Procurement Cycle

Question 1

1 - Define Business Needs and Develop Specification

Answer 1

Understand and define business opportunity or business need and risk

Question 2

2 - Market Analysis and Make/Buy Decision

Answer 2

Conduct market analysis to assess market conditions

Question 3

3 - Develop Strategy / Plan

Answer 3

Developer strategy or plan to Consider values and potential impact of the external environment

Question 4

4 - Pre-Procurement Market Testing

Answer 4

Include identifying stakeholder and business needs now and in the future and how changes in the procurement strategy can meet those needs.

Question 5

5 - Develop Documentation and Specification

Answer 5

Detailed Specifications, Pricing, Product Quality and operational functionality. Including product requirements and preferences

Question 6

6 - Supplier Selection (Criteria) to participate in Tender

Answer 6

Rank performance qualifiers against business needs with key stakeholders. Carey out due diligence to check any potential suppliers sustainability and ethical compatibilities.

Question 7

7 - Issue Tender Documents

Answer 7

Send out ITT and RFQ to selected Suppliers to participate. Include detailed specification and documentation developed around business requirements and essential criteria. Include clear timescales to respond.

Question 8

8 - Bid and Tender Evaluation and Validation

Answer 8

Helps identify which is offering best value for Money (VFM). Includes credit checks, environmental, social, governance and ethical elements, Whole of Life costs.

Question 9

9 - Contract Award

Answer 9

Awarding contract to preferred Supplier offering agreed terms and conditions. Chance to define Total Life Cycle of products and future plans for Assets or services.

Question 10

10 - Delivery

Answer 10

Warehouse operations need to be considered. Includes Product coding, space, layout, frequency of deliveries, waste management and recycling.
Considerations needed on environmental implications

Question 11

11 - Performance

Answer 11

KPI’s and Continuous Improvement

Question 12

12 - Supplier Relationship Management

Answer 12

Establish right level of input to develop relationships and achieve objectives.

Question 13

13 - Asset Management

Answer 13

End of life considerations carefully assessed. End of life costs include decommissioning, removal, compliant and safe disposal of assets.