Monday 15 September 2014

Significance of Procurement Planning

Authored by Fahad Amjad

Procurement planning is the process which used by many organization to plan purchasing activity for a certain period of time. This is usually completed during the budgeting process of organizations. Each year, departments are required to request budget for staff, expenses, and for the purchases of different items. This is the first step in the procurement planning process. Procurement plans can be prepared in many different formats. The important thing to remember is the content while this planning. Procurement plan should cover all the different steps in the process with the expected date of initiation of each milestone.

Effective Procurement Planning is essential for all procuring bodies in the implementation of the purchasing objectives for the following reason:
  • Effective plan saves time and money.
  • Effective plan ensures compliance with regulatory policies.
  • Effective plan provides a framework to guide procurement officers in the achievement of their tasks and duties.
  • Helps to decide what to buy, when and from what sources.
  • It is an opportunity for all stakeholders involved in the processes to meet in order to discuss particular procurement requirements.
  • It enhances the transparency and predictability of the procurement process.