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

2. Guest Speaker
Gregg Macaluso Questions? Comments?

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

4. 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

5. 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

6. 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