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IMPORTANCE OF PROCUREMENT POLICIES AND PROCEDURES
While there is work processes in the execution of the procurement function in D2F with relevant
supporting documentation. There are no measurement systems by which these processes could be
managed more effectively for continuous improvement. Lack of Coordination has been a
common concern identified among key players in the supply chain and this has impeded
effective communication throughout the supply chain process.
Policies and procedures are a set of principles and related guidelines that a company establishes
to define its long term goals, direct and limited the scope of its action and to protect its interest.
A system comprises people and processes, whilst there are processes at D2F, these processes
need to become robust and there is an additional weakness of limited resources to support these
processes. Effective management requires monitoring and measurement, so whilst there is a
system it is at this time not as efficient as it could be to meet the requirements of this function at
D2F. After review of the various issues within the Procurement and Supply chain department at
D2F, it was clear that neither formal Procurement Process nor procedures were in place.
Procedure and Documentation developed.
• SCM procedure • Conflict Of interest policy • SCM flow chart • SCM Organization structure • Expediting process • Supplier evaluation form • T&C document (See appendix attached) PROCUREMENT PROCESSES A FUNCTIONAL PERFORMANCE MEASUREMENT
MANAGEMENT D2F is a company that has a good history of being able to help in Engineering, Procurement,
Construction and Maintenance services. The history of the company gives a good shape in
providing the needed services on completion of project services. In their work, they have their
guiding pillar based on Safety, Technical Excellence, and Value. In the need to make an
improvement of the service, there is a close focus on the need to have recommendations for the
correction of the inefficiencies that come up.
The company prides itself on the fact that their aim focus in based on safety, technical
competence, and value. It, therefore, means, for the client acceptance, the company must be able
to create a strategy that will create a differentiation on the expertise and the competitive costs as
(Burt, Starling, & Dobler, 2003) explain. To meet the care and the need of the customers, they
must be able to focus on the areas outside their market. In this case therein, they must be able to
have avenues which they increase the capacity through a better form of coordination and
communication.
There is a need also to understand the current economic environment. In that regard, the supply
chain managers must be able to comprehend the style ope4ratioons.Thais mean therefore they
must be able to accomplish the coveted level of network inventory development and
incredibleness in one’s particular association, these best practices as illustrated below
demonstrate the need for positioning (Burt, Starling, & Dobler, 2003).
The company can only handle its supply chain based on the fact that, there should be competitive
structure using KPI’s. This means that, with the strategy in place, it will be easy to do
procurement procedures. The KPI’s can work very well too if there is an explicit method which
is ever subjected to internal audits (Chopra & Meindl, 2007).
With the effective, ineffective procurement system in place, there is a need to make individual
recommendation why may in one processes be managed more efficiently for continuous
improvement.
There is a need to make a clear road map for the relationship between the suppliers and the
purchasers. According to (Mentzer, 2001), this is only way which can be able to be able to make
a change in the cost-benefit analysis. For the cost-benefit analysis to be of the essence, the firm (D2F) must be able to make an analysis of the supplier basement through purchaser supplier
connections, which like this influence budgetary execution.
For every period that the provider of any product is being done, there is a need for the form to be
able to make a continued analysis of the way the supply chain is being coordinated. With this, it
becomes easy to make forecasts, either monthly or annually. There is also the need to make
routine reordering systems using the existing orders on the system.
There is a need for the firm to be able to create a centralized system of the supply chain council
which allows them to make directions on the supply. The council is a good stage for making an
ordinate hybrid approach on cost benefits (Chopra & Meindl, 2007).This is also important in the
fact that, it will be an excellent guide in the sense that, it creates programs as logistics,
procurement, contract management, and planning which are the source of viable actions. MECHANISM Engage key stakeholders
D2F needs to ensure that the relevant stakeholders that are part of its company have been
engaged in the different stages to make sure that there exists a support structure; to create a buyin as well as to ensure the right procedures are well documented into the process. Collaboration D2F should ensure that the different stakeholders and parties involved in the procedure are put in
considerations and their opinions matter. This way a consensus will be achieved.
Easy access
D2F should also ensure that the procedure can be easily accessed to by the relevant parties and
stakeholders to ensure that there is a flow of information. This can be achieved by using the
appropriate media among other forms to administer information.
Standard format
A standard format that is not complicated and is comprehensible should be used to ensure
coherence of the procedure. CORE PROCUREMENT PRINCIPLES: TRANSPARENCY, ACCOUNTABILITY AND
VALUE FOR MONEY IN SUPPLY CHAIN Procurement process for D2F Procurement operations Procurement Process Effective Forecasting Evaluate Potential
Suppliers Select Suppliers Commit spend (PO) Manage cash flow
(payments) Continuous Supplier