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Preferential Procurement Green Procurement, Minortity Procurement, Black Economic Empowerment, Socially Responsible Procurement

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  #1  
Old 07-27-2007, 04:11 PM
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Default Procurement process

In terms of best procurement practice, at what stage does the procurement office get involved in sourcing of potential suppliers under the following circumstances:

In case of a specialised service/commodity, does the Procurement Office get involved in the determination of the spec or only after the spec has been determined?

Pls advise.
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  #2  
Old 07-30-2007, 03:02 PM
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Default Re: Procurement process

My understanding would be that the Procurement Office should be involved once the spec of the commodity/service have been identified and they thereafter can utilize their expirience to advise areas where they feel requires attention should a need arise.
(Moses Zondi - Procument Aspiring Student exprience in the Automotive Industry)
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Old 08-13-2007, 03:10 PM
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Default Re: Procurement process

Procurement should be invloved at early stage, of formulating the specs. or on the other hand wait for the specialised spec from the end user, who has the technical know how and then Procurement can apply their commercial expertise, e.g. standardisation of the spec.
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Old 08-14-2007, 02:12 PM
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Default Re: Procurement process

Procurement should always be the first point of contact when it comes to sourcing of potential service providers. It is a best practice that Procurement should establish a preferred supplier database of suppliers where the entire organisation can source from. Where the procurement function is centralised, the procurement specialist can source on behalf of the division or unit requesting the product or service. When sourcing, the Procurement professional should always bear in mind the five pillars of Procurement namely:
Value for money;
Open & effective competition;
Ethics & fair dealing;
Accountability and reporting;
Equity;
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  #5  
Old 08-14-2007, 02:14 PM
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Default Re: Procurement process

I believe that the Procurement office should be involved from the word go, part of a forum including end user and individuals with the technical knowledge, knowing what to procure influences supplier decisions.
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  #6  
Old 09-14-2007, 08:33 AM
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Default Re: Procurement process

I agree 100% that Cross Functional Teams should meet regularly with Procurement Professionals to discuss and plan Suplier Selections and Suppier Evaluations to the benefit of the organization and all it users. Procurement has to be seen as a profit centre at Senior Management level to ensure compliance and to achieve the objectives of the organization. Procurement's involvement at the outset of any project or expenditure will help prevent major risks that usually come about as a result of decisions taken without consultations with procurement Professionals. Procurement is a prefessional function that is of strategic importance to the operation and success of a company's proftability without a doubt.

Last edited by Hemrajh : 09-14-2007 at 08:36 AM. Reason: Checking spelling
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  #7  
Old 10-01-2007, 02:05 AM
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Default Re: Procurement process

Procurement process need to in line with the supply chain management for each company. They need the good communications to build a strong connection. Indirectly it will influance the vendors/suppliers development and their decision. That is my opinion.
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  #8  
Old 12-22-2007, 01:32 PM
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Default Re: Procurement process

Procurement must be involved in any development in establishing where to source the goods.
Availability,cost of item and its supply conditions may impact on the development of the higher assembly.
Is the item locally produced, indented from another country.
Other considerations are whether it is subject to production delays due to the unusual nature of the product item. and how many suppliers are in this market?
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  #9  
Old 01-02-2008, 03:43 AM
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Default Re: Procurement process

I always try to remember that Procurement is the process of 'Acquiring' product/service. I like to be involved from the very outset of any product/service definition for my own knowledge, but the business unit is accountable for defining a required product or service - it is they who will utilise the product or service. Procurement then takes responsibility to source the product or service required, in an ethical & socially responsible manner, achieving the best outcome for the company as a whole.
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  #10  
Old 02-18-2008, 04:27 PM
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Default Re: Procurement process

Ideally I would always like to be involved once the requirement has been identified and before work is undertaken to specify the goods or services that will be sourced. Unfortunately we often have to work with specifications which have been drawn up by users who, whilst they understand their own needs, they are not aware of what is currently available in the market.
Suppliers may have in fact developed better or more cost-effective ways of meeting our needs. By not ensuring the user has investigated the market offerings before the specification is drawn up, we may end up either paying too much, sourcing a less effective solution or have to draw up a new, more approporiate specification which adds time to the procurement process.
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