Procurement Management

Procurement Management

Introduction

Procurement is one of the critical business functions in the operations of the company. The manufacturing organizations pay significant attention to the operations of the procurement department. Procurement in project management plays an important role in the on time completion (Bower, 2003). The process of procurement management includes the planning, soliciting and choosing sources, administering and closing out the contracts. It targets on the practices from buyer's aspect and the sellers are considered as subcontractors, contractors, supplier or vendor. A project can meet catastrophic results, may be halted or terminated if careful planning, execution and monitoring are not carried out with utmost care. We will be evaluating the selling of garments designed on the theme of an upcoming movie as a part of promotional campaign. We will be evaluating the project procurement management of this project and will look into the challenges which we may encounter. We will also assess the dynamics of the supply chain and will formulate our procurement strategies accordingly.

Discussion

Aim of Project

Our aim is to develop clothing line for men and women with theme of a Hollywood movie as part of promotional campaign for the movie.

Planning for Procurement

The project team is responsible to identify the parts of the project which will require procurement. It is essential that the decision on procurement is carried out prior to planning process. The primary elements which the procurement planning targets are (PMP, N.d):

Need for procurement

What products or services will be procured?

What will be the required quantity?

When will the product be procured?

The solution to ascertaining the answers to the above queries can be found by reviewing the statement of scope or project aim. The aim provides the definition of the project work, and sheds lights on the limitation of the project. It can help the company to determine the required products and services to be procured. The product description can also provide hints to the procurement team and consultants and can benefit from confirming the type of product required. The procurement manager must also have procurement management resources available to the procurement operations department so that they can effectively carryout out procurement process. If the department doesn't have such resources available to the operations department then the project manager must provide the said resources. The market analysis provides information about the services and product's availability, the sources which can provide the required products and services and the terms and conditions on which they can be procured.

Our aim shows illustrates that we will required carrying out designing and then manufacturing of garments. The designing will be provided to us and we will be required to develop it according to the fashion requirements. The manufacturing of the garments will have to be carried out by a specialized manufacturer. The product description tells us that the clothing will be for men and women. Since it's not an all season garments, the quantity will be limited and will most probably available via online shops (Morris and Pinto, 2010). We will need to ...