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How to make a procurement plan?

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You’ll need a procurement plan to justify the need for an external supplier and manage the vendor identification and selection process.

Begin by specifying the kinds of products and services your project needs, along with elaborating on the need to source them externally. Identify the roles and responsibilities involved in the procurement process as well. For example, the project managers who have to control the expenses and lawyers who help with contract creation and management.

Your plan needs to include the specific requirements of your project, types, and the number of vendors required, and mention the standards that the supplier needs to comply with and any vendors you have pre-qualified.

Then, lay down the cost and risk criteria for the selection of appropriate vendors and the relevant KPIs to gauge supplier performance later on. The selection criteria can include supplier capabilities to deliver the product on time, cost comparison of insourcing and outsourcing, etc. Identify the kinds of contracts you’re planning to establish as well.

You also need to include the project’s limitations like timelines and budget, and legal jurisdiction. Identify any risks along with their probability and security too. The use of procurement software will help you in all steps.

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How to make a procurement plan?

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