5 Procurement Flashcards
1
Q
Why is a procurement strategy important?
A
A procurement strategy documents an organisation’s process for acquiring goods/services as well as how to manage them.
It is important to ensure that budgets are not exceeded, investment aligns with the strategic aims and that it returns the value required to the project.
2
Q
What is typically involved in a procurement strategy?
A
- Make or buy decision
-Supplier selection - Contractual relationship decision
3
Q
What are the seven stages of supplier selection?
A
- Market research
- Pre-qualify suppliers
- ITT
- Respond to queries
- Evaluate bids
- Award contract\
- Enter contract
4
Q
What are the different negotiation techniques used with suppliers?
A
BATNA
ZOPA
Win-Win
5
Q
What are the different types of contractual relationships?
A
Single
Parallel
Sequential
Prime
6
Q
What are the four methods of supplier reimbursement?
A
Time and materials
Cost Plus
Contract target cost
Fixed price
