1. Procurement Process
WFP Logistics, We Deliver

2. Lesson Plan: Procurement Process
LEARNING OBJECTIVES:
By the end of the session, participants will be able to:
Describe the process of procuring goods
Describe the different sourcing methods and analysis of offers
Describe the role of quality control across the supply chain
Structure
Timing
Activities
Introduction
5 minutes
Explain lesson objectives
Exercise: Initial Reflection
In groups, identify the process of procurement within their respective organisations. No presentations, as this will be discussed at the end of the session.
Procurement process
10 minutes
Introduce the overall process; outline the main steps
Choosing procurement method
25 minutes
Lecture: Defining your needs, determining from that whether to opt for ITB/RFQ/RFP, international / national / local etc
Evaluating offers and awarding contract
Objective and transparent analysis of offers; giving an example of technical evaluations.
Quality control
Lecture: planning for quality control across the supply chain
Exercise: Reflection
Plenary discussion: reflect with respect to discussion at start about the procurement process within each participants’ respective organisations.
Lesson End/Plenary
EVALUATION / RECAP QUESTIONS:
The facilitator should ask the questions below, or similar questions to the class to recap the lesson to ensure participants have understood the lesson content.
What are the key elements of a procurement process?
How do you determine the best procurement method?
What is involved in evaluating offers?
Total Lesson Length
90 minutes
This slide is for the facilitators reference only.
This slide should be hidden from the workbook and from the class presentation
DO NOT PRINT IN WORKBOOK
DO NOT DISPLAY IN CLASS

3. Lesson Objectives
By the end of this lesson, you will be able to: 1
Describe the process of procuring goods 2
Describe the different sourcing methods and analysis of offers 3
Describe the role of quality control across the supply chain

4. Exercise: Your Own Procurement Process
Take five minutes to discuss in your groups the procurement process that your organization follows. See if you can identify the main steps and procedures to be followed.
At the end of the lesson you will return to this discussion to identify what was the same and what was different from the process and procedures identified here.
5 minute discussion
DO NOT PRINT IN WORKBOOK

5. Procurement Process Identify Needs Determine Specifications
Pre-Tender Process
Identify Needs
Determine Specifications
Choose Procurement Method
Prepare Solicitation Documents
Tender
Process
Seek, Clarify and Close Offers
Evaluate Offers
Committee Approval
Contract Management
Award Contract
Negotiate Contract
Manage Contract
Evaluate Procurement

6. Review & Award Contract
Defining Needs
Define Needs
Source Suppliers
Solicit Offers
Evaluate Offers
Review & Award Contract
Issue Contract / PO
Receive Goods
Process Payment
Goods
Goods
Background for requesting service
Objective of service
Expected output from the service
Activities required for this output
Input required
Deliverables
Timing
Technical / Physical characteristics
Function
Performance
Standard
Compliance
Specifications
Specifications
Services
Services
Scope of Work
Scope of Work

7. Sourcing Methods Procurement Existing Stocks Loans Procurement
Define Needs
Source Suppliers
Solicit Offers
Evaluate Offers
Review & Award Contract
Issue Contract / PO
Receive Goods
Process Payment
Existing Stocks
Loans
Procurement
Procurement
In-kind Donations
Prepositioned Stocks
Strategic emergency stocks

8. What are the 3 methods of solicitation?
Define Needs
Source Suppliers
Solicit Offers
Evaluate Offers
Review & Award Contract
Issue Contract / PO
Receive Goods
Process Payment
What are the 3 methods of solicitation?
Request for Quotation (RFQ)
Invitation to Bid (ITB)
Request for Proposal (RFP)

9. International Tendering
Why conduct an International Tender?
Goods / Services not available locally
Moderate or no
Competition
Access to global
Technology

10. Evaluation Technical Financial How are proposals submitted? Best Value
Define Needs
Source Suppliers
Solicit Offers
Evaluate Offers
Review & Award Contract
Issue Contract / PO
Receive Goods
Process Payment
Best Value
Maximum value for money while providing quality sufficient to specifications
How are proposals submitted?
Technical
Financial

11. Technical Evaluation: Example
Define Needs
Source Suppliers
Solicit Offers
Evaluate Offers
Review & Award Contract
Issue Contract / PO
Receive Goods
Process Payment No
Criteria
Range
Points
Remarks
Transporter 1 (A)
Transporter 2 (I)
Transporter 3 (N)
Transporter 4 (O) 1
Background
(max. 20 points)
1.1
Year Established
> 10 Yrs 20 10
< 10 Yrs 2
General Capacity
(max. 30 points) 
2.1
Number of trucks owned
Up to 11 Tons Capacity
> 10 Trucks
< 10 Trucks 05
2.2
Transport Subcontractors usually used:
Over 25 Tons Capacity 3
Experience
(max. 50 points) 
3.1
General (years of experience in providing the transportation services to UN agencies, INGO's and other organisations during emergencies. No of transportation contracts - UN agencies, INGO's)
> 05 Yrs 5
< 05 Yrs
3.2
Average Monthly Tonnage of Transportation
> 10 Tons
< 10 Tons
3.3
Ability to deliver in KPK and FATA
Total:
100 50 85 90

12. Award of Contract Recommendations Committee Review Committee Approval
Define Needs
Source Suppliers
Solicit Offers
Evaluate Offers
Review & Award Contract
Issue Contract / PO
Receive Goods
Process Payment
Recommendations
Committee Review
Committee Approval
Authorization
Pre Award Meeting
Contractual Terms & Conditions

13. Contract Issue: Purchase Order
Define Needs
Source Suppliers
Solicit Offers
Evaluate Offers
Review & Award Contract
Issue Contract / PO
Receive Goods
Process Payment 1
Specifications / SOW 2
Cost of the goods/services 3
Delivery date & location 4
Conditions to be fulfilled 5
Incoterms 6
Payment & currency 7
Consignee 8
Packing

14. Receipt of Goods/Service
Define Needs
Source Suppliers
Solicit Offers
Evaluate Offers
Review & Award Contract
Issue Contract / PO
Receive Goods
Process Payment
Requester: Technical Specifications
Logistician: Supplier selection, sourcing and contracting
Technical Verification: Does the product meet the specifications as per bid submitted
If not OK
If OK
Select supplier whose product meets the specification
Delivery to Warehouse
Delivery Inspection: Documents, quantity, quality
If not OK
If OK
Replacement by the supplier
Acceptance and storage in the warehouse

15. Review & Award Contract
Payment
Define Needs
Source Suppliers
Solicit Offers
Evaluate Offers
Review & Award Contract
Issue Contract / PO
Receive Goods
Process Payment
Finance Checklist:
Invoice
Supply Request Form
Quotations / Tender Advertisement
Bid Analysis
Minutes of meetings – Awards
Purchase Order
Delivery Note
Goods Received Note
Approved Budget
Waybill
Transport Contract
Frame Agreement
Inspection Report
Order Management:
Procurement
Warehousing
Reception
Quality Control
Stocking
Picking/Packing
Transport
Dispatch
Air Operation
Fleet/Workshop
Generate
Documents

16. Quality Control Across the Supply Chain
Management
Define & improve processes to ensure quality
Quality
Assurance
Improved processes to prevent defects
Quality Control
Evaluate quality

17. Review of Your Procurement Process
Consider again the procurement process and procedures that your organization follows.
What is the same as that presented here?
What is different and why is this the case?
5 minute plenary discussion
DO NOT PRINT IN WORKBOOK

18. Lesson Recap 1 2 3 Questions: What is the process of procuring goods?
What are the different sourcing methods and analysis of offers? 3
What is the role of quality control across the supply chain?

19. Questions
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