Procurement, Risk and Contract Management
Procurement involves the management of an organisation’s external resources to ensure that the goods, services, capabilities, and knowledge that are necessary for an organisation to achieve its aims and objectives are supplied in an effective and efficient manner. In moving from a tactical to strategic perspective, many organisations have adopted a process approach to procurement, in which a number of different stages can be followed to ensure that an organisation can meet its own customer requirements and generate competitive advantage. Despite the safety precautions utilised, organisations must remain on guard when engaging in procurement activities. There are several risks associated with procurement, such as the risk of not meeting deadlines or the risk of choosing the wrong supplier. These risks can be mitigated by careful planning and by using a rigorous procurement process.
For an organisation of your choice, you are asked to:
(a) Evaluate how the different stages of the procurement process can help the organisation to achieve competitive advantage.
(b) Analyse the key risks that the organisation faces at the different stages that you have identified in part (a).
