Procurement Management is one of the Knowledge Area in Project Management. Every organization need to acquire services or products at some point of time during the course of their action. One who Buy the service or product is called "Buyer" and one who provide the service or product is called "Seller". This relation is based on mutual understanding.
Procurement Management has four processes under it.
1. Plan Procurement
2. Conduct Procurement
3. Manage Procurement
4. Close Procurement
Today we will look at Plan Procurement through pictures.
At a high level during Plan Procurement process following things happen.
- Performing Organization and Project team decide to either "Make" or "Buy" a service, equipment or product. The decision is based on well thought process.
- If the decision is to Buy Procurement SOW is preparred by the Project Manage and Project Team in consulation with the Procurment Dept/Procument Manager.
- Procurement SOW is passed to suppliers who in turn respond to the Procurment SOW
Next: What is Conduct Procurement
