This is the process of sourcing, selecting and contracting suppliers and vendors from whom goods and services will be procured. They will accurately search for materials of quality order, suitable documentation, change controls and cost avoidance to ensure purchases will deliver cost value. This is very important as you need the right people to deliver goods and services at suitable costs to an event.
Procurement involves having an accurate listing of what you need and distributing it in order to invite people to bid which ensures the correct prices. Procurement management can be achieved in the following ways.
Procurement System
It is critical that you get the right system to help obtain goods and services. It establishes legal and ethical procurement procedures. It is important to develop a very clear purchasing process. You should have a clear understanding of what you need, which narrows down where to look for the service. You will need to review the procurement process and make a decision on which supplier to settle with.
Looking for Tenders
Once you have a system that helps determine what you need, you then need to establish specifications for goods and services required. This involves developing briefing documents that will assist when searching for tenders. The most important task is determining where to look for suppliers. You identify suitable contractors who you can work with.
Selection
This process involves specifying the criteria you use in the selection process. At this point different contractors have already placed bids and proposals, therefore you need to assess them and make a decision. Choose the contractor on an equal basis. Do not show preference towards a specific contractor as they may not deliver. You then need to manage all the contractors.
Contracting
After attaining the bids and the proposals, you need to to settle with what you have been offered. You can negotiate with the contractors to increase your profit margins. You need to clearly specify the prices and deliverables to ensure the supplier understands exactly what you want. Suppliers play a very big role in the event and therefore you should be very critical on their deliverables. For example, you source a food supplier who brings bad food, ruins your event and discredits you from your clients. After agreeing on terms expected from the supplier, it is important to have written agreements signed by the different suppliers. If there is a breach of contract, legal action can be taken against the supplier.
Control
This process involves putting in place procedures to help input measures in the contract by placing quality control measures that monitor the progress of the goods and services being offered. It also involves conducting performance evaluations. Based on the contract agreement that you signed with the supplier, it is important to evaluate their performance. It is also critical that you comply with the purchasing and payment requirements set by the government.
Procurement management is a critical in event management and should not be overlooked. Every other function pertaining to the event revolves around procurement.
