Generally, a procurement exercise involves three broad stages; plan, source and manage. This structured approach to procurement, enriched with useful tools can help agencies check their procurement activity against best practice recommendations.
Stage 1: Plan
Planning in procurement involves consulting key stakeholders to define our ‘real’ need, analysing how the supply market works, assessing risks and ultimately defining the best Procurement Strategy to meet the organisations requirements.
– P1 Analyse Business Need
– P2 Analyse & Engage the Market
– P3 Finalise Procurement Strategy
Stage 2: Source
The principal objective of this stage is to identify and engage suppliers who will provide the best value for money outcome, in a framework of probity and fair dealing. A key deliverable for this stage is to determine the appropriate sourcing method, with consideration given to alternatives other than just tendering.
– S1 Approach the Market
– S2 Select
– S3 Negotiate and Award
Stage 3: Manage
Every arrangement articulates the rights and responsibilities of the parties so it is important to identify, understand and manage them in order to better ensure we ‘get what we contracted for’. Signing an arrangement is not the end of a process, but rather the start of an on-going relationship with the supplier. It needs to be managed in order to deliver the best outcome for the organisation.
– M1 Implement Arrangement
– M2 Manage Arrangement
– M3 Renew