How to Create a Procurement Plan for a Project

Paying Bills image by ne_fall_photos from Fotolia.com

A project procurement plan describes and documents all of the purchases from outside suppliers that will be needed to support the needs of a particular project. A project may need computers, paper or other supplies depending on the nature of the project. Outlining the needs of the project and how the supplies will be procured allow for adequate budget and proper planning. A good procurement plan will also give specific steps on how to initiate and execute purchases. This will ensure that all bids are granted fairly and are in the best interest of the company.

Define the requirements of the plan. Include all of the objectives of the plan. For example, obtaining goods from the best suppliers at the lowest cost.

List the procurement team. This list will include all parties that will be included in the procurement decisions. Include names and contact information for each person or group.

Document the justification for procurement. Include the reasons that the supplies are needed and how they will be used. Identify the items that will be procured over the lifetime of the project. Include the quantity of items needed.

Build a time line that identifies all of the purchases that will be made over the length of the project. Purchasing supplies in bulk or at certain times of the year may result in savings. Include these specifics as part of the time line.

Define the supplier selection process. This includes all of the steps required to obtain bids. Determine a minimum number of bids that will be obtained before selecting a supplier. List any contract or payment terms that must be agreed upon before selecting the supplier.

Create a list of tasks that should be undertaken to purchase an item. Identify all of the paperwork that must be filled out to process a purchase order. Purchase orders may need to be authorized by management.

Tips

  • Review the procurement plan regularly. Changes to supplier terms and other market factors may positively or negatively impact the plan. Adjust the plan to best suit the business needs.

References

About the Author

Lisa East Hunter is a consultant and freelance writer in Phoenix. Her background in marketing and technology led her to explore all avenues of writing. She is currently dividing her time between freelance writing and her consulting business. Hunter has a Bachelor of Science in management information systems and marketing.

Photo Credits

  • Paying Bills image by ne_fall_photos from Fotolia.com