Emergency procurement always be a challenging job. Following are the challenges an organization could face:
– Need identification
– Budget allocation and fund collection
– Market Capacity
– Vendors/Suppliers Capacity
To identify the need in emergency definitely a challenging task. Reason behind are changing needs frequently which restricts a buyer his spend analysis, category identification is very difficult if need is changes. Sometimes, end users are also confused with their specification of the need which make the procurement process delayed.
To overcome this situation, suggestion are below:
Need a high level operational committee headed by all wings emergency activator and arrange frequent meeting to identify need and arrange solution of bottlenecks.
Specification should be defined accurately at upfront and buyers should challenge the specification if it differs from market requirement.
Budget allocation and fund collection:
Fund collection is a great challenge and allocating budget accordingly is a challenge for procurement. Because different donors have different view, terms and condition organization need to fulfil.
To overcome this situation, recommendations:
Engagement of all emergency participants.
Visualize earlier and new humanitarian engagement to the donors.
Always allocate budget on need basis and amendment accordingly.
Capacity of the local and overseas market identification is very difficult as there is no opportunity of analysis. Immediate procurement is essential and value for money identification is a question.
To overcome, recommendations:
Immediate assessment required.
Engage local stakeholders, like, Government Procurement wings, Organizations operate business in the relevant location.
Liaison with other international partner.
Vendors / Suppliers Capacity:
Identification of right supply sources is challenging as prompt engagement is important. Local suppliers should prioritize but their capacity identification is a question.
To overcome, recommendations:
Vendors could be developed through proper guidance and training.
Share the emergency plan with vendors and arrange physical visits to educate them the emergency.
If possible, international procurement could be engaged with consolidated requirement.
I have introduced different analysis in my earlier organization (icddr,b), like, ABC Analysis, Spend Analysis, Total Cost of Ownership Analysis, etc. and there are fruitful implications of the analysis by Management. Achievement was ensuring value for money and cost reduction.
Example: Spend Analysis, by doing this we identified spend category and specific users of that category. Arrange consolidate procurement and long term agreement with suppliers of largest category. This ensured bulk savings and reduce hassle in procurement task.
I was working as a Senior Procurement Officer in that role.
Following are my offers to the supplier to offer a discount:
– Visibility of my organization and value of doing business with my organization.
– Consolidate requirement and ensuring continuing business.
– Identify reduction of cost that supplier need not to pay if we have the capacity.
Sole source procurement: If the product we required have only one source, without wasting time we could arrange direct negotiation with them.
Single source procurement: Considering business need frequent purchase from a specific supplier is single source procurement .
Quotation method: Identification of some specific vendors considering market nature and buying from they through request for quotation method.
– Need identification and defining specification
– Market Analysis (Capacity of the responsive suppliers)
– Further evaluation of need with market analysis
– Tendering process (Technical & Financial separately)
– Tender Opening
– Technical evaluation
– Financial evaluation of shortlisted supplier
– Award Recommendation