STREAMLINING PROCUREMENT OPERATIONS Dr. Fred Mugambi mwirigi JKUAT

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

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

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

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

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

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

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

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

Organizational policy on procurement cont’d Code of Ethics - defines ethical standards - acceptable behaviour at the work place

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

Structures cont’d Job descriptions - clearly defined roles, - specific job descriptions - span of control - reporting levels

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

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

IMPORTANT DOCUMENTS/RECORDS CONT’D Procedure manuals - indicates the procedure of every activity in the department - standardizes operations Complains registers Strategic plans service charters

APPLICATION OF IT Use of software - speed, accuracy, efficiency E- procurement

OPERATIONAL FACILITIES Office space Equipment - computers - scanners - photocopiers - printers Vehicle - to facilitate operations

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

Thank you