SPMA7066: Strategic Procurement for SMEs - Evaluation Report

This report provides an evaluation of strategic procurement, focusing on its application within Small and Medium-sized Enterprises (SMEs). It begins by defining strategic procurement as a long-term approach to acquiring organizational needs at the lowest total cost, with minimal supply chain risks, while also acknowledging its limitations. Tactical procurement, linked to short-term transactional activities, is contrasted, with an emphasis on data-driven factors. The report then explores sourcing options, the critical success factors of chosen strategies, and current best practices in the procurement field, including digital strategies, talent development, and risk management. The report also outlines a redesigned procurement process, from identifying requirements and suppliers to contract negotiation and invoice management. The report references academic research to support its arguments and findings, providing a comprehensive overview of strategic procurement in the SME context.

Small and Medium
Size Enterprises

Evaluation of merits and
limitation of strategic
procurement Strategic procurement is considered to be system and long term
approaches.
 It is used of acquiring current and future needs of the
organization.
 It is incorporated at a lower total cost of the ownership.
 It also has the lowest risks of supply lines.
 It is limited to the selection of customer services and merge with
other organizations.
 It also has its own limitation of selection.

Evaluation of merits and
limitation of tactical procurement
 Tactical procurement is classifies to be linked with short term.
 It has its own transactional activities.
 The management of Captify routinely be reactivated with the
help of purchasing and material supplies.
 The management of Captify also incorporates with the
application of productive operations.

Continuation
 The activities of Captify are limited to day to day manufacturing
of business data.
 The data driven factors leads to the creation of new data and
also the procurement of new data that is essential for the
success of the data.
 Buyers would be in the position of buying the orders with the
incorporation of lower prices.
 The delivery time of the services are minimum for Captify.

Selection of sourcing options
 The process of sourcing is done based on the extent of the
operation of the organizations.
 It is also dependable on the type of business that is undertaken
by the organizations.
 The manager of the organization is entitled for choosing the
option of sourcing.
 The various types of sourcing would be implemented with
business strategies and sourcing strategies.

Critical success factor of he
chosen sourcing options
 The success factor of the sourcing option for the organization is
dependable on the operations of the organization.
 It is also responsible for the creating particular traits.
 These factors would eventually be evaluated for finding the
success of the chosen sourcing factors.

Current best practices in
procurement field for Captify
 By the establishment of governing factors of supply chain
council.
 Proper alignment and staff allocation of supply chain
organization.
 Use of proper technological advancement while conducting
operation.
 Establishment of alliances among the key suppliers.
 Engaging in a collaborative strategic sourcing.

Major developments in
procurement field
 Creating a digital strategy of practices for incorporating
digitalization.
 Building of pool talents and the embracement of technologies.
 Thinking about the suppliers beyond the prices of the
commodities.
 Creating a process of risk management in the field and processes
of assessing the risk factors.
 Increasing the focus on indirect spendings.

Process of redesigning the
selected procurement method
 Identification of current requirements for accessing goods and
services.
 Identification of the necessary suppliers and evaluating those
factors for selection of suppliers.
 Negotiation of contract between the selected suppliers and the
managers of the organization.
 Raising a purchasing requisition for releasing the purchasing
order.

Continuation
 The process of receiving and auditing the requested goods and
the services.
 Maintaining a proper process of records for the invoices.
 Creating a proper process of circulation of the services from the
organization and the goods collected from the suppliers.

References
 Paradise, A., Preston, D.R. and Mercado, J.H., Intuit Inc, 2017. Systems and methods for purchasing
products from a retail establishment using a mobile device. U.S. Patent 9,747,631.
 Babakhani, N., Ritchie, B.W. and Dolnicar, S., 2017. Improving carbon offsetting appeals in online airplane
ticket purchasing: testing new messages, and using new test methods. Journal of Sustainable
Tourism, 25(7), pp.955-969.
 Gibson, A. and Debussy, A., eBay Inc, 2017. System and methods for upcoming event notification and
mobile purchasing. U.S. Patent 9,805,394.
 Cao, Z.Z., Chang, F.B., Chen, M.L., Ruan, Y.Q., Shuang, F.U., Liu, Y.D. and Yin, J., 2018. Purchasing
management of medical consumables based on drug exchange mode. Chinese Medical Equipment
Journal, 39(4), pp.86-88.
 Cao, Z.Z., Chang, F.B., Chen, M.L., Ruan, Y.Q., Shuang, F.U., Liu, Y.D. and Yin, J., 2018. Purchasing
management of medical consumables based on drug exchange mode. Chinese Medical Equipment
Journal, 39(4), pp.86-88.
 Molavi, J. and Barral, D.L., 2016. A construction procurement method to achieve sustainability in modular
construction. Procedia engineering, 145, pp.1362-1369.
 Stopka, O., Chovancová, M., Ližbetin, J. and Klapita, V., 2016. Proposal for optimization of the inventory
level using the appropriate method for its procurement. NAŠE MORE: znanstveno-stručni časopis za more
i pomorstvo, 63(3 Special Issue), pp.195-199.