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Procurement - Wikipedia. Procurement is the process of finding, agreeing terms and acquiring goods, services or works from an external source, often via a tendering or competitive bidding process. The process is used to ensure the buyer receives goods, services or works at the best possible price, when aspects such as quality, quantity, time, and location are compared.

Procurement generally involves making buying decisions under conditions of scarcity. If good data is available, it is good practice to make use of economic analysis methods such as cost- benefit analysis or cost- utility analysis. An important distinction should be made between analyses without risk and those with risk. Where risk is involved, either in the costs or the benefits, the concept of best value should be employed.

Direct procurement and indirect procurement Types. Direct procurement.

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Software development effort estimation is the process of predicting the most realistic amount of effort (expressed in terms of person-hours or money) required to. Subs and Suppliers. Get in-the-know with easy access to proposal information. Use key word searches to find projects to bid on and easily find the plan holders for. Construction Bidding Software: Comparisons of leading bid management, solicitation, invitation, and tracking systems. Free demos and quotes! Provides bid opportunities, requests for proposals and requests for information by state.

Indirect procurement. Raw material and production goods. Maintenance, repair, and operating supplies, outsourcing. Capital goods and services.

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FEATURESQuantity. Large. Low. Low. Frequency. High. Relatively high. Low. Value. Industry- specific. Low. High. Nature. Operational. Tactical. Strategic. Examples.

Crude oil in petroleum industry. Lubricants, spare parts. Crude oil storage facilities. Procurement activities are often split into two distinct categories, direct and indirect spend. Direct spend refers to production- related procurement that encompasses all items that are part of finished products, such as raw material, components and parts. Direct procurement, which is the focus in supply chain management, directly affects the production process of manufacturing firms.

In contrast, indirect procurement concerns non- production- related acquisition: obtaining “operating resources” which a company purchases to enable its operations. Indirect procurement comprises a wide variety of goods and services, from standardized items like office supplies and machine lubricants to complex and costly products and services like heavy equipment, consulting services, and outsourcing services. Typically procurement is viewed as more tactical in nature (the process of physically buying a product or service) and sourcing and acquisition are viewed as more strategic and encompassing. The Institute of Supply Management (ISM) .

The term procurement used to reflect the entire purchasing process or cycle, and not just the tactical components. ISM defines procurement as an organizational function that includes specifications development, value analysis, supplier market research, negotiation, buying activities, contract administration, inventory control, traffic, receiving and stores. Purchasing refers to the major function of an organization that is responsible for acquisition of required materials, services and equipment. The United States Defense Acquisition University (DAU) defines procurement as the act of buying goods and services for the government. The process is defined by a series of phases during which technology is defined and matured into viable concepts, which are subsequently developed and readied for production, after which the systems produced are supported in the field. For example, a system using unproven technology would enter at the beginning stages of the process and would proceed through a lengthy period of technology maturation, while a system based on mature and proven technologies might enter directly into engineering development or, conceivably, even production.

The process itself includes four phases of development. During this stage, concept studies are undertaken to define alternative concepts and to provide information about capability and risk that would permit an objective comparison of competing concepts. The system development and demonstration phase could be entered directly as a result of a technological opportunity and urgent user need, as well as having come through concept and technology development. The last, and longest phase is the sustainable and disposal phase of the program.

During this phase all necessary activities are accomplished to maintain and sustain the system in the field in the most cost- effective manner possible. Sourcing business models. It is important for procurement officials to use the right sourcing business model that fits each buyer- seller situation. There are seven models along the sourcing continuum: basic provider, approved provider, preferred provider, performance- based/managed services model, Vested business model, shared services model and equity partnerships. A basic provider model is transaction- based; it usually has a set price for individual products and services for which there are a wide range of standard market options. Typically these products or services are readily available, with little differentiation in what is offered.

An approved provider model uses a transaction- based approach where goods and services are purchased from prequalified suppliers that meet certain performance or other selection criteria. The preferred provider model also uses a transaction- based economic model, but a key difference between the preferred provider and the other transaction- based models is that the buyer has chosen to move to a supplier relationship where there is an opportunity for the supplier to add incremental value to the buyer’s business to meet strategic objectives. Los Iracundos Tu Con El Mp3xd Videos. A performance- based (or managed services model) is generally a formal, longer- term supplier agreement that combines a relational contracting model with an output- based economic model. It seeks to drive supplier accountability for output- based service- level agreements (SLAs) and/or cost reduction targets.

A vested sourcing business model is a hybrid relationship that combines an outcome- based economic model with a relational contracting model. Companies enter into highly collaborative arrangements designed to create and share value for buyers and suppliers above and beyond.

A shared services model is typically an internal organization based on an arm’s- length outsourcing arrangement. Using this approach, processes are often centralized into an SSO that charges business units or users for the services they use. An equity partnership creates a legally binding entity; it can take different legal forms, from buying a supplier (an acquisition), to creating a subsidiary, to equity- sharing joint ventures or entering into cooperative (co- op) arrangements. Procurement software.

As Procurement Network's research provides. Thought- provoking programs and interesting discussions made Procurement TV reach the audience of more than 8. Other procurement media or podcast outlets include The Art of Procurement. Some of the most common steps from the most popular frameworks include: Identification of need and requirements analysis is an internal step that involves an understanding of business objectives by establishing a short term strategy (three to five years) for overall spend category followed by defining the technical direction and requirements. External macro- level market analysis: Once an organization understands its requirements, it should look outward to assess the overall marketplace. A key part of a market analysis is understanding the overall competitiveness of the marketplace and trends that are likely to impact the organization. Cost analysis is the accumulation, examination and manipulation of cost data for comparisons and projections.

A cost analysis is important to help an organization make a make- buy decision. Supplier identification includes identifying particular suppliers that can provide the required product or services. There are many sources to search for potential suppliers. One good source is trade shows. Modern procurement software often incorporates a supplier catalog for standardized goods and services. Non- disclosure agreement (NDA): It is quite normal to request vendors to sign an NDA prior to engaging with them.