Describe Five Components Of A Procurement Strategy.

We are reviewing the questions in preparation to the exam. There are just four components mentioned in the book and in the e-learning video (i.e. Make or Buy Decision, Contractual Relationship, Reimbursement Methods and Supplier Selection). What is the fifth one?
Thank you.

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Paul Naybour

Paul Naybour is a seasoned project management consultant with over 15 years of experience in the industry. As the co-founder and managing director of Parallel, Paul has been instrumental in shaping the company's vision and delivering exceptional project management training and consultancy services. With a robust background in power generation and extensive senior-level experience, Paul specializes in the development and implementation of change programs, risk management, earned value management, and bespoke project management training.

4 thoughts on “Describe Five Components Of A Procurement Strategy.”

  1. In the book they’ve also got contract admin so that would be ensuring, whoever the chosen supplier is, that both parties are compliant and discharging their responsibilities correctly and accordingly.PPR is also recommended so that lessons learned and best practice can be documented to highlight to the business, what went wrong and what was successful helping them improve and ensure they have corrective actions in place.

  2. Good question, I am impressed with you level of prep.

    A procurement strategy is a document written by the client early in the process to define the overall approach to the procurement process. I would add supplier selection criteria, i.e. the assessment criteria that will be used to evaluate tenders and the relative weighting between the different factors. Typical this can be expressed a scoring system with an defined split between quality and cost, for example 60/40 in favor of cost.

    I hope this helps.

  3. Hi ,
    How about Guidance on Ethics and Fairtrade?
    The procurement process should be fair, and potentially you need to define whether there are any legal or moral ethics to be followed, such as the PM being a shareholder in the a suppliers company, that decisions are fair and equitable, that gifts and hospitality from suppliers are disclosed.
    Hope that helps.
    Regards
    Paul

  4. Procurement Managment
    *****************
    Make or Buy decision
    Contractual relationship
    Reimbursement types
    Supplier selection
    Contracts Administration
    Feedback/Review

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