Strategic Procurement Analysis & Redesign for PnuBioVax SME - SPMA7066

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Added on  2022/10/11

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Practical Assignment
AI Summary
This assignment analyzes the procurement function, differentiating between tactical and strategic procurement approaches. It explores the merits and limitations of each, providing a clear understanding of their application. The analysis focuses on PnuBioVax, a London-based SME, and examines various sourcing options, including purchasing, project-based development, outsourcing, and business process outsourcing. The document highlights current best practices in procurement, such as establishing a government supply chain council, aligning the supply chain, leveraging technology, and focusing on total cost of ownership. It also identifies major developments in the field, including digital strategy, risk management, and the increasing focus on indirect spending and artificial intelligence. Finally, the assignment proposes a redesign of the procurement process for PnuBioVax, recommending the finalization of contracting terms and conditions, creating a recurring specification repository, adopting strategic sourcing, standardizing proposal evaluation, planning acquisitions in advance, and developing contract administration protocols. The assignment concludes with a comprehensive bibliography supporting the analysis.
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Procurement
Function for SME
PRESENTED BY: -
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Procurement
Such act which obtain good and service for business purpose is
called as procurement. It is associated with the business as the
firms usually purchase goods and services in a large scale.
Generally, it is refers to the final purchasing decision.
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Tactical Procurement
The plan which is basically for the short time goal is refer as tactical
procurement. It is a tactical plan which is used to achieve the short
time strategic goal of the firm.
Here short term goals refers to those goals which company have
plan to achieve within a years or in lesser time period.
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Merit of Tactical Procurement
Cost reduction
Increase in profitability
Increase efficiency
Help to achieve short term goal
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Limitation of Tactical Procurement
Time consuming process
Only focuses to short term goals
Requires special skills
Not suitable for long term goal
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Strategic Procurement
Strategic Procurement is the plan which is develop with the
objective of reducing the supplier base, communication, negotiation
and long term relationship with the supplier. In other words, it is
long range plan that ensure timely supply of goods and services
which is tough for firm to meet its core business objectives.
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Merits of Strategic Procurement
Increase profitability
Risk management
Continues Improvement
Effective decision making
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Limitation of Strategic
Procurement
Based on long term goal
Fixed plan
Adaptation cost
Time taking process
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Sourcing options for PnuBioVax, a
London based SME
Purchasing
Project-based Developing
Out tasking
Selecting Outsourcing
Business Process Outsourcing
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Current Best Practices in the field
of procurement For PnuBioVax
The followings are the current best practices in the procurement
field: -
Establish a government supply chain council
Properly align and staff the supply chain
Make technology work for you
Alliance key suppliers
Focus on total cost of ownership
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Major development in the field of
Procurement
The followings development is observed in the procurement field
that can beneficial for the PnuBioVax: -
Digital Strategy
Risk Management
Increasing focus on indirect spending
Rising Artificial Intelligence
Effective change management
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Redesigning of Procurement for
improvement medium and long term
efficiency of PnuBioVax
The followings process can be used by the PnuBioVax in redesign
their procurement: -
Finalize contracting T & C
Creating recurring specification repository
Adopt strategic sourcing
Standardize evaluation process of proposal
Make acquisition planning in advance
Develop contract administration protocols
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