A procurement project can be performed using the Emeritor 8-step procurement process, a process that we use in practice on a daily basis. Depending on available information and the industry in which the client operates, we decide which steps are required to be executed. The methodology described below is specifically developed for the private sector. We use a modified process for contracting authority.
The 8 steps are:
|0||Decision to buy||Within the organisation it is decided on a strategic level that a question will be filled in by procurement. This decision precedes project planning.|
|1||Project plan||Preparing a project plan with a corresponding strategic analysis and functional specification of the procurement package and composition of the "multidisciplinary" project team. If desired, the steps of the implementation methodology can be started.|
|2||Market analysis||Internal analysis: elaboration of the financial purchase analysis in detail, analysis of existing contracts, qualifying and quantifying historical use and future needs, analysis of current pricing, identification of client satisfaction and improvement aspects, and identification of opportunities for standardisation.
External analysis: market research for potential vendors, trends, product / service combinations, financing structures and common specifications in the market. This phase should result in a procurement strategy on how the procurement package is positioned in the market: allocation, cost strategy, portfolio strategy, preparation of assessment criteria.
|3||Specification||Specifying requirements (procurement package): general (e.g. size), functional and / or technical, taking into account the full cost and lifecycle of the product and / or service. This should result in a ‘schedule of requirements’ and a concept contract.|
|4||Vendor selection||Communicating RFPs to selected vendors, evaluating bids within the project team, editing award / selection advice and negotiating with selected vendor(s).|
|5||Approval||Acquiring approval by reporting on the awarding- and selection advice.|
|6||Contracting||Contracting vendor(s). Communicating rejection and appreciation to non-selected vendors, fine-tune the implementation plan, and if necessary elaborate service levels before contracting the selected vendor.|
|7||Implementation||Communicating new contract(s) and vendor(s). Anchoring participation and setting up the purchasing process. Transformation to contract and vendor management and securing the implementation.|
|8||Evaluation||Evaluating the procurement project (project: process, plan, communication), project team and results.|