Describe five components of a procurement strategy. Question 1 on the page 110

Home Forums APM PMQ Study Group Describe five components of a procurement strategy. Question 1 on the page 110

This topic contains 4 replies, has 4 voices, and was last updated by  Tatiana Gavrisheva 4 years, 10 months ago.

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  • #15200

    Tatiana Gavrisheva
    Participant

    We are reviewing the questions in preparation to the exam. There are just four components mentioned in the book and in the e-learning video (i.e. Make or Buy Decision, Contractual Relationship, Reimbursement Methods and Supplier Selection). What is the fifth one?
    Thank you.

    #15203

    Paul Carter
    Participant

    Hi ,
    How about Guidance on Ethics and Fairtrade?
    The procurement process should be fair, and potentially you need to define whether there are any legal or moral ethics to be followed, such as the PM being a shareholder in the a suppliers company, that decisions are fair and equitable, that gifts and hospitality from suppliers are disclosed.
    Hope that helps.
    Regards
    Paul

    #15202

    Paul Naybour
    Moderator

    Good question, I am impressed with you level of prep.

    A procurement strategy is a document written by the client early in the process to define the overall approach to the procurement process. I would add supplier selection criteria, i.e. the assessment criteria that will be used to evaluate tenders and the relative weighting between the different factors. Typical this can be expressed a scoring system with an defined split between quality and cost, for example 60/40 in favor of cost.

    I hope this helps.

    #15201

    Sinitta Basra
    Participant

    In the book they’ve also got contract admin so that would be ensuring, whoever the chosen supplier is, that both parties are compliant and discharging their responsibilities correctly and accordingly.PPR is also recommended so that lessons learned and best practice can be documented to highlight to the business, what went wrong and what was successful helping them improve and ensure they have corrective actions in place.

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