Haddow Press Experiment

Project Management - Drawing a Procurement Map (2.08)

Archived in Business, Planning, Project Management |

This is part two point zero eight of a multi-part article on PROJECT MANAGEMENT. This part outlines some of the basic concepts of project INITIATION, and defines them as a term of reference for future articles.

Before you can select external suppliers for goods and services needed for a successful project, you need to understand and plan the what, the why and the how of acquiring those project elements. Outsourcing parts of any project is usually unavoidable, so mapping out what needs to be outsourced, a reason for outsourcing, and the process for outsourcing any and all of those elements is part of a larger set of goals. These goals include the tender management process, the requests processes, and the contractual stages. (See subsections below…)

2.08.01 : Mapping the Tender Management Process

Having mapped your plan for procurement, it is important to define the Tender Management Process. Through this process you will outline how external companies for your project will be identified, evaluated, and ultimately selected as suppliers for your project.

2.08.02 : Your Statement of Work

Generally, a Statement of Work is a document that outlines an understanding for your project, either between you and your internal resources, or often between you and external suppliers. A SOW defines the scope of suppliers, products, training, documentation and support required from outside of the project as well as materials, equipment and deliverables to be provided by each supplier. Knowing this helps suppliers provide you with the information necessary to complete your project, and you with the information necessary to evaluate their ability to provide it.

2.08.03 : Your Request for Information

Gauging the market for potential suppliers is an important step to ensure you have both a solid foundation of goods and/or services as required to manage your project effectively and also a firm understanding of goods and/or services available from the potential supply chain. A Request for Information (RFI) document enables the solicitation of information from potential suppliers for your project and enables them to provide you with information on their company, their product offering, and their BUSINESS approach.

2.08.04 Your Request for Proposal (RFP)

External suppliers and contractors are best recruited with the TIME-tested method of a formal Request for Proposal (RFP). Development of an RFP allows suppliers to understand your needs and develop their own (micro) plan for delivering your requirements on TIME and on budget. Suppliers usually understand the RFP process as a formal ‘bid’ for a contract to provide goods and/or services, and providing them with as much information as possible means better results all around.

2.08.05 : Your Supplier Contract

To define the contractual deliverables, responsibilities, performance criteria and BUDGETS help to ensure that you get the most out of your project’s supplier relationship. A formal contract is a must with each and every supplier, and developing a standard contract that can be adjusted and modified for each individual situation is a good place to start.

2.08.06 : Your Tender Register

Tracking the process of tender is easy, and done via the tender register. This process enables the monitoring of activities through the mapping, Statement of Work, Request for Information, Request for Proposal, and contractual stages of working with a supplier. Understanding what you have done, what needs to be done, and with whom you have communicated is an important part of professional PROJECT MANAGEMENT.

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