Important Factors to Consider When Creating a Procurement Plan

business man writing supply chain management with procurement plan

A business may not be able to operate properly if it is not able to obtain materials needed to make its products. If you have your own business, it is important that you identify suppliers to enable you to create the products of your company.

One way to improve your procurement is to take advantage of category management services offered by companies like Mutual Marketplace. Additionally, you can come up with a procurement plan to get your procurement organised. A procurement plan, by definition, describes the process of identifying and selecting suppliers or contractors.

If you are going to make a procurement plan, make sure you consider the following factors.

Required Quantities

It may not be always possible to forecast the exact number of requirements at the project proposal stage. It is generally feasible, however, to offer an accurate estimation of needs. So, when you are coming up with a procurement plan, make the effort to be precise in the required quantity of supplies.

Time Constraints

The successful execution of a project can often depend on the delivery of services or materials in a timely fashion. If you are distributing tools and seeds, for example, it is crucial that this step is finished before the start of the rainy season. So, make sure to integrate any time constraints into a procurement plan. This makes sure that the procurement function has enough notice to consider project-related time constraints.

Applicable Procurement Procedure

The appropriate procurement procedure can directly influence the amount of time needed to obtain the requested items. When creating your procurement plan, you can apply one of three different approaches, namely, Invitation to Tender (International or Local), Request for Quotation Procedure and Single Quotation.

Required quantities, time constraints and applicable procurement procedure are some of the factors that you can consider when you are designing a comprehensive plan that meets your procurement needs. Remember that a procurement plan is an important part of your business that you should prioritise.