A Procurement Management Plan

Name
Professor
Subject
Date
A Management Plan for Procurement
Introduction
This Management Plan for Procurement outlines the procurement strategy for a company’s (Coverings) plan to introduce a new innovative product. Coverings is an Ontario-based clothing retailer that deals with all-season clothes for adults. It will provide the guideline for managing the procurement throughout the period the new product will last on the market, and its update will underline the change needed for the acquisition. It also provides the identification and definition of the items that Coverings need to procure, the types of all the contracts that the Company will use to support the introduction of the new product, the approval process of the deal, and criteria for making decisions. The Plan also covers the significance of coordinating the activities involved in the procurement, establishing profound deliverables for contracts, and all metrics used to measure the incidences included in the purchase. Other factors covered in this Plan include the risks of procuring the new product and the management considerations for them; the process of determining the costs; how the Company will use standard procurement documentation; and constraints for procuring the new product.
Procurement Management
Since I am the Project Manager for Coverings, I will mastermind the management and oversight for all the activities acquiring the new product. For example, I will ensure that the Company launches it Spring of the next as scheduled, and that it is made using the Canadian raw materials.

I will also coordinate with a team of workmates and other parties who will contribute to identifying all the items that require procurement for the successful launch of the new innovative productive.
Procurement Definition
For the successful launch of the new product by the spring of the next year, the following items and service must undergo procurement. The following a table of items and services and justification for procuring them:
Service/Item Justification
Canadian Raw Materials The owners of Coverings require that the manufacturing of the new production uses Canadian raw materials
Machinery The introduction of the new innovative product will need new machines
IT The Company will need new IT system for storing information about the new productive
All the services and items listed in Table 1 require the review and approval of my office (Project Manager Office) for making contracts and purchase. Besides the list, the following officials contribute to the success of introducing the new product in one way or another:
NamePost
Gideon TaborProject Manager
Byron GillMarketing Directing
Tess ArborIT Expert

Type of Contract to Be Used
Soliciting of the services and items will require the company to use the Company’s fixed price contracts. I will direct the project team to join forces with the Purchasing and Contract Department to outline all the types and quantities of the services and items required for the launch of the new product. After which, the Department will solicit bids from the vendors to help the Company, through my office, to procure the items and services listed in Table 1 at an affordable price.
Procurement Risks
All the activities involved in procuring the introduction of the new production by spring of the next year. Although we will use the Risk Management Plan to almost all the risks that will arise during the procurement process, some issues particularly pertain to the acquisition process. For example, vendors’ expectation cost and unrealistic schedule could prove a stumbling block. The owners of Coverings expect the introduction of the new product by spring of next year. At the same time, they also want that the Company to compete the imported goods. In such cases, the Company must produce a large volume of the new product to serve Canadians as well as compete with the imports. As a result, the vendors are likely to demand hefty sums of money for the manufacturing.
In addition to that, the producers are also likely to struggle to manufacture enough products to cater for the potential demand. Coverings must also produce high-quality goods to fight those of the imports, in which case the vendors might struggle to meet such targets.
Potentially, the introduction of the new innovative product can also result in conflicts with the Company’s existing vendor ties and contracts. The contractors might object the added pressure that comes with the need to manufacture the new product using raw from Canada only. For that reason, the configuration management for improvements and upgrades of the new machinery and technology.
Procurement Risks Management
In essence, all the risks identified above are not all-inclusive, meaning that the standard management of risks can help the Company handle them. For starters, my office and team will identify, document, analyze, mitigate, and manage all the problems. Although we will use the Risk Management Plan, we will also adopt some further involvement and considerations to handle the risks about the procurement process. For that reason, the project team will use some external factors to potentially influence both existing and upcoming business ties, including the management operations for the Company’s chain of supply and vendors. Since these activities and relationships are sensitive, the team will also consider appointing a project sponsor as well as a representative to handle all the contract matters in all meetings for launching the new product and reviews of its status.
Cost Determination
Since the owners of Coverings want the Company to release the new product to the market as soon as the spring of next year, it seems that they have sufficient capital for manufacturing it. Nonetheless, we will still give a Proposal Request to seek proposals from different vendors, with a vivid description of how they will meet the Company’s needs as well as the cost incurred in meeting those demands.
Standardized Documentation of Procurement
The overall process of managing procurement encompasses of many procedures including the existing management program of all the processes and agreements of the acquisition. Given the dynamism and sensitivity of Canadian market, we will have to simplify the management of the procurement to promote successful handling of the Company’s contracts and the introduction of the new product.
Constraints of Procurement
Just like any other procurement process, the launch of a new product by Coverings will face several setbacks, all of which will feature in the Proposal Request and passed to all suppliers to determine their readiness to operate and deal will them. The procurement drawbacks feature in different areas such as new technology, the cost of operation, resources used, scope of the project, and timeline. Unless all of them are in good condition, my team is likely to struggle to introduce the new product.
The Approval Process for Contract
The first process in the course of approving an agreement is to identify all the resources or services the Company will be procured by the external vendors. We will determine them by conducting a cost analysis on all the goods or services that the Company can provide internally and compare them with the buying prices from suppliers.
The Criteria for Decision-Making
The overall process of selecting and awarding contracts of procuring the new product will use the following criteria for decision-making:
Ability of the suppliers to provide all the required items
Quality of their production
Cost of hiring vendors
Expected date of delivery
Comparing the outsourced services with the in-sourced ones
Past performance
The board of review or I will measure the decision criteria, which we will use to arrive at the final course of action. Alternatively, we will consider all the available resources.
Vendor Management
The responsibility of managing vendors is my duty. I will organize weekly meetings with the Department of Purchasing and Contract Issuance as well as all the vendors to review the progress for all the procured services and resources to ensure high quality and timely delivery of resources from the suppliers.
The Performance Metrics for all the Activities of Procurement
Although the Purchasing and Contracts Department has its departmental metrics for procuring resources and services, the ones identified in the table below (Table 2) are used for supplier performance for procuring the activities of introducing the new product. The rating for each metric uses a 1-3 Scale as outlined below:
Vendors Quality of Product Timely Delivery Quality of Documentation Costs of Development Time of Development Per-Unit Cost Efficiency of Transactional
First Vendor Second Vendor The Scale
1 indicates Unsatisfactory
2 indicates Acceptable
3 indicates Exceptional
Besides giving rates to each vendor, the team notes all actual values to build a database of past records, which it uses for selecting qualified suppliers for the activities of future procurement.