Identify and analyze three key component of a typical procurement plan
For business organizations, it is recommended to make use of the procurement plan process in every situation involving purchase of items from external suppliers. The procurement plan framework allows the organization to have predetermined criteria for procurement needs, knowing the potential suppliers, establishing contract with the selected supplier and then having a scheduled timeframe for the delivery of the procured items. For success of any complex project, its dependency and use of good procurement plan is crucial. The procurement planning process makes it easier and faster for the organizations to perform tasks involving procurement of products or services.
In any organizational structure, procurement of products of services from external service providers or suppliers is a common practice. As this is a frequently performed task in the organizational industry and yet a crucial task to manage, it is essential for companies to devise a procurement plan that assists them in handling the task of procurement efficiently, effectively with minimal efforts and in rapid manner. Procurement plan is a good process to implement in an organization. However, it is essential to develop the procurement plan after analyzing the various key components of procurement plan such as risk management, scope of it, budget allocation and scheduling of the tasks.