What is meant by a structured procurement (StruProc.) process?
*This similar to basic question:
Why do you follow a structured process?
- StruProc invo. create rules
- On how Proc -should be done
- Contrast to reactive / maverick spending
- StruProc is due to company policy +
- External Regs or
- Try to achieve Competitive Advantage
Give an Example of StruProc. process
*Hint: £500 < £ < £1000
**Also what does this example should apart from structure???
- E.g. Org set procedures for ordering items of different spend like:
- E.g. Proc. Assistants can purchase items <= £500 .
- Bet. £500-£1000 req. manager’s approval
- > £1000 req. a written Business Case in order to procure
** Means StruProc. uses e-proc. tool.
Give an Example of E-Proc in StruProc. process
E.g. Org insist all tenders
- To use certain online Sys. +
- Invoices sent via X Sys. within 30 days
List 5 reasons of why StrucProc. process is important???
- Maintains consistency
- Prevents conflicts + suboptimal behaviour
- Efficiency
- Better Managerial Control
- Compliance (laws + Standards)
Why is StruProc. important?
- Ensures tasks need to be done are done
- Stru. processes = have step-by-step guide
- On how to procure. =
- Well co-ordinated activities +
no effort duplications + conflicts - Inc. assign diff. people to diff. roles
- Ensure nothing is forgotten
- e.g. 1 for requisition, Another approves it
How StruProc. Process….
Maintains consistency ?
- = Standardised processes means…
- Each Proc. exercise follows same process
- Inc. stand. template for a requisition / ITT
- Consistency saves times + ↓errors made
- Ensure all (inc. supp. partners)
- Familiar with the processes
How StruProc. Process….
Prevents conflict and suboptimal behaviour
- Org using StruProc. process = all do same
- Means no conflict
- E.g. A person doing things diff. to another
- Would argue which`s best way
- Ensures no one can do Proc. ‘wrong’
– StruProc. inc. written guides + procedures - To follow, useful for new starters
How StruProc. Process….
Efficiency
- If there`s standard procedures results
- Time + £M saved
- No need to plan each proc. activity indiv.
Effi. StruProc. Processes may involve:
* Explain ‘Consolidate Demand’ with E.g.
* Use Stationary/Cleaning Prods
* E.g. Order per Quarter saves….
Better managerial control
Managers have more oversight
- When using StruProc.
- Clear rules when managers need to:
- Be involved + provide sign-off
How visibility contribute to better managerial control?
Give as Example
* How visibility is for managers
- Eases their deci-ma
- They have visibility over all processes
- Allows early intervention if person needs assistance
- ∴↓ maverick + fraudulent spending
- E.g. Illegal actions / kickback to supp.
- Due to clear processes + audit trails
Compliance (with laws and standards)
- Especially Public Sector with rules and regs - For proc. practices
- Standardised processes allows Org to:
- Show compliance with appropriate Legis.
- Protects from ‘challenge’
Compliance (with laws and standards)
*Using an example (Bidder), how StruProc having Standardised process, protect Org from ‘Challenge’ ???
E.g. An unsuccessful Bidder challenges deci - In Award contract to someone else
- StruProc. allows Org. to show they:
- Correctly Procured item
- ∴ Challenge is baseless
