Procurement management Assignment Example | Topics and Well Written Essays - 1500 words

Procurement management - Assignment Example The sellers that should not be part of procurement are the local IT Company and the small IT Company since they have limited local capacity without the required job experience. This category of procurement is also referred to as strategic procurement. Major complexity procurement includes essential goods that are needed so as to achieve  key needs and objectives of the project’s schedule, cost, quality and technical. The characteristics of  major complexity procurement are: This procurement will apply to buying machines to help in milking 10 cows, collecting eggs from 50 chickens, picking 10 varieties of vegetables, delivering the goods to the local wholesale market 2 miles away. This procurement will also apply to buying machines for plowing fields, planting seeds and harvesting hay. This category of procurement involves purchase of commercially available off-the-shelf items or routine services. Costs of routine procurement are usually low. This type of procurement will apply to incurring cost to hire people to attend to the animals, maintain his 4 work vehicles, maintain 4 general carpentry buildings and pick up general materials he needs around the farm like gasoline, office supplies, feed and building materials (Bower, 2003). This farmer could solicit responses from sellers or suppliers for his needs using internet solicitations. The farmer can create a database for all approved suppliers for his needs. The farmer can then create a proposal for request with well defined requirements that has been recommended by experts. The farmer can then send the Request for Proposal to sellers and review the suppliers response based on supply management, technical and executive management. This phase is the first phase, also referred to as planning phase. It encompasses activities that are related to definition of requirement along with planning of preliminary procurement and issuance of bid solicitation. The impact of proper procurement