streamlining procurement operations
DESCRIPTION
COURSE CONTENT The meaning of procurement operations How to streamline procurement operations - organization policy - structures - documentation/ records and record keeping - application of IT - operational facilities - procurement strategiesTRANSCRIPT
STREAMLINING PROCUREMENT OPERATIONS
Dr. Fred Mugambi mwirigiJKUAT
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COURSE CONTENT
• The meaning of procurement operations• How to streamline procurement operations - organization policy - structures - documentation/ records and record keeping - application of IT - operational facilities - procurement strategies
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THE MEANING OF PROCUREMENT OPERATIONS ?
Procurement operations involve the following; - Consolidating Procurement Plans from User departments - Receiving requests from User - Prequalifying suppliers - Tendering / sourcing quotations - Analyzing tenders / quotations - Preparing reports for tender/ procurement committees - Preparing award / regret letters - Preparing contracts - Raising requisitions / LPO’s - Follow up of LPO’s
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PROCUREMENT OPERATIONS CONT’D
- Overseeing contract implementation - Receiving / documentation of goods - Storing goods - inventory control - Issuing goods to Users - record keeping - Consultation with Users and Suppliers - Facilitating payment of suppliers - Disposal of goods
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HOW TO STREAMLINE PROCUREMENT OPERATIONS
• For effective procurement operations, the organisation has to; - put the right policies, structures, and facilities in place. - have adequate resources –financial and human• Organizational policy on procurement issues - vision / mission statements - Policy statement on procurement - Strategic plan - Service charter - Code of ethics - Annual budget
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HOW TO STREAMLINE PROCUREMENT OPERATIONS CONT’D
• Structures - Approved establishment - organisation structure - job descriptions - Buying committees • Documentation / Record keeping - Flow of documents - Record keeping system - Procurement plans - Procedure manuals
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HOW TO STREAMLINE PROCUREMENT OPERATIONS CONT’D
• Application of IT - Software - e-procurement• Facilities - spacious offices - office equipment – computers, photocopiers, printers,
telephones, fax machines, scanners• Procurement strategies
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Organizational policy on procurement
• Vision / Mission / mandate of the org and department• Procurement policy may address issues of - Procurement methods - approval levels - quality - Customer Relationships, -cost reduction, - social responsibility, - conservation of the environment
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Organizational policy on procurement cont’d• Strategic Plan - specific strategic objective on procurement - provides guideline on procurement• Service Charter defines the level of customer service - customer satisfaction - handling customer complains - provision of feedback to customers
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Organizational policy on procurement cont’d
• Code of Ethics - defines ethical standards - acceptable behaviour at the work place
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STRUCTURES • Organizational Structures to address; - the functional needs of the department ( functions include; procurement planning/ tendering,
Purchasing, Stores / Inventory management) - reporting level of Head of procurement - membership to important organizational committees• Decision making committees - tender/ procurement committee - evaluation committees - receiving/ inspection committee
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Structures cont’d
• Job descriptions - clearly defined roles, - specific job descriptions - span of control - reporting levels
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DOCUMENTATION / RECORDS AND RECORD KEEPING SYSTEM• Flow/ records of incoming/ outgoing documents• Processing of records• Monitoring of action taken on records• Record keeping in procurement registry - ease of identification and retrieval
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IMPORTANT DOCUMENTS/RECORDS
• Procurement plans - indicates budgeted requirements for the year
- scheduled time for purchase• Budgets - funds set aside for consumables and capital items
- organizations financial commitment
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IMPORTANT DOCUMENTS/RECORDS CONT’D
• Procedure manuals - indicates the procedure of every activity in the department
- standardizes operations• Complains registers• Strategic plans• service charters
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APPLICATION OF IT
• Use of software - speed, accuracy, efficiency• E- procurement
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OPERATIONAL FACILITIES
• Office space• Equipment - computers - scanners - photocopiers - printers• Vehicle - to facilitate operations
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PROCUREMENT STRATEGIES
• Develop strategies for efficient operations• Areas that may need strategy include; - sourcing strategy - strategy on outsourcing - documentation strategy - strategy on procurement of critical items
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Thank you
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