What involves Procurement Management?

Question

Procurement Management is a knowledge area that involves selecting vendors, negotiating their terms, and managing the ongoing relationships with them. Sometimes those activities are conducted by the project manager; other times they are completed by a purchasing department or higher-level manager. As a project manager, what procurement management activities have you performed in the past? If the PM has not completed those activities, who in the organization has? What procurement-related activities do you anticipate you will be expected to complete as the project manager for the organization? What activities do you need to do right now?

Answer 1

Einstein.....smile...how would you know I check out your answers...wink (easier that way don't you think?)

Procurement Management involves everything you said above.
Selection of vendors, going out for bids,meeting with each of the vendors before picking a sucessfull bidder.
(not always required depending on the value of the order)
The cheapest product is not always your best choice. Again, depends on the application.

Setting up contracts with that vendor if required by your organization (where I work, every vendor has a contract)
Purchase orders are then created within the scope of a certain project.

Working closely with the Project Manager, Engineering, Quality Control and Safety department is a must.
It is not necessary to understand the products being purchased as the principles of purchasing can be applied to any industry. But it is advisable to have a certain knowledge either through courses or experience obtained on the job.
A buyer has many more responsibilities. Again it depends on the size of your company how other issues such as customs, shipping, receiving, inventory, etc. are handled.
Good negotiation skills are mandatory. Knowing how to deal with people and have good written skills is also important. Last but not least, learning how to keep your cool is very very important because believe me, you will lose it at times. lol
Good relations with the accounting people is also wise. You will need their cooperation when vendors scream they haven't been paid.
That is sort of it in a nutshell, but I'm sure you realize it entails more depending on the company structure itself.

Purchasing requires you get the best product at the best price, on time and in the right place.

Good luck if you are going this route. It is interesting and rewarding.

Answer 2

Hmmmm.I don't know,but I know someone that does.I am sure she will give you an answer when she checks what questions I answered...