Procurement planning is only as good as the thinking that goes into it. Working through the following nine considerations systematically will improve the quality of your procurement plan and reduce the risk of implementation problems down the line. For the broader rationale behind procurement planning, see Why Plan Procurements?
- Begin with the desired outcome in mind
Before defining a procurement requirement, be clear about what a successful outcome looks like — what needs to be delivered, to what standard, and by when. Requirements that are defined without a clear outcome in mind tend to be vague, incomplete, or misaligned with operational needs, which creates problems throughout the procurement process and into contract implementation.
- Engage a knowledgeable procurement practitioner from the outset
From the initial identification of requirements, involve a procurement practitioner in the planning process. Early involvement allows procurement lead-times to be factored into timelines from the start, prevents the selection of unsuitable procurement methods, and ensures that requirements are defined in a way that is consistent with the applicable procurement framework. Procurement practitioners brought in late often inherit unrealistic timelines and poorly defined requirements that are difficult to correct.
- Compose a multi-departmental planning team
Procurement planning requires inputs that no single department can provide alone. The planning team should include representatives from the requesting entity, end users, technical specialists, finance, and procurement. Each brings a perspective that is essential to producing a realistic and complete plan; technical staff define what is needed, finance confirms what is funded, and procurement determines how and when it can be delivered.
- Confirm budget allocation before committing to timelines
A procurement requirement should not be included in a procurement plan without confirmed or anticipated budget allocation. Initiating procurement without confirmed funding wastes resources, damages supplier relationships, and undermines the credibility of the planning process. Where funding is anticipated but not yet confirmed, this should be clearly noted in the plan and the requirement flagged for follow-up before procurement is initiated.
- Determine the need for technical assistance
Assess early whether in-house technical capacity is sufficient to develop the technical specifications, terms of reference, or bill of quantities for each requirement. Where it is not, the procurement of technical assistance should itself be planned and initiated with enough lead time to ensure specifications are ready when needed. Delays in specifications development are one of the most common causes of procurement schedule slippage.
- Identify dependent procurement requirements
Some requirements cannot proceed until others have been completed; for example, civil works cannot begin until a design contract has been completed, or equipment cannot be installed until a facility is ready. Identifying these dependencies during planning allows the procurement schedule to reflect the correct sequencing and prevents bottlenecks during implementation.
- Assess market availability
Before finalizing the procurement method and timeline for a requirement, assess whether there are qualified suppliers, contractors, or service providers available in the market. A competitive procurement method is only viable if there is genuine competition. Where the market is limited, the planning process should consider whether international competition is needed, whether requirements can be packaged differently to attract more bidders, or whether an alternative procurement method is more appropriate.
- Seek opportunities to consolidate similar requirements
Review the full list of planned requirements to identify opportunities to consolidate similar items or services under a single contract or framework agreement. Consolidation can reduce procurement costs, simplify contract administration, and improve value for money through economies of scale. Equally, where a single large requirement might limit competition, consider whether dividing it into smaller packages would attract a wider field of qualified bidders.
- Be realistic about expected contract award dates
Procurement timelines must be based on the actual time required to apply the selected procurement method correctly, not on the dates by which the requesting entity would like the requirement fulfilled. Work backwards from the required delivery date, allowing realistic time for each step in the procurement process, and flag early any requirements where the timeline is not achievable. Unrealistic award dates set during planning are a leading cause of shortcuts, emergency procurement, and audit findings during implementation.
Further Reading
For a deeper dive into procurement planning principles and practice, see Procurement Planning Basics, part of the Procurement ClassRoom Lessons series.