Procurement Management

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Project Procurement Management
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Presentation transcript:

Procurement Management The formal processes by which organizations obtain goods and service for their projects

Guest Speaker Gregg Macaluso Questions? Comments?

Sourcing Strategy *Find synergies among common purchases* Sourcing Group Positioning Matrix Balance supply market complexity with relative monetary impact in marketplace Kraljic: sourcing strategies

Contracts Formal Written Communication Determines agreement between parties Purpose: clearly measurable expectations and incentives. To make legally binding To mitigate or allocate risk Commonly based on: Cost Reimbursable, Time & Material, Fixed Price

Negotiation Objectives of negotiation: obtain fair and reasonable price develop good relationship with the seller Main items to negotiate: scope, schedule, price Negotiation tactics pg. 455 Win-win situation, not win-lose as Gregg said, there is a great need to keep good suppliers

Closing Procurements Administrative close vs. Procurement Close Key Process: Product verification was work completed? Financial Closure Procurement audit Not Financial, but an audit of the lessons learned Lessons learned important for future projects

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