Many organizations take an “ad hoc”, as required or fragmented approach to procuring the goods and services required to deliver the business function that they perform. This reactive approach to procurement can result in rushed purchasing, inaccurate requirements definition, and lack of availability of required goods and services within required timelines, resulting in significant impact to operational budget and schedules. Planned procurement is a means for organizations to reduce costs and improve return on investment.
Through an iterative needs analysis process with client stakeholders, Cistel’s procurement specialists define procurement needs based on planned business activities. Based on needs analysis, a procurement plan and schedule are developed to ensure that the client is able to adhere to proper procurement governance processes while assuring the availability of required goods and services when required. Based on the procurement plan and schedule, individual procurement initiatives are grouped (where possible) to establish economies of scale then executed. Based on client needs and procurement policies, execution can involve development of: Requests for Proposal (RFPs); Requests for Information (RFIs); Requests for Standing Offers or Supply Arrangement (RFSO or RFSA); as well as numerous other means to enter into a contractual arrangement.
Cistel’s Management Consultants have worked with client stakeholders in order to develop and implement proper procurement governance structures. An organization with appropriate frameworks and performance measures in place for procurement activities is able to mitigate the risk of corruption or fraud, assign accountability through the procurement process and ensure broad, open and transparent competition between qualified vendors, ultimately leading to cost effective procurement transactions.
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