Procurement Management Process

Essay by Pan413University, Master'sB+, June 2007

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It isn't surprising that the project managers are not happy about the "take over" of the procurement process for the scheduling tool. Resistance to change is a common factor for individuals and organizations. The main cause for this resistance is the belief that the change is unnecessary. The project managers have a belief that the way things are being done is successful, and they are in control. They see no major problem with the situation. This change will cause a loss of power to the project managers, and they resent the interference. The project managers will need to acknowledge the need for change in order to accept it (Yukl, 2006).

Project Procurement involves the activities to purchase the products, services, or results needed from outside the project team to perform the activities needed. The procurement process includes; plan purchases and acquisitions, plan contracting, request seller responses, select sellers, contract administration, and contract closure (PMBOK, 2004).

Good procurement practices can increase corporate profitability by taking advantage of quantity discounts, minimizing cash flow problems, and seeking out quality suppliers (Kerzner, 2006). Each Procurement Management process results in a specific deliverable which is used as the foundations for the subsequent process. Combined the procurement management processes provide a best practice pattern for managing contracts and vendor relationships on a project (Anticlue, 2007).

Now that we know what project procurement involves, and how it works in businesses, we ask what benefit is it to us? Does it really save money? One large company that had an annual purchasing expenditure of about $10 billion was able to shave over 15% off that amount annually just by leveraging the buying power of all their worldwide divisions (Epiq, 2006). Another benefit for us would be the ability to save time and streamline our workforce. It eliminates a...