Supply Chain Management risk analysis, procurement strategies development and planning are essential tools to ensure that procurement activities support project outcomes, are conducted in a timely manner and at a reasonable cost. Early and accurate planning is critical to avoid last minute procurement, which is contrary to open, efficient and effective procurement. When does (1) procurement risk analysis (2) procurement strategies and (3) procurement planning start? SCM cycle is an integrated part of the project cycle, and therefore needs to be aligned and synchronized with other project activities in order to contribute to achieving identified outcomes. To this end, the SCM cycle cannot run in isolation. On the contrary, it must be integrated into the overall project cycle. This implies by definition the need for a constant interaction between operations and programming. In the project context, SCM risk assessment and procurement strategies development and planning should start as early as the project definition stage. At this point, important questions will need to be addressed, including: What will be the implementing modality? Who will be responsible for procuring and managing inputs? What are the existing risks? Are there risks associated with the nature of the products or services to be acquired? Are risks associated with the markets, the environment or the political context? What is the best procurement strategy for achieving the programme/project goals and to mitigate risk? What is the Procurement Plan and what are the associated resources? What are the main acquisition activities to be conducted that will contribute to the identification of project outputs? Among these activities, will there be acquisition of goods, services (professional or individual) or works? What is the procurement and product expertise required to successfully conduct the identified procurement activities? Does it exist in house or do we need to outsource it? Does UNDP or the implementing partner have the capacity to develop specifications/TOR/SOW, or do we need to hire specialized experts? What about the evaluation? What is the budget required to achieve the identified outcomes? All required activities, either goods to be procured (i.e., ballot boxes for an electoral project) or services (i.e., individual consultants to develop specifications) must be budgeted. What are the benefits of this approach?
Supply Chain Management risk analysis, procurement strategies development and planning are essential tools to ensure that procurement activities support project outcomes, are conducted in a timely manner and at a reasonable cost. Early and accurate planning is critical to avoid last minute procurement, which is contrary to open, efficient and effective procurement. When does (1) procurement risk analysis (2) procurement strategies and (3) procurement planning start? SCM cycle is an integrated part of the project cycle, and therefore needs to be aligned and synchronized with other project activities in order to contribute to achieving identified outcomes. To this end, the SCM cycle cannot run in isolation. On the contrary, it must be integrated into the overall project cycle. This implies by definition the need for a constant interaction between operations and programming. In the project context, SCM risk assessment and procurement strategies development and planning should start as early as the project definition stage. At this point, important questions will need to be addressed, including: What will be the implementing modality? Who will be responsible for procuring and managing inputs? What are the existing risks? Are there risks associated with the nature of the products or services to be acquired? Are risks associated with the markets, the environment or the political context? What is the best procurement strategy for achieving the programme/project goals and to mitigate risk? What is the Procurement Plan and what are the associated resources? What are the main acquisition activities to be conducted that will contribute to the identification of project outputs? Among these activities, will there be acquisition of goods, services (professional or individual) or works? What is the procurement and product expertise required to successfully conduct the identified procurement activities? Does it exist in house or do we need to outsource it? Does UNDP or the implementing partner have the capacity to develop specifications/TOR/SOW, or do we need to hire specialized experts? What about the evaluation? What is the budget required to achieve the identified outcomes? All required activities, either goods to be procured (i.e., ballot boxes for an electoral project) or services (i.e., individual consultants to develop specifications) must be budgeted. What are the benefits of this approach?
PSU_Transactional%20Procurement%20Strategies%20and%20Procurement%20Planning.docx