1. STREAMLINING PROCUREMENT OPERATIONS
Dr. Fred Mugambi mwirigi
JKUAT

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

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

11. 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

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

13. 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

14. 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

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

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

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

18. 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

19. Thank you