What Is Mean By Procurement Issues?

Question

What Is Mean By Procurement Issues?

3 Answers

Answer Question

Answer 1

One of the biggest procurement issues include hamper in supply of the inputs from the supplier. If supplier refuses to provide resources or inputs at the specified time, it can result in serious consequences such as delay in the manufacturing of the product, spoiling the image of the company, decrease in cash flows and customer dissatisfaction. The quality of input is also a major constraint in procurement. Another factor is cost. An organization can incur great cost savings if it chooses the right supplier which is cost effective as well as quality focused. Logistics issues are also very important in timely supply of raw materials.

Answer 2

Active procurement is the stage where a decision
to ‘go to the market’, outsource or partner has
been taken and the legal and technical process
of procurement takes place. This usually has
defined legal stages and timescales that begin
with advertising the service for tender, through
to awarding contracts and implementation.

Answer 3

Maersk Procurement issues a tender document
containing a full Definition of Scope, Commercial and Legal Terms &
Conditions, Cost Breakdown Form and Template for Response. Depending on
the complexity of the product/service, other information will be given Suppliers must comply with all formulated templates in the document(s) Maersk Procurement evaluates the supplier’s capabilities, value creation, TCO and incurred benefits Based on this evaluation, a number of suppliers are invited to participate in Step 3 Note
that submittal of bids in suppliers own format (that have not been
approved), will eliminate the supplier from any further participation
in the process. This is applicable even if the submitted format
contains all the relevant information.