Project Procurement Management

Project procurement management is the creation and maintenance of relationships with external resources needed to complete a project. It involves creating a procurement management plan, testing quality, managing procurement contracts, executing purchases and any other activity that’s needed to control how purchases are made in your organization.
The level of complexity and detail of a procurement management plan varies from one organization to another, but at a basic level, your procurement management plan should:
• Define evaluation criteria for the selection of suppliers
• Outline the bidding process
• Identify the cost methodology to be used
• Include a cost-benefit analysis
• Explain why procurement activities are needed and how they align with the organization’s strategic goals.
• Set a timeline for procurement activities
• Identify procurement management stakeholders
• Define KPIs for procurement activities
• List any resource constraints or project assumptions that might affect procurement activities
• Define general legal & payment terms
• Explain the different procurement management roles & responsibilities
• Include the estimated costs for the procurement project
• List potential risks that might affect purchasing and any mitigation strategies
• Include procurement contracts and documentation such as purchase requisitions, purchase orders, requests for proposals and requests for quotes