ROLE OF PROCUREMENT PLANNING

Good procurement planning is essential to optimize the contribution of the procurement function towards achieving the overall goals of the organization. It supports:

  • Transparency.
  • Development of Key Performance Indicators (KPIs) according to milestones and accountabilities set in the procurement plan, and use of the same to monitor performance.
  • Effective and timely solicitation of offers, award of contracts and delivery of the goods, services and works required.
  • Early requisition to reduce any delays in procurement and timely delivery to project sites.
  • Early identification of right commodities and quantities to meet programme needs.
  • Sourcing the right suppliers on time to avoid cutting corners under rush procurement to meet deadlines or budget expenditure.
  • Effective supply strategy and timely programme and project implementation.
  • Avoidance of unnecessary exigencies and urgencies, enabling full competition and full compliance with standard rules and procedures.
  • Sufficient time to fully explore alternative procurement approaches, such as joint bidding with other organizations.
  • Strengthened procurement power vis-à-vis suppliers.
  • Obtaining best prices for aggregate requirements.
  • Establishment of criteria to measure effectiveness of the procurement function.
  • Systematic and procedurally correct procurements.
  • Development of long term agreements
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