Analyzing Risk & Procurement Strategies: A Reflektion Project Report

This report provides an analysis of project risk and procurement management, focusing on Reflektion, a software company in the USA, as a case study. It examines different acceptable levels of risk and demonstrates various methods of sourcing and supplier base development employed by Reflektion. The report proposes a strategic source framework designed to enhance value growth and procurement excellence. It covers supply base development methods, sourcing methods, and the importance of procurement for global organizations, highlighting the need for strategic sourcing to mitigate risks, improve sustainability, and drive cost savings. The analysis includes the implementation of lean principles, the development of long-term supply partnerships, and the importance of rationalizing the supply base to manage supplier performance efficiently, ultimately aiming for sustainable supply chain optimization and risk reduction within Reflektion's operations.

Running head: PROJECT RISK AND PROCUREMENT MANAGEMENT
Project Risk and Procurement Management
(Reflektion, United States)
Name of the student:
Name of the university:
Author Note

1PROJECT RISK AND PROCUREMENT MANAGEMENT
Executive summary
The following study analyses project risk and procurement management. This determines different
acceptable levels of risks. For this Reflektion is chosen as the case study. It is famous software
company located at the U.S.A. Here different methods of sourcing and supplier base have been
demonstrated for Reflektion. Moreover, the strategic source system is proposed that has been helpful
to determine value growth and excellence of procurements.

2PROJECT RISK AND PROCUREMENT MANAGEMENT
Table of Contents
1. Introduction:......................................................................................................................................3
2. Sourcing methods and supplier base:...............................................................................................3
2.1. Supply base development method:.............................................................................................3
2.2. Sourcing methods:......................................................................................................................7
3. Strategic source framework:..............................................................................................................9
3.1. Creating the effect of smart impact:.........................................................................................11
3.2. Importance of procurement for global organisations:..............................................................15
4. Conclusion:......................................................................................................................................16
5. References:......................................................................................................................................17

3PROJECT RISK AND PROCUREMENT MANAGEMENT
1. Introduction:
The “Reflektion” is a leading software organisation at the U.S.A. It has created the future
generation platform for personalization (Reflektion, 2018). The “project risk and procurement
management”, on the other hand, has been helpful to determine various acceptable levels of the risk.
It has been helpful to analyse the effects of different risk factors at Reflektion and control
project risks through various proven processes. Moreover, it is useful to recognise the contract
components and understand the project contracting processes.
The following report has examined various methods of sourcing and supplier base for the
project of Reflektion. It has also suggested a diplomatic source system leading to value growth and
procurement excellence.
2. Sourcing methods and supplier base:
2.1. Supply base development method:
Reflektion has shifted a long away from competing in a head-to-head manner and away
towards competing against various extended enterprises. This indicates their supply chains. Because
of high level resource needed to bring complex products to the market at international level, the
supply chain professionals have fostered closer and prior relationships of supply partners (Liu, Meng
and Fellows 2015). This has been helpful to stimulate intimate collaborating necessities for realising
respective values created from the concepts of extended enterprises. Moreover, the professionals
have been instituting programs of supplier developments consisting of repeatable supply
performance cycles to maintaining effectively supply base. Furthermore, this must also develop the
supply base. Reflektion has been implementing a supply performance framework to understand the

4PROJECT RISK AND PROCUREMENT MANAGEMENT
cost savings. Besides, they have been in the best position to execute the higher-level and
marketplace competition.
However, there have been various challenges involved in it. This has included time,
resources and support of executive leadership. Further, a long-term payoff is also intended.
Reflektion should be achieving a functioning internal system of internal prediction. Then they must
drive lean thinking externally around the supply base and develop a lean extended enterprise
(Hornstein 2015). Knowing the operational aspects can pose hurdles for new constant development
teams. In this way balancing pressure trade-offs to realise the measurable outcomes has been
comprised of a realistic timeline. This has been the move towards encouraging different long-term
supply partnerships. This has been yielding the creation of respective values.
First of all the solution has included the execution of lean internally and then enabling
externally. Reflektion has required stabilising the production facilities before starting to develop
suppliers and sizing the inventory at the initial move towards the goals. The lean internal
management system has included a plan for all parts (Edler et al. 2015). Here a robust, accurate cost
model is needed to be enforced and included in the piece price, change and risk costs. Knowing the
suitable changes costs has been upfront has been positioning the team to transform the supply as
required quickly.
Next, they must dedicate the supply perform resources and teams. Reflektion must use the
assimilated supply chain performance team outside the reduced costs and onsite analysis and
constant development acts. Implementation of supply performance program has been a full-time task
as Reflektion is resource constrained or ever expecting staffs to get pulled away in due time. Then
they must supply with partners with the service providers for aiding bandwidth. Next, they must
maintain and develop the detailed strategic work plan that has included communication plans,

5PROJECT RISK AND PROCUREMENT MANAGEMENT
timelines, agendas and timely meetings (Sadgrove 2016). The systems of supply performances have
been showing the move towards more effectively tracking different open item lists that must include
tasks, leads, initiatives and dates around the suppliers.
Moreover, a supply performance program must be implemented. Reflektion must assure that
the supply performance program success has been done through deploying repeatable supply
performance frameworks. The team must use this and the extended enterprise should use that an
ongoing basis. The system of performances and suppliers of transitions has been the par6tners such
that one can cultivate the healthy supply base. The lean supplier development can be considered to
be a great initiative and effect on people needs can be regarded to assure the success (Niazi et al.
2016). Moreover, they must concentrate on an analysis of individual leadership, analysis of company
cultures and providing ancillary tools. This is helpful; to create positively different culture regarding
trust. They must bring in the materials, ideas and tools through small lean workshops that must be
included in onsite quarterly reviewing of meetings for teaching the best practices.
The desire to develop the supply base performances quickly requires to get tampered. This
should be done through assuring the lean journey that has been effective underway and the clean
production systems are in place ahead of the rolling out of the supply performance program.
Implementation of regular supplier development program has been a smart start. However, execution
has been much more robust. The supply of performance program has been [lacing people ahead of
the competition and create additional results in long terms.
The sustainable supply base optimisation must start with rationalisation, strategic initiate and
then be supporting various processes to decrease and limited use suppliers. This has been helpful to
move beyond reducing the number of suppliers and spending more time having small suppliers for
reducing the expenses. Then it has needed critical lean methods of supply chains and applications to

6PROJECT RISK AND PROCUREMENT MANAGEMENT
optimise the size of supply base systematically. This has been depending on the performance of
suppliers (Lock 2017).
Then they must assure that the supply bases gets comprised and have been able to provide
partners and are persistent under manageable sizes. This has been important for the operations of
supply chains to manage the performance of suppliers efficiently. It must be reminded that the
concepts of the lean supply chain have been mandating more intimate partnerships with different
supply partners and in this way, Reflektion should consolidate the buying with partners to
concentrate over waste reduction around the system (Enshassi and Mosa 2015). Here, the long-term
sustainable supply performance success must be reviewed thoroughly spending every quarter at least
once every year. Here the supply transitions have been risky and have been complex through various
factors. In this way, it has outlined in specific supply base optimisation and rationalisation plan at the
starting. This has been helpful to furnish the team with confidences to know the factors that have
been arising inevitably. Thus by following a proven process for considering strategically coordinated
activities for rationalising then optimising the supply base leading to smoother and lowering risk
supply transitions. Lastly, it must be reminded that the element consistent with Reflektion mainly to
supply support has got worse or better as compared to the competition. Thus it has been complicated
that the organisation must work tirelessly for developing the preferred supply partners and then
replace the useful suppliers with the effective ones for driving supply performances.

7PROJECT RISK AND PROCUREMENT MANAGEMENT
Figure 1: “Mind Map being used for qualitative risk analysis”
(Source: Muriana and Vizzini, 2017)
2.2. Sourcing methods:
The supply chain risk management has been turning to the priority. This happens as
Reflektion lose millions due to cost volatility, supply disruptions, incidents and non-compliance
causing harms to the reputation and brand of organisations. As Reflektion considers the risk of
supply under the sourcing process, they have tended to concentrate on risks that supplier-specific.
This happens instead of broader supply risks getting inherited from the type of items that are being

8PROJECT RISK AND PROCUREMENT MANAGEMENT
sourced (Khameneh, Taheri and Ershadi 2016). This also includes overall U.S.A. or nations they
flow through and modes of handling and transport. Moreover, the transportation modes and
controlling, logistical hubs and location-specific resources, a sensitivity of the intellectual property
of items and kinds of customer-specific perquisites that are passed back are also considered here.
For Reflektion, strategic sourcing is considered to be a well-planned continuous method.
Here, the procurement finds leading role to satisfy business requirements and incorporate values to
business. Through proactively controlling supply chain indicates the collaboration with internal
stakeholders and various suppliers. This critically determines the expenditure of the company and
monitors the risks of suppliers. It also helps in rising profits. Here every dollar saved at procurement
moves directly to the bottom-line and includes dollars to the overall gain. Further, star5tegic
sourcing looks for savings systematically from the global supply chain delivering company with
competitive advantage. Then it must manage the supply risks. It needs every category to spend and
here all the suppliers are to be investigated (Lock 2017). Every current supplier is evaluated
distinctly regarding quality risk, availability risk, economic risk and corporation level. As the
dangers get recognized, one can consider that to mitigate or avoid risks. Next it helps in improving
sustainability. It is not only just a one-time initiative or project. This is constant cycle of activities.
Here various dedicated category managers under the team focuses in supplier performance and
category. Moreover, every subsequent period, they can move deeper to seek extra scopes for
bringing value to Reflektion. Finally, more amounts are needed to be retrieved of the procurement
determining whether it has been decreasing the operational costs or increasing the operational speed.

9PROJECT RISK AND PROCUREMENT MANAGEMENT
Figure 2: “Administer procurement”
(Source: Uzulāns, 2018)
3. Strategic source framework:
In order to create a strategic source framework, first of all a category is to be profiled. Here,
every aspects are to be understood regarding spend category as the initial step under strategic
process of sourcing. It has indicated defining of commodities and divisions within that. This denotes
the present quantity utilized, sizes, types, users and their location. Next the processes used and
people involved in supply chain are to be determined. Furthermore, the data should be documented
in details as much as possible as changes are required. Next the supply market analysis is to be done
where the potential new global and local suppliers are to be identified (Rakos et al. 2015). The cost

10PROJECT RISK AND PROCUREMENT MANAGEMENT
components of the services and products are to be studied and the marketplaces of the suppliers are
to be analysed regarding opportunities and risks. Next the strategy is to be developed. It must be
decided where to buy through minimizing costs and risks about how to create strategic sourcing
strategies. Using cross-functional project team has been mandatory.
The policy has been depending in actual alternatives for the present suppliers, the way the
supplier marketplace is competitive and notably, how open their users have been to the suppliers.
After this the sourcing process is to be selected. Here, the most popular means of sourcing is to use
the request for proposal process regarding bids of solicitations. This has included service and
product specifications, service and delivery requirements, breakdown in processing and financial and
legal conditions and terms. Here, the criteria of evaluation are also needed to be stated. After this,
the suppliers are necessary to be selected and negotiated. Here the initial round of negotiation
method after decreasing the bids to valid ones has been conducted with various suppliers (Rostami et
al. 2015). They have been seeking clarifications and after this more details are required. Here, an
effective strategic sourcing method is needed to hold multiple records of negotiations for retrieving a
short list. The ultimate selection is to be done by the team and then signed off as per the process of
approval. After the strategy is to be integrated and implemented. The critical successful suppliers are
to e notified that they are included under the implementation process.
However, these plans are been varying as the degree of changes. This communication plan
under strategic sourcing strategy has included improvements, methods and specifications along with
alterations in service and delivery pricing and requirements. Lastly, the outcomes are to be tracked
and benchmarked. The primary element considered here is the sourcing of process of management.
This has been the beginning of constant cycle, beginning with benchmarking present status of
category or commodity. This must also include the investigation of results and assuring that the

11PROJECT RISK AND PROCUREMENT MANAGEMENT
complete value is achieved. Next, the initial step is to be fetched again and the process is to be
restarted in constant developing marketplace.
Figure 3: “Project Risk Management”
(Source: Projectmanagement.com, 2018)
3.1. Creating the effect of smart impact:
Having the third-party spend accounting for about most of the cost base of Reflektion, the
procurement can be considered to be a primary strategic lever. This is to develop profitability,
revenue generation, driving the savings, optimising the constant capitals. This must be done while
analysing innovations and doing away with the risks. To gain these outcomes, the chief procurement
officers of Reflektion should be aligning and integrating a useful operating model (Carvalho and
Rabechini 2017). It must deliver scalable and repeatable execution of procurement strategy. For