We all know that a plan is just a guess, because we don’t have control over the future. So why do we plan? To have an idea of how something will work out in the future, and although things hardly ever work out exactly as planned, when they do we are happy, and when they don’t we are sad cheska-lekarna.com.
With procurement planning it’s similar. We plan procurements for the coming period knowing that it’s just a best case scenario. We try to plan for uncertainties, but when it doesn’t work out it gives us an indication of how we’ve performed and we can use this to improve our future planning exercise. During execution, the closer we get to original plan, the better.
How about you, any thoughts on procurement planning?
Dear Jorge,
Let me firstly thank you for this invaluable project. This should be an alphabet for public procurement officials, both beginners and active practitioners.
Procurement planning is crucial. Although, as you correctly noted, not everything can be planned beforehand, nevertheless leaving your project or organization without a procurement plan can cause numerous problems and eventually may cost a lot.
Procurement planning is important not only for procurers, but also for requesting departments/projects. The requestor should plan what goods, works and services are envisaged, consequently, what and when will be requested from procurer, so the procurer in his/her turn can plan further steps. As many organisations should follow specific procurement guidelines and manuals, planning helps forecast both timing and personnel to be spent on the process.
Planning can also help us consolidate similar procurement requests from different requestors/departments into bigger tenders, allowing wider competition, fewer workdays, lower prices, considerable time savings, etc.
Eventually, based on the forecasted workload, procurement plan can help us chose our vacation timing. Planning is a good practice in any profession, in procurement it is a must.
Fully agree, Levon. Thanks for your contribution and encouragement.
Thanks Jorge.
Another reason as to why we plan procurements is because it allows for proper procurement scheduling, consolidating various requisitions from various User Departments into one annual or multi-annual work plan, control and accountability by the PDU (Procurement and Disposal Unit). Remember that failing to plan is planing to fail.
Thanks Jorge for putting up this platform for us the aspiring and the already practicing procurement professionals.
RONALD MAYEGA KYAMBADDE- KAMPALA, UGANDA
Ronald,
Thanks for you comments. You are correct, especially important is for us to always remember that “failing to plan is planning to fail”.
Jorge
Just stumbled on this site. I wish I knew about it much earlier. Very educative. I appreciate the practical answers/ responses and comments.
Well done, Jorge.
God bless your efforts.
Iyabo, Thanks very much for your comments. I’m glad you find the posts useful.
Another beautiful piece of advice is here: http://www.procurementombudsman.com/#!planning/c1zx8
Levon, Thanks for sharing…
Thanks Jorge for this topic.
One of the most challenging aspects of public procurement in Uganda is procurement planning. Procurement planning is so crucial for successful execution of projects especially when it is based on approved budgets.
In my experience with procurement audit work in public entities in Uganda, especially in Local Governments, the process of coming up with estimates is not given due attention. The estimates are seldom realistic and this poses a serious challenge to the whole procurement process. At planning level, entities ought to come up with specifications of the procurements to be able to come up with realistic estimates in the procurement plan that reflect market prices. In most cases when bids are solicited, the prices offered by different bidders are above the entities budgets.
I would be interested in knowing how other public entities in Africa are doing in regard to procurement planning.
Steven
Procurement planning is a serious problem in most places where I’ve worked. I also understand it’s the same situation in other African countries where I’ve consulted with colleagues. The process involves the coordination of various departments working towards avoiding delays in the procurement process. It’s not easy, but it can be done if all concerned are committed to making it work.
Thank you for sharing your knowledge in procurement, I’m gaining a lot as a new student . I’m everyday reading your articles.
Thanks Morro,
Glad to know you find them useful.
To know what to buy, when, where and how much. The procurement plan, if properly prepared, keeps you focused on what to do and when. It also helps you to monitor the performance of the procuring entity and to improve on areas where you are having particular problems.
Good question.