Procurement Functions - Service

• Service Function - Provides client department with procurement services so clients can focus on their core responsibilities and mission.– Adequate and timely material support– Tactful and courteous– Receiving advice from competent personnel– Maintaining good relationships– Ensuring customers are informed of each other’s

needs, problems and benefits from purchasing’s contributions

Example: Buying office supplies for the entire organization.

Procurement Functions - Staff

• Staff function – advising management and users on such matters as– General market conditions– New products and service– “Make or buy” decisions – Changes, trends and availability– Cost and budget information – Opportunities to establish better relationships with

suppliers and consultants– New legislation, policies and regulations

Procurement Functions - Line

• Line function – clearly defined operational responsibilities and authority to contribute to the bottom line– Service to the taxpayer– Determining the best way to allocate resources– Acts as its own department within the organization – Primary point of supplier contact and doing business

with the organization under the Law of Agency – Authorized to award contracts in support of the

organization’s operations

Strategic Role of Procurement

Clearly defined responsibilities in:• Strategic planning• Budget preparation• Specs and requisition development• Purchasing and source selection• Receiving, inspection and quality control• Stores control and distribution

Control, Management and Planning

Three essential services of procurement:• Control – ensure resources allocated

consistent with policy, no fraudulent use• Management – minimize costs by

aggregating, knowing markets, build inventories and expertise

• Planning – strategic and tactic – facilitating anticipated needs and flow of supply

Procurement Process Cycle

Procurement Planning

Procurement Evaluation

ProcurementImplementation

Procurement Formalization

Procurement Process Model: Planning

• Analyze the environment

• Assess strengths, weaknesses, opportunities and threats of the procurement process (SWOT)

• Assess expectations of the stakeholders

Proactive or Reactive Role?

• Proactive: initiates action

• Reactive: responds to demands

Proactive Reactive

Procurement Process Model: Formalization

• Develop goals and objectives for the organization

• Develop procurement strategies to achieve the goals and objectives based on constraints identified in the environmental scan

Procurement Process Model: Evaluation

• Provide feedback to the system

• May start the process again or force system to adapt if strategies selected and implemented are not performing at the level identified in the planning phase

Need

For

Change

LitigiousSociety

Globalization

Drivers for Change

Increased Transparency and Public Scrutiny

Government Restructuring

Rapid Pace of Technological Change

Expanding Socio- Economic Benefits

Mission

• Why organization exists – raison d’etre

• How it contributes to the community and relates to the jurisdiction as a whole

• Nature of services provided

• Clients it seeks to serve

• Current picture of the organization

Vision

• Where organization wants to be in the future

• Uniqueness relative to the community

• Focus on values committed to and behaviors

• Provides an image of the future

• Improvement paths, development programs and measures of progress should be developed for each element of the vision

Questions