Project Management and How it Relates to Purchasing and Supply Management - Research Paper Example

As depicted in this paper, to ensure the success of a project, managers must ensure timely delivery of quality raw materials and other resources as well as proper planning. To ensure that vendors participate in the procurement process, firms are under obligation to issue request for proposal (RFP).Once the vendors receive the RFP, they should submit their proposals. The proposals are then reviewed by selection committee. This paper analyses two ways of improving the assessment of proposals. These include use of preliminary screening and professional review and assessment.

Major stages applied during the selection of the most qualified vendor in a proposal include review of all proposal submitted by the vendors, recording the vendor and business requirements, assigning important value for each requirement, assigning performance value to each requirement, computation of total performance value and lastly selection of the successful vendor. In their efforts to create a strong relationship with their clients and suppliers, it is imperative for firms to implement a contract that covers the delivery terms and conditions, duration of a contract and payment terms.

Introduction Project management entails the processes that are undertaken by the project managers to ensure that the specific objectives of a project are attained. The key processes include securing, planning, organizing, and managing the available resources (Harold, 2003). On the other hand, purchasing and supply management encompasses the procurement, monitoring of goods while in transit, storage of raw material, the level and quality of supplies. Some of the major factors that determine the success of a project are the availability of raw materials at the required time and quality, the costs of transportation of the raw materials and effective communication between the project managers and the purchasing and supply manager.

In this regard, it is clear that project management and purchasing and supply management have a close link that firms cannot overlook. This paper analyses the crucial aspects that covers project management and how it relates to purchasing and supply management. Procurement management Procurement management entails the process of purchasing inputs and other economic resources from the vendors. Economic resources include capital, labor, technology and land that are vital in the production process of a company (Shaw and Felecia, 2010).

One of the primary implications of procurement management is that it enables the organisations to negotiate with the suppliers so as to get the best quality inputs at a discounted price. In this way, firms are able to minimize their costs of production thus increasing their level of profitability. Due to limited business operations by smaller business entities, they do not maintain a specific procurement department. However, large companies who are fond of purchasing raw materials in bulk, emulates a comprehensive procurement management process to avoid jeopardizing the production process.

Contract management Contract management involves the administration of the contracts made between companies and the vendors, customers, employees and other partners. Major aspects that are covered by contract management include negotiating the terms of contracts, ensuring compliance with the terms and conditions outlined by a contract, as well as making the necessary changes during