Some of the procurement methods for a buyer

Running Heading: PROCUREMENT MANAGEMENT
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PROCUREMENT MANAGEMENT

PROCUREMENT MANAGEMENT 1
Proposal planning is planning which includes a document designed to influence an
organization or an individual to buy a product or a service. Being a buyer, I got to learn a lot
about, proposal planning and management. From my learnings I understood that, when as a
buyer, a person need to purchase goods and services from a seller, the buyer must make a rough
estimate and outline of the quantity, quality and amount of the goods needed by the buyer and
should ensure to spend money wisely. Procurement management involves steps in a logical
order. Firstly, it involves planning for the requirement and the need of contract. Then comes the
step for planning for doing it and then the buyer sent the contract requirements to the sellers.
Then the best one is picked among them and then the contract is signed (Watt).
A buyer must set a project vision first and then estimate the requirements. A buyer must
ensure the needs and the motive to achieve a product before buying any product rather than
simply buying the products by paying without any prior planning. Then he must find out the best
suppliers who can provide him suitable goods at best price. The buyer can find the suppliers
through advertisements given by the suppliers, analyzing the past records of the suppliers,
through trade associations, contact references and business advisers (Canada business
Network, 2020).
Some of the procurement methods for a buyer depending upon the company could be,
firstly, Open Tendering, which allows companies to bid on some products or goods in an open
competition. It encourages to obtain goods by the buyer ensuring the value of money. Open
tendering provides the company with advertisements done locally, have unbiased technical
specifications, open equally for all the qualified bidders and having objective measures for the
evaluation. Secondly, Restricted Tendering, in which there are, limited agencies which are
invited by the procuring team. The procuring team should set guidelines while selecting the
suppliers for the invitation list. This method will help the buyers to find the best suited qualified
agencies, to buy goods and services (Juo, 2020). The third one is, Request for Proposals (RFP),
which is used when suppliers proposes their goods and services to procurement team or the
buyers for review. Fourth is Two Stage Tendering, in which the team which is procuring receives
proposal containing two envelopes. Among which, one is the proposal itself and another consists
of the associated financial information. Fifth is Request for Quotations, which is suitable for
small-valued products. This is useful for fast procurement and least paperwork. Sixth is Single-

PROCUREMENT MANAGEMENT 2
Source Procurement, this type of procurement is suitable in cases where the procuring entity
need to acquire products from sole provider (Juo, 2020). Therefore, the type of method for
procurement depends on the type and nature of goods and services.
It is important to think strategically while selecting the suppliers and select the right
supplier before procurement of goods. The buyer must shortlist the suppliers on the basis of the
financial security of the suppliers and their capability to deliver the goods to the buyer at right
time (Canada business Network, 2020). And then the buyer must compare among the
potential suppliers and select the best suitable supplier. And finally, a buyer must acquire a
written quotation and also share a contract specifying terms and conditions with the supplier
(Canada business Network, 2020).
For example, a buyer selects a supplier without investigating his previous records. The
buyer completes the formal agreement and the contract procedure with the supplier paying him a
part of the payment. And when the goods are delivered to the buyer, he founds that the quality of
the goods were not full filling his requirement. As, when the buyer placed the order, he specified
certain quality standards, but later when the buyer receives the goods, he found that, they were
lacking the quality standards. And when the buyer investigates about his past records, he founds
that, in the previous records also the supplier did not provide with the optimum quality standard.
This example shows that if the buyer would have done previous investigation of the supplier and
taken right decision, by shortlisting suppliers and selecting best among them, he could have
secured himself from this loss.
Being a buyer, I think that ethical perspective is an important element of procurement
process. This means that he must follow the rules and standards for fair conduct and also practice
the standards of the profession. Procurement team must follow the business practices in an
ethical, unbiased and in a fair manner. A professional can achieve success only when he
contributes to the business in an unbiased manner (Wins, 2018).
I believe that the ethics are the most important part of a business for a procurement
professional because unfair behavior can negatively impact the brand image of the company. A
good ethical behavior helps in establishing goodwill of the organization and a long term
relationship with the suppliers. An ethical person once earns reputation, carries it for a long time