for day to day procurement of the activities by following the sprint. Improvementinto the procurement environment means there is greater efficiency and there is increase intoprofit.
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