Purchasing and Supply Chain Project Management
Purchasing and Supply Chain Project Management BUS 612 Advanced Project Procurement May 27, 2013
Purchasing and Supply Chain Project Management
Introduction
The relationship between project management and purchasing and supply chain management is a significant one. The main goal of any for-profit organization is to maximize profits while minimizing risk. In today’s economy, it is especially important for organizations to create and implement processes in every aspect of the operation to ensure continued operations. Supply chain management is critical to maintaining a presence in the marketplace. According to Benton (2010), effective supply management contributes to the success of an organization by contributing to the bottom line, increasing efficiency and productivity, enhancing continuous process improvement and customer satisfaction, developing future organizational leaders, serving as an information source, and impacting the image and social policies of the organization. Effective procurement and contract management processes are essential to the long-term survival of any organization. Project management is a process designed to review projects and predict as many potential issues and problems as possible and then to plan, organize and control activities to ensure the project is completed as successfully as possible regardless of the risks (Miller, 2008). Project management begins even before the actual project begins and may continue beyond the project completion when the project goes into maintenance mode. A successful organization will have project managers who fully understand the role and significance of project management, procurement, and supply chain management. This paper will look at procurement and contract management and the importance to the business world, RFP selection tools and how to improve the assessment of proposals, procurement planning and
Purchasing and Supply Chain Project Management
Introduction
The relationship between project management and purchasing and supply chain management is a significant one. The main goal of any for-profit organization is to maximize profits while minimizing risk. In today’s economy, it is especially important for organizations to create and implement processes in every aspect of the operation to ensure continued operations. Supply chain management is critical to maintaining a presence in the marketplace. According to Benton (2010), effective supply management contributes to the success of an organization by contributing to the bottom line, increasing efficiency and productivity, enhancing continuous process improvement and customer satisfaction, developing future organizational leaders, serving as an information source, and impacting the image and social policies of the organization. Effective procurement and contract management processes are essential to the long-term survival of any organization. Project management is a process designed to review projects and predict as many potential issues and problems as possible and then to plan, organize and control activities to ensure the project is completed as successfully as possible regardless of the risks (Miller, 2008). Project management begins even before the actual project begins and may continue beyond the project completion when the project goes into maintenance mode. A successful organization will have project managers who fully understand the role and significance of project management, procurement, and supply chain management. This paper will look at procurement and contract management and the importance to the business world, RFP selection tools and how to improve the assessment of proposals, procurement planning and
References: American Council of Engineering Companies of Missouri. (n.d.) Qualification based selection: A step-by-step process for selecting architectal, engineering and land surveying services. Retrieved from Benton, W.C. Jr. (2010). Purchasing and supply chain management (2nd ed.). New York, NY: McGraw-Hill Irwin Codjie, M. (n.d.). Project procurement and contract management. Retrieved from http://www.ehow.com/facts_6852593_project-procurement-contract-management.html eSourcing Forum: Sourcing Views & Industry News. (2007. September 17). 7 benefits of contract management. Retrieved from http://www.esourcingforum.com/archives/2007/09/17/7-benefits-of-contract-management/ Hasbrouck, S. (2012, March 27). Procurement vs. purchasing (which is better for your company?). Retrieved from http://procurementscm.com/procurement-vs-purchasing-2/ Lackey, J. (2005, October 26). Simplifying the vendor selection process. Retrieved from http://www.cioupdate.com/trends/article.php/3559381/Simplifying-the-Vendor-Selection-Process.htm Lynch, J. (n.d.) Procurement planning and the procurement plan: Why are they important? Retrieved from http://www.procurementclassroom.com/procurement-planning-and-the-procurement-plan-why-are-they-important/ Miller, B. (2008, April 08). The purpose of project management and setting objectives. Retrieved from http://www.google.com/url?sa=t&rct=j&q=&esrc=s&frm=1&source=web&cd=8&ved=0CGYQFjAH&url=http%3A%2F%2Fwww.modot.org%2Fdoc%2Fothertransportation%2FQualifications_Based_Selections_(QSB)_Public_Owner 's_Workbook.doc&ei=_QukUfiZFYagqwHMnIDoAg&usg=AFQjCNGyyGexxL1strERiO6Ofe_NCAM4Ig&sig2=snU4-j6I_7DS9NXBf5jooghttp://www.me2team.com/dnn/MoreInformation/ResourcesLinks/ThePurposeofProjectManagement/tabid/315/Default.aspx Scheid, J. (2010, February 06). Project Management Legal Issues: Are You at Risk? Retrieved from http://www.brighthub.com/office/project-management/articles/63360.aspx Window on State Government: Susan Combs, Texas Comptroller of Public Accounts. Legal elements of a contract. (2011, October 01). Retrieved from http://www.window.state.tx.us/procurement/pub/contractguide/LegalElementsofaContract.pdf