Compose a 1000 words essay on Procurement Management Plan. Needs to be plagiarism free!Download file to see previous pages... No. Item Name Quantity Budgeted Amount ($) Expected Cost ($) Needed by 1.

Compose a 1000 words essay on Procurement Management Plan. Needs to be plagiarism free!

No. Item Name Quantity Budgeted Amount ($) Expected Cost ($) Needed by 1. Shrubs 1000 11000 10000 +/- 1000 01-02-2012 2. Bricks 10000 2000 2000 +/- 200 01-02-2012 3. Ties 500 7000 7500 +/- 500 01-01-2012 Issues: There can be misjudgment here on the part of the management regarding the required products for the project. In order to avoid this issue, the reason for the procurement of these products should be stated. It should be very clear that these products are necessary for the successful completion of the project. Moreover, lead experts will verify the quantity demanded of each item. The expected cost of the required products can exceed the budgeted amount. Such issues should be dealt with before hand by increasing market knowledge and discussing with experts that can suggest alternative solutions to the problem. Procurement Team Hierarchy Following is the procurement management team that has the responsibility and authority of procuring the required products/services. Name Role Mr. X Project Manager Mr. Y Lead Expert on the required items Mrs. Z Procuring officer Issues: Procurement team members should be chosen carefully as they are entitled to both authority and responsibility. They may lack market knowledge and negotiation skill, which is why it is necessary to train them accordingly. The procurement team should be a mix of various specialized skills so that they can cater to the needs of the fulfillment of the project. Contract Type After sending out all the solicitations, the first step is to analyze all the vendor proposals to select the ideal vendors that satisfy the criteria laid by the project team. There are many types of contracts for instance fixed price, time and material and cost reimbursable. Therefore, the contract type will be chosen after careful examination of the vendor proposals. Issues: Here the issue of inappropriate contract type can arise. The contract type should be chosen on the basis of information such as quality, expected delivery, cost and past experience. This should be approved by contract board members. Vendor Selection After approval from board members, the most suitable vendor is selected based on a thorough analysis of measurable evaluation criteria. Issues: From this point onwards many issues can arise. The vendor should be contacted on timely basis so as to minimize the risk of delayed delivery. The agreement with the vendor should clearly state the specifications of the required product so that there is no claim of insufficient information by the seller. All the negotiations should be recorded as a proof of settlement. Moreover, the terms and conditions of the contract should be reasonable and just. The team will need to minimize the risk of failure of fulfillment of contract. From the time of agreement, the procurement team should keep in touch with the seller to demand status updates of the goods in transit. This will help in ensuring timely delivery and high quality of the products. Contract Closure This part collectively acknowledged the product verification and administrative closure. This closure is subject to the terms and conditions of the contract. Issues: If all the precautionary steps have been taken than the risks associated with this part can be minimized or eliminated. However, the possibility of risks does exist. So upon delivery the team will examine and verify the product and take all the necessary steps required to fulfill the contract.