You're working on the procurement plan for the computer software program? What are the advantages of Financial Planning? Describe the Unique Challenges of Strategic Resource Management for a Manufacturing Company, Traditional Competitive Procurement Processes, The Concept of Supply & Its Uses in Business, TechSoup: An Overview of the RFP Process for Nonprofits, Charities, and Libraries, BusinessDictionary.com: Request for Proposals (RFP), An Inventory Control System RFP's Ethical Standards. Filed Under Blog . Or you may design your specification for all users, except in justified cases, including a conformity assessment e.g. Advantages of procurement planning are: ensures that procurement cycle are followed and each person in the cycle gets to know his or her task in delivering the product, it provides time frame indicating when the procurement process should be initiated; it is also used for soliciting/lobbying for funds for donors. Advantages It throws the responsibility for a satisfactory product back to the seller. Advantages of procurement planning are: ensures that procurement cycle are followed and each person in the cycle gets to know his or her task in delivering the product, it provides time frame indicating when the procurement process should be initiated; it is also used for soliciting/lobbying for funds for donors. Knowing exactly what a buyer requires, allows a supplier to more accurately match the request with specific products and materials. The factors should therefore be considered at the beginning of a procurement. 5382 words (22 pages) Essay. Get Fresh Updates On your job applications, and stay connected. Every day, thousands of new job vacancies are listed on the award-winning platform from the region's top employers. When you take the time to specify the exact composition of materials you seek, it can help potential suppliers to understand your procurement needs and objectives more clearly. Specifying Composition in Procurement Requests for proposal can be as general or specific as desired. Procurement process if well followed gives the buyer advantage to select the best suppliers for the job 2. Procurement is often a misunderstood and disregarded (unfortunately!) Rather than requesting a general quote for printing ink, for example, a print shop might specify that it requires printing ink made from soy-based pigments. It can also be advantageous to those suppliers who can meet the specifications, because it allows them to stand out from their competitors. Specifications describe in detail the supplies and services the City seeks. 1. The disadvantages are: it is bureaucratic and it has been know to be the causes of delays in delivering products and services. This, in turn, can provide greater insight for your purchasing decisions. The importance of Specification within the procurement places. The size of staff necessary to do this would be prohibitive. Numerous organizations are spooky due to the disorganization. Such organizations struggle to manage purchases and place order according to the schedule. The more specific the details of an RFP, the greater the advantages that can be realized. You're working on the procurement plan for the computer software program that? © 2000-2020 Bayt.com, Inc. All Rights Reserved. Cookie Policy. The ordering school/department has the authority and responsibility for specifications. The necessity of specification is to verify and check the strength of materials for a work involved in a project. Compared to conformance specification, performance specification has a number of ADVANTAGES such as; The specifications are easier to draft; The efficacy of specifications does not depend on technical knowledge of the buyer; Supplier can use their creativity to develop the products; Greater share of specification risk is borne by the supplier. Specifying your required composition in requests for proposal can help to narrow the field of potential suppliers quickly. Procurement serves as the primary activity involved in developing specifications for items purchased under indefinite quantity term contracts and definite quantity scheduled purchases. Performance Specification—A type of specification in which the goods and/or services are described in terms of required performance. Organisations must comply with the Sustainable Procurement Duty set out in the Procurement Reform (Scotland) Act 2014. take into account accessibility criteria for persons with disabilities. However, prior to release of a specification, as part of a solicitation, the buyer must be satisfied that its inclusion will result in a fair and equitable purchase. There are additional advantages when a technical specifications document is drawn up and it forms an integral part of the procurement process and order placement. You are the project manager for an upcoming outdoor concert event. Procurement Optimization Can Lead to Significant Savings. Terms of Use - This can allow a company to more easily locate the ideal suppliers who are able to deliver exactly what they require. (sustainable-procurement.org; see later section). accessibility, safety, comfort, travel time, sustainability evenness, friction, noise reduction bearing capacity, strength, durability resistance to fatigue and permanent deformation, stiffness, durability, thickness material spec's, aggregate quality, grading, binder content, void content, binder characteristics etc. cluding the specification and contract, to all economic operators that request to participate. 4. For goods that are made to order, specifying the required composition can help suppliers to determine their exact costs, allowing them to calculate their prices more precisely. Rather than requesting a quote for drywall, as another example, a building contractor might specify that it requires drywall made from at least 50 percent recycled materials. The aim and challenge of sustainable procurement is to integrate environmental and social considerations into the procurement process, with the goal of reducing adverse impacts upon health, social conditions and the environment, thereby saving valuable costs for public sector organizations and the community at large. Dealing with Advantage (2) Natural World Products v Arc 21 [2007] •Bent over backwards to be fair to others •And in so doing was unfair to the advantaged bidder Allpay Limited v NI Housing Executive [2015] •Not illegitimate for a bidder to use its advantage in the market for its own benefit in a procurement. Greater insight for your purchasing decisions may include such details as required power, strength of,... 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