In this chapter, we introduce you to some of the most valuable tasks performed by the Procurement Department: developing bids and proposals, evaluating suppliers’ responses, and selecting the supplier that provides the greatest value to your organization. The procurement professional is expected to ensure that this process results in fair and consistent supplier selection that is fully aligned with organizational objectives.
To manage this effectively, you will also need to know how specifications, statements of work, and performance criteria are commonly developed, along with your role in properly conveying them to the supplier. Since you will also have responsibility for ensuring compliance to laws and regulations throughout this process, you will be required to have a working knowledge of how they affect the selection and contracting process.
Included in this chapter is a review of the various supplier classifications and their general requirements and how this information is maintained for internal use.
Finally, for future reference, we have included a section on the elements of strategic planning and how they are implemented through operational planning.
As noted in Chapter 1, a description of the organization's detailed needs for any purchase consists of a number of elements, including terms and conditions, lead time, and technical requirements. In order for the organization's procurement team to select the most appropriate ...