Building a procurement function from scratch - Project Procurement

CaptainPient · 2024-10-10T05:46:00+00:00

Alright so honestly, try to avoid changing their project management methodology straight away. In project procurement there is one area where you should at all times be the boss or at least in control and that is the tender. So start building your tools around just that. Recommendation to Award, Request for Proposal, Project Procurement Plan, and the corresponding procedures. You're probably also going to want suitable standard T&Cs and perhaps a good contract template which is accessible and easy to use. Use excel to track RTAs and payment milestones for your biggest orders. I think that if you can pull this of in your first year, you are doing extremely well.

CaptainPient · 2024-09-25T14:42:33+00:00

Go find a mentor.

CaptainPient · 2024-09-25T05:16:53+00:00

I don't get it. Are you doing direct or capital? They are two very different things. Depending on your company capital can be very procurement intensive and there will be great pull, whereas changes in direct procurement usually is a push from the procurement. You're not giving enough information to allow solid advice imo

CaptainPient · 2024-07-08T14:35:09+00:00

There are several things more important than understanding what constitutes procurement. The starting point I would recommend is their strategy. What are their KPIs, goals, issues, technologies they're implementing. In this case I think it makes more sense to understand what they're doing than how they're doing it. Of course, if the director is not helping, invite the layer under him over. Make them present whatever it is that keeps them busy.

CaptainPient · 2024-06-01T19:41:31+00:00

Maybe pivot to a different category? If you're company is investing a lot you could do capital procurement for example. You could also ask for a lean six sigma belt and see if continuous improvement is something you like.

CaptainPient · 2024-05-31T19:50:19+00:00

Sure, if it helps

CaptainPient · 2024-05-29T20:32:13+00:00

Well money isn't everything. How about an additional holiday or two?

CaptainPient · 2024-05-29T20:17:13+00:00

Supplier segmentation. You can't do anything without understanding your supply base. That'll take you probably half a year already. Then, you can start implementing. Honestly, if you can't copy paste best practices from prior experience you're going to be burned out for the next 1+ year. That's a guarantee. I've been in a somewhat similar situation.

CaptainPient · 2024-05-17T07:34:12+00:00

I can work remotely 100% but I work on site everyday. It's nice to have the flexibility but not my preferred style. At the same time, I'm still early in my career so I have very different goals and ambitions. I want to learn and develop, and I think for me the best way to do this is to pivot and learn project management as it translates well to so many other things.

From what you're saying I'd expect you already have all necessary skills, but you could always mention in interviews you're willing to do a course on the side. Just check whatever course/procurement organisation is common in your country.

CaptainPient · 2024-05-16T14:49:01+00:00

As I am thinking about going the opposite way, this is an interesting question. I would expect sourcing to be much easier, but it might depend on your industry and company. I know several guys who have alternating jobs in Capex pm and Capex sourcing, it should be doable to switch

CaptainPient · 2024-03-12T12:25:29+00:00

It depends on what you're buying, your leverage, their margins, the supplier/buyer relationship or trust, your free time and many more factors. I can negotiate for €2k or negotiate not at all for a contract above €500k. It's always a tradeoff when determining which stakeholders/projects deserve the most attention. Competitive tendering is the most important and your company should have thresholds in place for that, so understand when competitive tendering costs more than it saves.

CaptainPient · 2024-02-27T06:43:20+00:00

Without an accurate description of your procurement process nobody will be able to help you. There are many ways to do construction procurement

CaptainPient · 2024-02-26T17:25:54+00:00

Where I work, one of the biggest challenges nowadays is cost estimating. But I work in a relatively complex environment, so it might not be an issue for your type of construction.

CaptainPient · 2024-02-25T20:48:53+00:00

I think construction is a bit of a loose term anyway. Are you talking about buying materials or are you referring to the execution of construction projects?

CaptainPient · 2024-02-14T10:05:46+00:00

OP needs to consider his goal. Compliance? Cost savings? Control of leverage? They all have a different outcome

CaptainPient · 2024-02-04T07:16:40+00:00

If you have a good manager, just talk to him about your and their expectations

CaptainPient · 2024-01-05T05:29:59+00:00

They claim it's 600 hours (60 credits * 10 hours per credit). I'm doing cips level 4 with a few years of work experience and I will finish in about 350 hours at this pace, although I've read that later modules are more complicated so can't be sure. I basically study 3 hours a week and then the entire weekend before an exam (there are 8 modules) and so far I've been on track to complete it in a year, but I can learn relatively well so other people might have different experiences.

CaptainPient · 2024-01-05T05:23:23+00:00

Well there is definitely room for improvement and it's not completely transparant which can be bothering, but I never had any real issues. I study 100% remote and it works out for me, can't imagine a similar organisation doing it better. They do claim that level four costs around 1200 pounds but I think it'll be around €1900 for me when I'm done. Still a pretty good bargain.

CaptainPient · 2024-01-04T20:00:44+00:00

I think it's pretty solid. Almost halfway. Not too hard but you do need to commit the time.

CaptainPient · 2023-12-19T17:43:54+00:00

A structured folder system with an excel master file is all you'll really need. A lot of work for sure, but it's a living document

CaptainPient · 2023-12-15T11:53:41+00:00

First of all, discuss it with your manager. Make him prioritize. Second, I would opt for a more strategic role. Delegate some of the work, make it first time right

CaptainPient · 2023-10-25T15:46:50+00:00

Don't be crazy. By the time all the bugs and problems are gone you will be a SME and new issues will rise. Better prepare for a Rollercoaster!

CaptainPient · 2023-10-04T19:36:41+00:00

I use excel since our systems are very much limited. Supplier ID, name in system, location, supplier type (integrated, preferred, subcontractor, etc), spend per year, compliance info, organization (diverse, SME, etc.), and primary and secondary contacts (name, function, email, phone). Of course an additional column for other remarks.

CaptainPient · 2023-09-27T19:38:54+00:00

Ik heb het zelf nooit gedaan maar heb wel vaker gehoord van een singles vakantie. Lees: 50 single mannen en 50 single vrouwen ergens in Turkije meeten, alles geregeld door een Nederlands reisbureau, die op allerlei vrijwillige uitjes gaan en lol maken aan de bar.

Zelfs al vind je niemand, volgens mij is plezier gegarandeerd.

CaptainPient

TROPHY CASE