A procurement journey is a structured, sequential process that illustrates each stage of the procurement process. A procurement journey helps organizations develop and manage their procurement process more efficiently and effectively by providing a detailed timeline of all levels of procurement activity. It can also help reduce the risks associated with procurement. Here are some ways to use a procurement journey:
Identifying the key procurement needs. There are many different types of procurement. Some are purely transactional, while a central agency regulates others. In any event, all purchases should meet or exceed certain thresholds.
The low value, low risk
If you have low-value, low-risk procurement contracts, you can use the first route of the journey. Most of these contracts are not repetitive, and there is an existing contract to fulfill the requirement. You do not need to hire a purchasing consultant or undergo extensive purchasing training. However, you must make sure that staff authorized to procure are aware of EU Regulations and your local procurement policy. In this journey, you will learn how to manage the risks and ensure that you achieve the best value.
The third step is the reactive procurement measures necessary for your company to reduce the risk associated with these purchases. The role of contract management applications in this journey cannot be overstated. Traditionally, contracts were stored on paper or in different databases in the form of PDFs. However, modern contract management applications can automatically read and store all the relevant contract parameters into a central database to retrace the approval process. This helps you establish your legal position and develop counterstrategies if necessary.
Non-repetitive contracts
A non-repetitive contract is one that is routine and pre-negotiated. It is a contract that is pre-negotiated and helps streamline the procurement process. Using a non-repetitive contract, you will avoid the threat of risking too much. If the contract is not negotiated correctly, you might end up paying more than you originally planned. In such cases, you should consult the procurement services before placing a large order. In many cases, you will receive additional discounts and benefits if you purchase in bulk.
Design and build
How do you start a design and build procurement process? There are many elements to look at, but it all starts with the design. There are numerous types of designs, and identifying which one would work best for your project can be a challenge. Fortunately, there are many resources available to help you through the process.
Choose the right contract. There are many standard Design and Build contracts available to clients. Consider whether your project will be more cost-effective with a design and build arrangement. There are many benefits of a design and build contract, including lower costs and a single point of contact for the client. For example, a design and build contractor can use a variety of suppliers, subcontractors, and working methods to create the best outcome for your project.
