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OVERVIEW
Procurement Plan
A Procurement Plan defines the products and services that you will obtain from external suppliers. A good Procurement Plan will go one step further by describing the process you will go through to appoint those suppliers contractually. Whether you are embarking on a project procurement or organizational procurement planning exercise, the steps will be the same. First, define the items you need to procure. Next, define the process for acquiring those items. And
finally, schedule the timeframes for delivery.
When to use a procurement plan
It is advisable to create a Procurement Plan whenever you want to purchase items from suppliers.
Using the Procurement Plan template, you can define the procurement requirements, identify potential suppliers, contract those suppliers and manage them to ensure delivery. Project Procurement Planning is critical to the success of any project. This Procurement Plan template
helps you to perform these steps quickly and easily.
Need for Procurement Planning
We all know that a plan is just a guess, because we don’t have control over the future. So why do we plan? To have an idea of how something will work out in the future, and although things hardly ever work out exactly as planned, when they do we are happy, and when they don’t we
are sad.
With procurement planning it’s similar. We plan procurements for the coming period knowing that it’s just a best case scenario. We try to plan for uncertainties, but when it doesn’t work out it gives us an indication of how we’ve performed and we can use this to improve our future
planning exercise. During execution, the closer we get to original plan, the better.
Importance of Procurement Planning and the Procurement Plan
Procurement planning is the process of deciding what to buy, when and from what source.
During the procurement planning process the procurement method is assigned and the expectations for fulfillment of procurement requirements determined.
Procurement Planning is important because:
1. It helps to decide what to buy, when and from what sources.
2. It allows planners to determine if expectations are realistic; particularly the expectations of the requesting entities, which usually expect their requirements met on short notice and over a shorter period than the application of the corresponding procurement method allows.
3. It is an opportunity for all stakeholders involved in the processes to meet in order to discuss particular procurement requirements. These stakeholders could be the requesting entity, end users, procurement department, technical experts, and even vendors to give relevant inputs on specific requirements.
4. It permits the creation of a procurement strategy for procuring each requirement that will be included in the procurement plan. Such strategy includes a market survey and determining the applicable procurement method given the requirement and the circumstances.
5. Planners can estimate the time required to complete the procurement process and award contract for each requirement. This is valuable information as it serves to confirm if the requirement can be fulfilled within the period expected, or required, by the requesting entity.
6. The need for technical expertise to develop technical specifications and/or scope of work for certain requirements can be assessed, especially where in-house technical capacity is not available or is non-existent.
7. Planners can assess feasibility of combining or dividing procurement requirements into different contract packages.
The Procurement Plan is the product of the procurement planning process. It can be developed for a particular requirement, a specific project, or for a number of requirements for one or many entities in the public or private sectors.
OVERVIEW
Procurement Plan
A Procurement Plan defines the products and services that you will obtain from external suppliers. A good Procurement Plan will go one step further by describing the process you will go through to appoint those suppliers contractually. Whether you are embarking on a project procurement or organizational procurement planning exercise, the steps will be the same. First, define the items you need to procure. Next, define the process for acquiring those items. And
finally, schedule the timeframes for delivery.
When to use a procurement plan
It is advisable to create a Procurement Plan whenever you want to purchase items from suppliers.
Using the Procurement Plan template, you can define the procurement requirements, identify potential suppliers, contract those suppliers and manage them to ensure delivery. Project Procurement Planning is critical to the success of any project. This Procurement Plan template
helps you to perform these steps quickly and easily.
Need for Procurement Planning
We all know that a plan is just a guess, because we don’t have control over the future. So why do we plan? To have an idea of how something will work out in the future, and although things hardly ever work out exactly as planned, when they do we are happy, and when they don’t we
are sad.
With procurement planning it’s similar. We plan procurements for the coming period knowing that it’s just a best case scenario. We try to plan for uncertainties, but when it doesn’t work out it gives us an indication of how we’ve performed and we can use this to improve our future
planning exercise. During execution, the closer we get to original plan, the better.
Importance of Procurement Planning and the Procurement Plan
Procurement planning is the process of deciding what to buy, when and from what source.
During the procurement planning process the procurement method is assigned and the expectations for fulfillment of procurement requirements determined.
Procurement Planning is important because:
1. It helps to decide what to buy, when and from what sources.
2. It allows planners to determine if expectations are realistic; particularly the expectations of the requesting entities, which usually expect their requirements met on short notice and over a shorter period than the application of the corresponding procurement method allows.
3. It is an opportunity for all stakeholders involved in the processes to meet in order to discuss particular procurement requirements. These stakeholders could be the requesting entity, end users, procurement department, technical experts, and even vendors to give relevant inputs on specific requirements.
4. It permits the creation of a procurement strategy for procuring each requirement that will be included in the procurement plan. Such strategy includes a market survey and determining the applicable procurement method given the requirement and the circumstances.
5. Planners can estimate the time required to complete the procurement process and award contract for each requirement. This is valuable information as it serves to confirm if the requirement can be fulfilled within the period expected, or required, by the requesting entity.
6. The need for technical expertise to develop technical specifications and/or scope of work for certain requirements can be assessed, especially where in-house technical capacity is not available or is non-existent.
7. Planners can assess feasibility of combining or dividing procurement requirements into different contract packages.
The Procurement Plan is the product of the procurement planning process. It can be developed for a particular requirement, a specific project, or for a number of requirements for one or many entities in the public or private sectors.
